RE-ACTIVATERE-ACTIVATESustainable Energy for Sustainable Agriculture

International Beirut Energy Forum19th September 2017

Panel Discussion• Moderator: Dr. Steffen Erdle, Head of RE-ACTIVATE project Moderator: Dr. Steffen Erdle, Head of RE ACTIVATE project

(GIZ)

• Majida Mcheik, Advisor to the Minister of Agriculture (Lebanon)(Lebanon)

• Dr. Dieter Uh, Senior Energy Expert

• Ali Ben Abdallah, Technical Advisor (GIZ, RE-ACTIVATE Tunisia)

• Celia García-Baños, Associate Professional – Policy (IRENA)

A l El M l i H d f Fi i S t i bl • Amal El Malouani, Head of Financing Sustainable Development (Groupe Crédit Agricole, Morocco)

• Ramsi Hamzeh, Executive Director of JREEEF (Jordan)

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RE-ACTIVATERE-ACTIVATEFramework Conditions for an Effective and

Sustainable Use of Solar Pumping in the Arab RegionDraft Regional Guidance Paper

International Beirut Energy Forum19th September 2017

Overview

• Introduction and background• Benefits and opportunities of solar

pumping systemspumping systems• Challenges of solar pumping market• Main components for sustainable

market for solar pumpingmarket for solar pumping• Good practices from the MENA

region• What is missing to reach the • What is missing to reach the

desired state? Where to start?• Expectations, outcomes and

following this event

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following this event

RE-ACTIVATE Regional Project: Promoting Employment through Renewable Energy and Energy Efficiency in the g gy gy yMENA Region

The main goal of RE-ACTIVATE is:

"helping to improve conditions for developing markets for labor-intensive RE/EE technologies in the MENA.

RCREEE entered in partnership with RE-ACTIVATE with the main objective of supporting:

“regional cross-border cooperation and knowhow transferregional cross border cooperation and knowhow transferon employment promotion through RE/EE in the MENA”.

At the same time, RCREEE is also the RE-ACTIVATE

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project antenna for Egypt.

Facts and Figures from MENA Region

• Arab countries– represent 10% of world’s total surface– host 5% of the worlds’ population– only 12 – 14% of surface area is arable– have only 1% of the world’s renewable water resources– climate is arid or semi-arid

• Agriculture sectorg– contributes ~ 5.8% of Arab GDP– employs ~25% of workforce– Only 40% of arable area used for agriculture

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Only 40% of arable area used for agriculture

Benefits and Opportunities of Solar Pumping Systems

• Sustainable for irrigation in remote areas.• Longer expected lifetime.

L t f ti d i t• Less cost for operation and maintenance.• Efficient use of energy and water (sustainability)• Environment friendly, if properly planned.• Driving socio-economic benefits along the local value chain …• International prices decrease (economies of scale)• Benefits to the governments (no subsidies, no emissions, more food,

job creation)• Growing interest in the Water-Energy-Food NEXUS and Green

Funding Facilities.

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Challenges of Solar Pumping Systems

I l th t • Involves more than sector, with different government agencies, no policy champion and coordination mechanism.

• Subsidized alternatives of conventional energy

• Absence of quality assurance measures for systems and installations

• Lack of specialized and skilled labor force

L k f i ibilit d [S P i A i lt ]

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• Lack of visibility and awareness.

[Source: Powering Agriculture]

Essential Components for Sustainable Solar Pumping in the MENA Regiong

Raising awareness and 

building capacitycapacity

Fi i lP li i Cross‐Sectorial approach

Financial mechanisms and incentives

Policies and regulatory framework

Quality assurance and products’ 

ifi i

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certification

Raising Awareness and Building Capacity

Farmers and Landholders

Farmers’ associations and unions,Cooperatives

Suppliers, installers and technicians

Financial institutions and banksFinancial institutions and banks

Governmental officials

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Financial Mechanisms and Incentives

• Continued high subsidies for fossil fuel are still the main barrier for upscaling solar pumping markets.

• Commercial loans with strict terms and conditions are hard to fulfill, especially for small farmers (collaterals, high interest rates, and short term tenure)tenure)

• Limited availability of / access to loans with favorable conditions (longer lifetimes and grace periods lower interest rates and warrantees possible lifetimes and grace periods, lower interest rates and warrantees, possible risk insurance)

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Quality Assurance: for Institutions and Professionals (1)( )

g Certified/licensed 

professionals (design and planning)

training

ions

Standardized technical courses

planning)

Skilled technicians and electrician 

redited 

institu

ti

S i li d f

Well informed professionals (financiers, 

officials)

Accr Specialized courses for 

different tasks

officials)

Well informed customers/end users

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Quality Assurance: for Products and Services (2)

Quality scheme

Performance standards

Testing laboratories

Certified MonitoringConfidence in components’ label

Monitoring and control

Confidence in products

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Policies and Regulatory Framework

Integrated cross‐sectorial approach

‐Water‐ EnergyAgriculture

Institutional framework

‐ Clear policiesEnforced laws

Monitoring System

CInformation

‐ Agriculture‐ Socioeconomic‐ Training policy

‐ Enforced laws‐ Regulatory framework for quality scheme, 

‐ Consumer protection‐ Efficient use of resources

‐ Right of information‐ Access to data

license, permits  ‐ Enforcement of regulations

Access to data‐ Regular update for relevant information 

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Good Practices from the MENA Region (1)

In Egypt In MoroccoAwareness raising:Quality assurance:

• Installers are qualified only for on-grid connections to benefit

Awareness raising:• Financing guideline for

farmers (French & Arabic) *

from the FiT scheme.

• off-grid installations?

Arabic)

Capacity building:• Training course for off grid installations? • Training course for

solar PV installation and solar pumping demos(5-days, 2 levels)

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Good Practices from the MENA Region (2)

In Tunisia

Fi i h i d

In Lebanon

h dFinancing mechanism and incentive:• In agriculture, offering technical

support:

Financing mechanism and incentive:• NEEREA

support:– APIA:

• subsidy up to 50% (max. TND 500,000)

– 4 years grace period– Up to 14 years– Interest rate 1.075%

– ANME:• 40% of CAPEX • 70% of CAPEX for complex studies

*

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Good Practices from the MENA Region (3)

In Jordan In Tunisia

C t i l hFinancing mechanism:• JREEF

– Technical support

Cross-sectorial approach:• Agreement between

ANME and APIA:– Financial support – 3 NEXUS projects:

• 5 solar PV pumping irrigation stations

– APIA (Ministry of Agriculture) will promote sustainable energy in the agriculture fieldstations

• SPIS for 300 farms• Waste to energy

agriculture field– ANME (Ministry of

Energy) will provide APIA with necessary technical

t

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support

Good Practices from the MENA Region – Regional Approach

Quality assurance Training certification

C f d

pp

• Credentialing program for training institutions– For renewable energy and energy

effi ien fo g i lt e

• Certified Energy Manager Professional “CEMP”

defficiency for agriculture– Services: installations, operations

and maintenance

– Energy audit– Regional

acknowledgementfor relevant to farming – for relevant to farming activities

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An Overview of Main Contributions in the Agriculture Sector in MENA Regiong

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https://energypedia.info/wiki/Overview_of_Measures_to_Promote_Renewable_Energy_and_Energy_Efficiency_(RE/EE)_in_the_Agricultural_and_Agri-Business Sector (AGR/IAA) in MENA

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Business_Sector_(AGR/IAA)_in_MENA

List of Relevant Publications in the Agriculture Field (In Morocco)( )

• Etat des lieux: les énergies renouvelables et l’efficacité énergétique dans les secteurs de l'agriculture (AGR) et de l'agroalimentaire (IAA) au Maroc: applications technologiques, conditions cadres et opportunités d'emploi, Atelier de restitution, Rabat, 19 avril 2016.

• Etude technico-économique pour des installations de pompage solaire dans le cadre de q p p p gl’extension des superficies des palmeraies pour l’exploitation du palmier dattier à Tamassint (Province Errachidia), Atelier de restitution, Rabat, 13 février 2017.

• Pompage solaire : Guide d’accès au financement au profit des agriculteurs, Atelier de restitution, Rabat, 13 février 2017.

• Table Ronde: Développement des investissements dans le pompage solaire au Maroc, Salon International de l’Agriculture au Maroc (SIAM), Meknès, 20 avril 2017.

• Proposal of a technical standard for solar pumping installations as a risk mitigation tool, Presented at the Salon International de l’Agriculture au Maroc (SIAM), Meknès, 20 avril2017.

• Atelier : Pompage solaire au Maroc: opportunités et défis, Salon International de Pompage Solaire (SIPS), Agadir, 12 juillet 2017.

• Enhancement of stakeholder awareness through field visits and on-site trainings for ffarmers.

• Implementation of practice-oriented solar pumping trainings for technicians and trainers.

• Supporting energy audits of Moroccan farmers: publication of a users’ guide and realization of a demonstration project with the GIE Tazartino.

• Investigating the impact of solar pumping installations on the water consumption and

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g g p p p g psocio-economic situation of Moroccan farmers (in the process of elaboration)

List of Relevant Publications in the Agriculture Field (In Tunisia)( )

• Etude d'impact socio-économique en matière de création d'emploi des énergies renouvelables et de l’efficacité énergétique dans le secteur de l'agriculture en Tunisie, Atelier de restitution Tunis 27 janvier 2016Atelier de restitution, Tunis, 27 janvier 2016.

• Installation of a demonstration plant at the APIA headquarter, inauguration in Tunis on 6 January 2017.

• Development of a joint medium-term action plan to promote employment through RE/EE in the AGR/IAA sector, Adoption in Tunis on 17 January 2017.

Development of awareness raising activities and materials• Development of awareness raising activities and materials.

• Development of RE/EE trainings for the AGR/IAA sector.

• Implementation of two pilot projects (solar dryer energy

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• Implementation of two pilot projects (solar dryer, energy audit)

List of Relevant Publications in the Agriculture Field (In Egypt - Regional)( gyp g )

• Market assessment for solar pumping in Egypt

• Arabic translation based on the RaSeed handbook “Solar P i S t i E t P ti l G id li f S lfPumping Systems in Egypt – Practical Guidelines for Self-Assessment”

• Expert Workshop on “Solar Pumping: An Emerging Market and a Major Driver for Sustainable Energy and Jobs in and a Major Driver for Sustainable Energy and Jobs in MENA”, Cairo, 23 May 2017.

• Expert Workshop on “Sustainable Energy for Sustainable Agriculture: Driving Local Value and Job Creation in MENA” Agriculture: Driving Local Value and Job Creation in MENA , Beirut, 19 September 2017 (in the process of preparation)

• Regional framework conditions for sustainable solar pumping market in MENA (in the process of preparation)

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market in MENA (in the process of preparation)

Desired and Ideal Sustainable Market for Solar Pumpingp g

Policies and Regulations

Market Monitoring Mechanisms

Accredited training institutions

Verification Verification Awareness raining and

Sustainable market for

Quality assurance

BuildingEnd users’

trust

Informed decision making

ConsultantConsultant capacity building

market for solar pumping

and certification

Financial i t

Technical i t

Verification Consultant

Financial mechanisms

and i ti

Certified technicians &

Donors’ & Green Funds

assistanceassistance

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incentivespractitioners

Contribution of Reinforced Regional Exchange

• Pooling or linking available relevant experience and expertise. Allowing for a targeted use of good practices where • Allowing for a targeted use of good practices, where available.

• Reducing danger of duplication of work or repetition of errorserrors.

• Facilitating coordination or harmonization of norms and standards for products and services, including the field of training.o t a g

• Supporting the emergence of interconnected and competitive markets (economics of scale, specialization of providers) with a high share of local value and job

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creation.

Desired Outcomes of Sustainable Energy for Sustainable Agriculture Eventg

• Gathering good practices in relevant fields, where available.Collecting meaningful inputs for the regional guidance • Collecting meaningful inputs for the regional guidance paper.

• Further strengthening the exchange among experts and practitionerspractitioners.

• Helping to create networks of excellence among them.• Providing inputs supporting the intensity and quality of

national policies and processesnational policies and processes.• Producing results that can be taken up by the LAS,

Member States and the development partners.

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Expected Follow after Sustainable Energy for Sustainable Agriculture Eventg

• Completion of the regional guidance paper by RCREEE and RE-ACTIVATE in Q4 2017.

• Political endorsement on regional level (e.g. by LAS/ AMCE) and on national level by Member States.

• Incorporation into Regional Credentialing Program.

• Incorporation into relevant national policies

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and programs.

Thank You for your attention

Inass Abou-Khodier, RCREEESenior Specialist – Sustainable Energy FinanceE: inass.aboukhodier@rcreee.orgTel: +20 2 2415 4755 (Ext 228)Tel: +20 2 2415 4755 (Ext. 228)www.rcreee.org

Hydro Power Building (8th Floor) Block 11 - Piece 15, Melsa District

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Ard El Golf, Nasr City, Cairo, Egypt

Recommendations for further Discussion

• Q1: What are the main factors of relevance that drive the local value chain and employment in this area?

Q2: What are the current key opportunities and challenges for • Q2: What are the current key opportunities and challenges for sustainable energy for sustainable agriculture?

• Q3: What are the most important international and regional experiences and practices for the energy-water-food nexus and experiences and practices for the energy water food nexus and how they can be applied in the region?

• Q4: How can a regional guideline for better framework conditions for solar pumping programs help to upscale the RE

d EE d l t i th i lt l t ?and EE deployment in the agricultural sector?

• Q5: How can international and regional organizations collaborate with national entities for improving the whole value chain of RE & EE projects?

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chain of RE & EE projects?