Rome, 22th of December 2022 - RES4Africa Foundation, with Enel Foundation as a knowledge partner, just released two new policy briefs in the framework of the RES4MED initiative: the first one recommends the introduction of national grid codes in North Africa, in order to respond to the challenge of VRE integration and increasing demand. The second one, instead, advocates for the adoption of corporate Power Purchasing Agreements (PPAs), as a way to boost the energy transition in the MENA region.
Morocco and the MENA region are witnessing a fast growth of their renewable energy generation: over the last decade, it has grown more than 40%, stimulated by a rapid expansion of wind, solar PV, and solar thermal. Such a quick growth calls for new measures to be adopted for the markets to be even more transparent and dynamic, and to ensure stability and efficiency in the energy provision.
According to RES4Africa’s new Policy Briefs, two key elements are coherent with the above-mentioned needs: the introduction of grid codes and corporate PPAs.
Establishing, standardising and strengthening national grid codes will be pivotal to guarantee the reliability and accessibility of future electrical grids: as it emerges from Policy Brief 2 (Better Policies to Accelerate the Clean Energy Transition: Focus on Grid Codes), they will facilitate grid users who are planning to add power-generating assets to the networks, speeding up and simplifying grid connections. Moreover, this novelty will contribute to creating a more integrated national and regional market, favouring transnational interconnections. A first in the region, Morocco recently adopted a grid code for transmission lines (CRENT) with several interesting provisions in terms of technical requirements but not considering some important aspects such as a clear regulation for connection costs.
Policy Brief 3 (Better Policies to Accelerate the Clean Energy Transition: Focus on Corporate PPAs) analyses the characteristics of Corporate PPAs: these long-term power purchasing mechanisms, to be established between electricity generators and corporate customers, are deemed to be a useful tool to diversify risk, make access to capital easier, and enable developers to build energy infrastructures without relying on governmental tariffs. According to the Brief, this is a viable solution to increase RE penetration, especially in regions where renewable resources and electricity prices are strong enough for projects to be economical without such support. Additonally, both briefs provide policy recommendations based on their findings.
"RES4Africa's efforts to provide solid, evidence-based analyses continues", said Roberto Vigotti, RES4Africa's Secretary General. "Morocco and the MENA region are at the forefront of the energy transition: standardised national grid codes and adequate PPAs are an essential tool to ensure dynamism, integration and accessibility to a promising and ever-growing market".