"EU and MENA: Market Potentials and Opportunities for Synergy" Presentation

1. Bringing MENA’s Sustainable Energy Perspective to EU Partners A High Level Policy Conference panel session

2. 2 RCREEE: Who We Are  Independent regional inter-governmental organization  14 member states  National Focal Point in Every Country  In operation since 2008  Headquartered in Cairo, Egypt  Funded by member states and donor grants

3. 3 Our Member States

4. 4 Our Mission “To enable a sustainable growth in Arab states’ adoption of renewable energy and energy efficiency applications and initiatives through leading regional policy dialogues, learning, and research.” Our Mission Our Mission

5. 5 Key Partners

6. 6 Key Note Speech Dr. Tareq Emtairah Executive Director .

7. 7 Amer Barghouth Private Investments Project Manager Nurzat Myrsalieva Policy Analysis Project Manager Presentation: MENA Region RE&EE Key Facts

8. 8 • Arabic Speaking countries in MENA 19 • Estimated population in 2014 360 million • Estimated nominal GDP in 2012 $2.8 trillion • Total Electricity Installed Capacity 213 GW • Annual Growth Rate in Electricity Demand 6% • Renewable Energy Installed Capacity 12 GW • Countries with specific RE targets 18 • Countries with RE & EE laws5 • Adopted NEEAPs7 • Cumulative RE targets for 2030 75 GW

9. 9 Primary Energy Consumption Oil 55.5% Natural Gas 41.5% Coal 1.0% Hydro Electricity 2.1% 2000 6,825,000 boe/day Oil 48.5% Natural Gas 50.0% Coal 0.7% Hydro Electricity 0.8% 2011 12,908,000 boe/day Source: OAPEC Annual Statistical Report (2005, 2012)

10. 10 Current Energy Trends Source: OAPEC (2005, 2007, 2012); EIA (2013); World Bank (2013) 1 1.2 1.4 1.6 1.8 2 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Primary Energy Consumption Electricity Consumption GDP $2000 Index: 2000 = 100%

11. Energy Dependence 2011 2000 Dependence Independence All Arab Mauritania Djibouti Jordan Lebanon Morocco Tunisia Egypt Syria Yemen Libya Bahrain UAE Saudi Arabia Algeria Iraq Qatar Sudan Kuwait Oman -11 -10 -9 -8 -7 -6 -5 -4 -3 -2 -1 0 1

12. 12 How do we measure member states’ efforts to create a favorable investment environment for sustainable energy?

13. Energy Efficiency Renewable Energy

14. Morocco Palestine Tunisia Yemen Sudan UAE Lebanon Jordan Syria Algeria Iraq Bahrain Oman Egypt SaudiArabia Libya Qatar Kuwait Energy Prices: Industrial Electricity Based on 30579 kWh per month average consumption Price (US cent/kWh) Implied subsidy 20 15 10 5 0 10 0.8 0.5 0.3 0.0 0% -3% 16% 38% 50% 51% 51% 51% 63% 73% 74% 74% 75% 75% 79% 80% 88% 96%

15. 15 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2 Countries US International Gasoline Retail Prices Crude Oil Prices Energy Prices: Gasoline Retail Prices

16. 16 Renewable Energy Supporting Policies • At least 5 countries IPP Public Competitive Bidding • 1 country Direct Proposal Submission • 3 countriesFeed-in Tariffs • 7 countriesNet Metering • More than 15 countriesEPC Contracting

17. 17 Energy Efficiency Regulations • More than 9 countriesBuildings • More than 6 countriesAppliances • TunisiaLighting • 3 countriesIndustry

18. 18 80 60 40 20 0100 Colors show range for overall score 0-20 20-40 40-60 60-80 80-100 71 59 53 47 47 45 33 29 28 25 25 20 13 Morocco Jordan Egypt Palestine Tunisia Algeria Lebanon Syria Bahrain Sudan Yemen Libya Iraq AFEX Renewable Energy Final Scores

19. 19 AFEX Energy Efficiency Final Scores Palestine Morocco Tunisia Bahrain Syria Iraq Libya Egypt Yemen Lebanon Algeria Sudan Jordan 81 55 48 53 42 42 41 0 20 40 60 80 100 35 33 29 23 19 14 Colors show range for overall score 0-20 40-6020-40 60-80 80-100 Tunisia Morocco Jordan Palestine Algeria Lebanon Egypt Syria Bahrain Sudan Yemen Libya Iraq

20. 20 Energy Demand and Supply Regulatory Framework Energy Access and Pricing Technology

21. 21 There are many commercially viable opportunities in sustainable energy in Arab countries, but they remain largely untapped

22. 22 Do not need fiscal or financial incentives Do not need investment subsidies Require minimal policy, regulatory, legal, or administrative adjustments Contain potential for substantial localization of the supply chain

23. 23 Barriers to Scale Up of Investment • At all levels of the existence of these commercially viable opportunities Low awareness • To demonstrate the potential of these opportunities Few success stories • About the risk profiles and potential benefits of these technologies Insufficient information • That meet the three A’s (Appropriate, accessible, affordable) Few financing options • To assess markets and create business models Weak local capacity

24. 24 Private Investments Promotion Program • To identify concrete, commercially viable opportunities in sustainable energy in the Arab region • To promote these opportunities with the private sector through targeted awareness building campaigns in order to stimulate investment in these opportunities • To facilitate access to appropriate and affordable financing options for the deployment of commercially-viable DG opportunities

25. 25 Investment-Ready Opportunities in the MENA Region RE Self- Consumption in Productive Sectors (On-grid and off-grid) Solar Thermal Applications in Commercial and Industrial Sectors On-grid Residential and Houses of Worship PV Solar Rooftop Off-grid Rural and Peri-Urban Electrification Solar PV Pumping Energy Performance Contracting (EPC) Street Lighting Agricultural Waste to Energy Applications

26. 26 RE Self Consumption in Industrial and Commercial Sectors

27. 27 Source:MillenniumEnergyIndustries Solar Thermal Applications in Commercial and Industrial Sectors

28. 28 Source:MustakbbalCleanTech On-grid Residential and Houses of Worship PV Solar Rooftop

29. 29 Source:AzuriSolutions Off-grid Rural and Peri-Urban Electrification

30. 30 Source:LorentzSolarPumps Solar PV Pumping

31. 31 Energy Performance Contracting (EPC) in Street Lighting

32. 32 Agricultural Waste to Energy Applications

33. 33 Panel Discussion • Dr. Tareq Emtairah – Moderator • Dr. Dhamir Mannai • Wijdan Al Rabadi • Paul Van Son • Dr. Florian Sauter-Servaes • Ulrika Wising • Anita Richter

34. 34 Dr. Dhamir Mannai • Member of Parliament and Deputy President of the National Constituent Assembly of Tunisia • Member of the Arab Parliament

35. 35 Wijdan Al Rabadi • Commissioner, Electricity Regulatory Commission of Jordan

36. 36 Paul Van Son • CEO, Dii GmbH

37. 37 Dr. Florian Sauter- Servaes, • Senior Expert, MVV DECON

38. 38 Ulrika Wising • Head of Section, Sustainable Use Services Europe, DNV GL

39. 39 Anita Richter • Project Leader, GIZ

40. 40 Going Forward • What recommendations can be made to further renewable energy and energy efficiency development in the MENA region?

41. Bringing MENA’s Sustainable Energy Perspective to EU Partners