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Middle East and North Africa Concentrating Solar Power Knowledge and Innovation Program

Wednesday, 18 April 2018

Studies to Support Sustainable Electricity Trade Roadmap Preparation

Recognizing the numerous benefits of regional electricity market integration, France, Germany, Morocco, Portugal and Spain signed a joint declaration, during COP22 in Marrakech, on the establishment of a roadmap for sustainable electricity trade (SET) between Morocco and the European internal energy market.

An activity was launched on 7 September 2017 in Rabat to prepare the SET Roadmap. The objectives of the SET Roadmap preparation exercise are:

  • To analyze the benefits of increased RES electricity exchanges, resulting from electricity market integration.
  • To identify investments, processes and procedures to enable sustainable electricity trade between the five signatories.
  • To formulate the SET Roadmap implementation pathway.

The work undertaken will include studies to analyze the economic, financial, legal/regulatory, security, technical, environmental, social, market and implementation topics relevant to the SET Roadmap preparation. These studies have now been launched and they are expected to be finished within six months’ time.

The studies that will be undertaken need to analyze the value of electricity market integration between the signatories (cost-benefit analysis), to identify obstacles and preconditions to flows of electricity when economically justified and to define an implementation plan to transform market integration between the five participating countries from a concept to a reality on the ground.

These studies will include:

  1. conducting a full-fledged cost-benefit analysis (CBA) of expanding electricity exchanges between the signatory countries, based on scenario analysis and using a holistic power system model of integrated electricity markets between France, Germany, Morocco, Portugal and Spain.
  2. analyzing the legal, regulatory and market framework for electricity trade between the SET Roadmap participants and assessing what could be improved to allow free electricity trade between them.

A consortium of consultants has been engaged to undertake these studies (within the MENA CSP Knowledge and Innovation Program, with funding from the Clean Technology Fund through the World Bank).  The consortium includes Artelys, Castalia, Ernst and Young, and Fraunhofer ISI.

Credit: The Center for Mediterranean Integration (CMI)