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Transcript of FEMIP - Energy Efficiency and Renewable Energy ... ENERGY EFFICIENCY AND RENEWABLE ENERGY PROJECT...

  • F a c i l i t y f o r E u r o - M e d i t e r r a n e a n I n v e s t m e n t a n d P a r t n e r s h i p • F a c i l i t y f o r E u r o - M e d i t e r r a n e a n I n v e s t m e n t a n d P a r t n e r s h i p

    FEMIP Final report

    Energy Efficiency and Renewable Energy project preparation programme in urban areas of the Mediterranean Partner Countries

  • ENERGY EFFICIENCY AND RENEWABLE ENERGY PROJECT PREPARATION

    PROGRAMME IN URBAN AREAS OF THE MEDITERRANEAN PARTNER COUNTRIES

    CONTRACT: TA2011032 RO FTF

    FINAL REPORT

    DECEMBER 2013

    CONSULTANT

    Consortium :

    LAVOLA 1981, SA and

    Albea Transenergy

    CONTRACTING AUTHORITY

    EUROPEAN INVESTMENT BANK

    Address: 100, boulevard Konrad Adenauer

    L-2950 Luxemburg

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    “This study/technical assistance operation is financed under the FEMIP Trust Fund. This fund was established in 2004 and to date has

    been financed by 16 Member States and the European Commission. Its aim is to support the development of the private sector via the

    financing of studies and technical assistance measures and the provision of private equity.”

    “The authors take full responsibility for the contents of this report. The opinions expressed do not necessarily reflect the opinion of the

    European Investment Bank”

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    CONTRACT: TA2011032 RO FTF

    ENERGY EFFICIENCY AND RENEWABLE ENERGY PROJECT PREPARATION

    PROGRAMME IN URBAN AREAS OF MEDITERRANEAN PARTNER COUNTRIES

    EXECUTIVE SUMMARY

    The EU has a strong and long-lasting commitment to supporting the development of the Southern

    and Eastern Mediterranean Region and especially the Mediterranean Partner Countries (MPCs). A

    main component of the EU policy focuses on promoting energy efficiency (EE) and renewable

    energy (RE) in urban areas of the MPCs, which will help support economic development as well as

    contributing to reducing GHG emissions and to fulfilling the requirements of Multilateral

    Environmental Agreements.

    The EIB decided to assess the need and feasibility for promoting EE and RE investment in the MPCs’

    urban areas via a financing facility called ELENA-MED, inspired from ELENA EU through the present

    study.

    The assessment study was carried out by the Lavola – Albea Consortium between March 2012 and

    November 2013 and consisted of the following phases:

    - Phase I: Scoping exercise. Proposal of eligibility criteria, screening of a preliminary projects pipeline, pre-selecting eligible investment projects and then ranking the preselected

    projects to identify 3 pilot projects.

    - Phase II: Detailed analysis of pilot projects. Detailed assessment and analysis of the TA needs for the three pilot projects, including missions to most of the countries.

    - Phase III: ELENA-MED facility design. Assessing the investment potential and the needs for creating the ELENA-MED Facility and proposing an approach to structure and design the

    Facility.

    The investment potential in EE and RE in the MPCs has been determined by two methods:

    - A top down approach, analysing country market potential studies carried out for EIB and other IFIs and extrapolating the potential to all MPCs.

    - The investment potential appears to be significant, around EUR 17 billion up to 2030. Considering that 25% of the projects could be eligible for ELENA-MED, the facility could

    concern EUR 4.2 billion over this period, EUR 0.8 billion in the short term (until 2020), EUR

    1.3 billion between 2021 and 2025 and EUR 2.1 billion in the long term (2026 to 2030)

    - A bottom up approach, by evaluating the potential of identified and eligible existing projects. The investment corresponding to these projects is EUR 0.9 billion until 2020.

    The project screening and analysis allowed the selection of 3 pilot projects that are mature enough

    to be considered for ELENA-MED's deployment.

    The main conclusion of this assessment is that the investment potential and the identified needs

    justify the creation of ELENA-MED, a facility designed to finance technical assistance and provide

    funding for eligible projects. The facility should include active project identification and selection

    and the technical assistance should encompass all phases of the project, from design to final

    commissioning. The EIB, or other participating IFIs, may then provide loans to bankable and

    technically sound projects.

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    The investment potential in urban EE and RE projects is significant enough to justify the creation of

    ELENA-MED, a technical assistance (TA) and funding facility put in place by the EIB in collaboration

    with national authorities and potentially with other participating IFIs.

    The facility would encompass the entire process, from sectorial studies, project detection,

    applications for TA, complete technical assistance during the design and bidding phase, possibly

    funding, project TA for construction or deployment, commissioning until failure free operation. The

    facility also comprises loans and possibly grants for projects.

    This final report briefly presents the methodology, the main findings and the conclusions of the

    entire study.

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    CONTRACT: TA2011032 RO FTF

    ENERGY EFFICIENCY AND RENEWABLE ENERGY PROJECT PREPARATION

    PROGRAMME IN URBAN AREAS OF MEDITERRANEAN PARTNER COUNTRIES

    TABLE OF CONTENTS

    1 INTRODUCING ELENA-MED ................................................................................................................................................ 7

    2 ASSESSMENT OF INVESTMENT POTENTIAL AND PROJECTS PIPELINE FOR LOCAL EE&RE IN THE MPCS ................ 8

    2.1 INVESTMENT POTENTIAL OF EE & RE IN THE MPCS ......................................................................................................... 8 2.1.1 TOP-DOWN ASSESSMENT .......................................................................................................................................................................8 2.1.2 BOTTOM UP ASSESSMENT .....................................................................................................................................................................9

    2.2 ESTABLISHMENT AND ANALYSIS OF A PROJECTS PIPELINE ........................................................................................ 10

    3 PILOT PROJECTS ANALYSIS .............................................................................................................................................. 12

    3.1 APPROACH TO PILOT PROJECT SELECTION ................................................................................................................... 12

    3.2 RESULTS FROM PILOT PROJECTS SELECTION ............................................................................................................... 12

    3.3 ASSESSMENT OF NEEDS FOR THE PILOT PROJECTS ..................................................................................................... 13

    3.4 PILOT PROJECT PRESENTATION: THE NEW TOWN OF CHRAFATE, MOROCCO .............................................................. 15

    3.5 PILOT PROJECT PRESENTATION: ENERGY EFFICIENT LIGHTING FOR AGADIR, MOROCCO .......................................... 16

    3.6 PILOT PROJECT PRESENTATION: EE & RE FOR HOSPITALS IN PALESTINE .................................................................. 17

    4 THE PROPOSED ELENA-MED FACILITY DESIGN ............................................................................................................. 19

    4.1 THE RATIONALE FOR ELENA-MED .................................................................................................................................. 19 4.1.1 OVERVIEW ............................................................................................................................................................................................ 19 4.1.2 COMPLEMENTARITY WITH OTHER RELEVANT FACILITIES AND SUPPORT INITIATIVES IN THE FIELD OF EE & RE ....................... 20

    4.2 ELENA-MED FACILITY DESIGN ....................................................................................................................................... 21 4.2.1 OVERVIEW OF ELENA-MED COMPONENTS ........................................................................................................................................ 21 4.2.2 MANAGEMENT ..................................................................................................................................................................................... 22 4.2.3 TECHNICAL ASSISTANCE FOR PROJECT DEVELOPMENT .................................................................................................................. 22 4.2.4 INVESTMENT ........................................................................................................................................................................................ 22

    4.3 ELENA-MED BUDGET AND OPERATION PROPOSAL ....................................................................................................... 23

    4.4 ELENA-MED CALENDAR...............................................................................