IfaS International Conference On Circular Economy Rhineland-Palatinate December 1 st, 2010 Renewable Energies in Morocco SIE, a new Actor
Agenda A new dynamic in Morocco Energy strategy and opportunities of investment SIE Presentation
MOROCCO IS MOVING 1999 2010 Toward a sustainable development Social Cohesion Economic Development Environment Preservation HUMAN RIGHTS FAMILY CODE INDH INSTITUTIONS STRATEGIES PLAN VERT EMERGENCE TOURISME INFRASTRUCTURES ENERGY STRATEGY NEW LAWS WATER, WASTE, A State of Rights Environment Charter
* Source : All figures provided by Ministry of Energy, Mines, Water, and Environment - 2008 13 265 13 942 14 804 15 540 16 779 17 946 19 518 21 105 22 608 24 004 25 009 GWh In a steady growth trend, Morocco faces diversified challenges Morocco is enlisted in a development dynamic A strong economic growth in Morocco Industry : Emergence plan Tourism : Azur Housing Plan GDP growth of 6.5% in 2008 and 5,3% in 2009 despite the world economic crisis Agriculture : Green Morocco Water Sustained by the deployment of strategic programs for infrastructure development Energy Development Infrastructures Phosphate : Jorf Lasfar Platform Tanger Med 7% A steady and sustained rise in energy demand* (~ 5%), in particular the demand for electric power (~ 7%) 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Agenda SIE Profile Energy strategy and investment opportunities SIE Presentation
* Source : All figures provided by Ministry of Energy, Mines, Water, and Environment - 2008 In a steady growth trend, Morocco faces diversified challenges As a non fossil energy producer, Morocco intends to secure its energy supply Power generation is primarily fuelled by fossil energy sources High dependency on primary energy imports (95% of national requirements) Energy bill exceeding 50 billion dirham* (~$6 billion) in 2008 Hydraulic Wind 1% Wind 2% Electricity import Natural Gas 8% 4% 4% Hydraulic 24% 24% Fuel Coal 22% 60% Fuel Pumped storage Natural Gas 9% 7% 34% Coal Energy consumption distribution* (14,72 MTEP) Distribution of installed power*
Energy Strategy founded on pragmatism, anticipation & efficiency Promotion of Renewable Energy and Energy Efficiency is at the heart of National Energy Strategy Energy supply security & availability Energy sources diversification & mix optimization Reduce dependence on external energy sources Develop a national and proactive dynamic Reliable technology appropriation Insertion in the national industrial base National resources development & exploitation General access to energy Environment preservation Create a competitive advantage in the energy sector National education program in RE R&D: The Renewable Energy Research Institute Energy efficiency raised a national priority Mastery of energy demand Focusing on 3 priority axis : Industry Residential Transportation Regional integration Promote economic & social benefits Creation of employment centres New sources of income Creation of new business areas
To take advantage of its potential and capacity, Morocco is undergoing major change Significant energy sources and potential Institutional Support Clear support from the Government Setting of ambitious and achievable objectives Creation of an energy dedicated fund Strategic geographic location Capacity to conduct large projects Favourable conditions for a take-off of national renewable energy field and industry Legislative Means Enactment of RE related laws Renewable Energy ADEREE MASEN Operational Actors Founding of specialized institutions : SIE ADEREE MASEN In addition to ONE
Significant energy sources with a particularly strong potential for renewable energy With wind, sun, marine current Morocco is better endowed than many countries in terms of renewable energy potential Wind Energy Solar Energy Intensive solar radiation ~5 KWh/m 2 /day 3 000 h/year of sunshine particularly important in unserved areas Potential : 25 000 MW Very important wind speed Extensive distribution across the territory Biomass Energy Marine Energy Unsuspected potential reaching 950 MW 512 km of coastline in the North 2934 km of coastline to the west For information : One litter of oil = 10 kwh
An energy strategy supported at the highest level of the state Moroccan Government is determined to develop its renewable energy capacity under the current National Energy Strategy National Energy Strategy Targets by 2020 Programs and projects 42 % contribution of RE to global electrical installed capacity 14% contribution in the energy mix Wind Energy 2 000 MW Integrated Wind Program (ONE) 1 000 MW EnergiPro program (Private sector) 1 000 MW 15% of energy savings 3x Solar Energy (MASEN) 2 000 MW Hydraulic Energy 2 000 MW Evolution of installed power structure Energy Efficiency 15 % Industry 48 % Transport 23 % Residential 19 % Tertiary 10 %
Zoom on Wind and Solar programs Renewable energy sources will become by 2015 the 2 nd source of electricity generation after coal Wind Program Solar Program - MASEN 150 MW 300 MW 140 MW 50 MW 150 MW 50 MW 120 MW 400 MW 60 MW 500 MW 100 MW 300 MW 300 MW 50 MW 200 MW 500 MW 100 MW 500 MW $3.5 billion 6 600 GWh per year Integrated Wind Project : 5 sites EnergiPro program : 3 sites already operational (in green) 5 sites : $9 billion 4 500 GWh per year Dedicated surface : 10 000 hectares First plant : Ouarzazate - 2015
A biomass program under construction A deposit under precise evaluation Potential Huge potential for household and agricultural waste Significant livestock (ovine, ) Algae taking benefit from 3500 km of cost An active anticipation with Pilots New technologies test bench with ADEREE New Concepts validation Plasma gasification Resource Centre (Laâyoune project with IFAS of high interest)
* CAS : Compte d Affectation Spéciale Energy Development Fund (FDE) to financially support RE and EE projects FDE a financial tool to promote investment and to grant subsidies Energy Development Fund (FDE) Saudi Arabia UAE Hassan II Fund Created in 1 st January 2009 (Financial Act Official report N 5695 Bis) Capital of $1 billion built from donations and national grant $1 Billion FDE Capital Objectives 1. Energy production capacity strengthening & preservation Two instruments 2. Financial support to public and private operators in the RE and/or EE fields 3. Financial support for R&D / studies through the Renewable Energy Research Institute for investment CAS* for subsidies
Adequate laws to underpin Morocco's plans to tender 4 000 MW of installed power, and more Three laws to serve the National Energy Strategy of RE development and others under construction Renewable Energy Law 13-09 16-09 & 57-09 Laws Liberalizing power generation for private investment Introduction of four major changes: Creation of two agencies with operational powers to implement Morocco's renewables plans 1. The opening to competition of electricity production from renewable sources 2. Access to the national grid MV, HV and EHV for producers of electricity from renewable sources 3. Ability to export electricity from renewable sources through the use of the national grid and international interconnections 4. The opportunity for a promoter to build a direct transmission line in case of insufficient transmission capacity of national grid and interconnections ADEREE : The national agency for the development of renewable energies and energy efficiency MASEN : The Moroccan Agency for Solar Energy
Synergy and collaboration between Morocco s agencies and offices in the energy sector Morocco s agencies and offices collaboration for a winning prospect SIE Société d Investissements Energétiques ADEREE Agence de Développement Enérgétique et de l Efficacité Enérgétique ONE Office National d Electricité MASEN Moroccan Agency for Solar Energy
Major projects undertaken for a regional presence Ambitious goals achievable thanks to the advantages offered by Morocco in the energy sphere Strategic position at the heart of an energy crossroads And a prime platform of growing electrical energy trade in the Mediterranean Basin 400 KV, 2006 400 KV, 1998 220 KV, 1992 220 KV, 1988 150 KV 220 KV 90 KV 220 KV Synergy in the development of solar and wind energy in the Euro Mediterranean space enhanced by regional scale projects Mediterranean Solar Plan DESERTEC initiative Ability and experience to conduct and implement large-scale projects such as Tangier Med port Large scale electrical power plants
Morocco s offer for an industrial insertion in RE and EE sectors Morocco s industrial insertion offer hinged on 3 points Infrastructures Incentives Mobilization of land Integrated Industrial Platform (P2I) Free Zones Benefits related to common law Investment aid Training aid RE and EE industrial offer Human Resources Initial training programs Schools and institutes
Agenda SIE Profile Energy strategy and opportunities of investment SIE Presentation
SIE a key investor in the energy sector in Morocco SIE grants priority to investments in RE projects including, Solar, Wind, Biomass and Hydro Found in February 2010, by the Ministry of Energy, SIE is an investment institution to accompany, support and promote Morocco s strategy in the sector of energy Identification Chart Legal status Stat limited liability company Date of creation February 2010 Initial Capital 1 billion Dirham (~ $100 M) Legal creation Under Decree N 2-09-410 SIE objectives Governance Shareholders Board of directors Government, Hassan II Fund Support National Development Plan for Renewable Energy (RE) with high environmental standards Promote RE resources and improve Energy Efficiency (EE) Invest in projects that contribute to increase energy production capacity Meet industrialization challenges for various energy technologies prioritized within the country energy strategy
SIE Presentation Our Values Our core values define our commitments and guide our actions and decisions Innovation Being proactive by delivering value on the entire chain of renewable energy industry and energy efficiency. Promoting the development of a self-identity offer to achieve sustainable development. Sustainable performance Combining the profitability imperatives with requirements for positive environmental, social and societal impacts for our investments. Proximity Promote local and regional resources to increase renewable energy share in the national energy mix. Solidarity Investing in projects with favourable social impacts is at the heart of our strategy and in our vision of a corporate citizenship. This requires open-mindedness, predisposition to dialog and willingness to cooperate with partners.
SIE Presentation Strategic positioning SIE takes part and is involved in major RE and EE programs in Morocco Support National Energy Programs Development of 1 000 MW Integrated Wind Programme in partnership with ONE Supporting private initiatives (incl. 1 000 MW EnergiPro program) Supporting in MASEN 2 000 MW initiative Promoting energy efficiency through the backup of ADEREE actions as investor Promote local energy sources Contribution to regional development Promoting industrial integration Strengthening the entire chain of value locally SIE finances a biomass program (biogas capture) Anticipate trends & identify investment opportunities Undertaking business intelligence activities and incubation studies to: Identify and develop RE sources with high potential for Morocco Conduct pilots where appropriate
SIE Presentation Our Investment Strategy A voluntary investment policy to better promote RE and EE and to ensure SIE durability SIE makes minority equity investments in companies carrying out concrete and profitable projects, whose industrial feasibility is demonstrated SIE Investments formalized by the establishment of a partnership agreement describing governance and liquidity terms and a clear divestment planning according to the withdrawal agreement Adoption of investments diversification policy SIE investments are also open to other investors (financial partners) Reinvestments of all its earnings in new projects Favour and promote synergies and complementarities with SIE institutional partners: ONE, ADEREE, MASEN, AMDI
SIE Presentation Identified potentialities for Morocco Investment opportunities diversified portfolio Short term action opportunities, as investor and/or promoter Action opportunities preceded by performing pilot projects Wind plants Small wind turbine Biomass, biogas Biomass : solid and humid residues Thermo solar energy 1. Shareholding interests 2. Financial tools Photovoltaic solar energy 3. Start-up incubation Activities of technology watch, research, studies, pilot project follow-up Biofuels Wave power Marine current energy Activities of technology watch and follow-up Small hydro Geothermal energy
Morocco offers: Institutional Players Local knowledge Secure Investment (permit, law, ) Co-investor (minority of share) Access to a growing regional market Our expectations: Industry Know-how Co-investor Development of local integration Funds (loan & equity)
Thank You! www.siem.ma (Available soon) Investing in a sustainable future