Morocco and the European Union Energy Investments

1
Morocco and the European Union Energy
Investments

• Presented by
• Zakaria Bekka

2
Overview

• EU-Morocco relations
• Wind Energy in Morocco
• EU for Moroccan rural communities

3
EU-Morocco Relations

• Morocco is a privileged partner of the European
  Union. The EU is Morocco's most important export
  market, its leading public and private external
  investor and its most important tourist market.
• The EU has been engaged with Mediterranean
  countries to promote regional economic
  integration.
  
• In 2003, the EU, Algeria, Morocco, and Tunisia
  signed an agreement to integrate electricity
  markets.
  
• Human exchanges are constantly expanding the EU
  is the main destination of Moroccan migrant
  workers and an increasing number of Europeans
  choose Morocco as a place for holidays or even
  residence.

4
EU-Morocco Relations
5
EU-MENA Region
6
Wind Energy in Morocco

• In 1986, the Moroccan Renewable Energy
  Development Center (CDER) set up 17 stations and
  airports in Morocco.
  
• A special wind energy evaluation program was
  launched in 1990 in collaboration with the
  Special Energy Program (SEP) financed by the
  German Office for Technical Cooperation (GTZ).

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Wind Energy in Morocco

• Its first phase (1991 -1994) served to evaluate
  the Moroccan wind potential all along the 3500 km
  long Atlantic coast (from Dakhla/South to
  Tanger-Tetouan/North).
• The second phase (1995-2000) examines Morocco's
  wind potential in the North-East (Taza, Nador and
  El Hoceima near the Mediterranean coast) and in
  its South (Essaouira, Laâyoune and Tarfaya).
• Instruments installed at a 10m level measured the
  following annual average wind speeds
  
• - 8 to 11 m/s in the Tanger and Tetouan
  region (North of Morocco)
  
• - 7 to 8.5 m/s for Dakhla, Tarfaya, Taza
  and Essaouira

8
Windfarm Project of 50 MW

• In the first phase, Al Koudia Al Baida proved
  to be the best site, with an annual average wind
  speed of 10.94 m/s at 9 m and a maximum of 36.5
  m/s.
• On the basis of these measurements, CDER worked
  out the feasibility studies for two wind-farms
  one of 50 MW and one of 3 MW. The 50 MW windfarm
  is a private project (BOT contract) between
  TRAMONTANA (France) and VESTAS (Denmark).
• Moroccos State owned utility company (ONE)
  committed itself to buy all the power produced by
  this windfarm within a period of 19 years. The
  project contract was signed on November 3rd,
  1997 construction start in 1998 and electricity
  production was launched in 1999.

9
Windfarm Project of 50 MW

• Power is generated by 84 VESTAS V42-windturbines
  with a capacity of 600 kW.
  
• The total windfarm area covers about 270 ha.
  Production is estimated at 225 GWh and supply the
  national grid.
  
• One kWh produced cost approx. 0.30 to 0.40 DH.
  Total project costs amount to US 64 millions,
  and are supported jointly by the French utility
  company EDF (49 ), the Paribas Merchant Bank
  (35.5 ) and the French consultancy GERMA (15.5
  ).
• The project cut each year fuel oil imports by
  46,000 tonnes, thus saving US 10 millions, and
  avoid emission of 200 million tons of carbon
  dioxide.

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Other Windfarms

• Windfarm ONE/KfW of 3.5 MW
• - This project was co-financed by the
  German KfW and the Moroccan ONE, and is also
  constructed on the site of Al Koudia Al Baida.
  
• - Annual production is at about 12 GWh. The
  project costs amount to approx. 10.5 million
  Deutsche Mark (KfW contributed by 8.5 million
  DM)
• - Each year, the project cut fuel oil
  imports by 2761 tons, thus saving 4.8 million
  US.
  
• Windfarm Project of 200 MW
• - This new 200 MW project has 3 more
  windfarms two of them in the North of Morocco
  (75 MW in Dhar Sadane and 65 MW in Tangiers
  region) and one of them in its South (60 MW in
  Tarfaya).

11
Future Testing Sites

• Windfarm Project of 2.8 MW
• - This project is totally financed by ONE.
  Its objective is to set up test wind turbines on
  different sites along the Atlantic coast from
  Essaouira to Dakhla, in order to decide if and
  where to build further windfarms. It is planned
  to set up
• 2 wind turbines of 500 kW in Essaouira
• 1 wind turbine of 500 kW in Tan-Tan
• 1 wind turbine of 300 kW in Tarfaya
• 1 wind turbine of 500 kW in Laayoune
• 1 wind turbine of 500 kW in Dakhla

12
EU for Moroccan rural communities

• In regions where housing is highly scattered, it
  is impossible for the electricity grid to reach
  each individual house in a cost-effective way.
  
• According to the EDF and ONE, it would cost 5/m
  for a low voltage line and posts plus 100/HH for
  meter and installation. However, by using solar
  power which the country already enjoys through
  out the year due to its geographical location and
  climate, inhabitants of these regions can also
  enjoy the benefits of electricity.
• Through a unique program developed by Moroccos
  National Electricity Office (ONE) and EDF, Total
  and Tenesol (a joint subsidiary specializing in
  solar electrification since 1983) are helping
  extreme remote Moroccan villages access
  electricity through solar power installations.

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EU for Moroccan rural communities

• This innovative program ensures not only the
  supply of solar equipment but also a real local
  service in the long term. The business created
  jobs in areas where they are rare (currently 83
  direct employees, and 31 subcontractors). All the
  employees follow high-level in-house training
  (technical, quality, customer relations, etc.).
• In rural areas, the EDFs program involves the
  creation of small, locally run companies to
  provide extra rural services including water, gas
  and telephone services in order to stimulate
  local economic activity.

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EU for Moroccan rural communities

• Today, Temasol is working in 24 Moroccan
  provinces to provide solar power to more than
  53,000 customers.
  
• Phase 1 4 provinces where installations began in
  2002 with 16,000 customers.
  
• Phase 2 20 provinces where installations started
  in 2005 for 37,000 clients.
  
• Next phase likely 5,500 more customers.

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EU for Moroccan rural communities

• The equipment offered satisfies the main
  requirements of rural households lighting (4 to
  8 lamps) and a socket for a television, a radio,
  a mobile phone charger, or other small
  audio-visual appliance.
• A kit including a fridge will be offered in the
  ONEs next contracts in order to satisfy this
  requirement, even though demand is still low.

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EU for Moroccan rural communities

• The cost for consumers
• Each customer pays an initial connection
  fee and then a monthly fixed service fee. Several
  different service levels are available. For
  example, for the first phase - 16,000 customers
  4 provinces (prices included all taxes)
• Service 1 for 4 lamps and one 12 V socket 50
  W
  
• Connection 700 Dirham (US 80) Monthly
  fee 65 Dirham (US 7.50)
  
• Service 2 for 6 lamps and one 12 V socket 75
  WConnection 1,800 Dirham (US 200) Monthly
  fee 96 Dirham (US 11)
  
• Service 3 for 8 lamps and one 12 V socket - 100
  W
  
• Connection 3,100 Dirham (US 260) Monthly
  fee 129 Dirham (US 15)
  
• For the second phase - 37,000 customers 20
  provinces
  
• Service 1 for 4 lamps and one 12 V socket 75
  W
  
• Connection 900 Dirham (US 100) Monthly
  fee 65 Dirham (US 7.50)
  
• Service 2 for 4 lamps and one 12 V socket and a
  fridge 200 WConnection 4,000 Dirham (US 465)
  Monthly fee 150 Dirham (US 17.50)

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EU for Moroccan rural communities

• The fees are adapted to the budgets of local
  households approximately the same amount was
  being paid for candles, gas, batteries, or
  battery recharging.
• These rates are reasonable because they are
  equivalent to the amount paid for similar
  consumption rates by customers connected to the
  grid.
• The initial average cost of an installed system
  is approximately US 800 (630 Euros)
  
• - The ONE provides a grant, which covers
  around 66 of this cost.
  
• - The customer provides around 10 in
  connection fees
  
• - Temasol contributes the balance of around
  24.