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UPDEA General Conference Tunis-May 2012

A.Saddouq

Socioeconomic impact of rural electrification

Case of Morocco

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• Global Rural Electrification Program-PERG- • Launched in 1996 • At the end of 2010 

o 33,000 villages / 1.91 million households connected to network

o 3700 villages / 52 000 homes with PV modules

o Electrification rate : 97.5 % against 18% in 1996.

o 84 % subscription rateo U.S. $ 2.5 billion

Rural electrification in MoroccoA successful bet

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• 52,000 homes with PV (50 Wp, 75 Wp, 200 Wp)

• Contract to provide  «Fee for Service »• Indoor installation +

maintenance + renewal  e expense of the supplier against payment subscription rights + monthly fee + subsidy ONE

• The model reaches its limits with the extension of the interconnected network

Important solar component

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Participative combination

• ONE – Municipalities - Beneficiaries

25%

Beneficiaries 55%

ONE

20%

Municipalities

200 Euro/home

250 Euro/home

• Payment Facilities for municipalities and beneficiaries

• Prefinancing by ONE.

5²²²²²²²²²²²²²²²²²²²²²

• Rural population : 46 % the total population.

• Rural areas made up of:o 66 % poor o 77 % very poor o 90 % extremely poor

Rural areas highly affected by poverty

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• Evaluation throughout the program (1999,2003, 2008).

• Visible effects on environment and socio-economic development but needs to be strenghthened.

Socio-economic impact and environment

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• Primary Sector: little effect on small and medium operations.Secondary sector (i.e milk processing) but considerable dependence on road infrastructure.Secondary activity: very strong impact on local trade

Impact on local economy

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• Improvement of school enrollment .• Improvement of household equipement

( fridges, TV,…).• Little effect on rural exodus.

Social Impact

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Impact on environnement

• Abandonment of GE:o FE 1.9 kg CO2 / kWh against 0.635  for

the interconnected ONE network• photovoltaic stock: 20000 tons CO2

avoided annually.• Avoidance of soil pollution by the

batteries widely used before electrification.

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• Transfer 2.4% of GDP to rural areas.• Growth effect on the power sector: industry

and services • 15 000 permanent jobs.

Impact on national economy

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• RE : significant impact on the environment and rural development.

• Strong impulse of solar slowed by network expansion. New balance to be designed

• Many externalities: homeland planning, local governance, information .... ….

• Moderate development of productive uses and AGR.

• Need for proactive policy support. • New production launch. 

Conclusions

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Conclusion

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Thank you for your attention