The document outlines the Mediterranean Solar Plan (MSP), which aims to develop renewable energy sources and improve energy efficiency in the Mediterranean region by 2020. Specifically, the MSP seeks to: 1) Develop 20 GW of new renewable energy production capacity, focusing on solar and other technologies. 2) Achieve 20% energy savings compared to projections through efficiency measures. 3) Launch pilot projects in 2009-2010 to test frameworks and mechanisms before a larger scale deployment from 2011-2020 outlined in a Master Plan.

1. PRESENTATION OF THE MEDITERRANEAN SOLAR PLAN
1. The Mediterranean Solar Plan: a common answer to the
energy and climate challenges of the Euro-Mediterranean
region
The Mediterranean region as a whole and the European Union (EU) will face
major energy and climate challenges in the coming decades. Energy demand
will rise significantly, while fossil fuel prices will most likely continue to follow a
soaring trend. To address these challenges, the countries of the EU and the
other member countries of the Barcelona Process will have to intensify their
efforts to developing adequate policies in the field of energy efficiency and
energy savings, renewable energies and reduction of greenhouse gas
emissions, in particular in the context of the future international post-Kyoto
agreement to be decided on at the end of 2009 in Copenhagen.
At the Paris summit meeting on July 13th 2008, the Heads of state and
government of the European and Mediterranean countries have launched the
Union for the Mediterranean, a new form of co-operation between the two
shores of the Mediterranean Sea. This new partnership aims at fostering
development, fighting climate change and strengthening the bonds between all
the countries of the Union. It will build on the experience of the Barcelona
process and integrate its former policies. The Union for the Mediterranean
pays special attention to concrete projects and results. France and Egypt will
be in charge of the co-presidency of the Union for the Mediterranean during
the next two years.
One of the major projects proposed is the Mediterranean Solar Plan (MSP),
which not only targets solar energies, but aims at developing renewable
energies (RE) and energy efficiency (EE) measures and reinforcing power grid
interconnections and technology transfer in the Mediterranean region, with the
participation of all member states of the Union for the Mediterranean, firms,
investors, financial institutions and other organisations interested in the project.
The MSP will address the common energy and climate challenges that this
region faces, namely fighting climate change while satisfying growing energy
needs and limiting energy dependency. The governments of France and Egypt
have jointly decided to prepare an Immediate Action Plan to start quickly with
Contacts :
the implementation of the MSP.
Philippe.lorec@industrie.gouv.fr
Christophe.schramm@industrie.gouv.fr
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2. 2. The objectives of the Mediterranean Solar Plan
The Mediterranean Solar Plan posts two complementary main objectives: developing 20 GW of new
renewable energy production capacities and achieving 20% energy savings around the Mediterranean
by 2020, thus addressing both supply and demand..
First, the MSP aims at increasing the use of solar energy and other renewable energy sources for
power generation. The key elements of the proposal are the setting up of a common framework in
terms of legal, regulatory and investment environment for the development, by 2020, of 20 GW of new
generation capacity in solar and other renewable energies in the countries around the Mediterranean
Sea. To this end, the Mediterranean Solar Plan will build on the enormous potential for solar electricity
generation available in the Mediterranean countries, notably through the development of Photovoltaïc
(PV) and Concentrating Solar Power (CSP) plants, and of other available and mature renewable
technologies.
Second, The MSP aims also at saving 20 % of energy by 2020 compared to a business as usual
scenario, following the recommendations of the Mediterranean Association of National Energy
Agencies (MEDENER). When addressing this target, a distinction has to be made between the
commitment already made by EU member states in the frame of the Energy and Climate Package,
and a potential future commitment of non EU Mediterranean countries in saving about 60 Mtoe,
equivalent to 20% of energy savings (based on their consumption of primary energy in 2005). The
Mediterranean Solar Plan aims at harmonising the ambitions in terms of energy savings and energy
efficiency between all member states of the Union for the Mediterranean.
To reach those goals, several vital conditions will have to be met on both sides of the Mediterranean:
Governments of the Mediterranean region need the political will and have to set up the legal,
institutional and organisational framework necessary for the massive deployment of renewable
energy technologies in their countries. This includes the adaptation of national energy sectors.
In particular, Mediterranean countries will have to create stable financial and legal frameworks
for long-term investments that will provide benefits to Mediterranean and European electricity
consumers. All projects of the Mediterranean Solar Plan will respond to both local energy
demand and European energy needs.
For this renewable electricity consumption sharing to become reality, major efforts will be necessary to
create more grid interconnections within the Mediterranean region and between Mediterranean and
EU countries and to establish a viable “green electricity” import and export framework.
3. Preparation and implementation process
The MSP will be developed and implemented in several phases. Following a preparation phase in
2008 to determine the objectives of the Plan, the first phase (2009-2010) will allow to launch “first of its
kind” pilot projects in different countries and to elaborate mainstream procedures for developing,
structuring and financing projects under the Mediterranean Solar Plan. Only during the second phase
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3. (2011-2020) will the Plan be developed at a larger scale, building on the experience gained during the
pilot phase.
• Preparation stage (2008)
The preparation phase has been marked by a conference on 22 November 2008 in Paris that brought
together high level policy makers, industry companies, investors, financing institutions and specialised
agencies from all interested countries. Building on the results of a workshop workshop in Berlin on
technology options and cost estimates for the development of solar and wind capacities in the
Mediterranean region (28 and 29 October 2008) as well as on the Paris roundtable on grid
infrastructure issues in
relation with the MSP (21 Franco-Egyptian Co-
Franco-German Expert meeting presidency of UPM :
expert workshop in OME / MSP
(PFUE) in Paris : Conference in Paris (Fr-
Berlin : Meeting :
November 2008), the Network Egy-Ger-Spa) /
technology/cost Projects
infrastructure Financing and
implementation of MSP
conference was a major
opportunity to discuss
International cooperation
implementation issues, to
identify investment and
financing solutions, to raise
awareness about the
opportunities of the MSP, to
connect relevant public and
The IAP drafts
private actors and to present (with all stakeholders : countries, companies and international organizations)
a list of potential pilot
projects in the field of 06/08 12/08
renewable energies.
The Member States of the Union for the Mediterranean will make the effective selection of those pilot
projects on their territory to be presented for the “MSP Immediate Action Plan 2009-2010” under the
French-Egyptian Presidency of the Union for the Mediterranean.
The list of pilot projects retained will be presented and discussed at the Union for the Mediterranean
ministerial conference on sustainable development to be organised on 26 and 27 March 2009 in
Monaco.
• Pilot phase (2009-2010)
For this phase, four Immediate Action Plans (IAP) will be set up in the following fields:
- renewable energy production (IAP-REP)
- electricity transport (IAP-ET)
- energy efficiency (IAP-EE) and
- technology transfer (IAP-TT).
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4. The Immediate Action Plan for renewable energy production will allow to identify a limited number of
pilot projects to be launched under the French-Egyptian Presidency of the Union for the
Mediterranean. Through the development of those first projects, the participants to the MSP will be
able to define and test legal frameworks (licences, authorisation, tariffs etc.) and financial
mechanisms, and to establish a viable import-export framework for green electricity to the European
Union.
• Deployment phase (2011-2020)
Starting in 2009, a Master Plan study will be developed. The study should outline concrete steps for
each of the four fields of the MSP, and in particular the development of solar thermal power plants,
solar photovoltaic and other renewable energy installations in the Mediterranean region and of export
of electricity to the EU along with local energy use, e.g. for water desalinisation. The study should be a
coordinated effort involving, in particular, relevant administrations from all member countries of the
Union for the Mediterranean, the concerned services of the European Commission, industry, utilities,
transport system operators, potential investors and financing institutions.
4. Immediate Action Plans for 2009-2010
Four Immediate Action Plans will be set up, in order to launch pilot projects in each field during the
period 2009-2010.
a) Immediate Action Plan for Renewable Energy Production (IAP-REP)
During the period 2009-2010, a selection of a limited number of pilot projects in different countries
shall be developed in the field of small PV (up to 20 MW) and wind power plants (up to 100 MW).
These technologies are already mature, and many projects have been achieved and are running with
good results, while prices are
decreasing quickly.
It will also be necessary to invest
massively in CSP technologies, to
develop new production capacities,
to conduct studies to prepare the
implementation of large CSP power
plants (up to 200 MW) and in parallel
to build small commercial CSP
plants (up to 50MW). This process
will allow CSP technologies to
become mature technologies.
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5. b) Immediate Action Plan for Electricity Transport (IAP-ET)
The MSP will contribute to the development of electrical interconnections, which are absolutely vital for
the power plants to be able to run and to export a part of their production to other countries. Special
attention will be given to the
improvement of North-South
interconnections in order to
make possible the exportation
of green electricity from
Southern Mediterranean
countries to EU countries. This
work will be carried in close
cooperation with the European
Union’s priority project on
completing the Mediterranean
energy ring, as defined the
European Commission’s “Second strategic energy review”.
c) Immediate Action Plan on Energy Efficiency (IAP-EE)
The potential of energy saving in southern and eastern Mediterranean countries could be mobilized
through to the development of ambitious programs, especially:
Realisation of buildings with high energy performance combined with dissemination of energy
-
efficient technologies and solar thermal equipments. The buildings sector represents an
important stake expected to be above 40% of the global potential of energy savings in these
countries.
Demonstration projects for passive air-cooling system.
-
Suppression of the incandescent lamps and dissemination of efficient light bulbs as proposed
-
by UNEP (United Nations Environment Programme) and UNDP (United Nations Development
Programme). Many countries have already adopted targets for efficient light bulbs distribution
and some, like
Tunisia, are
considering the
ban of
incandescent
lamps. This
could be done
under a good
synergy with
the European
directive on the
eco-design of
energy using products.
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6. The association of Mediterranean energy agencies has come up with a plan to reduce energy
consumption in the region by 20% compared to 2005 primary energy consumption levels, or about 60
millions tons of oil equivalent, in line with the 20% energy efficiency target of the European Union.
Based on this proposal, projects will be identified to be included in the MSP.
d) Immediate Action Plan on Technology Transfer (IAP-TT)
Research agencies from various European and Mediterranean countries have come up with a
proposal to create:
a Trans-Mediterranean education network on solar energy, giving more visibility for industrial
-
companies by creating or reinforcing three or four quot;MSP Education and Training Centresquot; in
three or four countries of the region, notably delivering harmonized and mutually recognized
education degrees.
an MSP research and development platform based in limited number of countries for new
-
technology developments in the field of solar energies energy storage, linked to the education
network.
This proposal will be developed in the coming months, in particular to leverage its work with existing
initiatives and centres.
5. Master Plan 2011-2020
Taking into account all existing and current studies, the study should develop a framework for
developing projects in the four fields of renewable energy production, electricity transport, energy
efficiency and technology transfer, to create the conditions necessary for a success implementation of
the MSP. Concerning renewable energy production, it will:
• assess available renewable energy resources, site selection issues and local industrial
capabilities and renewable energy market development in the countries of the Mediterranean
region;
• evaluate current initiatives in the field of solar and other renewable energies for power
generation in the Mediterranean countries and propose potential synergy measures to make
the best possible use of existing efforts;
• make recommendations, inter alia, in terms of legislative and regulatory frameworks,
institutional and administrative conditions, as well as other relevant infrastructure and
electricity sector issues for a phased development of solar and other renewable technologies
in the Southern Mediterranean countries;
• study suitable options and mechanisms for financing (including appropriate support and
import-export schemes, concessional financing and carbon finance) along with the most cost-
effective solutions to ensure active private sector involvement, taking into account results from
existing or coming publications, such as the Commission’s “Communication on financing low
carbon technologies”;
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7. • study relevant conditions for the improvement of energy efficiency in the most energy
intensive sectors such as buildings, household appliances, industry and transportation,
including financial and economic aspects;
• address the specific issue of transport infrastructures to EU countries, taking stock of existing
bilateral agreements and the ongoing involvement of transmission system operators, and
proposing, in particular, specific electricity grid infrastructure projects that could be of common
priority in the Euro-Mediterranean context for establishing an effective green electricity import-
export framework and could be addressed in the framework of the Trans-European Networks
(TEN) initiative;
• Identify needs for technical assistance and capacity building in the fields of renewable energy
production, energy efficiency and technology co-operation and transfer.
The findings of this study will flow into a road map detailing the phases, activities and precise timeline
for the implementation of the MSP.
6. Organisation and governance
A task force will be created to coordinate the activities and implement the various projects of the MSP
in each country, and to serve as operational partner for all public and private actors (administrations,
companies, investors and financial institutions) interested in the MSP. This task force will be
composed of experts from participating countries and led during two years by Franco-Egyptian co-
chairs.
Sovereign and private
The task force will
funds
notably work on putting European and national
funds
in place an investment
Multilateral funds
pool, with public and insurance
Carbon funds
Risk
private funds, in order to
Debt
start implementing the Private
Donation (M€ ou c€)
TRI = 15% investors
MSP during the next => 25c€/kWh
IAP
two years. Porfolio
Local European
buyers buyers
18c€/kWh 30c€/kWh
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