1. 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

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

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

4. 4 Liberalised Electricity Markets I NDICATORS Political CommitmentMarket designRegulation and institutional frameworkElectricity pricesGrid accessInterconnection…..

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

6. 6 Fossil Fuel subsidies IPP Institutional Support Grid Access Supporting Policies Finance and Investment RE Maghreb countries profiles RE Market Evaluation

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

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

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

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

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)

12. 12 RE Maghreb Market Evaluation

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

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

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

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

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

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

19. 19 Relevant RCREEE interventions Lack of a comprehensive, consolidated, and accurate data on the Arab region’s RE and EE readiness and capabilities. Challenges Identify standard dimensions and a consistent methodology to rank and benchmark the Arab region’s 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)

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,mamoud@rcreee.org www.rcreee.org