1. DESIGNING SUSTAINABLE ENERGY MARKET: MOROCCO APPROACH Mohamed BERDAI, Director International Cooperation RENEWABLE ENERGY CENTER (CDER)‏ Berlin, March 28, 2008

2. MAIN ENERGY STAKES Security of supply, within an international contexte charaterized by strong demand;Security of supply, within an international contexte charaterized by strong demand; Important growth of energy & water needs: demography, rapid urbanization, industry, housing, Tourisme;Important growth of energy & water needs: demography, rapid urbanization, industry, housing, Tourisme; Energy efficiency becomes very critical with high and volatile oil pricesEnergy efficiency becomes very critical with high and volatile oil prices

3. MAIN ENERGY STAKES (3D)Drought, deforestation and desertification(3D)Drought, deforestation and desertification Environnemental issuesEnvironnemental issues Alternatives after oil?Alternatives after oil?

4. MOROCCO CASE Heavy energy constraints: dependency on imports + 95% Rising oil and cool prices: the overall oil bill represented for the year 2007 around 10% of our GDP Morocco is registering sustainable economic growth and related to this, electricity demand: 7-8%/year Renewable Energy and energy efficiency is one of the best solutions to the country’s energy challenge

5. RE AND EE : A REAL PRACTICE FOR DEVELOPMENT  Electricity Production : Wind parks, sea water desalination, solar-thermal plants-production  Rural energy : Consolidated decentralized electrification, substituting biomass for heating and cooking  Solar thermal : Transformation of SWH market  Wood-fuel : Introduction of improved technologies in Hammams, bakery ovens and pottery sector  Collective buildings : Thermal regulation in buildings, labelization of equipments  Industry : Optimisation of demand management

6. MOROCCO HAS IMPORTANT RENEWABLE ENERGY SOURCES 1.700.000394.000 Solaire thermique B.T 7.460 MW à 12.900 MW 1.620 TOTAL 1.400300 Sources énergétiques biogènes 800180 CSP 2.00080 Photovoltaïque 3.260 à 8.7001.060 Eolien Potentiel réalisable 2020 Potentiel réalisable 2012 En MW installés ou m 2

7. PNDEREE: MOROCCAN RE & EE PROGRAM 2012 OBJECTIVES : BY 2012 20% of electricity produced from RE 10% of the Energy consumption from RE

8. PNDEREE: MOROCCAN RE & EE PROGRAM 2012  Power generation: 1000 MW  Wind parks, solarthermal plants,  Objectives Decentralized rural electrification + extending of basic services  Objectives for energy effeciency  Objectives for implementing an appropriate institutionnel and regulatory framework dedicated to RE and EE to encourage investments in the sector  Necessary actions to follow up the whole program

9. Government Commitments within the WB Energy sector development policy loan: diversification of energy sources, analyse progressive reduction of butane subsidy, liberalization of electricity sector, reinforcement of CDER and RE promotion (law), fund RE & EE to be implemented Schedule: 3 years  2008-2010 ENERGY REFORMS: WB LOAN

10. REGULATORY FRAMEWORK UNDER APPROVAL  Raising auto-production limit from 10 to 50 MW for industries and private  Under approval: law project for RE & EE  Reorganization of the CDER as an operational agency for renewable energy, with regional operationality

11. REGULATORY FRAMEWORK  Laws promulgated for water and waste management  National programs (2015) regarding waste and used water management adopted by the National Council for Environment‏

12. NEW OPERATIONAL APPROACHES RENEWABLE ENERGIES  Inventory of renewable energy resources and sites  Portfolio of investment projects  Accompagning investment initiatives  Promotion of quality and efficiency : norms, standards and technical guides  Follow up : impact analysis, development and technological adaptation

13. NEW OPERATIONAL APPROACHES : ENERGY EFFICIENCY  Sectorial study : tertiary, transport, agriculture, artisanat,... reference state, potential  Implementation « energy audits »  Assistance for institutions, local collectivities and enterprises for developing their plan for energy efficiency  Accompagning EE projects : technical and financial engineering, follow up of realizations,…  Proposition of norms, standards and technical guides for equipment, materiel and related serices

14. MOBILIZING PUBLIC/PRIVATE/ FINANCIAL INSTITUTIONS PUBLIC MOBILIZATION PRIVATE INVOLVMENT INTERNATIONAL SUPPORT GEF, UNDP, EIB, KFW, WB, AFD, FFEM, IMET, GTZ, ADEME, SPAIN, DOE, USAID, USTDA…

15. Looking for market transformation 200 000 m2 of solar water heaters installed in Morocco, objective of 400 000 m² by 2012

16. WIND ENERGY Projects 50,4 MW 3,5 MW 10 MW 60 MW 140 MW 300 MW 100 MW 11 m/s 10 m/s 9 m/s 7,5 m/s 1.ParK in service – A.Torres –modèle –Lafarge –Essaouira 2.Park in construction –Tanger 3.Park in developement –Tarfaya –Touahar –Dessalination Installed capacity Average speed of wind at 40 m Wind sites

17. ENERGIEPRO OFFER Objective : Promotion of Industrial self Production “ Grands Comptes Clients’’. Consistency of the offer : Insure transit of overall energy generated Arround 1 cents US $ /KWh as transit cost National Company buy excess energy at arround 4 cents US $ /KWh Incentives from the government Under discussion

18. Case Study : Wind Park of Tetouan Cementery 50% of energy need of the factory 30.000 tonnes de CO2/an avoided Power installed 10 MW Electricity generated /year 38,1 GWh Total investment cost around 90 Millions $ US The park registered CDM project (10 $ US / T CO2)

19. 19 MEDITERRANNEE ATLANTIQUE PINAR DEL REY TETOUAN MELLOUSSA TANGER LOUKKOS FOUARAT Cle KENITRA AL WAHDA ZAER EL OUALI TOULAL SEHOUL FARDIOUA TARIFA ESPAGNE RIAD A.FASSI SELOUANE BOURDIM SONASID OUJDA JERADA GHAZAOUAT TELEMCEN H.AMEUR ALGERIE + + + + + + + + + DOUYET OUALILI IMZOURNEN PARC EOLIEN 140 MW 1 er CC TAHADDART 400 MW TAZA Morocco – Spain : 700 MW (97) to 1400 MW (06) Morocco – Algeria : 400 MW (88/92) to 1200 MW IME2 STRONG REGIONAL INTERCONNEXION

20. Opportunities of Morocco Oriental Area  First 20 MW CSP : construction launched today by the king of Morocco  Closest Solar Energy “Reservoir” to Europe  High Interest of local Stakeholders  Switching from Coal to Solar

21. ELEMENTS OF CONVERGENCE FOR A SUSTAINABLE DEVELOPMENT SCENARIO  More integrated regulated system (energy, industry, environment, territory management..)‏  Mobilisation of private operators for availability of equipments, services and adapted financing  Mobilisation of potential national and international investors  Large normative base and efficient control system  Capacity building  Large partnership base

22. THANK YOU www.cder.org.ma