1. MINISTRY OF ENERGY, MINES, WATER AND ENVIRONMENT KINGDOM OF MOROCCO ALTERNATIVE AND RENEWABLE ENERGY MOROCCO: INTEGRATED APPROACH SOLAR PLAN MANAMA, 6-7, OCTOBER 2010 AMAL HADDOUCHE GENERAL ENGINEER, COUNSELOR OF THE MINISTER OF ENERGY, MINES, WATER AND ENVIRONMENT

2. OUTLINE THE NEW ENERGY STRATEGY WIND NATIONAL PLAN SOLAR NATIONAL PLAN II III IV 2 MAIN ISSUES FOR THE MOROCCAN ENERGY SECTOR I V CONCLUSION

3. En billion TOE Primary energy consumption En % High dependancy En billion Euros Energy Bill Per Hab Consumption/KWH En %/an Primary energy: 1999-2009 En %/ an Electricity: 1999-2009 Sustainable Energy demand 15,5 94.5 ~5.0 717 ~5 ~6.5

4. Limited fossil resources Reduce the high dependancy Fluctuations and volatility of the markets Promote energy efficiency Preserve the Environment and ensure sustainable development with emissions reduction of CO2 Mobilize domestic renewable resources Ability to satisfy increasing demand

5. Plan Emergence Plan Maroc Vert Politique sectorielle utilities ONE-ONEP Plan Azur Plan OCP Jorf Lasfar Hub Tanger Med et pôle Industriel TFZ Intégration de l’ensemble de l’économie nationale au niveau de la demande électrique Plan dessalement

6. Diversify and optimize the energy mix around reliable and competitive energy technologies in order to reduce the share of oil from 63% in 2009 to around 40% by 2030 Reduce dependancy on energy imports by developing domestic energy sources, mainly by developing renewable energy Make energy efficiency a national priority Preserve the environment Integrate into the regional energy market through enhanced cooperation and trade with both arab countries and the EU countries (Advanced statute) NEW STRATEGY TO ADDRESS THESE CHALENGES

7. CLEAR RENEWABLE ENERGY OBJECTIVES for Medium & Long terms  2 integrated programs: 2000 MW solar & 2000 MW wind to implement at 2020 CLEAR ENERGY EFFICIENCY OBJECTIVES for Medium & Long terms  Energy Efficiency as a national priority SOUND LEGAL, INSTITUTIONAL AND REGULATOTY FRAMEWORK THE NEW STRATEGY FOR RE & EE: AN INTEGRATED APPROACH AMBITIOUS: LOCAL INDUSTRY SUPPORT BY SOUND R&D PROGRAMS,TRAINING AND CAPACITY BUILDING

8. SUPPORT OF THE POLICIES BY SOUND LEGAL AND INSTITUTIONAL FRAMEWORK NEW L AW FOR R ENEWABLE ENERGY Objectives  Increase the share of Renewable Energies  Promoting Investment for Export  Assistance in site selections, permits and authorization  Access to National Grid and Interconnections  Access to Regional Markets (OMEL, MIBEL, POWERNEXT,…)  Possible Equity partnership  Promoting Investment in the field of Renewable Energies to meet local demand MOROCCAN AGENCY FOR SOLAR ENERGY  Conduct overall project (design, choice of operators, implementation, management....)  Coordinate and supervise others activities related to this program NEW AGENCY FOR THE DEVELOPMENT OF RENEWABLE ENERGY AND ENERGY EFFICIENCY  Law to be enacted soon  Objective: development of renewable energies and Promotion of energy efficiency. E NERGY EFFICIENCY  Law under promulgation  Improve energy efficiency D EVELOPMENT ENERGY FUND 2 ways actions :  Financial incentives for RE and EE programs  Equity investments through the Energy Investment Company: SIE

9. 42% RENEWABLE ENERGY: RE SHARE OF RE AT THE HORIZON 2020 6188 80561104814755 MW

10.  IMPLEMENTATION OF 2 000 MW AT THE HORIZON 2020  ESTIMATED ANNUAL PRODUCTION: 6600 GWh  ESTIMATED COST: 31,5 billions DHS (3,5 billions Dollars)  5 selected sites : Sendouk (Tanger), Koudia Baida II (Tétouan), Taza (Taza), Tiskrad (Laâyoune), Boujdour (Boujdour)  This plan will allow : Saving 1,5 millions of TOE, Avoiding the emission of 5,6 millions tons of CO2 per year  The first wind park within this plan will be commissioned on 2014  The plan refers to the development of domestic wind industry 10 RENEWABLE ENERGY INTEGRATED WIND PLAN

11. M OROCCAN SOLAR PROJECT An investment of 9 billion USD by 2019 Installed Capacity : 2000 MW 4500 GWh per year 9 billion USD 10 000 hectares dedicated 5 dedicated sites First plant : Ouarzazate - 2015 11

12. M OROCCAN SOLAR PROJECT NATIONAL DECISION TO BET ON THE RE FUTUR GLOBAL AND INGTEGRATED PROJECT SUPPORT OF THE HIGH LEVEL AUTHORITY CLEAR POLITICAL SIGNAL FOR DEVELOPING RE AND SOLAR IN PARTICULAR ANTICIPATE INTERNATIONAL MARKET SOLAR ENERGY, A CRUCIAL STAKE, IN ACCORDANCE WITH THE CHOICE OF DEVELOPING SUSTAINBLY AVOIDED EMISSIONS: 3,7 millions tons of CO2 per year. 12

13. SOLAR MAP IRRADIATION OF MOROCCO Ain Beni Mathar Ouarzazate Sebkhate Tah Foum Al Ouad Boujdour Rabat

14. Ain Beni Mathar Ouarzazate Sebkhat tah Foum Al Ouad Boujdour OUARZAZATE SITE Ouarzazate DNI: 2635kWh/m²/an DNI: 2635kWh/m²/an Puissance: 500 MWe Superficie : 2500 ha Production : 1150 GWh/an Puissance: 500 MWe Superficie : 2500 ha Production : 1150 GWh/an

15. SOLAR PLAN: INTEGRATED PROJECT WITH SECTORIAL SYNERGIES  REGIONAL DEVELOPMENT: oSocial and economical benefits for the regions where sites are located  Specialized training and capacity building: o Specific modules in schools of engineering; o Specialized techniciens in solar energy by professional Institutes  R & D: o A key to replicate and improve futur projects  Industrial development and integration: o Know how development; o Development of an industrial tissue specialized in solar field. 11

16. A SPECIFIC COMPAGNY DEDICATED TO THE PROJECT  A dedicated society has been created on Feb. 2010 : Moroccan Agency for Solar Energy (MASEN) o Ensure the supervision of the whole (conception, studies, operators selection, supervision of the execution ….)  Agency with public funds: o State o Hassan II Fund for Economical and Social Development o SIE: Société d’Investissements Energétiques o ONE 12

17. SOLAR PLAN: PROJECT REALIZATION  Selection of developpers: international bids  Diversified Mechanisms of financing 13

18. STEPS TOWARDS THE REALIZATION  First site: Ouarzazate;  Following the invitation for Expression of Interest issued on march 2010, MASEN has launched the pre-qualification process for the development of the 1st phase of the Ouarzazate solar power plant. o 1st stage: 1 or more thermal solar plants with minimum capacity of 125 MW  2014 o Subsequent stages will be launched by the end of 2012  Selection of the developpers of the 1st stage on April 2011  Financial closure by the end of 2011  Starting the construction: second semester of 2011 12

19. CONCLUSION Morocco has adopted an integrated approach for developing RE & EE based on clear objectives, plans for medium and long terms. Private sector will play an important role in realizing these projects especially solar plan: more visibility and opportunities of investments. The ambitious is to develop local industries and companies. The government has implemented sound legal, institutional and regulatory frameworks. Some details of this regulation are under finalization for some specific aspects. Support to develop R&D and know how related to RE & EE.