Round Table Meeting February 4, 2009

1. High level round table on Green Electricity Production organized by the Regional Center for
Renewable Energy and Energy Efficiency in Cairo
The Regional Center for Renewable Energy and Energy Efficiency (RCREEE) convened a
conference on green electricity production in the MENA region on 3rd February 2009 in
Cairo. The event, which was attended by more than 70 high level participants from the
Egypt and other countries of the MENA region, was the first in a series of events which aim
at enhancing the discussion in the field of renewable energies. They show the strength of
RCREEE as a regional policy platform which brings together experts from the region.
The morning session was devoted to allow different experts in the field of renewable energy
to share their experience with the audience and answer to numerous questions. Paul
Suding the director of the Egyptian German Joint Committee on Renewable Energy and
Albrecht Kaupp, Team Leader of MED-EMIP, presented the Mediterranean Solar Plan. This
plan advances the idea to have a significant amount of renewable energy power stations at
the southern side of the Mediterranean in place. These power stations would supply
electricity to domestic markets and also to the European Union. In their opinion the
government is in charge to provide a stable revenue model which allows the private sector
to increase investment in energy efficiency and renewable electricity generation and
distribution. Rafik Georgy presented the study of the use of the EU policy initiative to
promote renewable energy based electricity generation in the MENA countries. He
concluded that there is a need of integration at all levels, of a roadmap which defines goals
and phases of implementation, of technology transfer and of secure and adequate
financing.
After these two presentations Samir Hassan from RCREEE strongly encouraged all
participants to take the initiative on promoting renewable energy supply. He underlined that
every country should choose how to support renewable energy individually but also
coordinate its efforts with the other members of the RCREEE. Another important aspect is
the close partnership with the European Union regarding technology and investments in the
field of renewable energy and also concerning the grid connection between the north and
the south. This partnership should allow the fair trade of electricity which will help the
private sector in the south to fulfill its important role. Another aspect is the need to balance
the export of electricity the European Union with domestic electricity needs.

2. In the afternoon session a round table with representatives from the member states,
politicians and private sector representatives from the region was organized in order to
promote further discussion and knowledge exchange among the participants. In the
opening speech the moderator, Paolo Frankl, head of the renewable energy department at
the International Energy Agency, called attention to the need to transform the power sector.
He highlights that the current system of power generation in industrialized countries as well
as in developing countries is not sustainable in the long run.
Afterwards several member states presented their activities in this field as they were
currently working on very concrete policies. Lebanon faces regular electricity shortages and
therefore focuses on energy efficiency especially through a large awareness rising
campaign. Additionally support mechanisms for energy efficiency are currently drafted.
Tunisia presented its very successful program for the promotion of solar water heaters. The
consumer gets a solar water heater installed by an expert and then pays the price for the
heater over a certain period of time through the electricity bill. Algeria showed the audience
the need for truly country specific programs. While they realized several grid connected
renewable energy projects in the north of the country, the south benefits of renewable
energy through several large off-grid systems. Morocco decided to reduce the VAT for
renewable energy equipment from 20% to 14%, increases the grid capacity and also
promotes that the industry produces electricity on its own. Jordan is working on a draft
framework that will allow investors to benefit from tax exemptions, public land free of
charge and a 20 year power purchase agreement. Egypt presented its two step approach
regarding power generation through renewable sources. At first they are attracting
investors for large projects through competitive bidding. After a couple of years the
experience gained will help to set the right level of feed-in-tariffs which will then be also
interesting for small and medium size project developers.
Two companies from the private sector, Orascom and Siemens, were also participating
actively in the discussion. Both were very open to start projects in the field of renewable
energy and gave valuable feedback on the required policy framework. In their opinion it is
extremely important to decrease the risk associated to power generation through a
comprehensive and long term oriented legal framework. This would allow the companies to
invest not only in projects but also in a local manufacturing industry.

3. During the whole day the participants identified several barriers for renewable power
generation. On one side there was a discussion on two very technical issues both in solar
as well as in wind energy. The first aspect is the non-availability of required land and the
second aspect is the weak distribution grid. On the other side the investors face difficulties
because there are too many stakeholders involved in the decision making for new projects.
For example it is often required to contact several ministries and local authorities before
construction work can start. Streamlining this process would help to increase the number of
projects.
The whole day demonstrated the Center's strength as a regional policy platform with the
capacity to bring experts from the region together in order to discuss topical issues in the
field of renewable energy and energy efficiency. From the perspective of the participants
and the organizing committee from RCREEE the conference was therefore very successful.
The country representatives are now looking forward to continue the dialogue at the next
meeting which is scheduled to take place in June 2009.