RES4MED: building a Med energy bridge, a call for public - private efforts for renewables RES4MED. Distributed renewable energy solutions

Transcription

1 RES4MED: building a Med energy bridge, a call for public - private efforts for renewables Roberto Vigotti Secretary General MEDELEC meeting Bruxelles, 5 May 2015 Agenda New Mediterranean energy challenges RES4MED Distributed renewable energy solutions New RES4MED Mediterranean and EU-Med energyre challenges Platform Conclusions 2 1

2 Vision of RE deployment in Mediterranean up to 2014 Innovative and robust analyses of key Initiatives (Dii, MedGrid, MSP) shaped political agendas and kick-started ambitious programs in SEMED Countries, to rely on RES to cover a substantial part of the growing domestic demand Opportunities and benefits for a massive renewable deployment in South Med countries included a consistent import of energy to Europe for their bankability, not anymore a pre requisite The Mediterranean energy context The two shores of the Mediterranean Sea will have to respond to different sets of challenges Stable Power System Overcapacity RES integration North Economic downturn and energy efficiency measures slowed power demand increase Key Elements Sluggish demand growth Little investment needed in new additional capacity Decommissioning inflexible surplus capacity will require very high investments in the long run Dynamic power systems GDP growth Increasing energy demand (5-9%) South SEMCs in a phase of political transition; rapid rising electricity demand requires solutions Key Elements Strong energy demand growth (increase by 81% for 2010 to 2050) Population boom Large general investment needed in the short term 4 2

3 Renewable energy targets in SEMED area TURKEY TUNISIA ALGERIA 30% LEBANON MOROCCO 30% 27% 12% 42% 10% JORDAN 20% EGYPT TARGET BY 2020 WIND TARGET BY 2023 RENEWABLE ENERGY INVESTMENTS** Cumulative public and private investments in RES power plants to reach country targets SOLAR HYDRO BIOMASS TARGET BY Billion GEOTHERMAL 2,8 Billion MOROCCO 2 10 Billion TUNISIA Billion JORDAN EGYPT *Target as % of: total installed capacity (Morocco); electricity mix (Algeria, Egypt, Tunisia,Turkey); total energy supply (Lebanon); primary energy (Jordan) **RES4MED internal estimation: conservative investment level on the basis of average and technology specific unitary capex. Tunisia: only private sector, assuming that public derisking measures are implemented, (UNDP, ANME, Tunisia: Derisking Renewable Energy Investment, 2015) What has been working Up to the end of 2014 Recent long-term remuneration contract prices (Auctions and FITs) Germany $/MWh Ireland 69 $/MWh US ~75 $/MWh US 48 $/MWh UK $/MWh UK 120 $/MWh Turkey 73 $/MWh Egypt 41 $/MWh Dubai <60 $/MWh China $/MWh India 88 $/MWh 60 $/MWh Onshore wind Chile 89 $/MWh 85 $/MWh Utility PV Brazil 81 $/MWh Brazil 54 $/MWh SA 76 $/MWh SA 76 $/MWh Australia 65 $/MWh Souce: IEA, 2015 The combination of technology cost reduction, better resources and appropriate regulatory framework attract investments, in particular, long-term PPAs and price competition are effective drivers RE can be competitive with new fossil fuel plants even with low oil prices A new benchmark for Solar PV and Wind established early 2015 thanks to competitive auction system in MENA Region. International competitive auctions bring more efficient solutions and widely diffuse benefits for the industrial development of the country itself : a good example of Public Private Partnership 6 3

4 Agenda New Mediterranean energy challenges RES4MED Distributed renewable energy solutions New RES4MED Mediterranean and EU-Med energyre challenges Platform Upcoming events 7 RES4MED Association Renewable Energy Solutions for the Mediterranean is a not for profit association created in 2012: Platform for public-private dialogue on renewable energy issues in the Mediterranean Advisor and facilitator to Regional Institutions, local Governments and Regulatory bodies Network of international leading utilities, industries, agencies, technical service providers and academia, actively engaged in the Southern and Eastern Mediterranean (SEMED) countries Supporter members Ordinary members Associated partners Academia 8 4

5 Mission, Strategy and Membership Mission Support the deployment of renewable energies, both large scale and distributed energy, facilitating their integration in domestic and regional markets to satisfy local energy needs Strategy Market intelligence Awareness and institutional advocacy through dialogue with Southern and Eastern Mediterranean (SEMED) governments and regulators Capacity building and training, disseminating best-practices and procedures on RES regulation, policies, standardization, operation Membership Reformed governance of the Association aimed at streamlining the decision making process Internationalization of the Association through MoU, joint programs and ad-hoc alliances with southern energy companies: first Sonelgaz Involvement of technology partners active in the SEMED countries, keeping a neutral technology focus 9 RES4MED s Focus RES4MED shares its expertise in the following focus areas: Direct dialogue with stakeholders of SEMCs The promotion of capacity building and training Distributed energy solutions to meet local needs Cover energy needs providing social and economic benefits 10 5

6 Renewable Energy Solutions for the Mediterranean Direct dialogue with stakeholders of SEMCs Distributed energy solutions to meet local needs The promotion of capacity building and training Cover energy needs providing social and economic benefits RES4MED Days: one-day high level workshops fostering the dialogue with local stakeholders rs to generate a deeper understanding of local needs and propose a set of solutions to match them Morocco Rabat event 2015 RES4MED itinerant events will take place in Egytp mid September and later Turkey 11 Information sharing creates value The contents of Home / Activities / RES4MED DAYS_RABAT: ONE-DAY HIGH LEVEL WORKSHOP Opening Session Welcome and Key Note Roberto Vigotti, Secretary General of RES4MED RES4MED Day Morocco The new Med energy and social context Sudqi Omoush, Energy Expert and Policy Advisor at Secretariat, Union for the Mediterranean Morning Session - Mediterranean energy context: focus Morocco September 16th Potential 2014of PV in Morocco Badr Ikken, General Director of The Research Agency on Solar and Renewable Energies(IRESEN) Investment climate: business models to deploy RES and EE in Morocco Ahmed Baroudi, Directeur Général de la SIE Afternoon Session The broad range of RE and EE solutions Italian experience in deploying renewable energy - Luca Benedetti, Head of Energy Studies at GSE Centralized vs. distributed power generation in developing countries: what's smarter? - Marco Raganella, Head of Business Development Maghreb at EGP Digital Metering: a key enabling factor to foster RES development - Simone Aibino, Area Manager Europe, Mediterranean Countris & USA at Cesi Storage to manage grid congestion - Maria Luciana Rizzi, Head of Research Strategies at RSE Waste to Energy industry from urban waste and agricoltural residues: a social path - Vincenzo Pace, Technical director BU Biogas & Biomasses at ASJA Financing energy efficiency: main barriers and solutions - Paolo Gentili, Senior Manager at PwC Esco s experience, know-how sharing from Energy Efficiency Italian industry - Andrea Ponta, Energy Manager at IREN Efficient water management: sustainable solutions - Franco Valentini, Business Development Director at SANTERNO ICT for energy management - Maurizio Pellegrini, Research Director Office at FONDAZIONE UGO BORDONI 12 6

7 Information sharing creates value (1/3) The contents of Home / Activities / Annual Conference 2015 All the proceedings of the conference are available on the website Download 7 speakers presentation, i.e. of the Egyptian stakeholders Session Delivering Renewable Energy Investments in Egypt: Challenges and Opportunities 20th April 2015 Auditorium Enel S.p.A., viale Regina Margherita 125, Rome Tareq Emtairah Institutional partners The future of energy mix in Egypt: the role of renewable energy (Executive Director, RCREEE) Mohamed Salah El Sobki (Executive Chairman, NREA) Salma Hussein (Department Manager, License & performance evaluation, EgyptERA) Videos Photostream avaiable on RES4MED You Tube channel 13 Renewable Energy Solutions for the Mediterranean Direct dialogue with stakeholders of SEMCs Distributed energy solutions to meet local needs The promotion of capacity building and training Cover energy needs providing social and economic benefits RES4MED and Enel Foundation, in cooperation with Politecnico di Milano and Union for the Mediterranean, organized the first advanced training course called Integration of renewable energy solutions in the Mediterranean electricity markets 15 grants assigned to middle managers coming from Algeria, Egypt, Jordan, Lebanon, Libya, Morocco, Tunisia and Turkey. RES4MED capacity development program in 2015 will focus on: 2 nd Edition Advanced Training course Integration of renewable energy solutions in the Mediterranean electricity markets 1 st Local Summer School Solar and wind for sustainable development in Morocco 1 st workshop on Energy Efficiency Solutions at Politecnico di Torino 14 7

8 Advanced training course Polytechnic of Milan - Bovisa Campus - 16/27 November 2015 supported by Enel Foundation also involved as co-organizer In cooperation with Aim Provide technical, economical and regulatory tools and innovative laboratories visits (PoliMi, RSE, CESI) to assess the most appropriate solutions in different energy contexts for the integration of renewables in the electricity market Structure The course foresees lectures on the main technical, regulatory and financial features given by qualified international and Italian experts, academics (PoliMi, PoliTo, Bocconi) and highly skilled technicians, matched with visit to innovative laboratories and power plants Target The target audience consists of 20 professionals from the following Southern and Eastern Mediterranean countries (Algeria, Egypt, Jordan, Lebanon, Libya, Morocco, Palestinian Authority, Tunisia and Turkey), 15 young professionals from RES4MED shareholders and 10 Ph.D. students and Researchers from Italian Universities. Free of charge participation for at least 20 attendees from SEMCs, for which the organizers will cover travel and accommodation costs as well. Call for application 15 will be opened in June Information sharing creates value (2/3) The contents of Home / Activities / Advanced Training Course Integration of renewable energy solutions in the Mediterranean electricity markets Two Weeks Advanced Training Course Over 45 presentation to download In collaboration with I.e. the presentations of the PV technology Lessons 8

9 Knowledge Management System The main goals for the KMS are: Share knowledge and ideas Promote efficient use of resources Promote collaboration among MED stakeholders The Knowledge Management System KMS ( available on the home page is the RES4MED s key instrument for knowledge sharing 17 Knowledge Management System How does it work? Weekly update 144 studies available to date 18 9

10 Knowledge Management System A wide range of topics in the renewable energy and energy efficiency field to generate integrated and innovative solutions! 14 Sections 19 Renewable Energy Solutions for the Mediterranean RES4MED carries out studies and analysis on: Direct dialogue with stakeholders of SEMCs The promotion of capacity building and training social impacts of renewable energy development, value creation in industrial deployment and jobs Distributed energy solutions to meet local needs Cover energy needs providing social and economic benefits social acceptance of renewable energy projects within IRENA Coalition true cost of energy and energy subsidies: evaluation of energy subsidies in Southern and Eastern Mediterranean region local content requirements (LCR) within UfM with the aim of improving the awareness of socio-economic benefits among local stakeholders 20 10

11 RES4MED activities Studies and analysis - Jobs impacts of RE investments Objective(s) To provide investors with an employment impacts evaluation tool for their own investment plans to compliance with Local Content Requirements (project-level) To provide Policy makers with support on how to create an enabling environment for a dynamic development of the renewable energy sector (macro-level) Approach In-depth case-base analysis both on project-level (power plant development) and on macro-economic level (through an analysis of impacts on local economies). Project level Employment impacts Case study approach (job creation and employment rate; employment share along the value chain (Construction, O&M, etc); skills, career development. Investors interviews -> case studies on value chain of the power plant lifecycle (project development, manufacturing, installation, grid connection, O&M, reconstructing, financial services, education, R&D, consulting etc). Macro - level Economic impacts Impact analysis (Investments in human capital; economic growth and competitiveness; impacts on GDP; innovation and technological development) Local stakeholders consultation and the desk research. Input-Output model within the impact analysis methodology Results Costs and benefits of RE investments, with a specific focus on job creation along the value chain Impact assessment and recommendations for policies enabling renewable energy investments in Egypt and in Morocco. Awareness raising on benefits of RES deployment 21 RES4MED actitivities - 4 Direct dialogue with stakeholders of SEMCs Distributed energy solutions to meet local needs The promotion of capacity building and training Cover energy needs providing social and economic benefits RES4MED favours the promotion of local manufacturing and services industry proposing complementary distributed energy solutions: pv pumping, hybrid village power, biogas from urban wastes and agricultural residues, storage solutions, integrated solar pv industrial platform, energy efficiency in public lighting digital metering a key enabler for RE integration ITC for energy management 22 11

12 Agenda New Mediterranean energy challenges RES4MED Distributed renewable energy solutions New RES4MED Mediterranean and EU-Med energyre challenges Platform Conclusions 23 Digital Metering: a key enabling factor to foster RES development (1/2) Smart grid is a full ecosystem which includes multiple technologies across the chain 24 12

13 Digital Metering: a key enabling factor to foster RES development (2/2) Integrated benefits along the entire supply chain up to final customer! 25 Mini grids: competitive for remote areas Rural electrification still a widespread problem for tiny rural villages far from the national grid. Hybrid systems could be the most suitable solutions Comparison between On-Grid and Off-Grid solutions Source:Mini grid tool kit, RECP, ARE, REN21 Farther or less densely populated villages are better supplied by off grid solutions: with Stand Alone Systems* if providing electricity only to individual user with Mini-Grids, if to groups with a local network disconnected by the national one *Stand Alone Systems are mainly diesel gensets or photovoltaic devices, Solar Home Systems (SHS) with a nominal power up to 150 Wp or Pico-PV Systems (PPS) up to 10 Wp. SHSs cost about 10 /Wp (IEA, 2012) whilst PPSs cost more, from /Wp up to /Wp (IEA, 2012) 26 13

14 Biogas from organic or agricultural wastes Involve local people in the value chain by creating new jobs and knowledge 27 PV pumping The majority of water in the Mediterranean Region is used in the agricultural sector (83%) Photovoltaic water pumping is a real alternative, offering the following advantages: Do not require fuel, thus their operation is independent from fuel availability and price development Can be located close to demand (no distribution losses) Do not require batteries as the energy is stored in a high level storage tank Today PV Pumping is a competitive solution along the entire life cycle of water management both for small villages and rural communities Good opportunities to create indigenous technical jobs (management and maintenance of the system) 28 14

15 Agenda New Mediterranean energy challenges RES4MED Distributed renewable energy solutions New RES4MED Mediterranean and EU-Med energyre challenges Platform Conclusions 29 Our role in the EU-MED Platform on RES/EE Background and mandate Union for the Mediterranean, European Commission and Jordan called for gathering MED energy partners on proposal and mandate for establishment of a Euro-Mediterranean RES/EE Platform, based on the Rome ministerial declaration of November 2014, to be launched in Egypt in September Building on the conclusions of preparatory meetings and in order to prepare a roadmap setting out the common vision, challenges and next steps of the Platform, the EC invited RCREEE with the support of RES4MED to draft the scoping paper for the RES working group of the platform. A scoping document has been presented highlighting our perspective on the approach, state-of-play, role of the platform in facilitating technical assistance for SEMC s, engagement of industry and the financing community

16 Our role in the EU-MED Platform on RES/EE Recommendations for action The EU-MED RES/EE Platform will serve to help the UfM Member States and the wider inter-regional sustainable energy community to set priorities for recommended areas of action in the SEMC s based on a bottom-up approach from needs assessment to priority setting. Building on previous work of the technical working groups of the UfM, the broad areas for action have already been elaborated in the following five domains: Recommended Areas of Action within the EU-MED RE Platform 1. Common Energy Knowledge Base A cross-regional and harmonized common energy knowledge base that draw a regional state-of-play. 2. Policies & Regulations 3. Business Models & Financing Policy and regulation that enable market transformations in the SMC s. Business models & financing tailored to the SEMC s market developments. 4. Socio-Economic Benefits Strategies that bring forth the right socio-economic benefits. 5. Training & Capacity Building Growing Member states institutional capacity in their progress towards sustainable energy 31 Euro-Mediterranean Industry Board (EMIB) Why do we need a EMIB? RES4MED was tasked by EC to set up a Euro-Mediterranean Industry Board (EMIB) for providing policy makers with private sector perspective required Investment conditions Permitting Power sector structure Finance Shareholding conditions Transparency on required permits Independent regulators State guarantees for off-take/payments Dispute settlement Reliable processes Transparent monitoring Currency exchange Transferability of Contract enforcement Sound/balanced tenders Double tax agreements permits Capacity building Detailed regulation w/o uncertainties Solar/wind measurements Regulated grid access Fossil fuel subsidies Support scheme design Renewables as priority sector for FDI Auto-production Land property Market integration Political risk mitigation 32 16

17 Euro-Mediterranean Industry Board (EMIB) Mission and objectives to promote government-industry dialogue on renewable energy and energy efficiency as an authoritative and visible think tank for the Euro- Mediterranean Energy Partnership and its topic-specific Platforms EMIB main objectives communicate and share direct industry and market needs/views/vision provide public authorities with industry insights provide assessment on concrete hurdle for industry investments develop a common information and communications strategy facilitate the cooperation within the Med RE/EE and REM Platforms community promote regulatory stability and thereby investor confidence 33 Euro-Mediterranean Industry Board (EMIB) Key principles and composition balanced geographical representation from the Euro-Mediterranean region technology inclusive approach (limited though to renewables and energy efficiency) entire spectrum of industry value chain, both for utility scale projects and small scale solutions The EMIB will be composed by the main industry players (Energy companies, Utilities, Manufacturers, Service Providers, etc.) active in both Northern and Southern shores 34 17

18 Agenda New Mediterranean energy challenges RES4MED Distributed renewable energy solutions New RES4MED Mediterranean and EU-Med energyre challenges Platform Conclusions 35 RES4MED Who we are Our network RES4MED has developed a wide and solid network with the main Institutions, Industry Association, Agencies and Research Centers International Network International Partners With all these partners, RES4MED started relevant partnerships and joint initiatives aimed at cooperating in specific fields in the Mediterranean Countries This engagement activity is a relevant part of the RES4MED operating model set up for achieving the Association objectives, based on the public-private partnership model 18

19 Conclusions A significant deployment of RE in the region above can be implemented in the short term, if politically supported: the long term commitment of governments is crucial for investors confidence. Still, there is a difference between formally adopted and effectively applied regulation Appropriate policies and regulation are priority factors and should be enacted from today, accelerated by international political processes and institutions, like the European Commission, the Union for the Mediterranean, the Arab Cooperation on Renewables and Grids Transparency and stability of policies and business models are crucial elements in gaining investors confidence in existing regulation. In other words, action has already begun: the next challenge is to ensure the effectiveness of these ongoing processes and the better coordination between them. RES4MED is fully committed to support this process 37 Thanks for your attention! Contacts roberto.vigotti@res4med.org flavia.lichiavi@res4med.org 19

20 Key enabling factors for mini grids Main challenges for Mini-Grids are related to the policies and regulation framework This framework must be: Stable and long-lived: to reassure investors on the stability of the revenues. In particular, the national grid extension program has to be clarified and respected to lead to a correct planning of investments avoiding problems related to the new iplementation of national grid in rural villages just fed by mini-grids Clear and comprehensive Accessible Cost-effective and efficient Light-handed and simplified 39 The case of Morocco: biogas from organic and agricultural wastes Agricultural and agroindustrial residues can be used as sources of energy by means of the anaerobic digestion process Morocco is the 5th Country in the world for olive production Olive crop area: ha Olive production: tons/year Virgin olive oil: tons/year Traditional oil mills facilities: Olive oil residues: 80% of olive processed Agriculture is a key sector for Morocco s economy. The main agricultural products include: Olives, tomatoes, citrus fruit The main agro industry products are: olive oils, cheese, preserved or canned fruits and vegetables 40 Source: The Statistics Division of the FAO - FAOSTAT

21 A fully integrated energy/agri-food chain Agricultural irrigation One of the possible application of PV pumping is related to the irrigation to feed olive trees growth Metrics to evaluate competitiveness of solar pumping is the Levelised Water Cost (LWC) Wastes and scraps of agrifood chain are natural inputs to produce biogas through anaerobic digestion process Small scale biogas is an accessible, affordable and integrated technology to produce both electricity and heating locally LWC - Levelized cost of pumped water is the levelised cost per unit litre of water pumping, it reflects Capex, fuel cost (zero in PV case), fixed and variable O&M cost, financing costs, and an utilisation rate for each technology As for the viability of pumping alternatives, from the techno-economic aspect, solar pumping system is the best solution for pumping water, because of lower operating and maintenance cost and of its full environmental sustainability 41 RES4MED broad international profile Generating value State of the art Achievements Med Solutions IRENA is a platform for all-inclusive cooperation where stakeholders can make a positive contribution to the common goals. It aims at promoting knowledge sharing, enabling policies and enhanced capacity, encouragement of investment flows MED Solutions is the Regional hub for the Mediterranean of the Sustainable Development Solutions Network (SDSN). MedSolutions will manage the community funding program ( ) around 400 M (20% dedicated to RE) OME is committed to promoting energy cooperation in the Mediterranean Region. OME serves as both a platform to promote regional dialogue and cooperation in the Mediterranean energy sector and a Think Tank for energy reference in the region Renewable Energy Policy Network for the 21st Century is the global RE policy multistakeholder network that connects a wide range of key actors from Multilateral initiative aimed to promote RE and EE deployment. RES4MED, EGP and other 36 stakeholders signed the Coalition for Action. RES4MED is actively involved in the launch of the Coalition and participates in job creation, industrial value chain and fossil subsidies analysis RES4MED is member of Med Solutions s network, working with the aim of presiding energy area. RES4MED partecipated to OME s event within the Intelligent Energy Europe BETTER project, and took part to the OME s Renewable Energy Committee Workshop. OME and RES4MED will relize a fact sheet on Optimal Market Design For Electricity Markets RES4MED is a member of REN21. RES4MED will partecipate to South Africa International Renewable Energy Conference 2015 (SAIREC) organized by REN21 and South African National 42 Energy Development Institute (SANEDI) 21

22 RES4MED broad international profile Generating value State of the art IRENA s Coalition for Action is an initiative born to debunk myths surrounding RE. RES4MED and EGP are among the founding members of the Coalition wich also includes utility, RE manufacturers, industry association and civil society Achievements IRENA s Coalition for Action communication campaign test started in April. The Coalition will present its working program during RES4MED s Conference Delivering Renewable Energy Investments In Egypt: Challenges and Opportunities Union for the Mediterranean Med-TSO is the Association of the Mediterranean TSOs operating the grids of 17 Mediterranean Countries with the mission to promote coordination of development plans and electric grids operation MEDREG is the Association of Mediterranean Energy Regulators. It currently gathers 24 energy regulators. Its mission is to promote a stable and harmonized regulatory framework in the Mediterranean Region National interest, UfM is the unique structured dialogue among 43 countries. EU Commission re-launched the consolidation of Euro-Mediterranean cooperation in the frameworks of * European Neighbourhood Policy and of UfM MEDTSO invited its main partners of Maghreb to participate in the work of RES4MED as partners. The definition of a MoU is under way RES4MED is a MedReg s Partner and supports MedREG s Renewable Energy WG. RES4MED partecipated to MedReg s consultation on Interconnection Infrastructures In The Mediterranean RES4MED is the coordinator of the UfM s Jobs Creation and Local Value Chain WG. The definition of a MoU is under way. RES4MED is committed to UfM and EC to provide imput and implementation activities for the Euro-Med RE/EE Platform to be launched in