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MED-ENEC
 
 
   

Solar Maghreb
Algeria, Algiers-11-12/05/2010


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EU Sustainable Energy week
Brussels, Belgium-22-26/03/2010


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ALG  -  EGY  -  ISR  -  JOR  -  LEB  -  MOR  -  PAL  -  SYR  -  TUN  -  TUR

MED-ENEC pilot projects

  The  following diagram shows the primary energy savings, the incremental costs and  the pay back periods of the realized MED-ENEC Pilot Projects.

The graph above shows a great diversity of  the approaches. Thus, in the Lebanese PP the main focus was on the  implementation of cost effective measures, which leads to a pay back time of 1-2  years with moderate primary energy savings of 14%. On the other end, the  touristic resort in Tunisia  follows the approach to demonstrate an almost energy neutral project, with high  incremental investments but also high energy savings. Especially PP with very  high savings have relatively high pay back periods which might not be accepted  by all private investors.

Replicable
  The  Replicable pilot project illustrates the cost effective solution, which is  including only those measures that are highly cost-effective (a smart mix of  measures implemented) and replicable on a large scale. Measures with high  research & development character are excluded.


(please note, that  the PP in Egypt and Lebanon  are refurbishment projects and thus have no or only limited costs for the  conventional solution, therefore the share of the incremental costs was set per  default to zero)

With the exception of the Algerian PP (with  a negative net present value) on the one end and Lebanon on the other end (due to  the focus on cost effectiveness in a privately owned hospital), all projects  are financially viable, where the pay back periods range between 4-12 years  with energy savings of 34-85%.

Macro  Economic 
Pilot  projects which are not cost-efficient due to the national subsidized energy  prices, where analyzed under another macro economic situation. Here the  national energy prices where changed with "appropriate" regional energy prices
 
  On a macro economic perspective all  projects are financially viable.

Conclusion

If an appropriate technology mix is decided the cost-effectiveness of  these investments is quite attractive, so that pay back periods below 10 years  are achievable

  • Countries with very low energy prices need to provide incentives for  these measures, since otherwise pay-back on investment is unacceptable. (e.g.  ALG, EGY)
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  • Markets for energy efficiency and renewable energy technologies are not  yet mature. It is the task of the governments to support market transformation,  e.g. through standard setting or procurement policies