CLEAR WIN FOR CLEAN TECHNOLOGY IN THE MEDITERRANEAN

THE PROBLEM

Although small scale renewable energy technologies, such as photovoltaic systems and solar water heaters (SWH), are considered reliable and competitive, they are still not fully established in the Southern and Eastern Mediterranean region due to the high upfront cost for the end-users, and the lack of financing options tailored for this type of investment.

THE SOLUTION

The Mediterranean Investment Facility (MIF) helps to establish innovative financing mechanisms to allow end-users to invest in renewable energies.
The integrated approach is based on:

1. Financing mechanism design, implementation and monitoring
2. Training and capacity building for government officials, financing institutions as well as for technology suppliers and installers
3. Quality control and checking system to select equipment complying with international standards and to check the operation of the systems

THE IMPACTS

• More than 145,100 households now get their hot water exclusively from the sun in Tunisia, thanks to the country’s solar water heater programme for the residential sector – PROSOL – that has created a sustainable market for solar water heaters, with 50 technology suppliers and more than 3,000 direct jobs.
• Since the launch of the photovoltaic project for the residential sector in Tunisia – PROSOL ELEC – in 2011, more than 740 families have installed photovoltaic systems.
• In the tertiary sector, particularly in the hotel sector, 24 collective solar water heaters were installed in Tunisia and Egypt corresponding to more than two million kilowatt-hours of solar energy produced every year.
• Detailed studies are ongoing in Tunisia to set a sound regulatory framework to integrate solar thermal energy in the industrial sector.
• An innovative financing support mechanism in Morocco enables two million households to phase out incandescent lighting and repay the cost of new energy-efficient lamps through their electricity bill over 21 months.
• In Montenegro, free loans to end-users are provided through local commercial banks over a period of seven years to install solar water heaters.

SUPPORT

Italian Ministry of Environment, Land and Sea

WEBSITE

• www.unep.org/energy/Activities/MediterraneanInvestmentFacilityMIF.aspx

SUCCESS STORY

Within the MIF, PROSOL provides financial support to local households through a combination of value added tax exemptions, customs duty reductions and reduced-rate bank loans. The repayment of the loan is included in the regular electricity bill, which lowers the risk for local banks that are then willing to finance SWH projects with reduced interest rates.
An interest rate subsidy was available during the first phase of PROSOL (2005-2006) that reduced the interest rate of the loan to zero per cent for the final end user. The Tunisian government provides a subsidy of 20 per cent of the system cost. This was initially a temporary measure funded by UNEP to “prime” the market, but was later made permanent by the Tunisian government. Thanks to PROSOL more than 80.000m² of solar collectors are installed every year.

Source: Re-blogged from http://www.unep.org

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