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Energy in R R e e g g i i o o n n a a l l C C o o o o r r d d Issues Brief for t th A A r r a a b b S S u u s s t t a a i i n n a a the Arab Region r d d i i n n a a t t i i o o n n M M e e c c h h a a n n i i s s m m ( ( R R th he a a b b l l e e D D e e v v e e l l o o p p m m e e n n t t R R e e n 2015 R R C C M M ) ) e e p p o o r r t t

Energy in the Arab Region - United Nations Economic and ...css.escwa.org.lb/SDPD/3572/Goal7.pdf · Energy in the Arab Region Regional Coord Issues Brief for th Arab Sustaina ination

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Energy in the Arab Region

RReeggiioonnaall CCoooorrddIIssssuueess BBrriieeff ffoorr tth

AArraabb SSuussttaaiinnaa

Energy in the Arab Region

rddiinnaattiioonn MMeecchhaanniissmm ((RRthhee

aabbllee DDeevveellooppmmeenntt RRee

Energy in the Arab Region

2015

RRCCMM))

eeppoorrtt

1 | P a g e

Authors: Habib El Andaloussi ([email protected])

Chief of Energy Section, Sustainable Development Policies Division, Economic and Social Commission for

Western Asia (ESCWA)

Lara Geadah ([email protected])

Research Assistant, Energy Section, Sustainable Development Policies Division, Economic and Social

Commission for Western Asia (ESCWA)

Reviewed by: UNEP United Nations Environment Programme

UNDP United Nations Development Programme

UNHABITAT United Nations Human Settlements Programme

ESCWA Economic and Social Commission for Western Asia

Disclaimer: This issues brief was prepared as a background document for the forthcoming Arab Sustainable

Development Report. The views expressed are those of the authors and do not necessarily reflect the views of

the United Nations. Document issued as received, without formal editing.

2 | P a g e

1. Progress and trends The Arab energy sector is playing and will continue to play a vital role in the socio-economic development of

Arab countries, especially those endowed with large hydrocarbon resources. These hydrocarbon resources

have also been fueling the global economy for decades. In addition, many Arab countries are blessed with huge

potential for renewable energy resources such as solar and wind that have not been adequately utilized yet.

Despite that, there are still nearly 36 million Arabs with no access to modern energy services.

Among ESCWA Member countries, GCC countries are among the highest fossil energy producers in the world,

and at the same time, they are large oil and gas consumer countries. The situation is unsustainable at several

levels, and is aggravated by systemic inefficiencies in patterns of energy consumption and production,

particularly affecting the high water scarcity of the region, and thus increasing reliance on oil- or gas-fuelled

desalination1.

The large consumption rates of oil and gas in some Arab countries can to some extent be attributed to the

widespread energy subsidies which prevail in some Arab countries, and six of the world’s ten largest subsidizers

are found in the Arab world, which have an adverse impact on demand management strategies.

The Arab region still presents imbalances among its countries in terms of energy resources and consumption

patterns. The region carries nearly 42 per cent of the world’s proven crude oil reserves, and produced over one

third of the total world crude oil in 20132,3. Accordingly, oil production has been one of the main economic

activities in the region4, with oil production in 2013 reaching 1327 Metric tons of oil equivalent (Mtoe)5. Saudi

Arabia, was the world’s largest crude oil producer with daily production of over 11.5 Million barrels per day

(Mbd)6, followed by Russia (10.8 Mbd) and USA (10 Mbd).

Arab countries have also been among the major suppliers of natural gas including 7 Arab gas producers and

LNG exporting countries (Algeria, Egypt, Oman, Qatar, UAE, Libya and Yemen) in the selective club of 19

existing LNG countries in the World. With 105 billion cubic meters (bcm)7 exported on 2013, Qatar is ranked

first LNG exporter in the World. The Arab gas production in 2013 reached 545 bcm (16% of the World

production), and was the third largest gas production after USA (688 bcm) and Russia (605 bcm)8.

3 | P a g e

FIGURE 1 PRIMARY ENERGY PRODUCTION AND CONSUMPTION (1971-2011, GTOE)

Source: Sketched by ESCWA/SDPD based on IEA data, non-OECD energy balances 2013

Energy consumption from hydrocarbons is significantly increasing. The oil and natural gas consumption rose

strongly at 5.9% per year for oil and 8.5% per year for gas during the period 1971 to 2011, reaching 306 Metric

Tons of Oil Equivalent (Mtoe)9 and 281 Mtoe respectively (source IEA 2013). In the coming years, some Arab

countries will suffer from the inability to meet growing electricity demand which is estimated to increase by

115% by 2024, from 969 TWh in 2013 to 2084 TWh by 2024. More than 35% of total primary energy is

consumed in electricity generation (96% of which from oil and gas), with the knock-on environmental impacts

of CO2 and other emissions contributing to climate change and deteriorating air quality)10

.

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Arab O&G Production - Mtoe- Arab O&G Consumption -Mtoe-

4 | P a g e

FIGURE 2 ARAB OIL AND GAS CONSUMPTION (1971-2011)

Source: Sketched by ESCWA/SDPD based on IEA data, non-OECD energy balances 2013

The rural electrification rate differs widely in the Arab countries, as around half of the countries have access

rates above 90%, while the remaining countries’ access rates are still less than 50%11. Additionally, some 12%

of ESCWA region’s population does not have access to modern energy services, and about 15% of the

population suffers from a lack of supply of electricity, most of which is in rural remote areas. The lack of energy

services usually aggravates the cycle of extreme poverty in the majority of rural areas in developing countries,

resulting in poor socio-economic conditions12. In Yemen and Sudan for instance, about 48 % and 65.5 % of the

population respectively does not have access to electricity or is served intermittently13 . Despite the

improvement in energy access in the region, the region is not homogeneous in terms of energy access, as the

group of high-income oil producers has an average energy access rate of 99.5%, the upper-middle and middle-

income countries have an energy access rate of around 99%, while the third group of low-income countries

such as Yemen and Sudan, has an average access rate of about 43%.14

The average energy use per capita in the Arab region was somewhat close to the world average of

approximately 1,764 Kilogram of Oil Equivalent (kgoe) per capita for 201115, however Arab countries show

great heterogeneity in energy consumption patterns. Countries in the Gulf reported between 3.5 to 9.4 times

higher levels of energy use than the world average, while most countries in the Mashreq and Maghreb used

less energy than the world average except for Libya16. The per capita energy consumption in GCC countries is

among the highest in the world, ranging between 7080 Kgoe/capita to 18490 Kgoe/capita17. In particular,

Yemen and Sudan consumed less than one fifth of the world average with energy use of only 293 kgoe and 372

kgoe per capita respectively.18

For the whole Arab region, energy intensity increased from 134 kgoe/thousand 2005 USD in 1971, to 422

kgoe/thousand 2005 USD in 2011 with a growth rate of 2.9%19. While energy intensity has been decreasing in

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5 | P a g e

Bahrain and Qatar from the 1990’s, other GCC countries have seen their energy intensity increase, particularly

Saudi Arabia20. Energy intensity has increased in the Arab region over the last few decades, while all other

regions have shown a major decrease in energy intensity.21

TABLE 1 PERCENTAGE OF POPULATION WITH ACCESS TO ELECTRICITY (2007 TILL 2013)

Country 2007 2008 2009 2010 2011 2012 2013

SUDAN 32 _ _ 25.0 27.8 34.0 34.5

YEMEN 47.0 47.0 50.0 52.0 52.0 52.0 52.0

ALGERIA _ _ _ _ 98.7 99.0 99.0

BAHRAIN _ _ 100.0 _ 100.0 _ _

EGYPT 99 _ 99.0 99.3 99.3 99.3 99.0

IRAQ _ _ _ _ _ _ _

JORDAN 99.9 99.9 99.9 99.9 99.9 99.9 99.9

KUWAIT _ _ _ 89 89 89 89

LEBANON _ _ 99 99 99 99 99

LIBYA 99 99 99 99 99 _ 99

MOROCCO 95 95 99 _ _ _ _

OMAN _ _ _ _ _ _ _

PALESTINE _ 99.0 99.0 99.8 99.0 99.5 99.5

QATAR _ _ 100 100 _ 100 100

SAUDI ARABIA 98.0 99.2 99.4 99.5 99.5 99.5 99.5

SYRIA _ 99.9 99.9 99.9 99.9 99.9 99.9

TUNISIA 99.4 99.5 99.5 99.5 99.5 99.5 99.5

UAE 100 100 100 100 100 100 100

Source: Arab Union of Electricity (2013, 2012, 2011, 2010, 2009, 2008, 2007)

The residential and service sectors represent an important part of the total energy consumption, and forecasts

indicate that electricity demand is set to rise in the near future. Such high electrical demands by the domestic

sector are often being satisfied at the expense of productive sectors, which are crucial for development. As

such, there’s a need to improve energy efficiency in the residential and services sectors through up-scaling

energy efficiency programs and related Green Building codes and consideration to reducing subsidies for

domestic consumption as part of demand management strategies which reinforce the security and

sustainability of energy supply22. Figure 4 below shows that growth in energy consumption and demand for

electricity in the region are outstripping both the population and GDP growth rates, highlighting an

unsustainable trend for the region.

This figure 4 also indicates that when economic growth has been multiplied by 5 since the year 1971, current

electricity and energy consumption have been multiplied by 35 and 12 respectively.

6 | P a g e

FIGURE 3 ENERGY AND ELECTRICITY CONSUMPTION IN THE ARAB REGION

Source: Sketched by ESCWA/SDPD based on IEA data, non-OECD 2013

FIGURE 4 INDICES OF ENERGY, ELECTRICITY, POPULATION AND GDP GROWTH

Source: Sketched by ESCWA/SDPD based on IEA data, non-OECD energy balances 2013

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Energy Consumption Mtoe Electricity TWh

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Energy Cons. (1971=100)- growth rate 6.4%

Electricity (1971=100) - growth rate 9.2%

Pop. (1971=100) - growth rate 2.6%

GDP (1971=100)- growth rate 3.4%

FIGURE 5 PER CAPITA ENERGY AND ELECTRICITY

Source: Sketched by ESCWA/SDPD based on IEA

FIGURE 6 ENERGY INTENSITY IN THE ARAB REGION

Source: Sketched by ESCWA/SDPD based on IEA

Renewable energy resources could play a major role in improving energy access and eradicating poverty. The

energy challenge can only be addressed through sound energy mix policies at national and regional levels,

where Renewable Energy (RE) and Energy Efficiency (EE) strategies and tools represent the cornerstone of the

energy mix.23

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Energy Intensity (toe/per

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LECTRICITY CONSUMPTION IN THE ARAB REGION

IEA data, non-OECD energy balances 2013

EGION

IEA data, non-OECD energy balances 2013

Renewable energy resources could play a major role in improving energy access and eradicating poverty. The

addressed through sound energy mix policies at national and regional levels,

where Renewable Energy (RE) and Energy Efficiency (EE) strategies and tools represent the cornerstone of the

1980 1985 1990 1995 2000

Energy cons./capita (kgoe/cap) Electricity/capita (kWh/cap)

1980 1990 2000

Energy Intensity (toe/per

thousand 2005 USD)

Energy Intensity (toe/per

thousand 2005 USD ppp)

7 | P a g e

Renewable energy resources could play a major role in improving energy access and eradicating poverty. The

addressed through sound energy mix policies at national and regional levels,

where Renewable Energy (RE) and Energy Efficiency (EE) strategies and tools represent the cornerstone of the

2005 2011

2011

8 | P a g e

The adoption of the “Pan-Arab Strategy for the Development of Renewable Energy Applications: 2010 – 2030”

by the 3rd Arab Economic and Social Development Summit of January 2013 represents an important milestone

for the deployment of renewable energy technologies (RETs) in the region with a focus on electricity

generation. For the first time, Arab governments have come to a consensus on long-term targets for RET

deployment in the region. Based on the approved national targets, the strategy includes cumulative targets to

increase renewable energy that translate into about more than 117 gigawatts (GW) of installed power

generation capacity in the Arab countries by 2020-203224, which represents about 25% of the installed capacity

in this period25. In support of the strategy realization, the Energy Department of the League of Arab States

recently introduced the Arab Renewable Energy Framework (AREF) to provide guidance to member states in

developing their medium to long-term national renewable energy action plans (NREAP). Despite the Arab

region’s rich endowment of renewable energy resources, its installed base of RETs remains limited, and the

share of renewables (including large- scale hydro) in installed electricity capacity was about 5.3% or about 12

GW. In addition, total solar water heating installed capacity reached 3.3 Gigawatt thermal (GWth). Hydropower

currently stands at 5% of the installed capacity for electricity generation in the Arab region. In terms of

generation, it represents around 3.44%. There are 9.8 GW of installed hydro capacity in Arab countries, 2.8 GW

of which are in Egypt26, whereas Iraq, Morocco, Sudan and Syria account for over 1.6 GW of hydropower

each27.

TABLE 2 INSTALLED RENEWABLE ENERGY CAPACITY IN ARAB COUNTRIES (MW, END 2014)

Source: from direct interviews and/or from national publications, annual reports and PPP in workshops, as well as other sources as

MENA renewable status report, REN 21, IRENA, LAS, 2013

Countries/ Energy (MW) PV CSP Wind Biomass & Waste Hydro Total

Algeria 7.1 25 10 0 228 270 Egypt 15.0 20 550 0 2800 3385 Iraq 3.5 0 0 0 1864 1868 Libya 4.8 0 0 0 0 5

Syria 0.8 0 0 0 1151 1152 Djibouti 1.4 0 0 0 0 1 Jordan 1.6 0 1.4 4 10 17 Lebanon 1.0 0 0.5 0 282 284 Morocco 15.0 20 787 0 1745 2567 Palestine 1.0 0 0 0 0 1 Tunisia 4.0 0 214 0 66 284 Sudan 2 0 0 55 1590 1648 Bahrain 5.0 0 0.5 0 0 6

Kuwait 1.8 0 0 0 0 2 Oman 0.7 0 0 0 0 1 Qatar 1.2 0 0 40 0 41 S.Arabia 7.0 0 0 0 0 7

UAE 22.5 100 0 3 0 126 Yemen 1.5 0 0 0 0 2 Mauritania 15.0

48 63 Arab

Countries 112 165 1 563 102 9784 11 726

FIGURE 7 ARAB RE INSTALLED CAPACITY BY END

Source: Based on data from Table 1

FIGURE 8 ARAB RE INSTALLED CAPACITY BY 2020

Source: Estimations of ESCWA based on official national RE targets of the countries

By end2014, the total solar (PV and CSP) installed capacity reached

Morocco and Algeria followed with 35 MW for each country

Hydro

86%

Wind

28%

Biomass & Waste

Y END 2014

2020-2032

Estimations of ESCWA based on official national RE targets of the countries

2014, the total solar (PV and CSP) installed capacity reached 277 MW in Arab countries, while Egypt,

Morocco and Algeria followed with 35 MW for each country28

.

PV

1%

CSP

1%Wind

11%

Biomass & Waste

CSP

29%

Biomass & Waste

4%

Geothermal

2%

9 | P a g e

countries, while Egypt,

Biomass & Waste

1%

PV

37%

FIGURE 9 INSTALLED CAPACITY BY TYPE OF GENERATIO

Source: Sketched by ESCWA/SDPD based on estimations from 2 tables page 4 (MW installed by technology) and page 6 (fuel inputs) of

the Issue no. 22 of the Arab Union of Electricity (2013)

The Arab countries’ RE market hasn’t reached its full potential, and there

through pipeline projects and increasing political commitments, and if the current efforts are continued

investments and progress should follow and lead to massive introduction of renewables

The total RE installed capacity of power generation in the Arab region, was about

(including hydro). Meanwhile the total existing installed capacity of renewable energy

about 112 MW for PV systems, 165 MW for CSP,

The estimated total capacity based on the national RE targets is about 107 GW planned between 2020 and

2032 (42.6 GW PV, 32.8 GW CSP, 32.8 GW wind,

Regarding renewable energy projects’ pipeline, most

renewable power projects. Twenty Arab states have announced renewable energy targets. Most of these

targets represent fractions of electricity generation or installed capacity. However, in the cases of J

Mauritania and Syria, the targets represent fractions of primary energy consumption. Morocco’s clean power

target of 42% installed capacity by 2020 stands out as the most ambitious target in the Arab region. Algeria,

Egypt, Qatar, Saudi Arabia, and Tunisia have also announced ambitious targets in excess of 20% of electricity

generated for different horizons. Fourteen Arab states have committed to one or more technology

targets. These targets reveal a regional focus on solar rather than wind

targets are more than double the wind targets. Among solar technologies, CSP’s targets are almost 40% higher

than PV targets. Targets for other renewable energy technologies such as geothermal and waste

substantially lower than solar or wind.

BY TYPE OF GENERATION FOR 2013

Sketched by ESCWA/SDPD based on estimations from 2 tables page 4 (MW installed by technology) and page 6 (fuel inputs) of

the Issue no. 22 of the Arab Union of Electricity (2013)

The Arab countries’ RE market hasn’t reached its full potential, and there are promising signs of development

through pipeline projects and increasing political commitments, and if the current efforts are continued

investments and progress should follow and lead to massive introduction of renewables29

city of power generation in the Arab region, was about

(including hydro). Meanwhile the total existing installed capacity of renewable energy at the

about 112 MW for PV systems, 165 MW for CSP, 1563 MW for wind farms and 102 for biomass.

The estimated total capacity based on the national RE targets is about 107 GW planned between 2020 and

GW wind, 5.0 GW biomass, 2.2 GW geothermal)31

.

Regarding renewable energy projects’ pipeline, most Arab states are procuring significant utility

renewable power projects. Twenty Arab states have announced renewable energy targets. Most of these

targets represent fractions of electricity generation or installed capacity. However, in the cases of J

Mauritania and Syria, the targets represent fractions of primary energy consumption. Morocco’s clean power

target of 42% installed capacity by 2020 stands out as the most ambitious target in the Arab region. Algeria,

Tunisia have also announced ambitious targets in excess of 20% of electricity

generated for different horizons. Fourteen Arab states have committed to one or more technology

targets. These targets reveal a regional focus on solar rather than wind technologies. The combined CSP and PV

targets are more than double the wind targets. Among solar technologies, CSP’s targets are almost 40% higher

than PV targets. Targets for other renewable energy technologies such as geothermal and waste 32

Natural Gas, 60%

Oil, 34%

Coal, 1.0%

Hydro, 4.6% Wind, 0.5%

, 0Solar, 0.1%

10 | P a g e

Sketched by ESCWA/SDPD based on estimations from 2 tables page 4 (MW installed by technology) and page 6 (fuel inputs) of

are promising signs of development

through pipeline projects and increasing political commitments, and if the current efforts are continued 29

.

city of power generation in the Arab region, was about 11726 MW by 2014

at the end of 2014, was

102 for biomass.30

The estimated total capacity based on the national RE targets is about 107 GW planned between 2020 and

Arab states are procuring significant utility-scale

renewable power projects. Twenty Arab states have announced renewable energy targets. Most of these

targets represent fractions of electricity generation or installed capacity. However, in the cases of Jordan,

Mauritania and Syria, the targets represent fractions of primary energy consumption. Morocco’s clean power

target of 42% installed capacity by 2020 stands out as the most ambitious target in the Arab region. Algeria,

Tunisia have also announced ambitious targets in excess of 20% of electricity

generated for different horizons. Fourteen Arab states have committed to one or more technology-specific

technologies. The combined CSP and PV

targets are more than double the wind targets. Among solar technologies, CSP’s targets are almost 40% higher

than PV targets. Targets for other renewable energy technologies such as geothermal and waste-to-energy are

11 | P a g e

2. Analysis of Proposed SDG and Targets from an Arab Perspective In the aftermath of Rio+20’s Conference, “Sustainable Energy for All” emerged as an important development

Agenda. ESCWA and the UN and other regional organizations have initiated a series of consultations with a

large group of stakeholders to position energy issues within the energy mix, the water-energy-food nexus, and

put it high on the global debate on Sustainable Development Goals (SDGs)33

.

There are clear interactions between water, food and energy that may result in synergies or trade-offs

between different sectors or interest groups. It is thus important to understand the synergies and tradeoffs in

order to develop response options to ensure the sustainability of the environment and people’s livelihoods. By

highlighting these interdependences, the Nexus concept highlights the need to view water, energy and food

not as being separate, but as being complex and inextricably entwined34

.

Stressing the need for a coherent, integrated approach to energy issues and the promotion of synergies across

the global energy agenda for sustainable development, the General Assembly, in its resolution 67/215, decided

to declare 2014-2024 the United Nations Decade of Sustainable Energy for All, to be promoted through all

sources of energy. Access to energy sources has been a major driver of development in industrialized countries

and emerging economies. Energy helps to eradicate poverty, increase food production, provide clean water,

improve public health, enhance education, address climate change, create economic opportunity and

empower young people and women. Nevertheless, the “energy-poor” suffer the health consequences of

inefficient combustion of solid fuels in inadequately ventilated buildings, which kills around four million people

a year, most of them women and children, as well as the economic consequences of insufficient power for

productive income-generating activities and for other basic services, such as health and education. In

particular, women and girls in the developing world are disproportionately affected in that regard. In response

to the 2010 declaration by the General Assembly of 2012 as the International Year of Sustainable Energy for All,

the Secretary-General launched the Sustainable Energy for All initiative in 2011. The initiative seeks to support

the objective of sustainable energy for all by identifying and mobilizing action by all stakeholders in support of

a major global transformation of energy systems. The initiative seeks to ensure sustainable energy for all by

2030 through the achievement of three major objectives: (a) ensuring universal access to modern energy

services; (b) doubling the rate of improvement in energy efficiency; and (c) doubling the share of renewable

energy in the global energy mix35

.

Sustainable energy provides new opportunities for growth. It enables businesses to grow, generates jobs, and

creates new markets. Children can study after dark, clinics can store life-saving vaccines, and countries can

grow more resilient, with competitive economies. With sustainable energy, countries can build the clean

energy economies of the future. Sustainable energy for all is an investment in our collective future. Universal

energy access, increasing the use of renewable energy, improved energy efficiency and addressing the nexus

between energy and health, women, food, water and other development issues are at the heart of all

countries’ core interest, which must be deeply integrated in the development agenda36.

Regarding the proposed SDG 7: Ensure access to affordable, reliable, sustainable, and modern energy for all

and its related targets:

• 7.1 by 2030 ensure universal access to affordable, reliable, and modern energy services

• 7.2 increase substantially the share of renewable energy in the global energy mix by 2030

12 | P a g e

• 7.3 double the global rate of improvement in energy efficiency by 2030

For target 7.1: all rural areas of Arab countries are concerned with this target, and priority and focus should

mainly be given to Sudan and Yemen as they are the two countries with the lowest rates of energy access.

For target 7.2, nearly all Arab countries have set their own targets to increase the share of renewable energy in

their energy mix, and in order to develop renewable energy in the Arab region, technology transfer and local

integration of these technologies should be ensured.

For target 7.3: all countries of the region would benefit from improving energy efficiency, and especially the

GCC countries in order to maintain the level of exports revenues. North African Arab countries are considered

to be rather advances on energy efficiency issues, and as such the experiences they have acquired in the field

could serve as lessons learned for the other Arab member countries, and especially those of GCC. Indicators on

the implementation of thermal standards building codes, energy labeling in electrical appliances, distribution of

low energy consuming lamps, and level of penetration of solar water heating systems in Arab countries, could

be used to assess progress on that target.

3. Major Success Stories

3.1. Experience of Morocco Morocco is currently undergoing an energy transition, aiming at reducing its energy dependence from 93.61 %

in 2013 to 85.44 % in 2025. To achieve this goal, Morocco is focusing on the development of renewable energy,

the introduction of liquefied natural gas and increased oil exploration, as well as strengthening energy

efficiency37

.

As a large portion of the Moroccan population lives in rural areas, Morocco has been one of the first Arab

countries to introduce renewable energies in its rural electrification programme to ensure electricity access to

populations living in remote rural villages through the dissemination of photovoltaic kits in those villages.

Beneficiaries of these kits are considered as clients subscribed to the public grid, who benefit from technical

assistance, billing, and other associated services. Some 3663 Moroccan villages are benefiting from these kits

(51559 PV systems until end of 2014). More than 150000 households in 6000 villages are eligible to be

electrified by photovoltaic systems. Rural electrification rate in Morocco reached 98.51% by end of 2013.38

Morocco's energy bill is increasing from year to year, and exceeded 98 billion dirhams in 2012, and the country

imports 96% of its energy needs. To meet the growing demand for energy in the Kingdom, Morocco

established since 2009 a national strategy for renewable energy, it created new institutions for the

management of this strategy, and is putting in place instruments that will allow it to conduct a good

implementation of its Action Plan.

An ambitious program of 4000 MW by 2020 (including 2000 MW wind and 2000 MW solar) is being

implemented. The wind program is well advanced with 495 MW already installed today, and the solar plan,

launched the construction of the first solar thermal power plant of 160 MW (NOOR- 1) located in Ouarzazate, a

city isolated that will benefit from solar electricity by the end of 2015; other solar projects as NOOR-II, and

NOOR-III are currently under call for tenders39

.

13 | P a g e

The Moroccan Solar Plan will enable the emergence of low-carbon and climate-friendly technology in Morocco,

as well as reducing energy imports. In addition, the project will create job opportunities and promote an

integrated local solar industry40

.

Concerning the solar programme, although Morocco only had one 20 MW operational plant as of 2014, it has

163 MW under construction and 300 MW under development. Moreover, it is worth noting that the country

achieved its 2012 target of supplying 8% of total energy from renewables. The Moroccan Markets Report

forecasts that the country will have between 440 MW and 2,303 MW of installed CSP capacity by 2025, largely

driven by the need for energy independence and security. On the other hand, decreasing freshwater resources

and ongoing exploration for unconventional fossil fuels may negatively affect the speed at which CSP is

deployed in Morocco.41

3.2. Experience of Tunisia The Tunisian government has proper institutional framework and the expertise to implement energy efficiency

improvement projects. The establishment of the National Fund for Energy Conservation (FNME) in 2005 was a

fundamental step forward for financing energy efficiency projects as well as renewable energy and energy

substitution, and this indicates the will of Tunisian government to improve energy efficiency. FNME has

resulted in great success, and contributed to the saving of $745 Million in energy expenditure through the

support of $102 Million, which shows a clear multiplier effect.

Improvement of energy efficiency in the country will actually help to reduce the negative impacts of energy

subsidy reform in many ways. Investment for energy efficiency projects will create and provide green jobs to

many Tunisians particularly to the youth. It will encourage more efficient use of energy and thus contribute to

reduce the impact of rising energy prices on household budget and on inflation. As such, current proposal is

timely and relevant to prevent the expected negative impacts of planned energy subsidy reform on the general

public and to contribute to the successful transition of Tunisian government’s financial problems.

The implementation cost of energy efficiency program 2005-2011 was $102 Million and allowed: (i) Reduction

of energy consumption by 878 000 toe; and (ii) Saving $745 million from the energy subsidy bill expenditure42

.

4. References • AFED (Arab Forum for Environment and Development), 2013, “Arab Environment 6: Sustainable

Energy”, Report of the Arab Forum for Environment and Development”/ ESCWA’s thematic session on

“Sustainable Energy in the GCC countries: is Energy Intensity a useful tool for GCC

countries?”ESCWA/SDD, 07 - Chapter-VII Energy 2014 and BP Statistical Review 2014 for no ESCWA

MCsBP Statistical Review 2014

• Calculated by ESCWA from World Bank, World Development Indicator

• ESCWA(2013), Survey of economic and social developments in the Arab region

• IEA data, 2013

• The Pan-Arab Renewable Energy Strategy 2030, LAS and IRENA and RCREEE

• Info note of Morocco meeting, Nov 2013

• Arab Union of Electricity, 2013

• Technical paper on EU-GCC energy cooperation, Dr. Emanuela Menichetti, OME, 17 January 2013

• ESCWA’s concept note on up-scaling energy efficiency in the residential and services sector

14 | P a g e

• REN21, 2013. MENA Renewables Status Report. REN 21, “Renewables 2014, Global Status Report”

• Walking the Nexus Talk: Assessing the Water-Energy-Food Nexus, in the Context of the Sustainable

Energy for All Initiative, FAO, 2014

• Report of the Secretary-General, A/69/395

• Sustainable energy for all website

• E/ESCWA/SDPD/2013/Booklet.1, Green Economy Initiatives Success Stories and Lessons Learned in the

Arab Region 21 February 2013

• From speech of his Excellency the Moroccan Minister of energy, mines, water and the environment Mr.

Abdelkader Amara at the Forum organized on 28 October 2014 on the subject of “Is Morocco at the

Eve of and Energy Transition?”

• ONE website Morocco, Office National de l’Electricité et de l’Eau Potable

• ESCWA’s Workshop, Tunis, 14-15 April 2014 on “Enabling Policies for Financing Energy Efficiency

Investments”, PPP on “Politique de l'Efficacité Energétique en Tunisie” by ANME

• CSP Today Markets Reports Series 2015

• BP Statistical Review 2014

• ESCWA/SDD, 07 - Chapter-VII Energy 2014

• Arab Human Development Report, Energy Subsidies in the Arab World, UNDP’s Regional Bureau for

Arab States, Research Paper Series, 2012, Bassam Fattouh & Laura El-Katiri

Flagship Publications: • E/ESCWA/SDPD/2013/IG.2/5, “The adoption and application of renewable energy technologies in the

ESCWA region”, June 2013

• E/ESCWA/SDPD/2012/2, “The role of renewable energy in climate change mitigation in the ESCWA

region”, Oct. 2012, • E/ESCWA/SDPD/2011/WG5/2, “Local manufacturing of solar and wind energies equipment to produce

electricity in the Arab region: potential and prospects”

• AREX Report from RCREEE

• Pan-Arab RE Strategy 2030: Roadmap of Actions for Implementation

• LAS, Arab Strategy for the Development of RE Applications 2010-2030, published in 2013

• AFED (Arab Forum for Environment and Development), 2013, “Arab Environment 6: Sustainable

Energy”, Report of the Arab Forum for Environment and Development”/ ESCWA’s thematic session on

“Sustainable Energy in the GCC countries: is Energy Intensity a useful tool for GCC countries?”

• ESCWA’s Statistical Abstract, Energy Data Chapter

• Arab Union of Electricity, 2014, Statistical Bulletin 2013

• IEA (International Energy Agency), 2013, Energy Balances in Non-OECD Countries

• LAS, 2014, Guidebook for RE and EE in Arab Countries

• RCREEE, 2013, Arab Future Energy Index: Renewable Energy

• RCREEE, 2013, Country Profiles

• REN 21, 2013, MENA RE Status Report REN 21,

• REN 21, “Renewables 2014, Global Status Report”REN21, Global Status report 2013, Saving Oil and Gas

in the Gulf, A Chatham House Report, by Glada Lahn, Paul Stevens and Felix Preston, August 2013

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Note: In some figures given in this brief, the total given for the Arab region covers 18 over 22 Arab countries.43

5. Endnotes 1 AFED (Arab Forum for Environment and Development), 2013, “Arab Environment 6: Sustainable Energy”, Report of the Arab Forum for

Environment and Development”/ ESCWA’s thematic session on “Sustainable Energy in the GCC countries: is Energy Intensity a useful

tool for GCC countries?” 2 Arab Human Development Report, Energy Subsidies in the Arab World, UNDP’s Regional Bureau for Arab States, Research Paper

Series, 2012, Bassam Fattouh & Laura El-Katiri 3 ESCWA/SDD, 07 - Chapter-VII Energy 2014 and BP Statistical Review 2014 for no ESCWA MCs

4 Calculated by ESCWA from World Bank, World Development Indicator, and ESCWA(2013), Survey of economic and social

developments in the Arab region 5 BP Statistical Review 2014

6 BP Statistical Review 2014

7 1 Billion cubic meter (bcm)=1 Million ton of oil equivalent (Mtoe) approximately

8ESCWA/SDD, 07 - Chapter-VII Energy 2014 + BP Statistical Review 2014

9 1bcm=1 Mtoe approximately

10 Arab Union of Electricity, 2013

11 The Pan-Arab Renewable Energy Strategy 2030, LAS and IRENA and RCREEE

12 ESCWA, Information note of Morocco meeting, November 2013

13 Issue no. 22 of the Arab Union of Electricity (2013)

14 Issue no. 22 of the Arab Union of Electricity (2013)

15 IEA data, 2013

16 World Bank, World Development Indicators

17 IEA data, 2013

18 IEA data, 2013

19 IEA data, 2013

20 Technical paper on EU-GCC energy cooperation, Dr. Emanuela Menichetti, OME, 17 January 2013

21 World Bank, World Development Indicators

22 ESCWA’s concept note on up-scaling energy efficiency in the residential and services sector

23 AFED (Arab Forum for Environment and Development), 2013, “Arab Environment 6: Sustainable Energy”, Report of the Arab Forum

for Environment and Development”/ ESCWA’s thematic session on “Sustainable Energy in the GCC countries: is Energy Intensity a useful

tool for GCC countries?” 24

Estimation of ESCWA based on the national RE targets of Member countries 25

Based on Issue no. 22 of the Arab Union of Electricity (2013) 26

Arab Union of Electricity, 2013 27

Pan-Arab Renewable Energy Strategy 2030, LAS and IRENA and RCREEE 28

Information collected from direct interviews and/or from national publications, annual reports and PPP in workshops, as well as other

sources as MENA renewable status report, REN 21, IRENA, LAS, 2013 29

Arab Environment, 6, sustainable energy, prospects, challenges, and opportunities, AFED, 2013 30

Information collected from direct interviews and/or from national publications, annual reports and PPP in workshops, as well as other

sources as MENA renewable status report, REN 21, IRENA, LAS, 2013 31

Estimations of ESCWA by the author based on official national RE targets of the countries 32

Pan-Arab Renewable Energy Strategy 2030, LAS and IRENA and RCREEE 33

AFED (Arab Forum for Environment and Development), 2013, “Arab Environment 6: Sustainable Energy”, Report of the Arab Forum

for Environment and Development”/ ESCWA’s thematic session on “Sustainable Energy in the GCC countries: is Energy Intensity a useful

tool for GCC countries?” 34

Walking the Nexus Talk: Assessing the Water-Energy-Food Nexus, in the Context of the Sustainable Energy for All Initiative, FAO, 2014 35

Report of the Secretary-General, A/69/395 36

Sustainable energy for all website 37

From speech of his Excellency the Moroccan Minister of energy, mines, water and the environment Mr. Abdelkader Amara at the

Forum organized on 28 October 2014 on the subject of “Is Morocco at the Eve of and Energy Transition?” 38

ONE website Morocco, Office National de l’Electricité et de l’Eau Potable 39

CSP Today Markets Reports Series, 2015 40

Green Economy Initiatives Success Stories and Lessons Learned in the Arab Region, E/ESCWA/SDPD/2013/Booklet.1, 21 February 2013

16 | P a g e

41

CSP Today Markets Reports Series 2015 42

ESCWA’s Workshop, Tunis, 14-15 April 2014 on ‘’ Enabling Policies for Financing Energy Efficiency Investments”, PPP on ‘’Politique de

l'Efficacité Energétique en Tunisie’’ by ANME 43

The Arab region includes 22 countries. The Arab region referred to herein sometimes does not include figures for Palestine, Djibouti,

the Comoros and Mauritania.