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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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Overview

Renewable energy and energy efficiency offer a wide range of both technologically and commercially viable applications in the agricultural and agri-business sector: particularly power generation through PV, wind and biogas; renewable heating/cooling through solar thermal and biomass; energy conservation through more efficient buildings and equipment. The MENA makes no difference in this respect, with one major exception: the production of biofuels cannot be regarded as sustainable, as this would negatively interfere with available arable land and drinking water resources (both of which are extremely scarce in the region). read more

The MENA also offers particularly promising perspectives for solar pumping systems, due to the announced (Egypt)or realized/ongoing (Morocco, Tunisia) reductions of diesel subsidies.

The AGR/IAA sector is also a particularly fertile field of intervention for local value and job creation via RE/EE: The extremely wide range of possible interventions, and their peculiar, idiosyncratic interlinkage with the sector context (e.g. with the local conditions of food production and water supply), requires a high degree of familiarity and proximity – with clients, with the technology, and with the sector. This opens the way for the development of local market niches and for the provision of specialized, tailor-made services which most of the established suppliers from the main industrial centers will not be able to deliver.

It must be noted that RE/EE offers particularly strong development impacts in rural settings, which in many cases are marked by decades of political neglect and underinvestment, a high share of subsistence farming, and the peculiar traits of a barter economy. The provision of services and other inputs for RE/EE, the harnessing of the end product (energy or the saving thereof) for oneself and/or the selling of the end product to other customers offers locals the possibility to achieve an additional income and inject it into the local economy, which will then generate second level (induced) effects for other market participants.


The activities conducted by the project in this framework consist of a wide range of market promotion measures comprising potential or feasibility studies for specific technologies or market segments, pilot and demonstration projects, awareness raising and outreach activities, as well as capacity building and training measures for local suppliers, users, and investors – all of which are linked among themselves and tailored to the specificities of their context. There is thus a close link to the work conducted in the framework of work package 1, 3 and 4.

Morocco

In Morocco, the focus lies clearly on solar pumping, which has been taking off since the phase-out of diesel subsidies by the government started in 2014. Importantly, this roll-out is taking place independently of the (stalled) public promotion program. The Moroccan context is therefore characterized by a high degree of dynamism, a large number of (predominantly private) market actors, and a low degree of public oversight, which gives rise to severe quality issues for many installations as a result of a shortage of qualified workers and suppliers. Also, the fact that the Moroccan solar pumping market is mainly business-driven means that the technology is so far mainly used by large farmers and agro-industrialists, while small farmers find it very hard to obtain the necessary credits. Finally, the fact that the Moroccan state is so far little involved means that the possible interference of solar pumping with ground water is still not properly addressed. The project activities are targeted at these three main issues. read more

Tunisia

In Tunisia, the project approach is slightly more comprehensive, taking into account the more favorable and advanced politico-institutional and legal-regulatory framework of the country. It comprises awareness-raising activities (incl. a short documentary film), training measures, and pilot projects. The fact that the two main actors in this field – the National Agency for Energy Conservation (ANME) and the National Agency for Agricultural Investment (APIA) – have agreed on a common course and have thrown their weight behind the project allows for a more integrated approach, which encompasses both RE and EE, and which is based on a jointly developed medium-term action plan that will be continued even after the project end. read more

Egypt

In Egypt, there is likewise a clear focus on solar pumping, which is currently developing fast as a consequence of the government’s intention to abolish diesel subsidies, starting from the fiscal year 2014-2015 over the following 5- 7 years. The project has therefore carried out a market assessment for solar pumping in Egypt, in order to estimate the future demand for local inputs, especially in terms of services provided. As for the future practical promotion of the solar pumping market, many basic elements have already been created in the framework of GIZ’s ‘RaSeed’ initiative (www.raseed-rcreee.com), which RCREEE has contributed to, including joint training courses for local technicians/installers. The project has supported the development of an informative website on solar pumping in Egypt and is providing, for the first time, a handbook in Arabic, based on the RaSeed publication “Solar Pumping Systems in Egypt – Practical Guidelines for Self-Assessment”. read more

MENA

At the same time, RE-ACTIVATE has started to take the issue of local job and value creation through RE/EE in the AGR/IAA sector – and through solar pumping in particular – to the regional level. This is not only a reaction to the current strong deployment of solar pumping in the large majority of Arab countries, it also reflects the fact that this has become a priority issue the project work in all three focus countries. It has therefore been requested to help strengthen cross-border exchange on this issue. As a consequence, RE-ACTIVATE organized a first – actually, the first – regional workshop on solar pumping in Cairo in May 2017, and will organize another, even larger, one in the framework of the upcoming IBEF in September 2017. It is also currently engaged in developing, together with RCREEE, a regional roadmap for this issue, which gives a short, comprehensive overview of all the issues to be considered for the successful development of local solar pumping markets, which respect the necessary quality standards, protect the local environment (especially water resources), and have a positive socio-economic impact on local populations.

Reference

This article is part of the RE-ACTIVATE project. RE-ACTIVATE “Promoting Employment through Renewable Energy and Energy Efficiency in the MENA Region” is implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH on behalf of the German Ministry for Economic Cooperation and Development (BMZ).



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