ADRESSING BARRIERS TO CARBON CAPTURE AND STORAGE IN DEVELOPPING COUNTRIES

KINGDOM OF MOROCCO

MOROCCAN PROGRAM OVERVIEW

WASHINGTON 6-9 SEPTEMBER 2011

ZOHRA ETTAIKHEAD OF RENEWABLE ENERGY AND ENERGY

EFFICIENCY DIVISION

MINISTRY OF ENERGY MINES WATER AND ENVIRONMENT

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ENERGY SECTOR

NEW ENERGY STRATEGY

RENEWABLE ENERGY FOCUS

REGULATORY FRAMWORK

ENVIRONMENT STRATEGY

SUSTAINABLE DEVELOPMENT AND REDUCTION OF EMISSIONS

OUTLINE

TRANSIT COUNTRY & A REGIONAL ENERGY HUB

A unique geo-strategic position: proximity to Europe, sub-Saharan Africa, Middle-East and America

MOROCCO: AN EMERGING COUNTRY

Ministère de l’Energie, des Mines, de l’Eau et de l’Environnement 5

OVERVIEW OF MOROCCO

Area: 710 850 Km2Position: North of Africa about 14 km to EuropeMediterranean weatherZone horaire GMT Capitale Rabat

Population: 31 millions inhabitantsDensitY 67,59 habitants/km2Urban Population : 50,9%Official language : Arabic

Ititutionsnal system: constitutional monarchy,democratic and socialAdministrative divisions: 16 regions

Currency: Moroccan Dirham MAD1US Dollar 8,1 MAD1Euro 11,3 MAD

GDP of 730.5 billion DHS (about 63.5 billion euros)22 095 MAD capita GDP (1921 euro)Average 5% growth (over the last five years)Inflation rate 1.0%Average inflation rate 1.9% (over the last ten years))

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Energy consumption : 16,15 million Toe

62% petroleum products and 22% coal

Limited domestic energy ressources : 95% (import)

Energy bill : 62 billion DH (8 billions US$)

where 87% for petroleum products

ENERGY SECTOR IN MOROCCO 2010

WASHINGTON 6-9 SEPTEMBER 2011

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Energy consumption in constant growth

• Primary energy : 5% and 6,7%

• Electricity (2003-2009) : 7,06%/year

Electricity demand

Annual consumption per capita: 0,46 Toe

ENERGY SECTOR IN MOROCCO(2009/2010)

WASHINGTON 6-9 SEPTEMBER 2011

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The Moroccan economic growth leads to an increase in energy consumption which results in an energy bill and oil up

ENERGY CONSUMPTION [TOE / CAPITA] ENERGY BILL [BILLION DH]

ENERGY CONSUMPTION TOE INCLUDING OIL BILL [BILLION DH]

0,510,480,470,450,420,400,390,370,36

2002 2003 2004 2005 2006 2007 2008 2009 2010

19,1 21,4

44,4

26,6

37,6

51,8

69,7

2005

2006

2003

2002

2004

2007

2009

2008

50,6

2010

68,0

2010

61,6

2009

43,8

2008

59,7

2007

45,9

2006

39,7

2005

33,4

2004

23,1

2003

18,9

2002

16,25.000

15.000

10.000

0

2008

2007

2006

2005

2004

2003

2002

Eolien

Electricité importée

Gaz Naturel

Hydraulique

Charbon

Produits Pétroliers

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Since 2002, electricity consumption is increasing an average of 7% per year

17,921,1

16,8

200

4

200

2

15,5

200

5

200

3

19,5

201

0

22,625,0 26,5

24,0

200

8

200

7

200

6

200

9

6,9%

Evolution of electricity demand [2002-2010, TWh

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Eau

Agriculture : Maroc Vert

Industrie : Plan

Emergence

Tourisme : Plan

AzurHousing

Phosphate : plateforme

de Jorf Lasfar

Tanger Med

Infrastructures

Développement

énergétique

Morocco's economic developmentis driven by structured strategies

Eau

Agriculture : Maroc Vert

Industrie : Plan Emergence

Tourisme : Plan AzurHousing

Plateforme

Phosphate Jorf

Lasfar

Tanger Med

Infrastructures

Développement

énergétique

A NEW DYNAMIC OF DEVELOPPEMENT

10%

5%

0%

200

9

201

0

200

4

200

2

200

6

200

5

200

8

200

3

200

0

200

1

200

7

GDP GROWTH : 5% IN OVERAGE

ENERGIE

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 0

 20

 40

 60

 80

 100

 120

 140

2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030

In the next few years, Morocco will face a growing need for energy

The demand of energy should

double in 2020 and tripled by

2030

The demand of electricity

should double by 2020 and

quadruple by 2030

CONSUMPTION IN MILLIO TOE

2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030

0

50.000

10.000

20.000

30.000

40.000

18

26

43

15

CONSUMPTION IN TWH

31

52

95

24

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CLEAR NATIONAL STRATEGIC GOALS

Strengthened security of supply

Positioning in the field of sustainable development

Diversification of resources

Promotion of the renewable energies

Opportunity of socio-economic development :R&D, creation of productive and competitive subsectors, …

WASHINGTON 6-9 SEPTEMBER 2011

Ministère de l’Energie, des Mines, de l’Eau et de l’Environnement 13

Expected capacity 2020

Annual Generation

Investment

Annual CO2 Emission Saving

Annual Fuel Saving

Wind at an average speed of 7 to 11 m/s has a Potential of 6000 MW

RENEWABLE ENERGY POTENTIAL AND TARGETWIND POWER

March 2011, Tokyo

Ministère de l’Energie, des Mines, de l’Eau et de l’Environnement 14

Expected capacity 2020Expected capacity 2020

Annual Generation

Investment

Annual Fuel Saving

Annual CO2 Emission Saving

Solar shining with 3000 Hours/year

would bring 5.7 KWH/m2/day

RENEWABLE ENERGY POTENTIAL AND TARGET SOLAR POWER

WASHINGTON 6-9 SEPTEMBER 2011

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QUANTIFIED OBJECTIVES

Coal

Diesel fuel

Solar energy

Gaz

Hydraulic

Wind energy

Nuclear

2008 2020

42%

By 2020, the installed electric power in terms of renewable energies shallrepresent 42% of the total.

Source : Ministry of Energy, Mining , of Water and e Environment

By 2020, the installed electric power in terms ofrenewable energies shall represent 42% of the total.

WASHINGTON 6-9 SEPTEMBER 2011

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ENERGY EFFICIENCY

> Mise en place du Code d’efficacité

énergétique dans le bâtiment

> Généralisation des lampes à basse

consommation

> Utilisation des matériaux d’isolation

> Utilisation du double vitrage

> Installation des solaires thermiques

basse température (1 360 000 m² d’ici

2020)

> Installation des kits PV et pompes

solaires

> Généralisation des audits industriels

> Utilisation des variateurs de vitesse et

de fréquence

> Optimisation du stockage du froid et

du chaud

> Utilisation des lampes à basse

consommation

> Rajeunissement du parc automobile

> Organisation du transport urbain

(circulation, transport collectif…)

> Application de la réglementation

d’efficacité énergétique relative aux

véhicules

TRANSPORTINDUSTRIETERTIAIRE ET RÉSIDENTIEL

Réduction de 12% de la consommation énergétique d’ici 2020, et 15% d’ici 2030

REGULATORY FRAMEWORK

Ministère de l’Energie, des Mines, de l’Eau et de l’Environnement 17

Moroccan new energy strategy is aimed satisfying the growing demand and considers

the development of RNE, mainly wind and solar as two principal goals.

Morocco is developing renewable energies with the objective to increase their share in

primary energy consumption from 2% in 2008 to reach 12% in 2020 and more than 30%

in 2030.

For implementing these strategy, Morocco offers sound and favorable surrounding

conditions that encourage national and foreign investors and operators: Legislative and

regulatory texts exit or are being enacted. Specific laws relating to renewable energies

and energy efficiency backed by the creation of dedicated Agencies has been

promulgated:

• Renewable energies law (13-09)

• Moroccan agency for solar energy (MASEN) – (57-09)

• National agency for renewable energy development and energy efficiency (ADERE)

(16-09)

• Energy efficiency law project

• IRESEN for R & D

• Incentives for Energy Efficiency and Renewable Energies.

WASHINGTON 6-9 SEPTEMBER 2011

Ministère de l’Energie, des Mines, de l’Eau et de l’Environnement 18

NATIONAL COMMITMENT

TO DEVELOP THE NATIONAL CHARTER OF THE ENVIRONMENT

AND SUSTAINABLE DEVELOPMENT.

INTERNATIONAL ENGAGEMENT

RATIFICATION OF THE UN FRAMEWORK CONVENTION ON

CLIMATE CHANGE IN1995, AND THE KYOTO PROTOCOL IN 2002

ADOPTED BY COP 7 IN MARRAKECH.

MORE THAN 100 CONVENTIONS, TREATIES AND INTERNATIONAL

AGREEMENTS AND REGIONAL ENVIRONMENTAL SIGNED AND

RATIFIED

ENVIRONMENTAL STRATEGY

Renewable

Energy

Forests

Energy

Efficiency

2020 : solaire

2000 MW2O20 Éolien

2000 MW

Biomasse

Carburants –

Essence ss pb

Gasoil 50 ppm

Bâtiment

Industrie Transport

Reboisement

Lutte contre les

feux de forêts

Climate plan mitigation

Ministère de l’Energie, des Mines, de l’Eau et de l’Environnement- Paris, le 2 juillet 201019

ENVIRONMENTAL STRATEGY

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Morocco is heavily dependent on fossil fuels (95% of primary energy demand), is imported. Electricity generation is dominated by coal (62% of electricity production in 2010, making Morocco a country with high carbon emissions, with CO2 emissions per kWh higher than the global average despite a low rate of CO2 emissions per capita (2006 statistics).Electricity demand is expected to grow at 8-9% per year, and quadruple (or six) by 2030.The addition of 700-800 MW of electricity generation is needed every year to meet fast growing demand, avoid shortages and reduce the growing dependence on imports.

SUSTAINABLE DEVELOPMENT AND REDUCTION OF EMISSIONS

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Plan d’Equipement Electrique 2009-2020

•Tanafnit El Borj : 40 MW•Parc Tanger : 140 MW•TAG ABM : 2x150 MW•TAG Mohammédia : 3x 100 MW•GD Tan Tan : 116 MW

•TAV ABM + CSP : 172 MW•GD Dakhla : 16,5 MW

•GD Agadir : 80 MW•TAG Kénitra : 3x 100 MW

•Parc Tarfaya : 300 MW•Akhfénir + Foum El Oued : 150 MW

•Jorf Lasfar 5 & 6 : 2x 350 MW•Parcs éoliens privés : 300 MW

•Centrale à schistes : 100 MW•STEP Abdelmoumen : 300 MW•Complexe MDEZ : 172 MW•Safi 1 & 2 : 2 x 660 MW

Projet Eolien : 1000 MW

MW

Fuel

Gaz Naturel

Eolien

Hydro

Charbon

Solaire

Schistes

Près de 5000 MW à l’horizon de 2015 et 9000 MW à l’horizon

2020

Ministère de l’Energie, des Mines, de l’Eau et de l’Environnement- Paris, le 2 juillet 201021

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A key challenge of Morocco is how to respond to its rapidly growing demand while reducing the carbon intensity of the electricity sector and improving security of supply. This improvement in energy security and climate change mitigation are two key objectives of the country's energy policy, while ensuring access to energy for all citizens and businesses at the lowest possible cost.Morocco's commitment to growth at low carbon content (BTC) is evidenced by its high-level participation in the negotiations on climate change with a clear commitment to mitigation of climate change. The government of Morocco has launched an ambitious strategy in the field of renewable energy to improve energy security in a sustainable manner, the sources of wind and solar energy playing a major role.

SUSTAINABLE DEVELOPMENT AND REDUCTION OF EMISSIONS

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However, these plans will have a significant effect on the mix of electricity generation after 2015. Meanwhile, Morocco relies on coal to meet demand, as indicated in its plan of equipment. Therefore, short-term CO2 intensity is expected to increase before it starts to decline after 2020.In a context where the country needs to meet the needs of production capacity to meet its short-term and sustainable development objectives in the medium and long term, the Government of Morocco plans to build the capacity of the country's planificaiton (LOW RATE OF CARBON), which help the country take the path of sustainable development. The World Bank proposes to assist the Government of Morocco in this endeavor by providing support for the planning of the electricity sector (LRC) and capacity building in this area.

SUSTAINABLE DEVELOPMENT AND REDUCTION OF EMISSIONS

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The pilot program of the World Bank "Analytical support for growth in the electricity sector “Low carbon” in developing countries" provides assistance to Morocco in its efforts to change the electrical system to a less carbon-intensive. It will help strengthen the role of government in planning multi-year investment (PPI), as well as the overall planning including the development (LRC) for the sector.

SUSTAINABLE DEVELOPMENT AND REDUCTION OF EMISSIONS

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the interest of the Department of Energy and Mines to conduct a study under the "Carbon Capture and Storage Trust Funds" on the issue of capture and storage of CO ² and will be accompanied for capacity building in this area.

This new study will be an opportunity to assess the potential to capture existing power plants as well as those used in the equipment plan of the National Office of Electricity.

SUSTAINABLE DEVELOPMENT AND REDUCTION OF EMISSIONS

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The World Bank and the Government of Morocco has established a national steering committee to guide the work program. The specific objectives of this Committee are: i) To guide the finalization of terms of reference and work plan; ii) Follow the progress of work iii) Facilitate access to information and data available, iv) Identify appropriate staff for capacity building, and v) To facilitate cooperation with other stakeholders.The Steering Committee is chaired by the Director of Electricity and Renewable Energy within the same and consists of representatives of the Department of Environment, Directorate of Observation and Programming, ONE (Strategy & Planning) and the World Bank.

SUSTAINABLE DEVELOPMENT AND REDUCTION OF EMISSIONS

THANK YOU FOR YOUR ATTENTION

www.mem.gov.ma

WASHINGTON 6-9 SEPTEMBER 2011