1. Developing Renewable Energy in the Arab Countries Dr. Eng. Walid Al-Deghaili Energy Section Chief – SDPD/ESCWA Lebanon Sustainability Week 1-3 June 2011 Biel, Beirut-Lebanon 1

2. Table of Contents 2 1- Introduction 2- Overview of the Energy Sector 3- Main Applications of RE 4- Advantages of Developing RE USE 5- Renewable Energy / Hydropower for Electricity Production 6- Renewable Energy / Wind Energy for Electricity Production 7- Renewable Energy / Solar Energy for Electricity Production 8- Renewable Energy / Biomass for Heat and Electricity production 9- Barriers / Constraints facing the Adoption of RE for Electricity Production 10- Electricity Generation from Renewable Energy - Expected Future Cost - 11- The Status of Cooperation in Arab Countries 12- Conclusion

3. 3 1- Introduction What about RE in Arab Countries ?

4. 4 2- Overview of the Energy Sector

5. 5 2- Overview of the Energy Sector (Continued)

6. CO2 Emissions From Fuel Combustion 6 Country Total Emissions from Fuel Combustion MtCO2 % of World Total Electricity & Heat Production MtCO2 Saudi Arabia389.21.32%154.0 Egypt174.00.59%60.2 United Arab Emirates146.90.50%72.6 Iraq97.40.33%29.9 Algeria88.10.30%24.0 Kuwait69.50.24%31.8 Syria54.40.19%25.1 Qatar53.90.18%11.5 Libya44.80.15%25.4 Morocco42.10.14%14.9 Oman34.90.12%13.5 Bahrain22.30.08%7.8 Yemen21.90.07%4.2 Tunisia20.70.07%8.0 Jordan18.40.06%8.2 Lebanon15.20.05%7.5 Sudan12.10.04%2.8 Total1 306.04.44%501.3 Source: IEA 2010 (Data 2008) 2- Overview of the Energy Sector (Continued)

7. CO2 Emissions per kWh Electricity Generated CO2 Emissions per Tonne of Fuel Burnt Country CO2 Emission Factor g/KWh Bahrain890.1 Egypt471.5 Jordan660 Iraq700.7 Kuwait807.5 Lebanon667.3 Oman854.5 Palestine- Qatar618 Saudi Arabia747.6 Sudan848 Syria587.5 United Arab Emirates843.6 Yemen845.5 Algeria670.9 Libya899.4 Morocco777.5 Tunisia481.6 Type of FuelCO2 Emissions Gas/Diesel Oil3.2033 tonne Natural Gas2.6993 tonne Residual Fuel Oil3.1430 tonne Source: UNEP's Greenhouse Gas Calculator, UNEP, 2009 7 2- Overview of the Energy Sector (Continued)

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10. 3- Main Applications of RE 10 - Water Solar Heating -Air conditioning and process heat by using Solar Energy -Biofuel for vehicles -Heat & electricity from waste - Pumping water by using wind Energy - Electricity Production in rural and remote areas - Electricity production at large scale for grid.  300 GW of new generating capacity of all types added to the world’s grids between 2008 and 2009 (REN 21) * Fossil Fuels 53% * Renewable 47%

11. - Emissions reduction and climate change mitigation, - Pollution reduction, - Low operation and maintenance costs in power plant electricity generation, - The total cost for the production of KWh is stable and far from the effects of future inflations, - Security of electricity supply because it does not require import and it is not exposed to the risks of depletion, - Provide electricity in isolated and remote rural areas. 11 4- Advantages of Developing RE USE

12.  Advantages: - More than 50 % of the founding cost is from local components (civil engineering works), - It requires only minimum maintenance works, - Could be operated easily, - Ready to provide fast production, - Relied upon to adjust the frequency of several networks, - Production can be programmed and coordinated with other production facilities, especially when equipped with dams and reservoirs.  The needs of implementing gravity-fed irrigation in some countries prevent the full exploitation of water resources for the production of electricity.  Total installed capacity (10,010 MW) in Arab countries does not exceed 6% of the total equipped power. 12 5- Renewable Energy / Hydropower for Electricity Production

13. Hydropower Potentials 13 Source: “Concentrating Solar Power for the Mediterranean Region”, DLR for the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, Germany (2005) 5- Renewable Energy / Hydropower for Electricity Production (Continued)

14.  Most of the Arab water sources were exhausted after the completion of MARWE Dam project in Sudan in 2010 (1250 MW).  In Lebanon, studies indicate the possibility of establishing about ten additional small hydro plants with a total capacity up to 160 MW, with an annual production not exceeding 600 GWh.  The possibility of establishing Large Hydro plants outside the Arab countries in the Nile Basin countries, where it can be coordinated between Egypt and Sudan on the one hand, and Ethiopia, on the other hand. Carrying out the electricity interconnection project in the countries of Eastern Nile Basin (Egypt, Sudan, and Ethiopia) where Egypt will benefit of 2000 MW and the Sudan 1200 MW. 14 5- Renewable Energy / Hydropower for Electricity Production (Continued)

15. 15 Wind speed is required at the rate of about 5.8 meters per second at a height of 10 meters from the ground (up to 4 meters for small wind turbines is acceptable), and about 7 meters per second at a height of 80 meters. Producing electricity from wind power came into commercial use since several years. The capacity of marketed wind turbines reached up to 5 MW per unit. A proven model, which is ready for marketing, is the E-126 (Capacity of 6-7 MW, height of 138 meters and blades diameter is 126 meters), Connected to working electrical networks with a 20-40% share. Manufacturing companies that share the global market is from different nationalities: Europe (Denmark, 20%, Germany 21%, and Spain 17%), United States 19 %, and Asian (China, 9 %, and India 9 %)  Competition is available and therefore the purchase prices are appropriate.  The contribution of wind farms in the production of electricity in the Arab countries is 0,3%. 6- Renewable Energy / Wind Energy for Electricity Production

16. Source: “Concentrating Solar Power for the Mediterranean Region”, DLR for the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, Germany (2005) 16 Wind Energy Potentials: Annual Average Wind Speed 6- Renewable Energy / Wind Energy for Electricity Production (Continued)

17. 17 Source: www.wind-energy-the-facts.org 6- Renewable Energy / Wind Energy for Electricity Production (Continued)

18. 18 6- Renewable Energy / Wind Energy for Electricity Production (Continued)

19. Arab countries enjoys local solar radiation (insolation) at a rate of 4- 8 kWhr/m 2 /day with the intensity of direct solar radiation (insolation) from 1700 to 2800 kWhr//m 2 /day. 19 7- Renewable Energy / Solar Energy for Electricity Production Solar Energy Potentials: Direct Normal Irradiance Source: “Concentrating Solar Power for the Mediterranean Region”, DLR for the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, Germany (2005)

20. Solar Thermal Systems - The principle of concentrating the direct sunlight on a wide area by special shaped mirrors to focus on a smaller area. - The possibility of also being exploited for seawater desalination. - The possibilities of thermal storage for 24/24 hours operation. - The possibility that these systems could be associated with combined cycle systems that use fossil fuels. 20 Source: Alston 7- Renewable Energy / Solar Energy for Electricity Production (Continued)

21. Solnova 50MW Plant Configuration 21 Source: 7- Renewable Energy / Solar Energy for Electricity Production (Continued)

22. 22 Morocco: Ain Beni Mathar Integration into Combined Cycles Source: 7- Renewable Energy / Solar Energy for Electricity Production (Continued)

23. Shams-1 First Collector Installed 23 Source: 7- Renewable Energy / Solar Energy for Electricity Production (Continued)

24. 24 Source: Menasol 2011 7- Renewable Energy / Solar Energy for Electricity Production (Continued)

25. 25 Source: Menasol 2011 7- Renewable Energy / Solar Energy for Electricity Production (Continued)

26. 26 Source: Menasol 2011 - enolcon Thermal Energy Storage Systems Technologies TESS 7- Renewable Energy / Solar Energy for Electricity Production (Continued)

27. Photovoltaic (PV) cells - Photovoltaic cells directly convert sunlight into electrical energy, whether direct or indirect, scattered or reflected. Evolvement of Photovoltaic (PV) cells 27 7- Renewable Energy / Solar Energy for Electricity Production (Continued)

28. 28 7- Renewable Energy / Solar Energy for Electricity Production (Continued) TechnologyPrice (2008 S/Wp) Manufacturing Cost (2008 S/Wp) Conversion Efficiency High-efficiency monocrystaline silicon $ 3.83$2.2417.5% Multicrystalline silicon$ 3.43$2.12-$3.1113.5% Amorphous silicon (a-Si) thin film$3.00$1.806.5% Copper indium diselenide/copper indium gallium diselenide (CIS/CIGS) thin film $2.81$1.2610.2% Cadmium telluride (CdTe) thin film$2.51$1.2510.0% Mehta and Bradford 2009 Source: Us Ministry of Energy www.energy.gov

29. Action Plan for Developing PV Solar Technologies 29 7- Renewable Energy / Solar Energy for Electricity Production (Continued)

30. 30 Source: Menasol 2011(Isofoton cpv) Source: Menasol 2011 - Isofoton cpv CPV 7- Renewable Energy / Solar Energy for Electricity Production (Continued)

31. In 2009, the prices of Silicium dropped by 80%, semiconductors by 50% and advanced crystallized modules by 38%. 175 thousand tons of Silicium was produced in 2010 compared to 70 thousand tons in 2008. The involvement of Asian companies, especially Chinese companies in the manufacturing process with large production capabilities that is based on the advanced technologies developed in Europe and Australia, has contributed significantly in providing better quality cells with competitive prices. The dispersed and multinational manufacturers around the world are a helpful factor to predict the continued decline in prices. 31 7- Renewable Energy / Solar Energy for Electricity Production (Continued)

32. 32 Source: Photovoltaic Barometer – Eurobserv’er – April 2011 7- Renewable Energy / Solar Energy for Electricity Production (Continued)

33. 33 Source: Photovoltaic Barometer – Eurobserv’er – April 2011 7- Renewable Energy / Solar Energy for Electricity Production (Continued)

34. 34 Source: Photovoltaic Barometer – Eurobserv’er – April 2011 7- Renewable Energy / Solar Energy for Electricity Production (Continued)

35. PV Stations connected to the electricity network are still very limited, despite the incentives given by some countries like preferential tariffs. PV systems are one of the best renewable energy applications in remote areas. Could be adopted to provide electricity for electric cars, has solved the problem of supplying electricity to satellites, A solution to the problem of security of energy supplies. Cost is currently high, but it will decline. 35 7- Renewable Energy / Solar Energy for Electricity Production (Continued)

36. 36 Source: Menasol 2011 7- Renewable Energy / Solar Energy for Electricity Production (Continued)

37. 37 Source: Menasol 2011 - Converteam 7- Renewable Energy / Solar Energy for Electricity Production (Continued)

38. 38 7- Renewable Energy / Solar Energy for Electricity Production (Continued)

39. 39 7- Renewable Energy / Solar Energy for Electricity Production (Continued)

40. 40 7- Renewable Energy / Solar Energy for Electricity Production (Continued)

41. 8- Renewable Energy / Biomass for Heat and Electricity production 41 Source: “Concentrating Solar Power for the Mediterranean Region”, DLR for the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, Germany (2005)

42.  In Arab Countries: necessity to avoid problems of Food Security and Deforestation.  Solid and liquid waste (Municipal- Agricultural residues: Vegetable or Animal)  direct burn  CH 4 generation (Solid waste  60% CH 4 and 35% CO 2 ) Anaerobic digesters: Rural remote areas Biogas: 5600 Kcal/m3 Biofuel: from agricultural residues/for Vehicles  Projects in Arab CountriesJordan Electricity production plant in “Ruseifa”, capacity 4 MW using biogas resulting from the landfill solid waste disposal system 42 8- Renewable Energy / Biomass for Heat and Electricity production (Continued)

43. Egypt -Sewage and wastewater treatment plant in “Jabal Al Asfar”, production of 18.5 megawatts, equivalent to 70 % of its needs 26.6 MW Lebanon -Wastewater treatment plant in Tripoli equipped for production of half its energy from biogas -Feasibility study for extracting gas from a landfill United Arab Emirates -Project to produce energy in a waste treatment plant, around 6500 tons of waste per day. Yemen -The use of biogas technology (Anaerobic digesters) -Plan to establish a garbage dump in Sana’a to produce energy from waste, (CDM) 43 8- Renewable Energy / Biomass for Heat and Electricity production (Continued)

44. Sudan -Production of compressed bio-combustibles and Ethanol (technical assistance from Brazilian Cos). Tunis -Feasibility study for the use of alternative fuels produced from the waste in cement factories. -Cooperation initiative with South Korea in the field of Energy from Waste Morocco -Implemented 2 projects to produce electricity from wastewater treatment Projects partly financed by CDM to extract Methane gas from landfills Egypt: 3 projects Jordan: 1 project Morocco: 3 projects Syria: 2 projects Tunis: 2 projects 44 8- Renewable Energy / Biomass for Heat and Electricity production (Continued)

45. A - The high cost of investsment B - Financial support for the production of electricity from fossil sources C - The difficulty and cost of electrical energy storage -Chemical energy (batteries), -Pumping water up to higher levels by electric power and store this water in reservoirs and artificial lakes on the highlands and then re-used to run water turbines to produce electricity. -Thermal storage for a period of 8-12 hours in a special blend of molten salts (60 % of sodium nitrate and 40 % of potassium nitrate, called rock salt) up to temperatures of 600 degrees Celsius within the insulated tank. -Production of hydrogen from the surplus of electricity available did not reach the level of maturity. D - Lack of readiness on a permanent basis The power produced from renewable energy sources (solar, wind) is "negative" power, and availability it is not guaranteed all the time. 45 9- Barriers / Constraints facing the Adoption of RE for Electricity Production

46. E - Exclusive rights to produce electricity The European experience in general and German in particular, is considered as a pioneer experience in addressing this constraint. (A) Giving priority to feed the electric grid from RE production facilities; (B) The entity responsible for the electric grid should buy, transmit and distribute electricity generated from RE, to be compensated by the federal authorities; KWhr Tariff cost based on the power source in Federal Republic of Germany F – Lack/Shortage to keep pace with industrial progress G - The possibilities of manufacturing companies in terms of their capacity to meet demand (wind) H - Security concerns and living conditions priorities I - Limited policies for attracting private investment, legislation and institutional arrangements and inadequate awareness. 46 9- Barriers / Constraints facing the Adoption of RE for Electricity Production (Continued)

47. Worldwide: In 2008, the share of renewable energy in electricity production is 18 % (including 15 % Hydro). Expected to rise to around 23 % in 2030 (out of which less than 14 % Hydro). It is uncertain what will accrue to the cost of electricity production from renewable energy sources, in case a global agreement on emissions reduction was adopted. The cost of producing KWh of electricity from RE, is subject to many variables including: (A) Design and Manufacturing Cost of equipment in accordance with provided data, and the situation of the manufacturing companies in terms of competitiveness among them, and their production commitments for the coming years, the capacity of individual installations and the proportion of the local component of this equipment; 47 10- Electricity Generation from Renewable Energy - Expected Future Cost -

48. (B) The level of development reached for the used technology: Maturity, marketing or research stages; (C) The distance between the manufacturing and processing sites and electricity production implementation sites/ Cost of transportation of equipment; (D) The cost of installing equipment in the workplace and civil engineering works, and the participation share of local labor; (E) The equipment life-time; (F) The interest rate, of capital, which is variable in time and space; (G) Production sites: In- land or Off-Shore, and the expenses of potential land purchases, and the cost of connectivity to the existing network; (H) The risks involved and the economic and political stability, security and stability of legislation, etc.; and the efficiency of the investment environment; (I) The financing mechanisms and sources: CDM, carbon trading etc…; (J) The availability of RE, both in terms of quantity (amount of solar radiation (insulation), wind speed, etc.) or availability and intermittency, (K) Fees and taxes; (L), etc..... 48 10 - Electricity Generation from Renewable Energy - Expected Future Cost - (Continued)

49. 49 Energy Source 20082030 InvestmentGeneration CostInvestmentGeneration Cost (US $/KW)(US cents/ KWh)(US $/KW)(US cents/KWh) Hydro1970-26004.5-10.51940-25704-10 On-Shore Wind1770-19609-10.51440-16007-8.5 Off-Shore Wind2890-320010-122280-25308-9.5 Biomass2960-36705-142550-31503.5-12 Grid Connected PV5730-680036-75.52010-240014-30.5 Solar Thermal3470-450013.5-371730-21607-22 Geothermal3470-40606.5-83020-35405.5-7 Tidal5150-542019.5-222240-239010-11.5 Source: IEA 10- Electricity Generation from Renewable Energy - Expected Future Cost - (Continued)

50. 50 10- Electricity Generation from Renewable Energy - Expected Future Cost - (Continued)

51. 51 10- Electricity Generation from Renewable Energy - Expected Future Cost - (Continued)

52.  A - Mediterranean Solar Plan  B- The Council of Arab Ministers Responsible for Environment issues CAMRE  The Arab Regional Strategy for Sustainable Consumption and Production: 6 priority areas for implementation, including "Energy for Sustainable Development" in terms of: -Deployment of renewable energy technologies -Increase the share of renewable energy in the fuel mix, particularly in rural and remote areas.  C - Arab Ministerial Council on Electricity / Committee of Experts on renewable energy and energy efficiency / Arab strategy for renewable energy applications: 52 11- The Status of Cooperation in Arab Countries

53. -Developing Policies & legislation enhancing the use of RE. -Industrial Capacity Development for RE components (Public Private Partnership – Capacity Building – Technology transfer and adaptation of Technology to local conditions) -Optimal use of RE (saving environment - Climate Change mitigation – natural resources optimal use) 53 11- The Status of Cooperation in Arab Countries (Continued)

54. 54  D - Establishment of the International Agency for Renewable Energy (IRENA)  E - Regional and bilateral cooperation - (A) The New and Renewable Energy Authority (NREA) in Egypt carried out a feasibility study for the establishment of two wind farms, in the regions of the Younbu and Zoulm in KSA. NREA also reviewed the terms of reference for the preparation of Wind Atlas for Sudan. - (B) UN ESCWA organized several training courses during the past years, and is implementing a project on capacity building during 2011 – 2012 (RE: Climate Change Mitigation, Poverty Alleviation, PPP). - (C) United Nations Programmes (UNEP - UNDP) and European Union…etc. 11- The Status of Cooperation in Arab Countries (Continued)

55. The Arab Strategy for Developing the Use of Renewable Energy (2010-2030)* * Adopted by the Executive Office of the Arab Ministerial Council for Electricity in 23/11/2010 55 11- The Status of Cooperation in Arab Countries (Continued)

56. R & D Activities (A) King Abdullah University of Science and Technology in Saudi Arabia donated in 2008 U.S. $ 25 million to research teams to carry out research works for making the cost of solar energy competitive with coal; (B) Kuwait Petroleum Corporation signed an agreement with the Kuwait Institute for Scientific Research to study the possibility of using solar energy to meet some of their energy demands in the oil sector operations: Production, Refining and Manufacturing; (C) The Qatari government signed in 2008 an agreement with the British government to invest more than U.S. $ 220 million in the UK to fund low- carbon technology; (D) King Abdullah, The Custodian of the Two Holy Mosques, during the OPEC summit in Saudi Arabia in 2007, promised to donate U.S. $ 300 million to support research in the field of energy and the environment. (E) MASDAR Initiative 56 11- The Status of Cooperation in Arab Countries (Continued)

57.  Wind power and solar energy could be used to contribute to the emissions reduction, as resources that are not subject to natural depletion.  Wind energy technologies become proven and common, and came into commercial investment.  It is expected, in the coming years, that the technologies for electricity production from solar energy will develop and reach the stage of technical and commercial maturity.  The Arab countries have made extensive efforts to adopt wind power and solar energy technologies. Some of them made investments in research and development, while others began to develop policies. Also, some have already begun to establish renewable energy projects and exploit them commercially.  It is clear that there are technical, economic, financial, social and institutional obstacles facing the spread of technologies for the production of electricity from renewable energy, but the firm will and concerted efforts, at the regional and international levels, in terms of technology transfer and secure funding, would overcome these constraints 57 12- Conclusion

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