Power Market Opening for Renewable Energy Case of Maghreb
Countries 3 rd MEDREG-IMME Seminar Reform and Opening of Maghreb
Electricity Markets Session III : Mitigating the dominant position
of energy incumbents 11-12 September 2013 Rim Boukhchina, Maged
Mahmoud Technical expert
Slide 2
2 Who We Are Our Mission RCREEE is an independent regional
think tank organization created in 2008, owned by its Member States
and hosted by Egypt A Significant Share of Renewable Resources and
a Highly-Efficient Energy Consumption in the Arab Region
Slide 3
3 Our Work Areas Research and Analysis Data collection and
analysis Reports, indexes, and performance indicators Maintaining a
regional database Monitoring and assessment Specific studies
Publishing and dissemination Research and development grants
Capacity Development Pricing and tariffs Projects planning and
management Products and services certification and standardization
New technology orientation Energy service providers regulations and
certification Statistics, research, and data analysis Technical
Assistance Certification and standardization schemes and guidelines
Policies and regulations design Implementation planning Compliance
guidelines Projects tendering processes design and guidelines
Research and development grants
Slide 4
4 Liberalised Electricity Markets I NDICATORS Political
CommitmentMarket designRegulation and institutional
frameworkElectricity pricesGrid accessInterconnection..
Slide 5
5 RE Maghreb countries profiles Increased efforts to integrate
renewable electricity into their power markets. Defined future
shares of green electricity in their national generation mixes
Algeria Morocco Tunisia
Slide 6
6 Fossil Fuel subsidies IPP Institutional Support Grid Access
Supporting Policies Finance and Investment RE Maghreb countries
profiles RE Market Evaluation
Slide 7
7 RE Maghreb Market Evaluation Algeria Existing of RE fund No
financial guarantee to private investors to ensure payment under
PPA No customs duty or internal tax benefits Morocco Investment
incentives No financial guarantee to private under PPA No customs
duty or internal tax benefits Tunisia Tax benefit for RE Equipment
Available financial incentives for small scale RE projects No
financial guarantee to private under PPA Finance and
Investment
Slide 8
8 RE Maghreb Market Evaluation Algeria Public competitive
bidding for large-scale private RE projects. Law ensure energy
purchase Feed-in Tariffs ??? No net-metering policy for small-scale
RE projects. Morocco Public competitive bidding for large-scale
private RE projects. No obligation to conclude long-term PPA with
private producers. No feed-in Tariffs. No net-metering policy for
small-scale RE projects. Tunisia Net-metering policy for
small-scale grid. No long-term PPA for private. No feed-in Tariffs.
No public competitive bidding for large scale project. Supporting
policies
Slide 9
9 RE Maghreb Market Evaluation Algeria Priority access to RE is
granted by Decree RE grid code is under preparation. No detailed
grid map for RE sites Morocco RE grid code is under preparation. No
detailed grid map for RE sites. No priority access RE is not
authorized to access for LV and MV Tunisia Existing of Technical
specifications related to RE connecting RE grid code is under
preparation No detailed grid map for designated RE sites No
priority access to RE Grid access
Slide 10
10 RE Maghreb Market Evaluation Algeria Institutions to support
and achieve RE targets exist RE research and development institute
exist Detailed solar Atlas No detailed wind Atlas No land allocated
for large scale RE projects Morocco Institutions to support and
achieve RE targets RE research and development institute Detailed
wind and solar Atlas land allocated for large scale RE project by
project Tunisia Existing of institutions supporting RE Deployment
RE research and development institute Detailed wind Atlas No land
allocated for large scale RE projects No detailed Solar Atlas
published Institutional support
Slide 11
11 RE Maghreb Market Evaluation Algeria Private generation of
electricity from conventionnel and RE. Self-production of power
from RE No specific condition for electricity surplus sale : Decree
under preparation Morocco Private electricity generation from
conventionnel and RE. Self RE production No guarantee for excess
power purchase Tunisia Private Conventional electricity generation
through concessions self-consumption with the possibility of
feeding surplus electricity to the grid No IPPs producing RE exist
IPP State Utilities acting as (quasi-) monopolists in terms of
electricity transmission and distribution (vertically integrated
utilities) State Utilities acting as (quasi-) monopolists in terms
of electricity transmission and distribution (vertically integrated
utilities)
Slide 12
12 RE Maghreb Market Evaluation
Slide 13
13 RE Maghreb Market Evaluation Electricity rates and taxes are
often related in non- transparent ways in most Arab Countries due
to The importance of Hydrocarbon potential in some Arab States,
Transparent Price signal in Morocco, Fairly significant subsidy in
Algeria, Electricity still subsidies in Tunisia Electricity Prices
in Maghreb Countries US$/kWh
Slide 14
14 Electricity Maghreb Market Evaluation Working on a Common
Internal Electricity Market, and as a long-term goal, a gradual
integration and regulatory harmonization with neighboring countries
Grid interconnections
Slide 15
15 RE Maghreb Market Evaluation STRENGTHS Huge future market
Strong government involvement Existence of basic regulatory
framework related to private production IMPROVMENT AREAS Fossil
fuel subsidies Specific RE tariffs Activate RE private production
Grid Access Algeria
Slide 16
16 RE Maghreb Market Evaluation STRENGTHS Important future
market Strong Government Involvement Existence of LS private
production IMPROVMENT AREAS S&M scale private production
:Feed-in tariffs/Net metering.. Grid Access Fiscal support scheme
Land allocation Morocco Transparence price signal Structured RE
Sector Interconnection with Spain
Slide 17
17 RE Maghreb Market Evaluation STRENGTHS Important RE
potential Incentives for small size projects Net metering
IMPROVMENT AREAS Large Scale Private production Grid Access Feed-in
tariffs Tunisia Fiscal support Small size market Strategic
situation and proximity to Italy
Slide 18
18 Focus on national market Governments, Utilities, Regulators
and System Operators must collaborate to establish rules and
electricity market design and to create a competitive market
through implementing specific regulatory framework and detailed
legislation and support its further development. Setting up an
independent regulator. Electricity infrastructure reinforcement
Tariff reform. Establishment of an attractive market for the
private sector with clear and concrete periodic RE targets.
Regional market : Grid Interconnection, Export, Electricity trade..
Conclusion
Slide 19
19 Relevant RCREEE interventions Lack of a comprehensive,
consolidated, and accurate data on the Arab regions RE and EE
readiness and capabilities. Challenges Identify standard dimensions
and a consistent methodology to rank and benchmark the Arab regions
market capabilities and conditions in RE and EE. Collect and
analyze data annually from reliable international and local
resources. Publish and disseminate annual reports and briefs
through multiple printed and digital channels. Interventions
Provide the first accurate and comprehensive data source for RE and
EE research and policy design. Results Arab Future Energy Index
(AFEX)
Slide 20
Thank you Rim BOUKHCHINA & Maged MAHMOUD Senior Expert
Regional Center for Renewable Energy and Energy Efficiency (RCREEE)
Building of the Hydro Power Plants Execution Authority, 7 th floor,
Ministry of Electricity and Energy, Melsa District Ardh El Golf
Nasr City - Cairo, Egypt rim.boukhchina@rcreee,org
maged,[email protected] www.rcreee.org