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SOCIO-ECONOMIC DEVELOPMENT : A KEY ISSUE FOR THE MEDITERRANEAN SOLAR PLAN

SOCIO-ECONOMIC DEVELOPMENT : A KEY ISSUE FOR THE MEDITERRANEAN SOLAR PLAN. Marc STRAUSS SENIOR ADVISOR FOR ENERGY Conférence DISEM Tunis, 3-4 Septembre 2012. The Mediterranean Solar Plan: some key elements.

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SOCIO-ECONOMIC DEVELOPMENT : A KEY ISSUE FOR THE MEDITERRANEAN SOLAR PLAN

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  1. SOCIO-ECONOMIC DEVELOPMENT : A KEY ISSUE FOR THE MEDITERRANEAN SOLAR PLAN Marc STRAUSSSENIOR ADVISOR FOR ENERGYConférence DISEM Tunis, 3-4 Septembre 2012

  2. The MediterraneanSolar Plan: some key elements The MediterraneanSolar Plan (MSP) : A Union for the Mediterranean (UfM) major initiative launchedat the Paris Summit the 13th July 2008. The UfM Secretariat has been « tasked to explore the feasability, development and creation of a MediterraneanSolar Plan »; Objectives: development on a large scale of renewableenergy (20 GW of new capacity by 2020) and of energyefficiency in the Mediterranean area in particular in southern and eastern countries (SEMC’s). Three main directions : I.Build an inclusive consensus with all the stakeholders on the framework conditions required to meet the abovetargets (the MSP Master Plan): policy and regulatoryframework, funding, physical infrastructures, industrialpolicytransfer of technology and capacity building; II. Identify and support replicable pilot projectswhich are part of a renewableenergy and energyefficiencyintegratedstrategy; III. Work on funding and technical assistance toolsallowing the establishment of a structured pipe-line of projects.

  3. Three key points 1/ The development of renewableenergy in the Southern and EasternMediterranean countries (SEMC’s) is not a luxury or a fashion but a real necessity : • A part of the solution to adress a fastrisingdemand of energy and, more particularly, of electricity; • A valorisation of a greatpotential in the broadercontext of the worldwideenergy transition leaded to a large extent by emerging countries; • An opportunity for job creation and for the establishment of efficient industrialcapacitiesand 2/ No significantsocio-economicbenefitswithout : • A well-designed and integratedstrategybased on a robustmethodology; • Long termtargets, endorsedat the politicallevelproviding a stable perspective for investors. 3/ Significantrisks: • Complete only a few emblematicdemonstrationprojectsstronglysupported by concessionalfunding; • Massive imports, weak local added value and high costs.

  4. Socio-economicdeveloppement and renewableenergy : 4 main areas (Part I) 1/ Define a REEE strategytakingintoaccount : • Opportunitycosts ( impact on oil and gas export potential, cost of subsidies for fossile fuels…); • If possible, externalcosts ( avoided CO2 pollution….); • Direct and indirect effectsrelated to the balance of payments and public budgets; • Energysecurity and source of supply diversification; • Experiencegained by emerging countries with a comparable socio-economic profile. 2/ Analyse SEMC capabilities and potentials for RES technologies and manufacturing, in particular: • Value and supplychains for RES takingintoaccountcompetitiveadvantages and structural weaknesses; • Identification of actual and potentialplayers in SEMC’s; • Potentialinvolvment of international players.

  5. Développement socio-économique et énergies renouvelables: 4 axes majeurs (Part II) 3/ Potential socio-economic benefits of developing RES-based industries in SEMC: direct and indirect impacts: • Labor market impact (national and local); • Foreign Trade Impact sur le commerce extérieur; • National and sub-national development perspectives; • Economicspillovereffects. 4/ Enhancing SEMC potentials for REEE industrial development: • SME support policies (inc. Financial sectors); • Education and training; • Research and Development; • Technologycooperation; • International cooperation : South-South and North-South; • Marketintegration.

  6. MSP and DISEM: How can wejoinefforts ? Socio-economicdevelopmentis a key dimension for the MSP: • The UfM Secretariat isactuallyworking on the abovementionned issues in the framework of the MSP Master Plan; • The MSP Master Plan isbuiltwith all the stakeholders ; • Nextstep : a workshop in Barcelona in end of October on the basis of a paperdrafted by the Secretariat with the support of consultants. The workshop willgatherrepresentativesfrom international organizations (UNIDO, ILO, IRENA, IEA) , the industry ( EREC, DII, IMEDER), financialinstitutions (WB, EIB, AFD, KfW), think tanks (DIE, IISD, DUN, OME) , UE and SEMC’s technopoles et clusters. Possible coopération between MSP and DISEM: • Short term: involvement in the MSP Master Plan building process; • Medium term: involvement in the implementation of the MSP; • Means: exchange of information, commonstudies, reciprocal participation in our respective events….

  7. Thank you for you attention Marc Strauss SeniorAdviserfortheEnergyDivision Marc.strauss@ufmsecretariat.org || +34 935 214 172

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