RE Market Evaluation

Report
3rd MEDREG-IMME Seminar
Reform and Opening of Maghreb Electricity Markets
Session III : Mitigating the dominant position of energy incumbents
Power Market Opening for Renewable Energy
Case of Maghreb Countries
11-12 September 2013
Rim Boukhchina, Maged Mahmoud
Technical expert
Who We Are
RCREEE is an independent regional think tank
organization created in 2008, owned by its Member
States and hosted by Egypt
Our Mission
A Significant Share of Renewable Resources and a Highly-Efficient Energy
Consumption in the Arab Region
2
Our Work Areas
3
Research and Analysis
Capacity Development
Technical Assistance
• 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
• 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
• Certification and
standardization
schemes and guidelines
• Policies and regulations
design
• Implementation
planning
• Compliance guidelines
• Projects tendering
processes design and
guidelines
• Research and
development grants
Liberalised Electricity Markets
INDICATORS
Political Commitment
Market design
Regulation and institutional framework
Electricity prices
Grid access
Interconnection…..
4
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
Tunisia
5
Algeria
Morocco
RE Maghreb countries profiles
Fossil Fuel
subsidies
Finance and
IPP
Investment
RE Market
Evaluation
Supporting
Institutional
Policies
Support
Grid Access
6
RE Maghreb Market Evaluation
Finance and Investment
7
Algeria
Morocco
Tunisia
• Existing of RE fund
• No financial guarantee
to private investors to
ensure payment
under PPA
• No customs duty or
internal tax benefits
• Investment incentives
• No financial guarantee
to private under PPA
• No customs duty or
internal tax benefits
• Tax benefit for RE
Equipment
• Available financial
incentives for small
scale RE projects
• No financial guarantee
to private under PPA
RE Maghreb Market Evaluation
Supporting policies
Algeria
Morocco
Tunisia
• Public competitive
bidding for large-scale
private RE projects.
• Public competitive
bidding for large-scale
private RE projects.
• Net-metering policy
for small-scale grid.
• Law ensure energy
purchase
• No obligation to
conclude long-term
PPA with private
producers.
• No feed-in Tariffs.
• No net-metering
policy for small-scale
RE projects.
• Feed-in Tariffs ???
• No net-metering
policy for small-scale
RE projects.
8
• No long-term PPA for
private.
• No feed-in Tariffs.
• No public competitive
bidding for large scale
project.
RE Maghreb Market Evaluation
Grid access
Algeria
Morocco
Tunisia
• Priority access to RE is
granted by Decree
• RE grid code is under
preparation.
• RE grid code is under
preparation.
• No detailed grid map
for RE sites.
• No detailed grid map
for RE sites
• No priority access
• RE grid code is under
preparation
• RE is not authorized to
access for LV and MV
• No detailed grid map
for designated RE sites
• Existing of Technical
specifications related
to RE connecting
• No priority access to
RE
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RE Maghreb Market Evaluation
Institutional support
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
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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
RE Maghreb Market Evaluation
IPP
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
Tunisia
• Private electricity
generation from
conventionnel and RE.
• Private Conventional
electricity generation
through concessions
• Self RE production
• self-consumption with
the possibility of feeding
surplus electricity to the
grid
• No guarantee for excess
power purchase
• No IPPs producing RE
exist
State Utilities acting as (quasi-) monopolists in terms of electricity transmission and distribution
(vertically integrated utilities)
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RE Maghreb Market Evaluation
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RE Maghreb Market Evaluation
Electricity Prices in
Maghreb Countries
US$/kWh
13
 Electricity rates and taxes are often related in nontransparent 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 Maghreb Market Evaluation
Grid interconnections
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Working on a Common Internal Electricity Market, and as a long-term goal, a
gradual integration and regulatory harmonization with neighboring countries
RE Maghreb Market Evaluation
Algeria
STRENGTHS
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IMPROVMENT AREAS
Huge future market
Fossil fuel subsidies
Strong government
involvement
Specific RE tariffs
Existence of basic
regulatory framework
related to private
production
Activate RE private
production
Grid Access
RE Maghreb Market Evaluation
Morocco
STRENGTHS
Important future
market
Strong Government
Involvement
Existence of LS private
production
Transparence price
signal
Structured RE Sector
Interconnection with
Spain
16
IMPROVMENT AREAS
S&M scale private
production :Feed-in
tariffs/Net metering..
Grid Access
Land allocation
Fiscal support scheme
RE Maghreb Market Evaluation
Tunisia
STRENGTHS
Important RE potential
Net metering
Large Scale Private
production
Feed-in tariffs
Incentives for small size
projects
Grid Access
Fiscal support
Small size market
Strategic situation
and proximity to Italy
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IMPROVMENT AREAS
Conclusion
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…..
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Relevant RCREEE interventions
Arab Future Energy Index (AFEX)
Challenges
• Lack of a comprehensive, consolidated, and accurate
data on the Arab region’s RE and EE readiness and
capabilities.
Interventions
• 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.
Results
• Provide the first accurate and comprehensive data
source for RE and EE research and policy design.
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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, 7th
floor, Ministry of Electricity and Energy , Melsa District –
Ardh El Golf
Nasr City - Cairo, Egypt
[email protected],org
maged,[email protected]
www.rcreee.org

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