1 UPDEA General Conference Tunis-May 2012 A.Saddouq Socioeconomic impact of rural electrification Case of Morocco

2 Global Rural Electrification Program-PERG- Launched in 1996 At the end of 2010 o 33,000 villages / 1.91 million households connected to network o 3700 villages / homes with PV modules o Electrification rate : 97.5 % against 18% in o 84 % subscription rate o U.S. $ 2.5 billion Rural electrification in Morocco A successful bet

3 52,000 homes with PV (50 Wp, 75 Wp, 200 Wp) Contract to provide «Fee for Service » Indoor installation + maintenance + renewal e expense of the supplier against payment subscription rights + monthly fee + subsidy ONE The model reaches its limits with the extension of the interconnected network Important solar component

4 Participative combination ONE – Municipalities - Beneficiaries 25% Beneficiaries 55% ONE 20% Municipalities 200 Euro/home 250 Euro/home Payment Facilities for municipalities and beneficiaries Prefinancing by ONE.

5² ²²²²²²²²² ²²²²²²²²²²² Rural population : 46 % the total population. Rural areas made up of: o 66 % poor o 77 % very poor o 90 % extremely poor Rural areas highly affected by poverty

6 Evaluation throughout the program (1999,2003, 2008). Visible effects on environment and socio-economic development but needs to be strenghthened. Socio-economic impact and environment

7 Primary Sector: little effect on small and medium operations. Secondary sector (i.e milk processing) but considerable dependence on road infrastructure. Secondary activity: very strong impact on local trade Impact on local economy

8 Improvement of school enrollment. Improvement of household equipement ( fridges, TV,…). Little effect on rural exodus. Social Impact

9 Impact on environnement Abandonment of GE: o FE 1.9 kg CO2 / kWh against for the interconnected ONE network photovoltaic stock: tons CO2 avoided annually. Avoidance of soil pollution by the batteries widely used before electrification.

10 Transfer 2.4% of GDP to rural areas. Growth effect on the power sector: industry and services permanent jobs. Impact on national economy

11 RE : significant impact on the environment and rural development. Strong impulse of solar slowed by network expansion. New balance to be designed Many externalities: homeland planning, local governance, information.... …. Moderate development of productive uses and AGR. Need for proactive policy support. New production launch. Conclusions

12 Clients customers at end of 2010 Driving force 1,4% Patented and collective Uses 2,5% National subscription rate by end of % Household uses 96,1%

13 Conclusion

14 Thank you for your attention