Solar Thermal Med

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SOLAR THERMAL IN THE

MEDITERRANEANREGION:

SOLAR THERMAL

ACTION PLAN

OME report for GSWH-UNEP-UNDP

December 2012


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Solar Water Heating MarketSolar Thermal Action Plan Transformation and Strengthening Initiative

Table of contents

1. In tr oduc ti on ........................................................................12. Overview of glo bal techno log ies and market trend ........2

2.1. Solar resources ....................................................................... 22.2. Current technologies .............................................................. 22.3. Solar thermal applications...................................................... 42.4. Market trends ........................................................................... 52.5. Economics ............................................................................... 62.6. Regulatory and policy framework .......................................... 72.7. Research and development (R&D) ......................................... 8

3. Curren t pi c tu re in th e Medi ter ran ean ...............................93.1. Solar resources ....................................................................... 93.2. Market trends ........................................................................... 93.3. SWH system costs ................................................................ 113.4. Industry actors ...................................................................... 113.5. Regulatory & policy framework ............................................ 133.6. Research & Development ..................................................... 143.7. Standards & Testing ............................................................. 15

4. Develo p ing a so lar action plan .......................................184.1. Step 1: Addressing and overcoming the barriers ............... 184.2. Step 2: Highlighting benefits ................................................ 194.3. Step 3: Enhancing public policy support ............................ 21

5. Conclus io n ........................................................................26Bib liography ............................................................................27


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List of figuresFigure 1: Global horizontal Irradiance (3Tier) ........................................................................ 2Figure 2: Solar collectors and working temperatures depending on applications (IEA, 2012a).............................................................................................................................................. 5Figure 3: Share of the total installed capacity in operation by regions at the end of 2010

(OME, IEA, 2012a) ................................................................................................................ 5

Figure 4: Worldwide annual installed capacity of flat plate and evacuated tube collectors from2000 to 2010 (left), Market development of the worldwide newly solar thermal installedcapacity between 2009 and 2010 (right) (source: Weiss and al., 2012) ................................. 6Figure 5: Costs of solar heating and cooling (source: IEA, 2012) .......................................... 7Figure 6: Global horizontal Irradiance (GHI) in Mediterranean area (PVGIS)......................... 8Figure 7: Solar thermal installed capacity in SEMCs (left); Per capita installed capacity in theSEMCs (right) (OME database) ............................................................................................10Figure 8: Cost breakdown of SWH system in the SEMCs (OME database) ..........................11Figure 9: Key pillars in developing solar action plan .............................................................18Figure 10: Residential electricity tariffs in the SEMCs (OME) ...............................................21

Figure 11: Strategy for solar thermal promotion; (OME) .......................................................21

List of tablesTable 1: Solar thermal collectors' characteristic ..................................................................... 3Table 2: Main solar thermal collector used for water heating purposes .................................. 3Table 3: Solar water heating system types' description ......................................................... 4 Table 4: Solar heating and cooling applications ..................................................................... 4Table 5: Cost of heat (in USD-cent/kWh), 2007-2030 ............................................................ 7Table 6: Latest R&D developments in solar collector and heat storage ................................. 8Table 7: Average costs of a SWH system in the SEMCs ......................................................11 Table 8: Solar thermal industry sector in the SEMCs ............................................................12Table 9: Existing support mechanisms in the SEMCs ...........................................................14Table 10: Main R&D agencies/institutions in SEMCs ............................................................15Table 11: Overview of the standardization and certification framework in the SEMCs ..........17Table 12: Main identified barriers for SWH deployment in SEMCs .......................................19Table 13: Energy savings and avoided CO2 emissions in the SEMCs .................................20Table 14: Technology roadmap actions ................................................................................24Table 15: Summary of the identified actions for solar thermal promotion in SEMCs .............25


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AcronymsADEREE National Agency for

Renewable Energy andEnergy Efficiency

AMISOLE Moroccan Association of Solarand Wind Industries

ANME Tunisian National Agency forEnergy Efficiency

CDER (Al) Centre de Dveloppementdes Energies Renouvelables

CREDEG Centre de Recherche et deDveloppement de l'Electricitet du Gaz

CSNER Chambre Syndicale Nationaledes Energies Renouvelables

CSP Concentrated Solar PowerDNI Direct Normal IrradianceDSWH Domestic Solar Water HeaterFNME Fond National de la Matrise

de lEnergieGDP Gross Domestic ProductGEF Global Environment FacilityGHI Global Horizontal IrradianceIAEREE Institut Algrien des Energies

Renouvelables et del'Efficacit Energtique

IEA International Energy AgencyIRI Lebanon Industrial Research

Institute

LCEC Lebanese Center for EnergyConservationLIBNOR Lebanese Institute for Norms

and StandardsLPG Liquefied Petroleum GasLSES Lebanese Solar Energy

SocietyNERC National Energy Research

Center (Jordan)NERC National Energy Research

Center (Syria)NREA New and Renewable Energy

Authority

OME Observatoire Mditerranende lEnergie

PEA Palestinian Energy AuthorityPROMASAOL Moroccan Program for

promoting Solar Water Heater

PROSOL Tunisian Program forpromoting Solar Water Heater

PV PhotovoltaicRCREEE Regional Center for

Renewable Energies andEnergy Efficiency

RE Renewable EnergyREAOL Renewable Energy Authority

of LibyaRES Renewable Energy SourcesRET Renewable Energy

TechnologyRSS Royal SocietySEMCs South East Mediterranean

CountriesSWMCs South West Mediterranean

CountriesNEUMCs Non-EU Mediterranean

CountriesNEUNMCs Non-EU North Mediterranean

CountriesSHIP Solar Heat for Industrial

Process

ST Solar ThermalSTEG Socit Tunisienne delElectricit et du Gaz

SWH Solar Water HeaterTFC Total Final ConsumptionTPES Total Primary Energy SupplyUNDP United Nations Development

ProgrammeUNEP United Nation Environment

Programme

Units%/y percent per year

tCO2 tonne of Carbon Dioxide

GW Gigawatt = 109watt

kWh kilowatt-hour

kWh/m/y kilowatt-hour per squaremeter per year

Mtoe Million tonne of oil equivalent

MW Megawatt = 10

6

watt

MWp Megawatt peak

PPP Purchasing Power Parity

Toe/cap. Tonne oil equivalent percapita

TWh terawatt-hour

USD United States Dollar

USD/cap. United States Dollar percapita


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1. Introduction

Energy security, avoiding greenhouse gas(GHG) emissions and generating positivesocio-economic impact are among themain reasons behind promotingdevelopment and deployment ofrenewable energy technologies worldwide.

Resource availability, technologicalmaturity and, economic feasibility aresome of the prerequisites for a large scaledeployment of renewable energy, ingeneral, and solar thermal technologies, inparticular. The Mediterranean region isendowed with significant, yet largelyuntapped solar resources. Solar waterheating (SWH) systems are already

commercially viable and, in some cases,already cost competitive. In particular,domestic solar water heating applicationsare the most well known and widespread.A great potential is still to be tapped inother niches. Thus, promising futureapplications include process heat, districtheating, cooling and desalination.

Nevertheless, several barriers such asrelatively high up-front investment cost,competition with subsidized fossil fuels-based technologies, mistrust vis--vis thetechnology and lack of policy supportmechanisms, etc. constitute realchallenges for the large scale penetrationin the South and East Mediterraneancountries (SEMCs)1.

Overcoming such barriers would morelikely result in a wide penetration of solarthermal applications, thereby reducingelectricity and fossil fuels consumption,and ultimately energy savings and costssavings for both governments and end-

users. A number of critical factors are,thus, necessary for such wide scaledeployment.

The present Action Plan for InvestmentPromotion comes under the framework ofthe Global Environment Facilitys fundedprogramme titled Global Solar WaterHeating (GSWH) Market Transformationand Strengthening Initiative, executedjointly by the United Nations DevelopmentProgramme (UNDP) and the United

National Environment Programme

1 SEMCs are Algeria, Egypt, Israel, Jordan, Lebanon,Libya, Morocco, Palestine, Syria, Tunisia and Turkey.

(UNEP). The objective is to create theenabling conditions for the SWH systemsmarket uptake at the global level, ingeneral, and in the Mediterranean region,in particular. The programme consists oftwo main components:

1. Global Knowledge Management andNetworking: Effective initiation and co-ordination of the country specific supportneeds and improved access of nationalexperts to state of the art information,technical backstopping, training, sharing ofinternational experiences and lessonslearnt.

2. UNDP Country Programs: The basicconditions for the development of a SWHmarket on both the supply and demandside are established, thus leading to theoverall, global market transformation goalsof the project. Currently, countryprogrammes are ongoing in Albania,Algeria, Chile, Lebanon, India and Mexico,but it is expected that other countries willjoin as an ultimate outcome of the currentinitiative.

Within this framework, the ObservatoireMditerranen de l'Energie (OME) hasbeen selected as a regional partner tocoordinate the implementation of the

Knowledge Management and Networkingcomponents in the Mediterranean area.

The main activities carried out by OMEwithin the project so far include: i) reviewof the state of the art and prospects ofsolar thermal technologies in theMediterranean region, ii) identification ofmain needs, barriers and priorities foraction, iii) collection of relevant informationand dissemination through the projectwebsite, conferences and other events,and iv) organisation of a regionalworkshop gathering public and privatesector experts and v) the MarketAssessment report.

The action plan covers the South andSouth East Mediterranean Countries -gives an overview of the status of solarheating and cooling (SHC) technology andits applications, potential benefits, criticalfactors for a wide market penetration, andrecommendations to policy makers to takeconcrete steps to put in place and or

realize national plans for investments inSWH systems.


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2. Overview of global technologies and market trend

2.1. Solar resourcesThe potential for solar thermal applicationsat a global level is high. Regions whichbelong to the so-called Sunbelt are among

the most suitable for solar thermaldeployment, given the favourableirradiation rates (Figure 1). Nevertheless,some solar thermal technologies canoperate almost everywhere, even incloudy regions, mainly due to the fact that

non-concentrating solar thermal collectors(flat-plate and evacuated tube collectors)can use both direct and diffuse solar

radiation to produce heat. On the contrary,concentrating solar collectors, which usedirect radiation to operate, have to beinstalled in locations with limited clouds(e.g. deserts).

Figure 1: Global horizontal Irradiance (3Tier)

2.2. Current technologiesSolar thermal systems use collectors toabsorb solar irradiance to produce heat,which in turn is used for water and spaceheating or indirectly for cooling. The mosttypical and widespread application is

represented by domestic solar waterheating (SWH) systems. A SWH system iscomposed of two main components: acollector and a tank. Whereas water is thebest heat transfer fluid (flows in a circuit),propylene glycol (used in industry) is wellsuited for freezing areas. Selectiveabsorbers, in particular, are more efficientas they retain more energy, and thusreduce heat loss.

Solar thermal col lectors

Solar thermal collectors are the mainelement in converting solar energy intoheat. Whereas concentrating collectors(required for high temperatures above 150C) need Direct Normal Irradiance (DNI),

non-concentrating collectors (needed forlow temperature systems- up to 80 C)require Global Horizontal Irradiance (GHI).Solar thermal collectors can be classifiedfollowing three criteria: the motion of thesystem (stationary, single axis-tracking,two axes-tracking); the absorber type (flat,tubular or point) and the concentrating ornon-concentrating characteristic of thesystem as shown in Table 1. A fourthcriterion is the working fluid which can bewater, air or oil.


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Table 1: Solar thermal collectors' characteristic

Motion Collector typeAbsorbertype

ConcentrationIndicative temperaturerange (C)

Stationary Flat plate collector (FPC)

Evacuated tube collector (ETC)

Flat

Flat

No

No

30-100

50-130

Single axis-

tracking

Linear Fresnel reflector (LFR)

Parabolic trough collector (PTC)

Tubular

Tubular

Yes

Yes

60-400

100-450

Two axes-tracking

Parabolic dish reflector (PDR)

Heliostats field collector (HFC)

Point

Point

Yes

Yes

100-500

150-2000Sour ce: S.A. Kalog irou , 2004; T.A. Reddy and al., 2007; IEA SHC Task 33/IV, 2008

Regarding the solar water heating, twomain types of non-concentrating solarthermal collectors are used: flat-plate

(glazed, unglazed) and evacuated tubecollectors.

Table 2: Main solar thermal collector used for water heating purposes

Collector type Description

Flat-plate Collector

Glazed Flat-plate collectors are composed oftransparent front cover, a frame, collector housingand an absorber. Whereas the absorber (usuallyblack) is generally made of metal (aluminium,copper or steel), the collector housing could bemade of metal, plastic or wood. Selective coating isused to increase an absorbers efficiency. UnglazedFlat-Plate collectors consist of an absorber that iscomposed of a rubber-like Ethylene PropyleneDiene Monomer (EPDM) mat and metal (Baechleret al, 2007). A housing is used for unglazedcollectors, which reduces heat loss from theabsorber and the fluid circuit heat exchanger andprotects them from degradation.

Evacuated-tube collectorEvacuated tube collectors consist of a metalabsorber sheet with a heat pipe (has temperature-sensitive fluid) inside a closed glass tube that actsas a thermo to hold heat. The housing is a glasstube with vacuum inside. Evacuated tube collectorsare either direct flow tubes or heat pipe tubes.These are more efficient than other types ofcollectors in cloudy weather with lower solarirradiation.

Sour ce: AEE INTEC, 2009 (up), H. Mller-Steinh agen, 2008 (down )

SWH system types

SWH systems can be classified into activevs. passive and into direct vs. indirectsystems. Whereas passive systemsdepend on gravity and thermalstratification; in an active system,however, a pump circulates fluid from thetank to the collector. Direct systems usepotable water as the heat transfer fluid

which is then used directly for domestichot water.

Indirect systems use heat exchangers toisolate fluids from potable water. Whereasin an active direct system it is advisable touse a pump with a bronze steel housingand impeller to avoid corrosion, a cast ironpump could be used for an active indirectsystem (Baechler et al, 2007). In terms oftechnology, there are two main technologysystems; thermosyphon and forced

(pumped) circulation systems


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Table 3: Solar water heating system types' description

System type Description

Thermosyphon

Thermosyphon (natural flow) is a passive directsystem where the heat transfer medium (water)flows naturally from the collector to the tank usinggravity. Given its higher specific density, cold water

goes down thereby requiring the collector to beinstalled below the water tank. The system has theadvantage of being simple and less costly. It is notwell integrated into buildings, however, as it is usedmainly on roofs (ESTIF, 2012). The thermosyphonpassive indirect system, however, includes heatexchangers within their tanks and could also havethe propylene glycol fluid against freezing.

Forced circulation Forced circulation systems are more flexible interms of where to install the tank as the transfer fluidis regulated by a pump. This is more complex,however, requiring extra technology items such as apump, controller, and sensors. The controller

switches on or off the pump depending on thedifference between temperatures in the solarcollector and the tank that is monitored by thesensor. They are mainly in low temperature zonesand they are well integrated into the buildings(ESTIF, 2012)

Source: www .volker-quaschning.de

2.3. Solar thermalapplications

Solar thermal technologies are used inseveral applications. They are used forwater and space heating, cooling, processheating and other applications.

The solar thermal technologies have beenused by all types of buildings. They couldbe used in single-family homes,

multifamily and commercial buildings,hospitals, schools, and traditional publicbaths, etc (Table 4).

Table 4: Solar heating and cooling applications

Application Description

Domestic SolarWater Heating

Solar thermal system for domestic water heating is the most common application usedworldwide. Two main applications exist, namely for individual housing needs orcollective system for buildings. Both thermosyphon and pumped systems could be usedfor domestic water heating.

Combined Water

and Space Heating(combi-systems)

This technology delivers both heat and hot water. This is used mainly in big buildings,

especially in hotels, office buildings and multi-family buildings. The combi-systems usemainly forced circulation systems and usually require an auxiliary energy source tocover the unmet demand by solar thermal. The combi-systems are not widely used(could account for 50% of annually installed capacity in some countries like Germanyand Austria, however) because of the lack of low-cost compact thermal storage (IEA,2012a)

District Heating This system uses a central storage tank that is heated by collectors installed either onsingle houses or are centrally installed in one single place. Heat is used for eitherresidential or commercial heating purposes.

Solar heat forindustrial processes

Solar thermal could also be used in industrial processes such as industrial washing,drying, space heating in industrial buildings, etc. Solar thermal technologies could beused for industrial applications for low-, medium- and high-temperature applications

Solar ThermalCooling

Solar thermal cooling systems are usually composed of an absorption chiller, acollector, a cooling tower and a smart control system. Several pilot systems areinstalled, especially in Europe, but the technology is not mature yet.

Sour ce: OME, IEA


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Other solar thermal applications includewater treatment and seawaterdesalination, solar cooking, and swimmingpool heating.

Figure 2 gives an overview of the solarthermal collectors used for differentapplications depending on the workingtemperature

Figure 2: Solar collectors and working temperatures depending on applications (IEA, 2012a)

2.4. Market trendsThe most established solar thermaltechnologies in the market are thoserequiring low-to medium temperatures.Total installed capacity reached around

200 GWth in 2010. China accounted for thelargest share with 59% of the global

installed capacity, followed by Europe(13%) and North America (8%). Thesethree regions together amount for morethan 80% of the global installed capacity(Figure 3). The South and EastMediterranean Countries accounted for

9.3% reaching around 19 GWth.

Figure 3: Share of the total installed capacity in operation by regions at the end of 2010 (OME,IEA, 2012a)

Historically, Europe (mainly Austria,Denmark and Greece) and United Stateswere the most dynamic markets but since

the beginning of the 2000s, the Chinesemarket is booming and is driving the global

market, being the market leader in termsof installed capacity.

Between 2000 and 2010, the globalannual installed capacity increased six-foldled by Chinese, European and NorthAmerican markets (Figure 4 - left).

China59%

Europe

13%

North America

8%

RoW

11%

Other SEMCs1,6%

Israel1,5%

Turkey6,2%

SEMCs9,3%

Europe: EU27, Norway, Switzerland

North America: Canada,United States

Other SEMCs: Algeria, Egypt, Jordan, Lebanon, Libya,

Morocco, Palestine, Syria,Tunisia,


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Figure 4: Worldwide annual installed capacity of flat plate and evacuated tube collectors from2000 to 2010 (left), Market development of the worldwide newly solar thermal installed capacitybetween 2009 and 2010 (right) (source: Weiss and al., 2012)

The year 2010 recorded the lowest growthrate since 5 years. During 2010, the newly

installed capacity reached 42.2 GWth(corresponding to 60.2 million m2 of solarcollectors), meaning an increase of about14% compared to 2009. Asia is leadingthe market growth (mainly thanks to Chinaand India) while the market in Europe haswitnessed a significant decrease (-7.5%)(Figure 4 - right).

SEMCs have recorded high market growthwith a 23% average growth rate (Israel,Jordan, Morocco, and Tunisia).

In terms of per capita solar thermalinstalled capacity, Cyprus has the highestratio with 577 KWth/1,000 inhabitants,followed by Israel (397), Austria (388),Barbados (323) and Australia (271)(Weiss, 2012).

2.5. EconomicsFactors affecting the cost of heat from aSWH system include life-span, solarirradiance and energy tariffs. The total

investment cost of a SWH system couldbe split into costs of collector, tank,installation and other services. In general,the collector and tank account for thelargest share of the total investment cost,with minor operating costs. Contrary tothermosyphon system working on naturalcirculation, the pumped system usuallyrequires additional features such as

controllers, valves, pumps, etc, therebyraising its total investment cost.

The cost of a SWH system could differaround the world by a factor of 10 (fromUSD 250/kWth to USD 2,400/kWth) basedon system type, size, application, marketconditions, and costs of labor (IEA,2012a).

Economies of scale play an important rolein reducing investment cost of large-scalesolar hot water systems used in districtheating and industrial applications orcommercial buildings applications. InDenmark, for example, investment costs

range from USD 350 to USD 400/kW th forthe most competitive systems and heatprices between USD 35 to USD 40/MWhth(IEA, 2012a).

Despite the difficulty in assessing solarcooling investment costs because of theemerging status of the technology,estimates for some existing solar coolinginstallations (medium to large systems) intropical regions, are between USD1,600/kWcooling to USD 3,200/kWcooling for

medium to large systems.Figure 5 shows regional (US, China,Europe) ranges of solar heating andcooling costs compared to gas andelectricity costs (in USD/MWhth). The mostcompetitive SWHs are those in southernUnited States (large scale systems), China(thermosyphon SWH), and South Europe(thermosyphon SWH).


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Figure 5: Costs of solar heating and cooling (source: IEA, 2012)

Cost competitiveness is a determiningfactor for a wide scale market penetration.Several solar thermal applications are

already cost-effective while others are stillmore expensive compared to fossil-fuelbased systems. In perspectives, the costof generated heat from solar thermalsystems is expected to witness significantdecreases, thereby making solar thermaltechnologies far more competitive thanconventional-based heat. Table 5 showsthe range of prices for solar based heatversus other systems using natural gasand electricity for 2007 and 2030 for endusers in central and southern Europe.

In 2007, the cost of solar thermal-basedheat is already competitive compared to

the other sources. In perspectives, thecost of heat would be far below than othersubstitutes, including natural gas and

electricity. By 2030, the range of solarthermal is expected to be between 2.6 and5.2 USD-cent/kWh in the Southern Europewhile natural gas and electricity areexpected to have ranges of 22 - 75 and 18- 86 USD-cent/kWh, respectively. Thevariations observed between centralEurope and Southern Europe could beattributed to different climatic conditions,and in particular to solar irradiation. Thus,given the potential of cost reductions in thefuture, it is more likely that people opt for

SWH system applications compared toother conventional fuels-based systems.

Table 5: Cost of heat (in USD-cent/kWh), 2007-20302007 2030

Central Europe Southern Europe Central Europe Southern Europe

Solar thermal 9.1 - 20.8 6.5 - 15.6 3.9 - 7.8 2.6 - 5.2

Natural gas 11.1 - 37.7 22.1 - 75.4

Electricity 9.1 - 42.9 18.2 - 85.8* Costs of solar heat include all taxes, installation and maintenance. Exchange rate used (1=1.30USD)

Source: OME based on European Solar Thermal Technology Plat form (ESTTP)

2.6. Regulatory and policyframework

Policy support mechanisms have beenadopted worldwide for promoting the widescale deployment of renewable energytechnologies, and they have been behindthe increasing market rates in manycountries. According to REN21 (2012),the number of renewable heating/coolingpolicy support mechanisms have beenincreasing, with at least 19 countries

having set renewable heating/coolingtargets (including for solar water heating)and 17 countries and states having

obligations/mandates to promoterenewable heat, for example throughbuilding codes.

Financial incentives for solar water heatinginstallations are widespread and, togetherwith regulatory policies, have stimulatedcontinued global growth in installations.There is limited national policy support inplace for encouraging new district heatingand cooling schemes, although these areusually instigated by policies made at the

local government level (REN21, 2012).


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2.7. Research anddevelopment (R&D)

Whereas a number of low-temperaturesystems are already cost competitive andare widely used, especially domestic solarwater heating, others still require more

research and development to beeconomically viable.

Several R&D developments related tosolar heating and cooling systems havetaken place worldwide at both collector

and storage levels. The solar collectorsmain developments concern cost andweight reductions. By contrast, theincrease of volume, new designs and costreductions are some of the main R&Dachievements for storage

Table 6 gives a summary of such latestdevelopments and their features for solarcollectors and heat storage (Ehrismann,2012).

Table 6: Latest R&D developments in solar collector and heat storage

Solar collector FeaturesPolysol collector (allpolymeric collector)

Weight and cost reduction; use of recycled polymeric materials; made by extrusion;overheating protection by temperature dependent emissivity and pressure resistant.

Gas filled flat platesolar collector

Filling gas (e.g. Xenon, Argon, Krypton); higher thermal performance; thinner collectordesign and reduced weight.

Faade collector basedon vacuum tubes

Combination of glass faade and evacuated tubular collector; CPC mirror isperforated to allow light to enter the building.

Solar heat forindustrial processes

Solar thermal could also be used in industrial processes such as industrial washing,drying, space heating in industrial buildings, etc. Solar thermal technologies could beused for industrial applications for low-, medium- and high-temperature applications

Industrial SolarFresnel collector field

4 collector strings with 16 modules each; gross area approx. 2100 m2; total aperturearea 1408m2; pressurized water circuit at 16 bar; provided temperatures of 200 C;used to drive an absorption chiller.

Heat storage FeaturesWater stores Large volumes by cascading; disadvantages: large space requirement, effort for

installed and control, high thermal losses due to large surface.Large water stores Large stainless steel store (pressurized); new buildings: installation during

construction phase; existing buildings: welding at the place of installation.Cylindrical polymeric

stores

Made up of fiberglass-reinforced plastic; volume: 1-100 m , with this flexibility only

available as unpressurised store.Cubical polymericwater store

Optimal use of space due to cubical shape; steel frame with polymeric panels;construction and sealing on-site; individual sizing to fit the room; unpressurised.

Pressurised polymericwater stores

First pressurized cylindrical polymeric store made from fiberglass-reinforced plastic; lowthermal conductivity; corrosion-free; low weight; stratified charge and discharge device.

ModSto-Modular hotwater store

Less space compared to cylindrical stores; pressure resistant up to 2.5 bar; modulevolume 1.3 m

3; total vol. up to 10 m

3; low heat losses; quick & easy installation,

Underground stores Large volume achievable; possible installation in building stock; unpressurised storesup to 7 m

3; pressurized stores up to 11 m

3; significant costs for ground works. In

development: diffusion resistant foil bag instead of a steel store.Vacuum superinsulated water store

Very low heat losses with a rate for 16 m store: 1.98 W/K (typical value for a standard250 l store); perlite powder as filling material: low costs 50/m

3and density 30-100

kg/m3, small pores 10-100m, high porosity 75-97%.

Latent heat storage in

ice stores

Very large heat of fusion; low material costs. Field of operation: in combination with

heat pump systems; for cold storage in solar thermal cooling systems. Thermo-chemicalheat stores

open adsorption/hydration system with ambient or exhaust air; salt with an active /passive porous matrix; material: CaCI2 and MgSO4; external cross-flow reactor;regeneration temperatures (120-180 C); storage density: 230 kWh/m

3

Source: Ehrism ann, 2012


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3. Current picture in the Mediterranean

3.1. Solar resourcesSolar thermal technologies offer promisingopportunities in the Mediterranean region.Most SEMCs lie in the so-called Sunbelt,

with global horizontal irradiance (GHI)

values ranging from 1,600 kWh/m/y incoastal areas to 2,600 kWh/m/y in thedesert, and direct normal irradiance (DNI)values varying from 1,800 kWh/m/y to

more than 2,800 kWh/m/y (Figure 6)..

Figure 6: Global horizontal Irradiance (GHI) in Mediterranean area (PVGIS)

3.2. Market trendsAmong the SEMCs, solar thermal iswidespread in Israel, where the use ofsolar energy for water heating dates backto 1970s. Tunisia has established acomprehensive programme to promote theuse of solar energy in the residential,tourism and industrial sectors. A solarthermal market also exists in Turkey,

Egypt, Jordan, Lebanon, Morocco andSyria.

The installed solar thermal capacity in theSEMCs reached around 18.5 GWth in2010, representing more than 9% of worldsolar thermal installed capacity. Turkey

alone accounts for the largest share with67% (18 million square meters) of installedcapacity in the SEMCs, followed by Israeland then by the Palestine (Figure 7 - left).Together, these three countries accountfor around 88% of the solar thermalcapacity in operation in the Mediterraneanregion.

In terms of per capita solar thermalinstalled capacity, Israel has the highestratio with 397 KWth/1,000 inhabitants,followed by Palestine (260), Turkey (172),Jordan (121) and Lebanon (52) (Figure 7 -right).


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Figure 7: Solar thermal installed capacity in SEMCs (left); Per capita installed capacity in theSEMCs (right) (OME database)

1

10

100

1 000

10 000

100 000

Turkey*

Israel

Palestine***

Jordan*

Egypt

Tunisia*

Morocco*

Lebanon*

Syria**

Algeria

Libya

MWth

Solar thermal capacity in operationin SEMCs, 2010

0

100

200

300

400

Israel

Palestine***

Turkey*

Jordan*

Lebanon*

Tunisia*

Syria***

Morocco*

Egypt

Algeria

Libya

kWth/1,000 inhab.

Solar thermal capacity per capita inoperation in SEMCs, 2010

Solar Heat for Industrial Processes (SHIP) in SEMCs

SHIP applications are still at an early stage of development. At present, around 200 operating solarthermal systems for process heat are estimated worldwide (Weiss, 2010), for a capacity of 42 MW th(60,000 m

2), or only 0.03% of the total solar thermal capacity installed. Most of these systems are

of small-scale experimental nature. In the European region, Austria is a pioneer in the use of thistechnology; several North Mediterranean countries including Greece, Italy, Portugal and Spain arealso active.

In the SEMCs, most countries are still keeping their solar potential largely untapped. There islimited experience in SHIP applications in the Mediterranean, and a general lack of welldocumented information. Among SEMCs, Egypt has produced perhaps the most analyticaldocumentation on its experience with SHIP. The Egyptian government formulated a programme fortesting and disseminating solar process heat and waste heat recovery systems in the local industryin the 1990s. The programme aimed at reducing dependence on fossil fuels of this compartment,

as Egyptian industry is responsible for about 50% of final energy consumption - and approximately60% of this portion is for process heat.

Other countries like Jordan, Morocco, Tunisia and Turkey have developed or are in the process ofdeveloping solar systems for heat applications in their industries. As far as Jordan is concerned, asolar thermal field has been installed in a dairy factory in Russeifa. The garment manufacturerAmerican Jordanian Industrial Company for Apparel also installed solar panels to heat water forwet processing on its factory roof. More recently Nur Solar System company has installed a solarsystem in an aluminium factory with a pay-back period for such installation of about 10 months.

So far, both Lebanon and Morocco have used the Clean Development Mechanisms (CDM) as anopportunity to finance small scale solar process heating installations. The Lebanese projectconsists of a solar based steam production system using a 10.3 MW thCSP plant at the ZeenniTrading Agency in the city of Bsarma; the Moroccan project aims at producing steam for eight fishmeal factories in Layoune from a solar plant using Fresnel technology plus hot water from flat-plate collectors.

As for Tunisia, so far there is no SHIP installation in operation. However, following the success ofthe PROSOL programme in the residential and service sectors, a similar initiative has beenlaunched, which targets industries called PROSOL Industrial, which is currently in the preliminarystages of implementation. Energy audits have been conducted on Tunisian manufacturingcompanies from the agro-food, textile, chemical and paper sectors. Next step of the PROSOLindustrial is to implement a demonstrative sola plant in a low temperature industrial process andanalyse real figures from this pilot plant.

Finally, Turkey is gradually discovering solar process heat, given the high potential which isestimated at around 14 million m (Paul, 2008). In particular, the textile and food processingindustries seem to represent two potentially attractive markets.

Source: OME, 2012.


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3.3. SWH system costsThe cost of a SWH system is quitedifferent across the South and EastMediterranean countries. The averagecost of a system ranges from $ 500 USDin Palestine to $ 1300 in Lebanon based

on the system configuration. In terms ofthe investment cost (in $/kWth), it ranges

from $ 516 in Lebanon to $ 635 in Tunisiaand $ 757 in Morocco, far below than whatis marked in some regions of the world.

Table 7 gives a summary of the averagecost of a SWH system in theMediterranean.

Table 7: Average costs of a SWH system in the SEMCs

CountryAverage cost ofsystem [USD]

System configuration

Algeria 820 n/a

Egypt 700 Thermosyphon 150 lit/day

Israel n/a n/a

Jordan 930Flat plate-locally manufactured + hot water tank + cold water tank +stands for tanks

Lebanon 1,300 FP collectors of 3.6 m2+ 200 liters tanks

Libya n/a n/a

Morocco 1,060 2 m2with 160 to 200 liters tank

Palestine 500 Thermosyphon

Syria n/a n/a

Tunisia 890 Thermosyphon system [2 m2surface & 200 L capacity]

Turkey 920Open-loop, pressureless thermosyphon (180 lit hot water, 70 lit feedingtank)

Source: OME d atabase

In terms of cost by component, thecollector and tank account for the largestshare of total investment cost. It accounts

for more than 75% in Morocco, Lebanon,and Tunisia. In Turkey, however, bothinstallation and the main equipments(collector and tank) account for 45% oftotal investment cost each (Figure 8: Cost

breakdown of SWH system in the SEMCs(OME database)). The high cost ofinstallation of countries like Turkey could

be attributed to the relatively high cost oflabor. Contrary to other conventionalenergy sources, renewable energytechnologies have low operation andmaintenance (O&M) costs.

Figure 8: Cost breakdown of SWH system in the SEMCs (OME database)

3.4. Industry actorsThe solar thermal industry differs fromcountry to the other and is mainlycharacterized by small and medium sizedenterprises, including small manufacturingworkshops.

The solar thermal industry, especiallymanufacturing, is concentrated in only fewcountries in the Mediterranean region.

Turkey leads the region with more than 30manufacturers, which well positions it asan exporter of SWH systems in the region.


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Table 8 lists the number of industry actorsby type in the Mediterranean countries.

Many of the SWH companies areintegrated companies or involved in otheractivities. In Morocco, for example, mostsolar thermal industry actors areintegrated companies (installation,distribution and maintenance).

Besides, the 2 existing manufacturingcompanies in Morocco are active in solarphotovoltaic as well. Likewise, in Turkeyalmost all the companies are involved inmanufacturing, import/export anddistribution activities.

Whereas the growth of the SWH industryhas grown naturally in some countries likeTurkey, the increase of the number ofSWH industry actors could be attributed tothe adoption of policy support mechanismsin others.

In Tunisia, for instance, the PROSOLProgram has induced a significantincrease in industry actors, especiallysuppliers (moved from 6 in 2005 to 49 in2012) and installers (moved from 120 in2005 to 1150 in 2012).

Table 8: Solar thermal industry sector in the SEMCsCountry Industry association Manufacturer Retailer Installer

Algeria No 2 n/a n/a

Egypt

The Solar Egyptian Development Association

(SEDA) 4 14 5Israel Renewable Energy Association of Israel (REAI) 10 6Jordan No 3 10 13

LebanonLebanese Association of Solar Industrialists (LASI)/Lebanese Solar Energy Society (LSES)

12 100 105

Libya no n/a n/a n/a

MoroccoAssociation Marocaine des Industries Solaires etEoliennes (AMISOLE)

2 50 200

Palestine No 15* n/a n/aSyria No 25** 8 n/a

TunisiaChambre Syndicale Nationale des EnergiesRenouvelables (CSNER)

10 49 1,150

TurkeyGUNDER, Turkish division of the International SolarEnergy Society

90 800 3,000

*These are mainly workshops; ** Manufacturers including small workshops.Source: OME d atabase

Industry associations are very important inadvocating the industrys interests. Theycontribute to establishing dialoguebetween decision makers and firms bybridging the differences between publicand private actors and thus contribute toimproving the policy making process.Industry associations could also beenablers for innovation. For example, the

European Solar Thermal IndustryFederation (ESTIF) has an active role inliaising with EU institutions and providingpolicy advice, facilitating trade,strengthening research and developmentand lobbying.

Among the SEMCs, several countrieshave already established a solar industryassociation.

AMISOLE: Moroccan Association ofSolar and Wind Industries

AMISOLE is an industry associationgathering thermal, PV and wind actors andwhich contributes to establishing adialogue between decision makers andfirms and to improving the policy makingprocess. Established in 1987, renewableenergy actors in Morocco createdAMISOLE to promote their interests and to

develop a renewable energy industry. Inaddition to installation, distribution andmaintenance, AMISOLE includes 2 solarthermal manufacturers.

Guidelines of AMISOLE actions in the nearfuture: 1) accelerate the market throughregulatory measures, removing subsidieson butane or providing subsidies to SWH,and providing financial support for localmanufacturing; and 2) protect theconsumer through making testing andlabeling more attractive for productscertification and certifying installationcompanies besides technicians.

For more info:www.amisole.comSource: Amin Bennouna, AMISOLE, SolarThermal Workshop, Beirut 18-19 April 2012.
http://www.amisole.com/http://www.amisole.com/http://www.amisole.com/http://www.amisole.com/


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3.5. Regulatory & policyframework

Several SEMCs have provided policysupport and incentives to SWHs.Nevertheless, some of these supportmechanisms in some countries are

projects oriented and thus have limitedtime frame.

Thanks to solar ordinances for newbuildings set up in 1980, Israels solarthermal market today is beyond what wasrequired by such ordinances. After the1997-2001 GEF and the Belgian co-operation for a 35% subsidy, Tunisialaunched its PROSOL programme in 2005in cooperation with the Italian Ministry offor the Environment, Land and Sea and

UNEP. In Egypt, a solar obligation (notgenerally applied or enforceable) wasintroduced in 1987 mandating the designfor the use of solar hot water heater in newbuildings.

In 2002, with the support of UNDP,Morocco launched its PROMASOL projectand ADEREE is designingtheimplementation of the SHEMSI (Nationalprogramme for SWH development) basedon four elements: financing, labelling,communication, regulatory and legislative

framework.After its 2007-2011 incentive scheme,Algeria launched the ALSOL programme(to 2014) providing for a 45% subsidy ofthe investment cost. In addition to beingan implementing partner of the GSWHinitiative and the incentive mechanismbased on low interest rate credit by privatebanks, Lebanon has established afinancing mechanism called NEEREA(National Energy Efficiency and

Renewable Energy Action) offering loansfor SWH installations with 0% interest rateand a 5-year repayment period (startingfrom 2010).

In 2008, Jordan established a solarthermal obligation for new buildings withinthe Energy Efficient Building Code.

In Syria, government subsidies and lowinterest rate loans from private banks areavailable. Surprisingly, Turkey has anincentive mechanism only for familiesliving in remote areas (forest villages),granting an interest free credit by covering100% of the investment cost, which wouldbe repaid in three equal instalments.

In terms of solar thermal heating/coolingtargets, five countries have set such

targets, namely Jordan, Lebanon,Morocco, Syria and Tunisia. These targetsare, however, indicative and non-binding.

The Tunisian SWH program, for example,has been one of the most successfulinitiatives in the region. The box abovegives an overview of the PROSOLprogram, its components, targetedsectors, incentive mechanism and successfactors.

Table 9 summarizes the main support

schemes in the Mediterranean region. Inthe SEMCs, several policy supportmechanisms are in place.

PROSOL

The PROSOL Program was set with theaim of overcoming barriers and thuscreating a long-term market for solarthermal in Tunisia. It is based on severalcomponents; financial mechanism, VAT

exemption, reduced custom duties forSWH, capacity building, awareness raisingand carbon finance, and it targets thefollowing sectors:

Residential: a subsidy is granted from theNational Fund for Energy Management anda loan to be paid over 5 years. Supportmeasures and success factors include loanguarantee through STEG, synergybetween public and private actors,involvement of private financing sector,and a comprehensive communication andawareness campaign.

Tertiary: a subsidy of 30% of the

investment with a ceiling of ceiling 75/m2financed by the FNME, support for the costof the study and control and othersubsidies from the funds IMELS-UNEPequivalent to 20%. Some of the supportmeasures and success factors are: trainingleading to a qualification, elaboration of amembership process to the project,coaching for the first projects (study andimplementation) and achievement of thedifferent support of the communicationplan.

Industry: a subsidy (by FNME) of 30% ofthe investment with a ceiling of 75/m

2.

This mechanism has been accompaniedby the achievement of 40 prefeasibilitystudies for the 40 industrial establishments,information and awareness to indentifyinterested industrials, the finalization of 10detailed feasibility studies and theimplementation of a pilot project of SHIP.

Source: Souheil Ksouri, Solar ThermalWorkshop, Beirut, 18-19 April 2012.


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Table 9: Existing support mechanisms in the SEMCs

Support mechanism(they are usually projects orientedinitiatives)

Algeria

Egypt

Israel

Jordan

Lebanon

Libya

Morocco

Palestine

Syria

Tunisia

Turkey

Financial incentives

Capital grant subsidy X X X X X XOperation grant subsidy XTax incentives X X XLow/exemption of customs duties X X XSoft loans and loan guarantees X X X X

Regulatory incentivesBuilding regulations/code X X X X XEquipment standards X X X X X X X X X

Educational incentivesTechnical assistance XLabelling XTraining programs XAwareness raising programs X X

Solar heating and cooling targets

X X X X XSource: OME

3.6. Research & DevelopmentResearch and Development (R&D)activities in the Mediterranean region arenot well developed and are mainlyfinanced by governments through publicagencies that usually carry out R&Dactivities. The weak R&D infrastructure

and the financing bottleneck whichcharacterize most of the manufacturingcompanies in the region are key behindsuch gap.

Although thermosyphon solar waterheaters are becoming well established inthe SEMCs, with some manufacturingcapacities, there is a quite huge potentialfor the improvement of these system interms of compactness, reduction of heatlosses and the use of advanced materiallike polymeric materials.

In addition, the use of solar thermal energyin the commercial (mainly tourism) andindustrial sector is insignificant, eventhough these applications have animportant potential given that 30% of theoverall energy demand in the SEMCs is inthe industrial sector (with a majority ofheat below 250C). Further technologicalimprovements would allow solar tocontribute significantly to industrial energyrequirements.

A very promising technology is solarcooling systems. This technology will

benefit from the climate conditions ascooling demand is high during summertime; a very suitable natural condition forsuch technology. Solar cooling allows foravoiding peak load electricity demand andneed for additional power production andtransmission capacities.(IEA, 2012a)

While already established in somecountries, research and developmentactivities are evolving and gettingconsolidated in others. In Morocco, forexample, the R&D gap has been recentlyfilled with the creation of IRESEN (Institutde Recherche en Energie Solaire et enEnergies Nouvelles) to promote andcoordinate R&D projects in renewableenergy. IRESEN sets 10 calls for projectsfor the 2012-2016 period. MAD 250 million(around 22 million) has been allocated for

the first projects for that period. The firsttwo projects (InnoTherm I & InnoTherm II)were launched in February 2012 and areto be financed by MAD 20 million each(Ikken, 2012). CRTEn, a non-profitinstitution in charge of R&D projects inTunisia, is also worth highlighting. It is veryactive in the development and exploitationof renewable energy (thermal,photovoltaic, wind). CRTEn has extensiveexpertise in the field testing of renewableenergy systems, PV cells & PV systems

realisation and modelling and control ofPV and thermal systems.


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Table 10: Main R&D agencies/institutions in SEMCs

Country R&D Agency / Institution

Algeria Institut national des nergies renouvelables; New Energy Algeria (NEAL); Centre deDeveloppement des Energies Renouvelables (CDER); Centre de Recherche et de Dveloppementde l'Electricit et du Gaz (CREDEG)

Egypt New and Renewable Energy Authority (NREA); The National Research Center (NRC); HelwanUniversity Solar Thermal Laboratory

Israel National Solar Energy Center

Jordan National Center for Research and Development; National Energy Research Centre (NERC); RoyalScientific Society, Water and Environment Research and Study Center (WEEC) University ofJoradan

Lebanon National Council for Scientific Research (NCSR); Lebanon Industrial Research Institute

Libya Centre for Solar Energy Studies (CSES)

Morocco Institut de Recherche en Energie Solaire et en Energie Nouvelles (IRESEN); Agence deDveloppement des Energies Renouvelables et de lEfficacit Energtique (ADEREE)

Palestine Palestinian Energy and Environment Research Centre (PEC)

Syria National Energy Research Center (NERC); Higher Institute for Applied Science & Technology

Tunisia Research and Technology Centre of Energy (CRTEn); Centre Technique des Matriaux de

Construction, de la Cramique et du Verre (CTMCCV)Turkey Center for Solar Energy Research and Applications

Source: OME

3.7. Standards & TestingStandardization, quality and testing arecentral components of the development ofa sustainable solar thermal market. Theyincrease the potential market for productsand their acceptance by the finalconsumers, allow for the elaboration andthe implementation of common

regulations, and guarantee the access tothe market of new players and generateconfidence all along the value chain.

The current state of the solar waterheating systems market in theMediterranean countries is quite varied. Toincrease product quality in the region thatis characterized by non-mandatory and notaccompanied by third-party verificationcertification or national standard scheme,the ArSol2(Arab Solar network) initiativea regional certification scheme for solarwater heaters that is based on the SolarKeymark European voluntary scheme - isunder preparation in order to harmonisestandard and testing systems throughoutthe region, thereby increasing quality andperformance of solar water heaters,facilitating trade within the region and withthe EU and thus creating a sustainablemarket development of solar thermalproducts.

2ArSol members of official representatives of the nationalorganizations of renewable energies, testing facilities forSWHs, and standardization agencies in the Arab states.

Centre de Dveloppement desEnergies Renouvelables (CDER)

The Development Centre of RenewableEnergies is a government-funded researchorganization, under the administrativeauthority of the Algerian's Ministry ofHigher Education and Scientific Research.Founded in 1982 and reorganized in 1988

by governmental decree, CDER conductsapplied research and development in thefields of renewable energy. CDER carriesout application oriented research anddevelopment and collaborates closely withuniversities and industries.

CDER conducts applied research anddevelopment in the fields of renewableenergy. Its activities include national andinternational research projects inrenewable energy. CDER is globally activein all fields of renewable energy with astrong focus on materials, components,processes and systems for photovoltaic,

solar and wind energy. CDER is organizedin three units: development unit of solarequipments, applied research unit inrenewable energy and research unit inrenewable energy in Saharan environment.
http://www.cder.dz/


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Under this certification scheme, therequirements for ArSol certification of solarcollectors and solar water heaters and testmethods to be used will be defined.Comparison of test results and productson the same basis would be possiblethrough using the same test methods and

same conformity attestation. Membershipto ArSol is open to certification bodies,testing laboratories and inspectors in theArab countries.

In terms of certification for installers,Morocco and Tunisia provide for suchcertifications to installers to be eligible intheir solar water heating programs.Whereas ADEREE (Morocco) grants suchcertifications, the Qualitisol.tn certificateis granted to installers in Tunisia to be

eligible for the PROSOL program.Table 11 gives an overview of thestandards, standardization agencies,testing laboratories and certificationschemes in the Mediterranean countries.

Photo: http: / /sol imp eks.com/company /

Industrial Research Institute (IRI)

IRI was established in 1953 and isresponsible for studies, research, scientifictesting and analysis. IRI has a testingfacility for SWH systems.

There are 7 Lebanese norms that have

established by LIBNOR and are in line withEuropean standards. Standards areimposed on collectors, pre-manufacturedsystems in a manufacturing facility, andmanufactured systems.

The decree 5305 of 28 October 2010, setcertification procedures for SWHs for bothimported and locally manufacturedproducts. For the imported products,control is made at the pre-shipment levelthrough inspection and conformity test andcontrol of inspection at the country of originlevel. For locally produced systems, acertification scheme is also in place. The

graph below shows product certificationprocedures followed in Lebanon.

Source: Chehade, Solar ThermalWorkshop, Beirut, 18-19 April 2012.For more information:www.iri.org.lb
http://www.iri.org.lb/http://www.iri.org.lb/http://www.iri.org.lb/http://www.iri.org.lb/


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Table 11: Overview of the standardization and certification framework in the SEMCs

CountryStandardsAvailable

Mandatory Standardization agency Testing Laboratories

Algeria N/A N/AEntreprise Nationale dAgrageet de Contrle Technique

N/A

Egypt Yes NoEgyptian public authority for

standards and quality

RE Testing & Certification Centre:testing and certifying of ST

components and system according toASHREAE 93/86

Jordan Yes NoJordanian StandardizationOrganization

Testing of collector performance in linewith international standards)

Lebanon Yes YesLebanese Institute for Normsand Standards (LIBNOR)

Industrial Research Institute ofLebanon; testing and certification of STsystem components

Libya N/A N/ALibyan National Center forStandardization and Metrology

A testing facility has been established

Morocco Yes NoMoroccan Institute forStandardization (IMANOR)

ADEREE (formerly CDER) (testing inline with Moroccan norms and qualitycertification delivering labels)

Palestine Yes No

Palestinian Standardization

Organization

Testing of collector performance in line

with international standards)

Syria Yes NoSyrian Arab Organization forStandardization and Metrology(SASMO)

-Higher institute for applied sciencesand technology: testing of thermalperformance of solar collectors;

-Center for Studies and ScientificResearch of Syria

-Center for Tests and IndustrialResearch: ensure conformity of SWHsystems

Tunisia Yes YesNational Institute forStandardization and IndustrialProperty (INNORPI)

-Centre Technique des Matriaux deConstruction de la Cramique et duVerre (CTMCCV) and Laboratory of Eco-park de Borj Cedria (testing in line

with standards)

Turkey Yes NoTurkish Standards Institution(TSE)

Yes

Source: OME


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4. Developing a solar action plan

The suggested solar thermal strategy isbuilt around the main three elements: i)addressing and overcoming the mainbarriers; ii) highlighting the benefits of

SWH; and iii) enhancing public supportthrough strengthening the regulatoryframework, standardization and

certification, awareness raising,strengthening R&D capacities andstrengthening regional cooperation, toovercome such barriers and thus

contribute to a market up-take of SWHsystems in the region.

Figure 9: Key pillars in developing solar action plan

4.1. Step 1: Addressing andovercoming the barriers

Several technical and non-technicalbarriers exist against the uptake of solar

water heating systems, therebynecessitating a number of critical factorsand policy actions for a wide scaledeployment. Erreur ! Source du renvoiintrouvable. is non exhaustive list of themain existing barriers in the Mediterraneanregion.

A main barrier which is common to mostrenewable energy is the high investmentcost compared to traditional systems.Overcoming this barrier requires the

implementation of specific incentiveprograms, which help reduce the cost gapbetween solar thermal technologies andtheir traditional alternative. This is an issuein many SEMCs, as subsidies are given tofossil fuels and electricity, thus reducingthe market prospects for renewabletechnologies.

A specific barrier which is particularlyrelevant in the SEMCs is represented bythe subsidies given to fossil fuels, whichprevent the creation of a level playing fieldfor renewable energy technologies.Shifting these subsidies from fossil fuels tosolar (and other renewable) technologies

would be therefore the mainrecommendation in order to foster thedevelopment of a sustainable and long-lasting solar industry in the region.

Another barrier which is common to manyrenewable energy technologies isrepresented by a certain mistrust vis--visnew technologies. Therefore, awarenessraising accompanied with theimplementation of mandatory certificationschemes, with high quality standards, areneeded in order to prove that thesetechnologies are reliable and can becomecompetitive if the right signals are given tomarket operators. In this respect, theArSol initiative represents a significant

step forward.Also, the lack of synergies amongagencies promoting SHW in the regionmight have a negative impact on the solarthermal market growth. Therefore,stronger coordination at the institutionaland regulatory level would be beneficial.

Furthermore, there is lack of reliable dataand statistics on the development of SWHapplications. The issue of lack ofdocumented return on experience was

raised also on the occasion of the regionalworkshop organised in Beirut in April 2012(OME, 2012). Developing and maintaininga database is of paramount importance if

Enhancing publicpolicy support to

SWH

Highlighting benefitsfrom SWH

Addressing & overcoming the barriers


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we want solar thermal technologies tobecome mainstream. In this respect,initiatives like the Global Solar WaterHeating Market Transformation andStrengthening Initiative represent a veryrelevant step forward in terms ofknowledge sharing and access to data.

Another shortcoming which was raisedduring the regional workshop in Beirut isthe issue of space availability for solar

thermal systems on the roofs. Indeed, inseveral countries roof surfaces areoccupied by other equipments as watertanks, satellite dishes, etc. A moreaccurate planning and awareness raisingcampaigns are needed to solve thisproblem. Building codes are also

recommended in this respect.

Table 12: Main identified barriers for SWH deployment in SEMCs

Barriers Recommendations Example

High costs of solarsystems compare topurchasing power

As many other renewable energy technologies,solar systems are capital-intensive and havehigh investment costs. However, in the long-term, using these technologies will allowsaving conventional energies throughout theiroperation life. A way to bridge the financial gapis to implement financial incentives

Such mechanisms as the onedeveloped in Tunisia within thePROSOL program, would make theaccess to the technology easier.

High subsidies forconventionalenergy/electricity

Subsidized fossil fuels or electricity competingwith solar water heaters lead to make lessattractive solar water heaters. To removethese subsidies will allow SWH to becomeattractive.

Morocco, within its SHEMSI Program,made a study concluding that theearnings coming from the avoidedsubsidies to butane will allow the stateto invest on SWH through subsidyscheme.

Lack of qualitycontrol regulations(testing labs,standards,certification)

The lack of quality control regulation leads tothe penetration of low quality products whichcauses a mistrust vis--vis the solartechnology from end-users. Put in place acertification scheme in order to ensure thequality of the products put in the market willincrease the end users trust regarding SWHsystems.

The Lebanese Center for EnergyConservation (LCEC) has successfullyimplemented a prequalification schemefor solar water heater manufacturersand suppliers. The scheme enablesSWH companies to benefit from thenational subsidy programme, whichoffers SWH clients a USD 200 subsidy

in addition to an interest-free loan.Low awareness ofend-users

To overcome this barrier, the setting up ofspecific awareness raising campaigns could bean adequate solution, targeting not only end-users but also decision and policy makers.

All programmes promoting SWHsystem such as PROSOL (Tunisia),PROMASOL (Morocco), or ALSOL(Algeria), include an awareness risingcomponent through advertising (TV,radio, etc.).

Surface availabilityon roofs

Establish building codes includingrequirements for SWH systems installationsand other equipments. Awareness raisingcampaigns.

Jordan is preparing a Solar Lawmandating new buildings to install solarwater heating systems, taking intoaccount the roof space challenge, andconflicting use of space.

Lack ofdata/documentation

and monitoring

Most often, data on SWH market are notgathered or access to these data is difficult.

To develop and maintain a database.Initiatives like the Global Solar Water

Heating Market Transformation andStrengthening Initiative represent avery relevant step forward in terms ofknowledge sharing and access to data

Sour ce: OME, 2012

4.2. Step 2: Highlightingbenefits

Savings of energy (less consumption offinite fossil fuels) and cost (shorter pay-back period, thereby making SWHsystems free afterwards), reductions of

polluting emissions (avoids GHGemissions) and job creation are some ofthe benefits of renewable energy in

general and of SWH systems in particular.Thus, a wide scale deployment of solarwater heating systems is very important insaving costs for both end users andgovernments subsidizing electricity orother fuels.

Energy and CO2emiss ion savingsEnergy savings is one of the benefitsrenewable energy in general and solar


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thermal in particular have. Thecalculations are made based on theassumption that all collectors are glazedusing average GHI by country (taken fromthe market assessment report, OME,2012) for domestic hot water. Thefollowing equation is used to calculate the

collector yield.

Glazed col lector outp ut, (dom est ic hot

water)= 0.38 (yield) + 15% (pipe losses)= 0.44 * H (horizontal irradiance) * Aa(collector aperture area)

Total energy savings in the SEMCs isestimated at 17895 GWh (=64423 TJ),corresponding to an energy savingsequivalent to around 1.6 million tons of oilequivalent (Mtoe). The total annualavoided CO2 emissions are estimated at4.7 million tons. Table 14 summarises the

main benefits in terms of reduced energyconsumption and avoided emissions, bothper country and for the total SEMCs.

Table 13: Energy savings and avoided CO2 emissions in the SEMCs

CountryTotal

collectorarea (m

2)

Totalcapacity(MWth)

Collectoryield

(GWh/y)

Collectoryield (TJ/y)

Energysavings(toe/a)

CO2reductions

(tCO2/a)

Algeria 3000 2,1 2,9 10,4 253,9 761,7

Egypt (2010) 650000 455,0 639,1 2300,8 56259,9 168779,7

Israel 4168245 2917,8 3643,0 13115,0 320690,7 962072,0

Jordan (2011) 1066122 746,3 861,9 3102,9 75872,0 227616,1

Lebanon (2011) 311205 217,8 238,3 857,8 20974,1 62922,4

Libya* 6000 4,2 7,3 26,2 640,3 1920,8

Morocco (2011) 340000 238,0 271,2 976,2 23869,6 71608,8

Palestine (2007) 1500000 1050,0 1292,0 4651,2 113731,6 341194,7

Syria (2008) 300000 210,0 229,7 826,9 20218,9 60656,8

Tunisia (2011) 561690 393,2 466,4 1678,9 41053,8 123161,4

Turkey (2011) 17880000 12516,0 10243,6 36876,9 901723,3 2705170,0Total 26786262 18750,4 17895,3 64423,0 1575288,1 4725864,4

*There are 6000 solar heaters in Libya as of 2012, Abdulwahab Misherghi, Ministry of Electricity and Renewable Energies,Renewable Energy in Libya: Potential, current situation and way forward, Berlin, June 26, 2012

Source: OME

Job creat ion

Investments in solar thermal technologiesalso contribute to economic development,including transfer of know-how, localindustry development and capacitybuilding through research, education and

training as well as generating employment.Job opportunities exist at both upstream(manufacturing) and downstream(installation, operation and maintenance)levels.

Worldwide employment in 2011 isestimated at about 5 million people(REN21, 2012) in the renewable industryeither directly (manufacturing, installation,etc) or indirectly (jobs related to industrylike suppliers of certain items such as

copper smelting plants supplying solar hotwater manufacturers). Renewable jobsare, however, concentrated in fewcountries, including China, Brazil, the

United States, and the European Union.Both bioenergy and solar hot waterindustries account for the largest shares interms of renewable energy jobs. Accordingto the REN21-2012 report, offshore windand solar thermal heating will witness the

greatest growth in terms of jobs, which willbe determined by several factors,including policy decisions (REN21, 2012).

In the Mediterranean context, even thoughthe manufacturing jobs are located in afew countries (Turkey), other jobs likedistribution, installation and maintenanceof solar water heating systems would beacross the whole region, therebycontributing to economic development inall the region. Thus, regardless of themanufacturing origins of solar thermal

systems, jobs related to distribution,installation and maintenance stay local.Therefore, a wide market penetration of


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SWH systems is more likely to generatemore employment opportunities in theMediterranean.

Reducing subsid ies

The high up-front investment cost is one ofthe major barriers for the development of

renewable energy technologies, ingeneral, and for SWH systems inparticular. Subsidies to fossil-fuel orelectricity based water heating constitute amajor obstacle for a wide scale marketpenetration of SWH systems in theSEMCs. This creates market distortionsand undermines the growth potential ofrenewable energy in the region. Figure 10gives an overview of electricity prices inSEMCs (in USD/kWh).

Thus, it is of paramount importance thatSEMCs reform their subsidies system.This could be done through a gradualphase-out of subsidies (either given tobutane and LPG, or to electricitygeneration) and shifting them toward SWHsystems. In Morocco, for example,

ADEREE (Mezzour, 2012) has found outthat investment needed for installing SWHin new building could be compensatedthrough the earnings coming from theavoided subsidies to butane. 1 Dirhaminvested by the State in the MoroccanNational Programme for SWHDevelopment SHEMSI could bring 4.3Dirhams (USD 0.48) back, through theavoided subsidy to butane.

Figure 10: Residential electricity tariffs in the SEMCs (OME)

4.3. Step 3: Enhancing publicpolicy support

To overcome these barriers and thus

promote the wide scale deployment ofSWH systems, policy makers andstakeholders should enhance public policysupport through formulating acomprehensive strategy that considerssome of these priority actions, includingregulatory and policy support mechanisms(targets, solar obligation, financialincentives, etc); standardization &certification; awareness raising, educationand training; promoting technologicalimprovements through RD&D

programmes; and enhancing regionalcooperation.

Figure 11: Strategy for solar thermalpromotion; (OME)

0,00

0,05

0,10

0,15

0,20

0,25

Algeria*

Egypt

Israel

Jordan

Lebanon

Libya

Morocco

Palestine

Syria

Tunisia

Turkey

USD/kWh

Residential electricity tariffs in SEMCs2012

Min Max

* average sellingprice

Solarthermalstrategy

Regulatoryand policyframework

Training,educationand

awarenessraising

RD&Dprogrammes /Technological

improvements

RegionalCooperation

Standardization

andCertification


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4.3.1.Regulatory and Pol icyf ramework

A regulatory framework that provides forpolicy targets by sector and supportmechanisms based on applicationincluding new emerging applications is key

in the SWH market uptake.Renewable Heat Targets:

Setting up binding, measurable,achievable and enforceable progressivetargets is a significant step towards a largescale penetration of SWH systems.Progress monitoring could play animportant role in achieving those targets.However, targets need to reflect themarket potential given technical andeconomic considerations. Thus, each

country has to identify the share ofrenewable energy in its energy needs,including those of heating and coolingtargets; specific targets by sectors are ofparamount importance as well, therebynecessitating particular evaluation ofpotential of each sector while taking intoaccount technical challenges related tobuilding integration, storage, etc.

Therefore, for countries that have not yetset such targets, it is necessary thatgovernments integrate policy targets for

SWHs in their respective energy policiesand energy laws and regulations as wellas identify actions needed to achievethose targets. Putting in place highertargets for public buildings like schools,hospitals, etc could promote the adoptionof such SWH systems. Setting indicativeor very ambitious targets (which cannot beachieved due to economic or technicalchallenges) alone might not be enough,however, if they are not accompanied with

support measures.Policy Support Scheme:

A stable legislative and regulatoryframeworks providing for such policysupport mechanisms and incentives arekey in the wide scale deployment ofSWHs. Policy support mechanisms areimportant in terms of correcting for marketfailure. An innovative support scheme thatavoids stop and go problems andguarantees a sustainable SHW growth is

essential in any policy action. Predictabilityand transparency are very important

elements in such policy support schemesas they give a clear signal to marketoperators/investors about thegovernments objectives and targets.

Solar regulations and mandatoryobligations, in particular, could be aninteresting policy support mechanism to bewidely applied in the region. This schemewould be mandated on real estatedevelopers and individual homes, wherepossible, for new buildings. Some of theguidelines for the implementation of solarobligations developed by ESTIF (2007)are: i) avoid overly detailing technical anddesign requirements, ii) standardizedproduct requirements across the wholeregion and iii) quality assurance to beintroduced and randomly checked.

To overcome the high up-front investmentcosts, innovative financial incentivesshould be created. This could be achievedthrough gradually de-subsidizing fossilfuels and shifting these subsidies torenewable energy in general and to solartechnologies, in particular. Overcomingthis barrier requires also theimplementation of specific incentiveprograms, which help reduce the cost gapbetween solar thermal technologies andtheir traditional alternatives. For bestpractice of financial incentives (ESTIF,2007), they should be part of acomprehensive approach, designed forseveral years under stable conditions,avoid early announcement of improvedfinancial conditions, making sure theavailability of funds while consideringintroducing Polluter Pays Principle incase of lack of such funds, easy and leanprocedures, standardized productrequirements and certification procedures

across the region, tailored quality criteriaon the installation of each country, andsufficient amount to provide a realincentive.

Access to finance for SWH systems couldalso play a role in the market uptake.Engaging banks in providing loans as hasbeen done in Tunisia is an importantelement in reducing the burden on statebudget and thus avoiding stop and goproblems that might be due tounsustainable government subsidized

programmes.


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4.3.2.Awareness Raising,Educat ion and Train ing

Awareness raising is a key element inbridging the knowledge gap about acertain technology in society and, thus,overcome the social acceptance barrier

vis--vis solar thermal technologies. Aswas highlighted in the regional workshopon solar thermal held in Beirut, awarenesswas one of the main issues explaining thelower penetration rate of solar waterheating systems in the region. That said,policy makers, public agencies inparticular responsible for the promotion ofrenewable energy and energy efficiency,need to fill up this knowledge gap topromote a wide scale deployment of SWHsystems. Several tools could be used in

this regard, including spots on radios, TV,newspapers, and on their own websites.

The GSWH awareness raising guideprovides steps before initiating anawareness raising campaign: 1) usingdata and market surveys, 2) building onand learning from previous campaigns andmarketing activities, 3) ensuring thatsupply could meet demand, 4) assuringquality and performance of suppliedproducts, 5) evaluating market conditions

(SWH market, renovation and constructionsectors, prices of fossil fuels), 6) having apositive and favorable policy andregulatory framework (ESTIF, 2012).

Actors that could be involved in anawareness raising campaign: 1)government and other public bodies(government, local authorities, agenciesresponsible for energy, and internationalbodies), 2) industry associations andcompanies, and 3) others (installers,plumbers, specialized retailers, roofers

and carpenters; certification bodies, testlaboratories, research & developmentinstitutes; consumer organizations andcivil society) (ESTIF, 2012).

In terms of education and training, wellprepared professionals, includingarchitects, planners and installers wouldbe key in promoting a wider penetration ofsolar thermal application systems.

Technical and vocational education is ofparamount importance in preparing highly

qualified technicians. Thus, tailoredprograms on solar thermal technologiesshould be designed and integrated intraining programs related to renewables.

Integrating knowledge materials ineducation could help bridge thisknowledge gap. Such educational toolscould include elements such as: energycosts, while highlighting subsidizedproducts such as gas, oil and electricity;benefits of solar thermal applications in

terms of energy savings and CO2reductions; and energy security. It couldbe useful underlining also the incentivesthe government provides and theadministrative procedures to benefit fromsuch incentives. It is worthwhilehighlighting the initiative taken in Libya(Agha, 2012) about integrating energyissues in elementary education to raiseawareness among students aboutrenewable energy.

4.3.3.Standardization andCertif ication

Standardization and certification ofproducts is another added value in theregion, especially in intra-regional tradeand ultimately for export to other regions.Most of the SEMC countries have set up acertification scheme or a national standardfor solar thermal collectors and systems.However, these mechanisms are notmandatory and are not accompanied by

third-party verification. Therefore,imposing mandatory certification schemesis necessary to prove that thesetechnologies are reliable, thus giving apositive signal to stakeholders.Certification and accreditation could alsobe required for installers

The ArSol initiative is worth emphasizingas a step towards harmonization ofstandard testing systems in the region.The ArSol initiative has been launchedby the League of Arab States, the ArabIndustrial Development and MiningOrganization (AIDMO) and the RegionalCentre for Renewable Energies andEnergy Efficiency (RCREEE) to establisha regional certification scheme for solarwater heaters. Adopting the scheme bythe Arab Ministerial Council of Electricity ismore likely to overcome market barriers,enhance the quality of products, and thuspromote more trade. Once in force, all thecountries need to accept the ArSol

certified products so that they promotemore intra-trade among each other andtrade with other countries as well.


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4.3.4.Technologicalimp rovements/RD&D progr ammes

Technological improvements are key in awide scale deployment of SWH systems.Technological developments have beendone on several components to increase

thermal efficiency, which would thereforecontribute to the decreasing cost of heatfrom solar thermal systems. Researchneeds identified by the RHC-Platform(2011) regarding solar thermal are:

o Solar collectors: i) improvement ofcost and performance of lowtemperature collectors; and ii)create a mass market in processheat collectors with workingtemperatures up to 250C

o

Compact, high density heat storageand refrigeration

o Multi-functional building elementslike fully integrated faade and roofcollectors

o System designs for industrialapplications

The IEA has developed several renewableenergy technology roadmaps, includingsolar thermal for heating and cooling, byoutlining actions needed, milestonetimeline (2012-2030) and stakeholdersinvolved (research institutes, SHC andcooling industry, universities, etc).Theseroadmaps draw specific recommendationsfor each component, including flat-plateand evacuated tube collectors,concentrating solar for heat applications,solar heat for cooling, thermal storage andhybrid applications and advancedtechnologies. Below are some of theserecommendations that the SEMCs couldconsider to enhance their R&D capacities,

excluding concentrating solar for heatapplications and hybrid applications andadvanced technologies.

Table 14: Technology roadmap actions

Item Actions

Flat-plate&evacuated

tubecollectorsfor heat

Integrate solar collectors in building surfaces; Use alternative materials, technologies and manufacturing techniques for system cost

reduction and performance improvement; Address challenges in system design by development of standardized kits and plug-and-

function systems; Expand development of collectors that cover temperature gap between 100C and 250C; Address challenges in development of medium to large-scale systems by developing pre-

engineered solutions and improving system design knowledge

Solar heatfor cooling

Increase thermal COP and electric efficiency of solar thermal driven cooling systems (COP),including developing new cycles and storage;

Address challenges in system design by developing standardized kit solutions and plug-and-function systems;

Develop small scale thermally driven solar cooling technology for single family and multi-family dwellings;

Develop integrated thermally driven solar cooling and heating technology, including compactstorage;

Explore potential for retrofitting existing vapour compression systems into solar thermallydriven cooling

Thermalstorage

Continue developing promising materials for compact thermal energy storage, particularlyphase change materials, sorption and thermochemical materials.

Validate stability of materials and performance characteristics. Create linkages with othersectors, for instance R&D into thermal storage for CSP and industrial processes;

Research new materials for medium-temperature storage, between 100C and 300 C, suchas phase change, sorption and thermochemical materials. Demonstrate systems in whichthe new storage technologies are integrated.

Source: OME based on IEA Technology r oadmaps


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4.3.5.Regional Coop erat ionCreating a regional platform for dialogue,experience sharing, and collaborativeprograms could also contribute to a widescale deployment of SWH systems in theregion. A plat-form that brings together

industry associations is to be considered.Setting such association would requirestrong commitment from stakeholders,especially in terms of financing. Suchcooperation could be at several levels,including the institutional and regulatorylevels. It is worthwhile highlighting thecreation of the Regional Centre forRenewable Energy and Energy Efficiency(RCREEE) to promote more regionalcooperation in this regard.

In this respect, for example, a "regional

workshop for the Transformation andStrengthening of the Solar Water HeatingMarket in the Mediterranean" under theGSWH initiative was held in Beirut on 18-19 April. Lebanon was chosen as it is oneof the implementing countries of the globalinitiative in the region. This event wasorganized by OME, UNEP and UNDP incollaboration with the Lebanese Center forEnergy Conservation (LCEC), and

Solar Thermal Med

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