1. The Mediterranean Solar Plan Union for the Mediterranean Union for the mediterranean Towards a mediterranean solar plan Philippe Lorec : philippe.lorec@developpement-durable.gouv.fr

2. The Mediterranean Solar Plan Union for the Mediterranean Framework of the UfM The Union for the Mediterranean was launched officially during the summit of July 13th 2008 in Paris by the 43 UfM head of states. The French-Egyptian Co-presidency of UfM aims at opening a new balanced North-South relationship based on concrete projects implementation MSP is one of the six projects launched officially during the summit. The MSP has the strong support of UE and will integrate existing UE policies, notably in the field of renewable energies and grid infrastructure.

3. The Mediterranean Solar Plan Union for the Mediterranean Strategy A project-based approach: While aiming at helping regulatory frameworks evolution, the MSP is centered on the actual implementation of concrete projects. A comprehensive answer to:  Climate change  Growth of electricity demand in the Mediterranean region Tackling both supply and demand sides:  Supply side: production  Demand side: energy efficiency => 20 GW by 2020 using a mix of technologies : PV, CSP, Wind power …

4. The Mediterranean Solar Plan Union for the Mediterranean Energy production: Technologies + biomass, geothermal, etc. Photovoltaic Mono-crystalline Thin-film Concentrated PV Photovoltaic Mono-crystalline Thin-film Concentrated PV Concentrated Solar Power Parabolic troughs Power tower Linear Fresnel Concentrated Solar Power Parabolic troughs Power tower Linear Fresnel Wind

5. The Mediterranean Solar Plan Union for the Mediterranean Timeline & Action plans Preparation Deployment Master Plan 2008200920102020 Energy Efficiency Capacity building Production : 20GW by 2020 20 GW of additional renewable electricity production by 2020 using a mix of technologies : PV, CSP, Wind power. Contribution to the convergence of national energy policies and emergence of a regulatory environment enabling the massive scaling up of renewables in the region. Transport Infrastructures CTF /CSP 2014 Immediate Action Plans

6. The Mediterranean Solar Plan Union for the Mediterranean Projects Overview Electricity production : 10GW projects

7. 7 The Mediterranean Solar Plan Union for the Mediterranean Répartition géographique (en nombre de projets)

8. 8 The Mediterranean Solar Plan Union for the Mediterranean Public / Privé (en nombre de projets) Technologies (en nombre de projets) Plan Solaire Méditerranéen : 165 projets

9. 9  4 Announced projets during the conference of Paris (june 25 2009)  5-10 projects realized before the end 2010  5-10 Faisability studies (CSP projects)  ~10 national calls of tender The Mediterranean Solar Plan Union for the Mediterranean The concrete Projects (October 2009)

10. The Mediterranean Solar Plan Union for the Mediterranean but also Infrastructure 10 11 1998 Egypt-Libya connection Turkey-Syria 6 years delay in Syrian side 1997 Connectio n of Morocco- Tunusia- Algeria to UCTE Tunusia-Libya Trial operation with UCTE, on 21 November 2005 Turkey-UCTE Recent developments

11. Renewable technology costs are still quite far from the grid parity => it requires innovative tools to bridge the financial gap MSP can facilitate access to : – Carbon funds – Concessional loans – European market RE prices MSP can also accelerate the development of new public policies to address non economic barriers (policy framework and capacity building) The Mediterranean Solar Plan Union for the Mediterranean Bridging the financial gap

12. The Mediterranean Solar Plan Union for the Mediterranean Bridging the financial gap Financing MSP projects States and local utilities (buyers) European states and utilities (buyers) Private Investors (Promoters, private and sovereign funds). Financial Institutions (Multilateral and Bilateral) Commercial banks CO2 Funds (GEF, FFEM, FEM) Concessional debts Grants Risk guarantee Debt Equity PPA (exports) PPA (local) Concessional debts Grants Risk guarantee

13. The Mediterranean Solar Plan Union for the Mediterranean Bridging the financial gap 13 IAP Portfolio Local Purchaser European Purchaser Private Investors Carbon Funds European and National Funds Multilateral Funds Sovereign and private funds Insurance Risks Debt Subsidies ROE = 8%-15% => 25c€/kWh 18c€/kWh30c€/kWh

14. The Mediterranean Solar Plan Union for the Mediterranean A new management is necessary… The plan (2GW/year) will require : – A specific project’s management (20-30 projects / year) – Development of new technological and industrial capacities; – Changes in domestic energy policies; – Coordinated support of all stakeholders; – Optimization of CO² process. The solution = permanent call for tender ?

15. The Mediterranean Solar Plan Union for the Mediterranean MSP’s Facilitations MSP’s permanent call of tender allows to dispose to a list of projects in all Mediterranean countries MSP can facilitate access to : – Carbon funds – “Special MSP” Concessional loans of multilateral banks (CTF (1), BEI+AFD+KFW (2),….) – European market renewable energy prices – Coordinated support of all stakeholders; – Optimization of CO² and article N°9 process. MSP can also accelerate the development of new public policies to address non economic barriers (policy framework and capacity building) (1)750 M$ for MSP-CSP (2)5 G€ for MSP projects

16. The Mediterranean Solar Plan Union for the Mediterranean Thank You.