You are on page 1of 54

KINGDOM OF MOROCCO

Ministry of Energy, Mining, Water and Environment


Directorate of Observation and Planning

NAMA PROPOSAL

PROGRAMME FOR LARGE-SCALE DEPLOYMENT OF


SOLAR PUMPING IN IRRIGATION WATER SAVING
PROJECTS
Facilitating Implementation and Readiness for Mitigation (FIRM)
PROJECT – MOROCCO
COPYRIGHT©, 2016 NATIONAL COORDINATION
This publication may be reproduced in Kingdom of Morocco
whole or in part and in any form for
Ministry of Energy, Mining, Water and
educational or non-profit purposes without
Environment
special permission from the copyright
holder, provided acknowledgement of the Directorate of Observation and Planning
source is made. UNEP DTU Partnership
would appreciate receiving a copy of any
publication that uses this publication as a PREPARED BY
source.
Dr Rafik Missaoui, December 2014
No use of this publication may be made for
resale or for any other commercial purpose
whatsoever without prior permission in ACKNOWLEDGEMENTS
writing from the UNEP DTU Partnership.
The project Facilitating Implementation and
Readiness for Mitigation (FIRM) has been
implemented with the support of a grant
DISCLAIMER
from the Danish International Development
This publication is an output of the Agency (DANIDA) of the Ministry of Foreign
Facilitating Implementation and Readiness Affairs of Denmark.
for Mitigation project (FIRM), funded by
DANIDA of the Ministry of Foreign Affairs of
Denmark and implemented by the United Graphic design : Fabrice Belaire Infographie
Nations Environment Programme (UNEP)
and the UNEP DTU Partnership (UDP). The
views expressed in this publication are For any inquiries or questions please contact:
those of the authors and do not necessarily
UNEP DTU PARTNERSHIP
reflect the views of UNEP DTU Partnership
or UNEP. This publication may be UN City, Copenhagen
reproduced in whole or in part and in any Marmorvej 51,
form for educational or non-profit services 2100 Copenhagen Ø
without special permission from the Denmark
copyright holder, provided Web: www.unepdtu.dk
acknowledgement of the source is made.
No use of this publication may be made for LinkedIn: UNEPDTU
resale or any other commercial purpose Twitter: @unepdtu
whatsoever without prior permission in
writing from the UNEP DTU Partnership.
ADEREE : Agence Nationale pour le Développement des Energies Renouvelables et de l’Efficacité
Energétique [National Agency for the Development of Renewable Energy and Energy
Efficiency]
ADF : Agricultural Development Fund
AFESD : Arab Fund for Economic and Social Development
BR : Biennial Report
CAM : Crédit Agricole du Maroc [Moroccan financial institution]
CB : Capacity Building
CC : Climate Change
CDM : Clean Development Mechanism
CDER : Centre de Développement des Energies Renouvelables [Centre for the Development of
Renewable Energy]
CIDA : Canadian International Development Agency
CO2 : Carbon Dioxide
COP : Conference of the Parties
DEER : Direction de l'Électricité et des Énergies Renouvelables [Directorate of Electricity and
Renewable Energy]
DGCL : Direction Générale des Collectivités Locales [General Directorate of Local Authorities]
DOP : Direction de l’Observation et de la Programmation (Département de l’Energie) [Directorate
of Observation and Planning (Department of Energy)]
DPA : Direction Provinciale de l’Agriculture [Provincial Department of Agriculture]
EE : Energy Efficiency
EU : European Union
FDE : Fond de Developpement de l'Energie [Energy Development Fund]
FIRM : Facilitating Implementation and Readiness for Mitigation
GCAM : Groupe Crédit Agricole du Maroc [Group of Moroccan financial institutions]
GDP : Gross Domestic Product
GHG : Greenhouse Gas
GWh : Gigawatt-hour (109 watt hour)
GWP : Global Warming Potential
ha : hectares
IEA : International Energy Agency
INDH : Initiative Nationale de Développement Humain [National Human Development Initiative]
IPCC : Intergovernmental Panel on Climate Change
IPP : Independent Private Producers
KP : Kyoto Protocol
KTOE : kilotonne of oil equivalent (1,000 TOE)
KWh : Kilowatt-hour (103 watt hour)
KWp : Kilowatt peak
LCDS : Low Carbon Development Strategy
MAPM : Ministère de l'Agriculture et de la Pêche Maritime [Ministry of Agriculture and Maritime
Fisheries]
MEF : Ministère de l'Economie et des Finances [Ministry of the Economy and Finance]
MEMWE : Ministère de l’Energie, des Mines, de l’Eau et de l’Environnement [Ministry of Energy,
Mining, Water and Environment]
MENA : Middle East and North Africa
Mm3 : Million m3
m3/KWp : m3 per kilowatt peak
MRV : Measurement, Reporting and Verification
MtCO2 : Million tonnes of CO2
MT : Million Tonnes
MTOE : Million Tonnes of Oil Equivalent
MW : Megawatt (106 Watts)
MWp : Megawatt peak
NAMA : Nationally Appropriate Mitigation Action
NC : National Communication
NMM : New Market Mechanism
ONE : Office National de l’Electricité et de l’Eau Potable – Branche Electricité [National Agency for
Electricity and Drinking Water – Electricity Sector]
ONEE : Office National de l’Electricité et de l’Eau Potable [National Agency for Electricity and
Drinking Water]
ONEP : Office National de l’Electricité et de l’Eau Potable – Branche Eau [National Agency for
Electricity and Drinking Water – Water Sector]
ORMVA : Office Régional de Mise en Valeur Agricole [Regional Agriculture Development Office]
PDD : Project Design Document
PFCs : Perfluorocarbons
PMV : Plan Maroc Vert [Green Morocco Plan]
PNA : Plan National d’Assainissement liquide [National Sanitation Plan]
PNEEI : Programme National d’Economie d’Eau en Irrigation [National Irrigation Water Saving
Programme]
PNRC : Plan National de lutte contre le Réchauffement Climatique [National Plan to combat Global
Warming]
PoA : Programme of Activities
PV : photovoltaic
RGA : Recensement General de l'Agriculture [General Agricultural Survey]
SEN : Stratégie Energétique Nationale [National Energy Strategy]
SNC : Second National Communication
SNCC : Stratégie Nationale sur les Changements Climatiques [National Climate Change Strategy]
SNDD : Stratégie Nationale de Développement Durable [National Sustainable Development
Strategy]
SNEE : Stratégie Nationale de l’Efficacité Energétique [National Energy Efficiency Strategy]
tCO2e : tonnes of CO2 emissions
tCO2eq : tonnes of CO2 equivalent
tCO2/TJ : tonnes of CO2 per Terajoule
TJ : Terajoule
TOE : Tonne of Oil Equivalent
TTI : Total Technology Investment
TWh : Terawatt-hour (1012 watt hour)
UNDP : United Nations Development Programme
UNEP : United Nations Environment Programme
UNFCCC : United Nations Framework Convention on Climate Change
USAID : United States Agency for International Development
Wp : Watt peak
GENERAL INFORMATION ....................................................................................................................................... 7
OUTLINE OF THE NAMA ......................................................................................................................................... 8
BRIEF DESCRIPTION OF THE OBJECTIVES OF THE PROPOSED NAMA AND SUMMARY OF MEASURES TO BE INCLUDED IN THE
NAMA ................................................................................................................................................................. 8
RELEVANCE OF THE NAMA TO NATIONAL PLANS FOR SUSTAINABLE DEVELOPMENT, NATIONAL STRATEGIES AND/OR SECTORIAL
MITIGATION TARGETS .............................................................................................................................................. 10
BRIEF DESCRIPTION OF THE TRANSFORMATIONAL IMPACTS, INCLUDING THEIR SUSTAINABILITY ................................................... 12
INTRODUCTION ................................................................................................................................................... 13
DESCRIPTION OF THE COUNTRY CONTEXT, INCLUDING AN OUTLINE OF NATIONAL DEVELOPMENT POLICIES AND CLIMATE CHANGE
POLICIES .............................................................................................................................................................. 13
Development policy: Towards greater sustainability .............................................................................. 13
Climate policy ....................................................................................................................................... 14
DETAILED DESCRIPTION OF THE CURRENT SITUATION IN THE SECTOR/SUB-SECTOR IN WHICH THE NAMA WILL BE IMPLEMENTED,
INCLUDING EXISTING LEGAL, REGULATORY AND INSTITUTIONAL FRAMEWORKS RELEVANT TO THE NAMA ...................................... 15

DESCRIPTION OF THE SCOPE AND OBJECTIVES OF THE NAMA IN RELATION TO THE CURRENT SITUATION .......... 16
OBJECTIVE OF THE NAMA ....................................................................................................................................... 16
SCOPE ................................................................................................................................................................. 17
IDENTIFICATION OF IMPLEMENTATION BARRIERS AND OPTIONS ........................................................................ 18
ANALYSIS OF BARRIERS (FINANCIAL, LEGAL, REGULATORY, INSTITUTIONAL , CAPACITY, TECHNOLOGICAL , ETC.) TO ACHIEVING THE
OBJECTIVES OF THE NAMA ...................................................................................................................................... 18
Economic barriers ................................................................................................................................. 18
Technical barriers .................................................................................................................................. 19
Informational barriers ........................................................................................................................... 19
IDENTIFICATION OF AVAILABLE OPTIONS FOR REMOVING BARRIERS AND SELECTION OF KEY MEASURES TO BE IMPLEMENTED
UNDER THE NAMA ................................................................................................................................................ 19
Financial component: A specific funding mechanism for vulnerable farmers ........................................... 20
5.2.1.1 Financial arrangement for the mechanism............................................................................................. 20
5.2.1.2 Organizational principles of the mechanism .......................................................................................... 22
The technical component ...................................................................................................................... 23
ESTIMATE OF NATIONAL SUSTAINABLE DEVELOPMENT BENEFITS AND GHG IMPACTS ........................................ 25
BASELINE SCENARIO – NARRATIVE DESCRIPTION OF THE BASELINE SITUATION IN THE ABSENCE OF PLANNED NAMA MEASURES .......... 25
NAMA SCENARIO – NARRATIVE DESCRIPTION OF THE SITUATION WITH THE IMPLEMENTATION OF NAMA MEASURES ..................... 25
DESCRIPTION OF SUSTAINABLE DEVELOPMENT BENEFITS ................................................................................................... 26
Impact on the country’s energy bill ........................................................................................................ 26
Saving on the public subsidy for butane and diesel ................................................................................. 26
Job creation .......................................................................................................................................... 28
Impact on reduction of farmers' energy bills .......................................................................................... 28
ESTIMATE OF GHG EMISSION REDUCTIONS RESULTING FROM THE IMPLEMENTATION OF NAMA MEASURES ................................. 30
Evaluation Methodology ....................................................................................................................... 30
DESCRIPTION OF THE TRANSFORMATIONAL IMPACT OF THE NAMA .................................................................................... 31
DESCRIPTION OF THE NAMA ACTION PLAN.......................................................................................................... 33
DESCRIPTION OF THE DETAILED ACTIVITIES NECESSARY FOR IMPLEMENTING THE MITIGATION MEASURES INCLUDED IN THE
NAMA ............................................................................................................................................................... 33
WORK PLAN FOR THE DETAILED ACTIVITIES ................................................................................................................... 35
MEASUREMENT, REPORTING AND VERIFICATION (MRV) ..................................................................................... 38
DESCRIPTION OF KEY PARAMETERS TO ASSESS THE IMPLEMENTATION PROGRESS OF THE NAMA ................................................ 38
DESCRIPTION OF KEY PARAMETERS TO ASSESS FUNDING FOR THE PROGRAMME ...................................................................... 40
GHG emissions ...................................................................................................................................... 41
Sustainable development impacts ......................................................................................................... 42
MEASURING AND REPORTING PLAN............................................................................................................................ 44
Reporting .............................................................................................................................................. 44
Verification ........................................................................................................................................... 45
COST AND FUNDING ............................................................................................................................................ 45
COSTS AND SUPPORT REQUIREMENTS .......................................................................................................................... 45
Technology costs ................................................................................................................................... 45
Programme costs .................................................................................................................................. 46
NAMA FUNDING ................................................................................................................................................... 47
Technology funding ............................................................................................................................... 47
Funding for programme implementation ............................................................................................... 48
INCREMENTAL COST ................................................................................................................................................ 49
SUMMARY OF PROGRAMME FUNDING ......................................................................................................................... 49
PROGRAMME SUSTAINABILITY STRATEGY ...................................................................................................................... 49
ANNEX 1: DETAILS ON THE COORDINATING AND APPROVING ENTITIES FOR THE NAMA..................................... 51
ANNEX 2: CALCULATION OF PAYBACK TIME WITH AND WITHOUT SUBSIDIZATION FOR A SOLAR PUMPING
SYSTEM ................................................................................................................................................................ 52
NAMA Title: NAMA for large-scale deployment of solar pumping in irrigation
water saving projects

Country: MOROCCO

Entity responsible for coordinating implementation of the National authority approving the NAMA:1
NAMA:
There is currently no officially designated
Agence Nationale pour le Développement des Energies
entity for the validation of NAMAs at the
Renouvelables et de l’Efficacité Energétique [National
national level.
Agency for the Development of Renewable Energy and
Energy Efficiency] (ADEREE)
Name of the person(s) or organization responsible for development of the NAMA:
Direction de l’Observation et de la Programmation [Directorate of Observation and Planning] (DOP) within
the Ministère de l’Energie, des Mines, de l’Environnement et de l’Eau [Ministry of Energy, Mining, Water
and Environment] (MEMWE). The DOP has set up a working group overseen by the Director of Observation
and Planning and composed of independent experts and representatives from the following institutions:
- Direction de l’Observation et de la Programmation [Directorate of Observation and Planning]
- Direction de l'Électricité et des Énergies Renouvelables [Directorate of Electricity and Renewable
Energy]
- Agence Nationale pour le Développement des Energies Renouvelables et de l’Efficacité Energétique
[National Agency for the Development of Renewable Energy and Energy Efficiency] (ADEREE)
- Ministère de l'Agriculture et de la Pêche Maritime [Ministry of Agriculture and Maritime Fisheries]
(MAPM)
- Crédit Agricole du Maroc (Moroccan financial institution)
- Office National de l'Electricité et de l'Eau Potable [National Agency for Electricity and Drinking
Water] (ONEE)
- Division des Etudes, de la Planification et la Prospective [Unit for Studies, Planning and Forecasts]
within the Department of the Environment.
Sector/Sub-sector: - Agriculture sector/Energy sector /petroleum products sector
- Categorization according to the IPCC nomenclature: 1 Energy/1A4c
Agriculture/forestry/fishing/fish farming
Greenhouse Gases
(GHGs) affected by CO2 X CH4 X
the NAMA (indicate
N2O X HFCs
with an x):
PFCs SF6
NF3

Status of approval of the NAMA by the appropriate national authority:


Choice of NAMA approved by MEMWE. However, the NAMA must also be submitted to the Ministère de
l'Agriculture et de la Pêche Maritime [Ministry of Agriculture and Maritime Fisheries] (MAPM) and Crédit
Agricole du Maroc for approval.

1
The national authority approving NAMAs is the focal point or designated entity at the national level, and is
responsible for approving and submitting NAMAs to the UNFCCC's NAMA Registry.
Butane: a worrying rise in use for agricultural irrigation
Localized irrigation based on individual pumping systems accounts for a large proportion of Moroccan
agriculture, or approximately 23 per cent of the area irrigated in 2010, as compared with just 15 per cent in
2008.2
Most farms in Morocco are small (53.3 per cent have areas of less than 3 ha and 42 per cent have areas of
between 3 ha and 20 ha) and require small-scale irrigation.3 These small farms practise subsistence farming and
are often very vulnerable to increases in energy prices, especially for diesel, which accounts for an increasing
proportion of production costs. In addition, although there are no official statistics, it is already known that a
large proportion of diesel-powered motorized irrigation pumps are converted by farmers to run off butane gas
due to its heavily subsidized price. MAPM has said that over 100,000 ha of land is irrigated using butane.
According to figures from MEMWE, and as the table below shows, the average use of butane gas in agriculture
is estimated at around 841 thousand TOE per annum.
2009 2010 2011 2012 2013 Average
Tonnes 679 703 741 793 806 745
KTOE 768 795 837 897 911 841
Average use of butane gas in the agriculture sector over the past five years
Therefore, there are two major aspects to the issue of energy in small-scale irrigation in Morocco: the
vulnerability of small farms to the rise in diesel prices, and the growing use of butane gas for irrigation
purposes, which is increasing the deficit in the Caisse de compensation [Subsidization Fund].

A national programme to expand solar pumping for small-scale irrigation


For this reason, Morocco decided to launch the National Programme for Solar Pumping in Irrigation Water
Saving Projects in 2013. The aim of the programme is to make savings on the subsidy granted by the Caisse de
compensation for butane gas by giving grants to farmers on small and medium-sized farms so that they can
purchase solar pumps for water saving projects.
The goal of this programme is thus to encourage more sustainable development of Moroccan agriculture by
moving the pumping market for agricultural irrigation towards wider use of solar energy as a competitive
solution that can compete with diesel and butane.
It aims to promote the use of solar energy by providing equipment for localized irrigation projects involving the
use of solar photovoltaic pumping systems for approximately 5,0004 small farmers over the period 2014-2019,
targeting farms with an area of less than 5 ha.

2
Ministry of Agriculture and Maritime Fisheries (MAPM), Place de l’eau dans le Plan Maroc Vert [The role of
water in the Morocco Green Plan] (2012).
3
Ministry of Agriculture and Maritime Fisheries (MAPM), Situation de l’agriculture marocaine [The situation for
Moroccan agriculture] (November 2011).
4
PIF of GEF Project ID 5539, Promoting the development of photovoltaic pumping systems for
irrigation (05/02/2014).
The programme will provide an investment grant of 50 per cent to 40 per cent per farm, with the rest of the
funding coming from a loan from Crédit Agricole du Maroc.
The grant rates and ceilings for the drip irrigation equipment components will be set by the current regulations
applicable to financial aid from the government granted through the Agricultural Development Fund (ADF) (80
per cent or 100 per cent).
The total cost of the public support provided through the programme is estimated at approximately 2.5 billion
dirhams, including 1 billion dirhams for the photovoltaic systems subsidy, to be raised by the energy sector and
1.5 billion dirhams planned for irrigation grants by the ADF.
The programme should make it possible to reduce the use of imported and subsidized thermal energies
(butane or diesel) by 45,000 TOE per annum and make an estimated saving of 205 million dirhams per annum
on imports of petroleum products.
In social terms, the programme will improve the viability and economic competitiveness of small agricultural
farms by reducing recurrent pumping costs.
In addition, the coupling of the programme with localized irrigation projects would make it possible to save
significant amounts of water and thereby conserve this resource more effectively.
Finally, in environmental terms, the programme should make it possible to prevent the emission of
approximately 1.095 million tCO2eq over the period 2014-2030 and 1.744 million tCO2eq over the life cycle of
the equipment.

Support for the programme through the NAMA instrument


The proposed solar irrigation development programme provides an opportunity to reduce greenhouse gas
emissions while contributing to the sustainable development of Morocco. It can therefore aspire to receive
international support through the NAMA instrument.
The purpose of the proposed NAMA is to encourage the implementation of the national solar pumping
programme while expanding its scope, which involves:
- Changing the scale of the pilot programme for the distribution of solar pumps for irrigation which has
been launched by the Moroccan government by installing 30,000 pumps between 2015 and 2025
instead of the initial target of approximately 5,000 pumps over the next five years;
- Helping Moroccan actors to implement and strengthen the mechanisms envisaged in the agreement
between MAPM and MEMWE;
- Helping to develop a structured and professional solar pumping supply sector in the country.
The NAMA will in particular target farmers on small farms (with an area of less than 5 hectares) who already
have a pump powered by diesel or butane gas. Electric pumps are not eligible. Based on an average size of 2
KWp per pump, the total installed capacity targeted by the programme would be approximately 100 MWp.
In principle, the NAMA will comprise two major components:
- A financial component that aims to create financial mechanisms, making it possible to:
 Subsidize the purchase of additional solar pumps, on the same basis as the one
proposed in the plan for the pilot phase (50 per cent capped at 75,000 dirhams per
farm);
 Establish a credit line on favourable terms (duration and rate) for farmers in order to
complete the funding plan for their systems;
 Improve by 2.5 per cent the interest rate for vulnerable farmers (land or economic
vulnerability) who are no longer eligible for Crédit Agricole du Maroc, but are eligible
for financing from the agricultural development financing company Tamwil El Fellah5
at higher interest rates. They make up approximately 50 per cent of farmers in
Morocco.
- A technical support component that aims to:
 Improve knowledge of demand;
 Create the management structure for the programme;
 Support the standardization and certification of the products;
 Create equipment testing infrastructures;
 Support the creation of the funding mechanism;
 Provide capacity building for the various actors concerned (ADEREE, MAPM, regional
directorates, installers, banks, engineering colleges, vocational colleges, etc.);
 Design and create the quality control system;
 Design and create the Measurement, Reporting and Verification (MRV) system
associated with NAMA procedures;
 Raise awareness of and popularize solar pumping technology among various actors,
including farmers (distributing information, training, demonstration projects, etc.);
 Create a reliable quality control mechanism to reassure farmers.

The proposed NAMA cuts across three key sectors in Morocco: agriculture, water resources and energy.
As regards agriculture, Morocco embarked on a fundamental reform in 2009 by launching a new strategy
known as the Plan Maroc Vert [Green Morocco Plan]. This strategy is based on two main pillars: modern
agriculture and solidarity-based agriculture.
The aim for modern agriculture is to develop successful agriculture that is adapted to market rules thanks to a
new wave of private investment organized around new equitable aggregation models.
As for solidarity-based agriculture, the aim is to develop an approach geared towards poverty reduction by
significantly increasing the agricultural income of the most vulnerable farmers. This will make poverty
reduction efforts more effective and expand their scale, both in rural areas and in deprived outer-urban areas.
Another aim of the Green Morocco Plan is to safeguard natural resources so as to ensure that agriculture is
sustainable. To this end, its action plan will include actions related to climate change adaptation,
anti-desertification, energy saving and the use of renewable energies for irrigation.
In the water sector, Morocco has launched the Programme National d’Economie d’Eau en Irrigation [National
Irrigation Water Saving Programme] (PNEEI), which is intended to promote water saving and water
management through the modernization of irrigation networks (using large-scale water engineering), providing
farms with localized irrigation through financial aid from the government (Agricultural Development Fund) and
finally, support and assistance with water management for farmers by organizing farmers and providing
capacity building, introducing crops with high added value, aggregation, research and development, an
Agricultural Council, etc.

5
Tamwil El Fellah, which is 100 per cent owned by Groupe Crédit Agricole du Maroc (GCAM), specializes in
financing small-scale producers who do not have access to traditional bank financing.
For the energy sector, the agricultural sector accounts for approximately 6 per cent of national energy use,
with irrigation equipment making up a substantial proportion.
In addition, the country is completely dependent on other countries for its energy supply. Its total spend on
petroleum products rose in 2012 to 92 billion dirhams ($11.5 billion). The subsidy for the use of these products,
the majority of which is reserved for butane gas, rose to around 48 billion dirhams ($6 billion) in 2012.6 This
situation could become worse in future given the growth in demand for primary energy, which is estimated at
about 6 per cent per annum on average over the past few years.
In view of these issues, in 2010 Morocco adopted an energy strategy which was based, among other things, on
diversification of its energy mix, control over demand for energy and renewable energy development. The
objective announced in the national strategy is to ensure that renewable energies contribute 24 per cent of the
electricity mix in 2020 and 25 per cent in 2030. In terms of energy efficiency, the aim is to reduce energy use by
12 per cent in 2020 and 15 per cent by 2030 by comparison with the current trend scenario.7
Finally, in social terms, it may be recalled that in 2005 Morocco launched the Initiative Nationale de
Développement Humain (INDH) [National Human Development Initiative], which forms part of a vision to tackle
exclusion, marginalization and poverty among people living in both urban and rural areas.
The proposed NAMA thus ties in perfectly with the priorities set by the Moroccan government in its major
strategies. The following table shows how the expected impacts of the NAMA tie in with national priorities:

Sector Expected impacts of the NAMA


Agriculture sector: solidarity-based - Reduced costs and increased income for farmers on small
agriculture farms
- Reduced vulnerability of small farms to energy price rises
Water sector: conservation of water - Promotion of water saving because the programme is
resources associated with the PNEEI
Energy sector: reduced energy - Reduced use of petroleum products for irrigation
subsidies, improved energy - Saving on subsidies granted by the Caisse de compensation for
independence butane gas, among other things
Social sector: combating poverty and - Combating poverty and marginalization of farmers on the
exclusion most vulnerable farms
- Creation of jobs at local level through the installation and
maintenance of systems
Environment: combating climate Net reduction of GHG emissions of around 1,095 thousand
change tonnes equivalent of CO2 over the period 2014-2030 and
1,744 thousand tonnes equivalent of CO2 over the life cycle of
the equipment.

6
MEMWE/Department for Energy and Mines, Key figures 2012 (Morocco, 2013).
7
MEMWE, Les Energies vertes, un Elan pour le Maroc [A Drive for Green Energies in Morocco] (2011).
In addition to its positive impacts in terms of sustainable development, it is anticipated that the proposed
NAMA would help to set Morocco on a low carbon emission path by:
- Building the institutional capacities that are necessary to manage the NAMA programme, and those of
the other stakeholders in terms of the development, implementation and management of solar
pumping and drip irrigation systems. These capacities could then help, for example, to extend the
programme to medium-sized and large farms and the promotion of other renewable energy and/or
energy efficiency activities in the agriculture sector which are difficult to implement on a large scale
without innovative support mechanisms such as the one proposed in this NAMA.
- Contributing to the creation of a national policy on the decentralized generation of renewable
energies on a small scale.
- Supporting and strengthening national capacity to manufacture photovoltaic pumping equipment and
components, which would enable the local industry to gain better control of the technology and
strengthen the transfer of green technologies to the country.
- Creating structured local provision of solar pumping equipment and installation and maintenance
services. The development of this provision would in turn make it possible to develop demand and
reduce the prices of systems thanks to competition, which will in turn boost the expansion of the
market and hence help to set Morocco on the path of low carbon growth.
- Creating a high-quality market in the long term on the basis of a strong and balanced public-private
partnership by establishing a quality management system within the programme through a system of
operator accreditation, training leading to a qualification for installers and certification of equipment,
which would make it possible to create an adequate and highly-qualified supply of installation and
services.
Morocco is situated on the west coast of North Africa, bordered by the Atlantic Ocean to the west and the
Mediterranean Sea to the north, with a total coastline of around 3,600 km. Morocco covers an area of
approximately 447,000 km² and has around 31.9 million inhabitants, 13.5 million of whom live in rural areas.
With a GDP per capita of $3,250, Morocco is classed as a middle income country. The Moroccan economy
benefits from a competitive labour market and its proximity to Europe, which helps exports in the key sectors
of the country's economy, such as agriculture, light industry and tourism. In particular, the country is the
world's biggest exporter of phosphate, which has long been a source of export income and economic stability.
Over the past ten years, Morocco has undergone profound changes in development policy, moving towards
greater sustainability in terms of social and environmental requirements. As a result, many ambitious
programmes have been introduced in all strategic sectors. These include the reform of the water and energy
sector, the modernization of transport infrastructure, the tourism development programme, rural and
agricultural development, and improvements to sanitation infrastructure.
In this context, Morocco has devised a national sustainable development strategy to establish broad guidelines
and a strategic framework, within which policies, reforms and sector-specific plans and programmes will be
developed, harmonized and revised from a sustainable development standpoint. In particular, these plans and
programmes include:

- The Initiative Nationale de Développement Humain [National Human Development Initiative] aimed
at reducing poverty and improving living standards, while limiting pressure on natural resources.
- The Plan Maroc Vert [Green Morocco Plan] which aims to significantly increase agricultural yields and
maintain the social impact of agriculture, by supporting rural communities through collective projects,
while protecting and conserving natural resources. In particular, this will include conserving and
recovering agricultural water, reducing soil pollution and promoting clean energies in agriculture.
- The Halieutis Plan for marine fishing, which aims to protect marine biodiversity and regenerate
fishing stocks.
- The 2010 & 2020 Vision for Tourism, aimed at ensuring that environmental requirements are taken
into account when equipping tourist resorts, implementing the Moroccan charter for responsible
tourism and promoting eco-labels for tourism.
- The Emergence Plan for industry, which will have environmental aspects, such as the establishment of
“green management” industrial zones and the promotion of the ISO 14001 environmental certification
for businesses.
- The Rawaj Plan for developing the commercial sector, which places a special emphasis on local shops
and their protection, and which limits the environmental impacts of modern commercial premises by
making best use of water and energy and optimizing waste management.
- The Energy Strategy, the main objective of which is to reduce the country's energy consumption
through energy efficiency and the use of renewable energy, which is likely to help mitigate
greenhouse gas emissions.
According to the last GHG inventory in 2000, presented in the Second National Communication, Morocco's net
emissions are approximately 63.44 MtCO2, which represents a negligible proportion (less than 0.2 per
cent per cent) of world emissions.
These emissions are primarily from the energy sector (60 per cent per cent) and the agricultural sector (32.5
per cent per cent). The remaining emissions are spread fairly equally between the waste, industry and forestry
sectors.
Net GHG emissions average 2.21 tCO2eq per capita. These figures show that Morocco is still a country with low
GHG emissions. Its national emissions are around 40 per cent per cent of the world average recorded in 2000.
Even within the region, Morocco emits fewer GHGs per capita than neighbouring countries such as Algeria
(4.1 tCO2eq per capita) and Tunisia (3.7 tCO2eq per capita).
Between 1994 and 2004, Morocco's emissions rose at an average rate of 4.5 per cent per cent a year, almost
the same rate as its economic growth. The Second National Communication showed that the country's
emissions would reach approximately 195 MtCO2 in 2030 with the trend scenario, representing national
consumption of 4.7 tCO2eq per capita.
According to the Second National Communication, the mitigation potential for GHG emissions in Morocco is
estimated at approximately 57.6 MtCO2 a year. Energy production is by far the greatest area for mitigation,
representing two thirds of the potential. This explains Morocco's strategic decision to focus on the large-scale
development of renewable energy. Energy efficiency as a whole represents around 20 per cent per cent of the
potential.
Harnessing this mitigation potential will require huge investment, estimated at around $30 billion, which will
have to involve international support in the context of combating climate change.
Although it is not a high emission country for GHGs, Morocco takes an active role in international efforts to
combat climate change. It ratified the UN Framework Convention on Climate Change (UNFCCC) in December
1995 and the Kyoto Protocol in January 2002. Morocco has always set out to fulfil requirements under the
UNFCCC:
- Presentation of the Initial National Communication in 2001
- Submission of the Second National Communication in 2010
- Preparation of the third National Communication and the first Biennial Report (BR) in progress
- Submission of an initial list of NAMA following the decisions at COP15 in Copenhagen in 2009.
In relation to the CDM, Morocco registered 16 projects (including two PoAs), with total mitigation potential of
1.7 MtCO2 a year.
In political terms, the official reference for Morocco's strategic guidelines on climate change is still the Plan
National de lutte contre le Réchauffement Climatique [National Plan to Combat Global Warming] (PNRC) drawn
up at the COP16 in Cancun in 2010. The PNRC shows political determination, both in terms of combating global
warming and in terms of adapting to the effects of climate change in Morocco, as declared in its introduction:
 In light of the causes of climate change, Morocco is choosing to decouple the growth of its economy
from greenhouse gas emissions.
 Morocco aims to protect its land and its people in the most appropriate way, by effectively addressing
the vulnerabilities of its land to climate change and by anticipating an adaptation policy which
prepares its whole population and its economic actors to deal with these vulnerabilities.
The PNRC lists the various national programmes introduced by Morocco to mitigate its emissions, combat
global warming and adapt to the negative effects and risks of climate change. It also sets out the national policy
for mobilizing actors and capacity building.
Finally, recognizing the need for better climate governance at the national level, Morocco started the process
of developing a Stratégie Nationale sur le Changement Climatique [National Climate Change Strategy] (SNCC) in
2012. To date, reports from the SNCC have not been published or validated by the Department of the
Environment.
Energy represents a major strategic and socio-economic challenge in Morocco due to the country's complete
dependence on other countries for its energy supply. This challenge breaks down into two main aspects:
- Energy supply security in the medium and long term, especially with regard to petroleum products;
- Economic vulnerability due to both imbalances of trade and the pressure on government finances due
to the continual rise in energy prices at the international level.
In 2013, the value of energy imports was approximately 102 billion dirhams, or 27 per cent of total national
imports and over 11 per cent of GDP. The subsidy on petroleum products rose in 2012 to over
48 billion dirhams, or over 85 per cent of the total expenditure of the Caisse de compensation. Diesel and
butane gas, the prices of which are heavily subsidized for consumers, accounted for 45 per cent and
33 per cent respectively of the total amount of the government subsidy on petroleum products.
This situation could worsen in the future, given the growth in demand for primary energy, which is estimated at
around 6 per cent per annum on average over the past few years. According to prospective analyses carried
out by MEMWE, the demand for primary energy should increase to 26 million TOE and 42 million TOE in 2020
and 2030 respectively.
In particular, butane gas, which is regarded as a social product and a means of tackling deforestation since it
substitutes the use of firewood in rural households, is heavily subsidized by the government (approximately
225 per cent of the end price for consumers in 2012).
However, this price distortion has led to the development of uses other than those that were initially targeted
by government policy. In particular, a worrying rise in the use of butane gas for agricultural irrigation is being
observed due to the significant difference between the price of butane gas and that of diesel, further
increasing the deficit in the Caisse de compensation. The cost of fuel per cubic metre of pumped water is two
to three times less for pumping powered by butane than it is for pumping powered by diesel.
According to MEMWE figures, for the average use of 1.895 million tonnes of butane over the past five years,
approximately 1.12 million tonnes was used for residential purposes (59 per cent) and 0.745 million tonnes for
agriculture (39 per cent).
Butane is, of course, used for localized irrigation based on individual pumping systems. This type of (localized)
irrigation covers an area of approximately 400,000 ha or 23 per cent of the total irrigated area in 2010, as
compared with just 15 per cent in 2008.8 Although there are no formal statistics, experts at MAPM estimate
that the area irrigated by butane-powered pumps is at least 100,000 ha.
Informal networks have gradually formed around this emerging market to convert second-hand petrol engines
to butane for pumping. These networks can constitute economic interests of an entire chain of economic
operators, which encourages the phenomenon to expand.
It is also important to highlight that most farms in Morocco are small (53.3 per cent have areas of less than 3 ha
and 42 per cent have areas of between 3 ha and 20 ha) that require small-scale irrigation.9 These small farms
practise subsistence farming and are often very vulnerable to rises in the prices of energy, which represents an
increasingly large proportion of the production cost ranging up to 40 per cent in some areas.
The problem of the growing demand for butane in Morocco's agriculture sector can be broken down into two
conflicting aspects: an economic aspect related to the growing deficit in the Caisse de compensation, and a
social aspect related to the vulnerability of small farms to the rise in energy prices and the use of butane as a
means of reducing production costs.

8
Ministry of Agriculture and Maritime Fisheries (MAPM), Place de l’eau dans le Plan Maroc Vert [The role of
water in the Morocco Green Plan] (2012).
9
Ministry of Agriculture and Maritime Fisheries (MAPM), Situation de l’agriculture marocaine [The situation for
Moroccan agriculture] (November 2011).
In addition to the energy supply security issues, the energy situation in Morocco is also characterized by
significant economic constraints in terms of both the balance of trade and public finances due to the
continuous rise in energy prices at the international level.
In 2013, the value of energy imports was approximately 102 billion dirhams, or 27 per cent of total national
imports and over 11 per cent of GDP. The subsidy on petroleum products rose in 2012 to over 48 billion
dirhams, or over 85 per cent of the total expenditure of the Caisse de compensation. Diesel and butane gas, the
prices of which are heavily subsidized for consumers, accounted for 45 per cent and 33 per cent respectively of
the total amount of the government subsidy on petroleum products.
In particular, butane gas, which is regarded as a social product and a means of tackling deforestation since it
substitutes the use of firewood in rural households, is heavily subsidized by the government (approximately
225 per cent of the end price for consumers in 2012).
This price distortion has led to the development of uses other than those that were initially targeted by
government policy. In particular, a worrying rise in the use of butane gas for agricultural irrigation is being
observed due to the significant difference between the price of butane gas and that of diesel, further
increasing the deficit in the Caisse de compensation. The demand for this product has seen strong growth
estimated at approximately 7.7 per cent per annum, which exceeds by far the average rate of growth of the
demand for other petroleum products of approximately 4.8 per cent per annum. Butane is used mainly on
small-scale Moroccan farms (53.3 per cent with an area of less than 3 ha). These small farms practise
subsistence farming and are often very vulnerable to increases in the prices of energy, which accounts for an
increasing proportion of production costs ranging up to 40 per cent in some areas.
In view of these issues, Morocco launched the National Programme for Solar Pumping in Irrigation Water
Saving Projects in 2013. The aim of the programme is to make savings on the subsidy granted by the Caisse de
compensation for butane gas by giving grants to farmers on small and medium-sized farms so that they can
purchase solar pumps for water saving projects.
The programme aims to install 5,000 pumps over the next five years with a total capacity of approximately 10
MWp.
The goal of the proposed NAMA is to support this initiative so as to encourage more sustainable development
of Moroccan agriculture by moving the pumping market for agricultural irrigation towards wider use of solar
energy as a solution that can compete with diesel and butane.
More specifically, the NAMA is intended to:
- Change the scale of the pilot programme for the distribution of solar pumps for irrigation which has
been launched by the Moroccan government in accordance with the agreement between MAPM and
MEMWE;
- Install 30,000 pumps between 2015 and 2025 instead of the initial target of 5,000 pumps over the next
five years;
- Help Moroccan actors to implement and strengthen the mechanisms envisaged in the agreement
between MAPM and MEMWE;
- Help to develop a structured and professional solar pumping supply sector in the country.
The additional economic advantages include the creation of skilled jobs and businesses in the solar pumping
sector, the reduction in farmers' energy costs and a reduction in the subsidies granted by the Moroccan
government for fossil fuels. Other social and environmental advantages include an improvement in health and
better access to water.
The proposed NAMA is targeted at farmers on small-scale farms (5 ha and under10) which have individual
pumping systems combined with efficient water irrigation systems.
It is aimed in particular at vulnerable farmers who are excluded from traditional bank financing and eligible for
financing from Tamwil El Fellah, but at a rate which is relatively high in comparison with traditional financing.
As the diagram below shows, there are two types of targeted segments:
 New pumping and irrigation systems
 Existing systems (substitution)
The systems that can be substituted are diesel and butane pumps. The NAMA will be implemented at the
national level.

Solar pumping +
New system Bare land
localized irrigation

Butane pumping + surface Solar pumping + localized


irrigation irrigation

Butane pumping + irrigation Solar pumping + localized


aspersion irrigation

Butane pumping + localized Solar pumping + localized


irrigation irrigation

Substitution Diesel pumping + surface Solar pumping + localized


irrigation irrigation

Diesel pumping + sprinkler Solar pumping + localized


irrigation irrigation

Diesel pumping + localized Solar pumping + localized


irrigation irrigation

10
According to the Recensement General de l'Agriculture [General Agricultural Survey] RGA 96, 70 per cent of
farmers in Morocco have farms with an area of less than 5 ha.
There are three types of barriers to the deployment of solar pumping in Morocco:
- economic
- technical
- informational

 Poor competitiveness compared with conventional solutions


Due to the subsidized rates for conventional electricity, diesel and butane in Morocco, solar pumping is an
unattractive solution for most farmers. The payback period for solar compared with:
- butane pumping is 8-10 years
- electric pumping is 6-7 years
- diesel pumping is 2-3 years
 High cost of investment
The high investment cost is unaffordable for small-scale farmers, who make up the great majority of users of
irrigation in Morocco (53.3 per cent of farms in Morocco have an area of less than 3 ha11) and account for 44
per cent of the country's total irrigated area.
According to some local suppliers of solar systems, compared with a diesel or butane system (the cost of which
ranges from 7,000 to 10,000 dirhams), the cost of an equivalent solar system would be 10 times more
expensive, e.g. 100,000 dirhams for a 4 KW solar pumping system.
In addition, the decrease in the costs of PV that have been observed at the international level is not reflected at
the national level due to a lack of visibility within the national market.
 Difficulty of financing this type of investment
The limited investment capacity is further constrained by the fact that many farmers find it difficult to access
loans to finance this type of investment in the absence of any specific loans, partly because banks are not
aware of this emerging market, and partly because of factors such as insecurity of land tenure, economic
instability of farms and exclusion from banking services due to debt write-offs.
Furthermore, the offer of loans from the agricultural development financing company Tamwil El Fellah, a
subsidiary of Groupe Crédit Agricole du Maroc (GCAM), for farmers in a vulnerable position has not made it
possible to overcome this barrier because the proposed rate is still relatively high by comparison with
traditional CA financing (approximately 8 per cent instead of 5.5 per cent).
 New grant announced but not yet available
As part of the launch of the National Programme for Solar Pumping at the agricultural conference in April 2013
in Meknes, MAPM announced a new grant of 50 per cent of the cost of installation capped at 75,000 dirhams
to help Moroccan farmers purchase solar-powered water pumps.
Although it was announced in 2013, this grant has not yet been implemented, and this has led quite a number
of farmers to postpone their purchases of solar pumping systems so that they can receive this financial aid
when it is made available.

11
Ministry of Agriculture and Maritime Fisheries (MAPM), Situation de l’agriculture marocaine [The situation for
Moroccan Agriculture] (November 2011).
 Potential and characteristics of lesser known systems, despite the studies carried out
The use of energy and the way in which it is used in agriculture are still not well known in Morocco for several
reasons, such as the diffuse nature of its use, the informal nature of the activity, the fact that it is not captured
in official statistics and the lack of studies specifically on the issue. There is also no well-documented
information on the current solar pumping market, or the potential for its development. For example, MAPM
appears to have no data on the number of equipped wells broken down by energy type (diesel, electricity and
butane).
 Weak development of structured national supply
Although there are competent installers who are capable of carrying out PV installation in accordance with
industry standards, the national supply is inadequate to cope with a rapid increase in demand.
Problems include:
- A shortage of workers or technicians who are trained in PV and/or solar pumps and could help to
develop a mass market;
- A lack of personalized solutions for farmers and associated advice tailored to individual farms;
- The limited role of the private sector;
- Poor national capacity to manufacture equipment and components.
 Lack of quality control and absence of certification
Although MAPM performs quality control of drip irrigation systems by accrediting suppliers and carrying out
checks on documents and on the ground, the solar pumping equipment that is available on the market is not
yet checked either before or after it is installed, which may impact on the quality of installed products and the
viability of systems.
In addition, with the exception of PV panels, there is still no system of certification or national standards for
solar pumping equipment such as pumps, controllers and associated equipment.

Solar pumping systems were introduced in Morocco in the 1980s through the CDER-USAID, DGCL-AFESD and
DGCL-CIDA initiatives. These programmes made it possible to install approximately 350 systems, of which 50
per cent are now out of order. Despite these initiatives, PV pumping technology is still largely unknown to the
majority of Moroccan farmers, especially in the absence of awareness-raising campaigns and targeted
information. Intensive awareness-raising and information campaigns will therefore be necessary to facilitate
the rapid development of this sector.

Identification
NAMA
The purpose of the proposed NAMA is to encourage the implementation of the National Programme for Solar
Pumping while also broadening its scope by:

- Changing the scale of the pilot programme for the distribution of solar pumps for irrigation which has
been launched by the Moroccan government by installing 30,000 pumps between 2015 and 2025
instead of the initial target of approximately 5,000 pumps over the next five years;
- Helping Moroccan actors to implement and strengthen the mechanisms envisaged in the agreement
between MAPM and MEMWE;
- Helping to develop a structured and professional solar pumping supply sector in the country.

In order to overcome the aforementioned barriers and achieve the aforementioned targets, a number of
measures will have to be incorporated into the NAMA. To eliminate these barriers, this NAMA proposes two
components: a financial component and a technical component.
The following diagram shows the adjustment of the existing financing mechanism in order to equally target
vulnerable farmers (land tenure or economic vulnerability) who are no longer eligible for Crédit Agricole du
Maroc, but are eligible for Tamwil El Fellah with higher interest rates. The latter make up approximately 50 per
cent of farmers in Morocco.
Therefore, in addition to the public grant provided by the programme with a rate that decreases over
time,12 the mechanism includes the following components:

- An improvement of 2.5 per cent in the interest rate for vulnerable farmers who are excluded from
traditional bank financing due to debt write-offs, insecurity of land tenure and economic instability of
farms, and are eligible for Tamwil El Fellah financing but at a relatively high rate by comparison with
traditional financing.
- A dedicated concessional credit line contributed by international donors to enable Crédit Agricole du
Maroc to easily expand its solar pump financing portfolio without experiencing a shortage of funds.
The credit line must be on concessional terms in relation to the interest rate and maturity period in
order to reduce the blended interest rate for end consumers. The amounts of the loans to be granted
to farmers will change over time so as to compensate for the reduction in the grant.
- A reliable quality control mechanism to reassure farmers through an accreditation system for
products, suppliers and installers and a mechanism for the technical acceptance of installations.
The financing plan would thus be as follows over the period 2015-2025:
Source 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Investment ADF + 50% 47% 45% 42% 40% 40% 40% 40% 40% 40% 40%
subsidy MEMWE

Loan International 30% 33% 35% 38% 40% 40% 40% 40% 40% 40% 40%
donors

Interest NAMA funds 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%
rate rebate

12
The investment grant will decrease over time, starting at 50 per cent in Year 1 and rising to 40 per cent in
Year 5. Source: PIF of GEF Project ID 5539, Promoting the development of photovoltaic pumping systems for
irrigation (05/02/2014).
The main relationships between the actors involved in the mechanism proposed above are summarized in the
table below.

Actor 1 Actor 2 Tasks

Farmer <----------> Accredited supplier Sales offering/estimate

Loan request based on technical project


documentation and the supplier's
Farmer ---------> GCAM
estimate/agreement in principle

Preparing contractual documents:


* Loan contract signed and legally certified
by the client
Farmer <----------> Supplier * The installation guarantee contract
between the customer and the supplier
* The certificate authorizing the transfer of
the grant and the loan to the supplier.
Installation of approved equipment
Accredited installer ---------> Customer Certificate of provisional acceptance of
installation
* Final acceptance
* Certificate of final acceptance of
ADEREE/Supplier ---------> Customer
installation signed by the customer, the
supplier and ADEREE
Submission of full documentation including:
* Loan agreement
* Certificate authorizing the transfer of the
grant and the loan to the supplier
Supplier ---------> GCAM/ADEREE * Installation guarantee contract
* Certificate of final acceptance of
installation
* Detailed final invoices for the work and
equipment
Disbursement of the loan (with the interest
GCAM ---------> Accredited supplier rate improved for vulnerable farmers) and
the grant
Donors of the concessional credit Drawing an advance granted to the bank by
GCAM ---------> line the donor on the credit line
Payment of interest rate rebate funds on
NAMA funds
manager <----------> GCAM the basis of grouped applications presented
by the bank
Request for funds based on how much of
Donors of the concessional credit
GCAM ---------> line
the advance has been used and on the basis
of quarterly reporting

It should be noted that the procedural approach described above relates to the process of acquiring and
installing solar pumping systems. For irrigation projects, applications for aid from the government must follow
the procedures established by MAPM through the Single Point of Contact at the Direction Provinciale de
l’Agriculture [Provincial Department of Agriculture] (DPA) or the Office Régional de Mise en Valeur Agricole
[Regional Agriculture Development Office] (ORMVA) local to the farm that will benefit from the investment.
In addition to the financial component, the NAMA will intervene in relation to other important aspects, namely:
i. Improving knowledge of demand
ii. Assisting with the creation of the financing mechanism
iii. Design and implementation of the quality control system
iv. Building the capacities of the various actors involved in the mechanism
v. Design and implementation of the MRV system associated with NAMA procedures

 Improving knowledge of demand


The use of energy and the way in which it is used in agriculture are still not well known in Morocco for several
reasons such as the diffuse nature of its use, the informal nature of the activity, and the fact that it is not
captured in official statistics and, the lack of studies specifically about on the issue, etc.
Better understanding of the current situation and analysis of the market are therefore vital before the NAMA
and associated activities are designed. The following aspects in particular must be considered:
- Categorization of farms and assessment of potential.
- Analysis of the structure of the existing individual pumping for each energy source (including butane),
e.g. power, crop type, size of farms and area.
- Qualitative analysis of networks that supply motors for butane pumping.
- Weighting of energy in the production cost.
- Average prices of conventional pumping systems (diesel, butane and electric).
- Current supply: description of sales operators, structure of sales for each pump size and areas of
intervention, etc.
- The current prices of solar pumps (per component) and likely future changes in different market
development scenarios, etc.

 Assisting with the creation of the financing mechanism


The financial mechanism proposed in the NAMA will make it possible to expand the scope of the pilot
programme aimed at making solar pumping more widespread by adjusting the existing financing mechanism in
order to equally target vulnerable farmers (land tenure or economic vulnerability) who are no longer eligible
for Crédit Agricole du Maroc.
To this end, it will be necessary to:
- Draw up a detailed procedure manual for the implemented mechanism. This manual must
clearly and precisely define the role and obligations of every stakeholder in the support
mechanism: ADEREE, Crédit Agricole du Maroc, MEMWE, MAPM, professions, etc.
- Revise or possibly draw up new agreements between the various stakeholders involved in the
mechanism.
- Establish the arrangements for managing NAMA funds (interest rate rebate funds and funds
for technical support) and financing from other donors (credit line).
- Create an operational management unit for the programme within ADEREE.
- Implement a programme management system (software, etc.) to manage requests, supervise
programme implementation, organize on-site checks and implement the MRV system. This
system will include management and quality control procedures.

 Design and implementation of the quality control system


Quality control is a central aspect of the mechanism to be created in order to reassure users as to the quality of
the systems. The quality system will necessitate the following activities:
- Developing the quality standards for solar pumping system equipment.
- Procuring and implementing testing infrastructures to test and certify pumps, generators and
associated equipment.
- Establishing the rules on the eligibility of solar pumping system equipment for the
programme on the basis of the established standards and a system to certify the equipment
to be implemented.
- Developing and creating the supplier and installer accreditation system on the basis of
specifications drawn up in consultation with all stakeholders.
- Establishing the procedures for quality control upon receipt of systems, etc.

 Capacity building
Capacity building for the actors involved will include the following measures:
- Creating a training system that leads to a qualification for installers in the design, installation,
operation and maintenance of photovoltaic pumping systems, to enable them to become
accredited to work under the programme.
- Training institutional actors to manage the programme (local and central staff of MAPM,
Crédit Agricole du Maroc, MEMWE, ADEREE, etc.).
- Training and raising the awareness of GCAM and other banks in relation to the financing of
this type of system and the specific procedures for managing the lines of credit created for
the programme.
- Creating a programme to recycle used equipment and re-train actors in the butane and diesel
sectors.
- Capacity building in the management, control and organization of ADEREE.

 Awareness-raising and communications


Awareness-raising and communications are essential for the popularization of solar pumping technology
among the various actors, including farmers. Communications must be based on innovative methods, given the
specific nature of the target (rural areas, often limited level of education, etc.). In this regard, the following
actions must be undertaken:
- Developing an innovative communications plan targeting farmers;
- Developing appropriate communications tools, such as events, ads and flyers;
- Running recurrent communications campaigns;
- Evaluating communications campaigns and adapting them accordingly, etc.

 Design and implementation of an MRV system


As we all know, NAMAs must be accompanied by a Measurement, Reporting and Verification system
established in accordance with national and international requirements. The NAMA's MRV needs to cover the
following areas:
- GHG emissions
- Funding
- Sustainable development benefits
Consequently, an MRV system must be designed and validated before the programme recommended in the
framework of this NAMA gets underway.
The baseline scenario is the situation that will prevail if the measures identified under the NAMA programme
are not implemented.
Since the objective of the proposed NAMA is to change the scale of the pilot programme to popularize solar
pumping for irrigation which has been launched by the Moroccan government, we shall take the
implementation of this pilot programme as the baseline situation. It should be recalled that this programme,
which was announced during the sixth Agriculture Conference of 23 April 2013 in Meknes, has a budget of 400
million dirhams which will be spent on installing 5,000 photovoltaic pumping systems over the period 2014-
2019, with a combined total installed capacity of 1013 MWp.

The proposed NAMA essentially focuses on the implementation of adequate institutional, technical and
financial tools and mechanisms to encourage more sustainable development of Moroccan agriculture by
moving the agricultural irrigation pumping market towards wider use of solar energy as a solution that can
compete with diesel and butane.
The proposed measures are intended to eliminate economic, technical and informational barriers in order to
expand the scope and facilitate large-scale deployment of solar pumping. It is therefore anticipated, as the
diagram below shows, that 30,000 pumps will be installed between 2015 and 2025 instead of the initial target
of 5,000 pumps over the next five years.

13
Assumption: Average power: 2 KWp.
Implementation of the NAMA will have several sustainable development impacts from an economic, social and
health-related standpoint:
- Reduction of government energy subsidies
- Reduction of the national energy bill
- Creation of jobs at local level through the installation and maintenance of PV pumping
systems
- Creation of opportunities for existing suppliers and entry of new suppliers into the market
- Reduction in the vulnerability of small farms to increases in energy prices
- Conservation of water resources
- Preserving income sustainability in rural areas
- etc.
The following paragraphs present an initial quantification of some of these impacts.

Savings on the energy bill are measured by the cost of the fuel saved, valued at international prices. The value
of this saving depends on the international prices of the fuels used.
According to the subsidization report of the Ministère de l'Economie et des Finances [Ministry of the Economy
and Finance] (MEF) for the year 2014, the price of butane gas varied between $629 and $959 per tonne,
averaging out at $794 per tonne. The average price of diesel was around $943 per tonne for the same year.
On this basis, and assuming that the prices of butane and diesel will vary around these levels in future, the
annual savings on the energy bill would be as follows:

Thanks to the implementation of the NAMA, the savings made on the energy bill would be 2.43 billion dirhams
over the period 2015-2030 and 3.603 billion dirhams over the 15-year life cycle of the equipment.

Due to the surge in the cost of the subsidy, which reached unprecedented and unsustainable levels close to 50
billion dirhams in 2011 and 54.6 billion dirhams in 2012, the Moroccan government decided to implement a
system of partial indexing of the prices of certain petroleum products in September 2013.
This system entails setting the level of the subsidy allocated to certain products (diesel, petrol and fuel oil no.
2) at the level adopted by the Finance Law and partially pass on to consumers both upward and downward
differences with respect to the international market. This will make it possible to control the cost of subsidizing
these products in line with the level of funding authorized under the Finance Law and prevent arrears from
arising. For butane gas and fuel oil intended for electricity generation, the government will continue to cover
the cost of all sharp rises in the prices of these products on the international market through the general
budget.
As a result, since the indexing system entered into force on 16 September 2013, the retail prices of premium
fuel, diesel and fuel oil no. 2 have been revised on the 16th of each month on the basis of the moving average
of the buyback prices over the two previous months, in accordance with the components of the pricing
structures and current international market benchmarks.
For diesel, the allocated unit subsidy for 2014 would be set as follows:
Period Unit subsidy (dirhams/litre)

16 January 2014 2.15

16 April 2014 1.7

16 June 2014 1.25

16 October 2014 0.8

The proposed NAMA would help to achieve this objective of controlling the cost of subsidization by moving the
agricultural irrigation pumping market towards wider use of solar energy as a solution that can compete with
diesel and butane.
According to the subsidization report from the MEF for 2014, the average annual unit subsidy for butane for
2013 was approximately 6.627 dirhams/kg.
On the basis of these subsidy levels for diesel and butane, and assuming that such levels continue in future, the
annual subsidy savings for the government, as the following table shows, would be approximately 104 million
dirhams in 2020, 240 million dirhams in 2025 and 228 million dirhams in 2030, making a total saving of 1,006
million dirhams over the period 2015-2030 and 1,492 million dirhams over the life cycle of the equipment.
In social terms, based on a study carried out in Morocco on the potential for jobs to be created by renewable
energies,14 the implementation of this solar programme through the NAMA would create the following jobs:

Non-permanent Permanent
Persons/year jobs
2015-2030 8,835 620
2015-2025 8,835 620

2015-2020 2,394 168

It is important to highlight that most farms in Morocco are small (53.3 per cent have areas of less than 3 ha and
42 per cent have areas of between 3 ha and 20 ha) and require small-scale irrigation.15 These small farms
practise subsistence farming and are often vulnerable to rises in the price of energy, especially diesel, which
accounts for an increasing proportion of the cost of production.
The implementation of the NAMA would make it possible to reduce energy expenditure on pumping as part of
the production cost borne by farmers, which would make them less vulnerable to possible large rises in the
price of diesel.
As the following graph shows, the total annual saving on the energy expenditure of farmers for pumping would
reach approximately 119 million dirhams in 2020 and 260 million dirhams in 2030.

14
Temporary jobs per MWp: 28.5 jobs/year | Permanent jobs per MWp: 2 jobs/year.
15
Ministry of Agriculture and Maritime Fisheries (MAPM), Situation de l’agriculture marocaine [The situation for
Moroccan agriculture] (November 2011).
The cumulative savings for farmers would be approximately 2.77 billion dirhams over the period 2015-2030
and 4.11 billion dirhams over the life cycle of the equipment.

In terms of return on investment,16 as the following graph shows,17 solar pumping is already profitable in
relation to the diesel system when one takes into account the gradual reduction in the diesel subsidy following
the entry into force of the partial indexing system of the prices of certain petroleum products in September
2013 in Morocco (reduction in the unit subsidy allocated to diesel for 2014 of 2.15 dirhams/litre in January
2014 to 0.80 dirhams/litre in October 2014).
For butane, given the level of the subsidy on the retail sale of this energy (which soared between 2008 and
2012 from 157 per cent to 224 per cent), solar is not currently profitable and the subsidy on the investment
cost planned by the government would only make solar systems profitable from 2020 onwards.

16
Reference system: Well depth: 40 m | Flow: 50 m3/day | Power of pump motor: 2 KW.
17
The calculation of payback time is attached to this document (see Annex 2).
The reductions in emissions attributable to the NAMA essentially come from the energy savings generated by
the use of solar for pumping as a substitute for butane and diesel and the emission reductions generated by
the implementation of the pilot programme announced in Meknes in 2013.
In other words, these reductions are calculated as follows:

Net emission reductions = NAMA emission reductions – pilot programme emission reductions

The assumptions made in order to calculate these emission reductions are presented below:
Assumption Value Unit Source
pumps between 2015
30,000
NAMA target and 2025
PIF of GEF, Promoting the
pumps between 2014 development of
5,000
and 2019 photovoltaic pumping
Pilot programme target systems for irrigation
Average power of solar pumping system 2 KWp As above
Power of diesel and butane pumps 2 KW As above
Volume pumped 50 m3 per day As above
Duration of use 300 days As above
Consumption of diesel per m3 pumped 0.09 litres/m3 As above
Consumption of butane per m3 pumped 0.11 litres/ m3 As above
Proportion of diesel pumps 60 per cent As above
Proportion of butane pumps 40 per cent As above
Emission intensity of diesel 4 kg CO2/litre As above
Emission intensity of liquid petroleum gas 2 kg CO2/litre As above
Life cycle of solar pumping system 15 years As above

The source of emissions considered in the analysis is combustion.


As the graphs below show, the emissions avoided by the NAMA would be approximately 1.384 million tCO2eq
over the period 2014-2030 and 2.052 million tCO2eq over the life cycle of the equipment. The pilot programme
would make it possible to avoid 289,000 tCO2eq over the period 2014-2030 and 308,000 tCO2eq over the life
cycle of the equipment.
The net emission reductions resulting from the implementation of this NAMA are thus estimated at
approximately 1.095 million tCO2eq over the period 2014-2030 and 1.744 million tCO2eq over the life cycle of
the equipment.

In addition to its positive impacts in terms of sustainable development, it is anticipated that the proposed
NAMA would further contribute to efforts to set Morocco on a low carbon development path by:
- Building the institutional capacities that are necessary to manage the NAMA programme, and those of
the other stakeholders in terms of the development, implementation and management of solar pumping
and drip irrigation systems. These capacities could then help, for example, to extend the programme to
medium-sized and large farms and the promotion of other renewable energy and/or energy efficiency
activities in the agriculture sector which are difficult to implement on a large scale without innovative
support mechanisms such as the one proposed in this NAMA.
- Contributing to the creation of a national policy on the decentralized generation of renewable energies
on a small scale.
- Supporting and strengthening national capacity to manufacture photovoltaic pumping equipment and
components, which would enable the local industry to gain better control of the technology and
strengthen the transfer of green technologies to the country.
- Creating structured local provision of solar pumping equipment and installation and maintenance
services. The development of this provision would in turn make it possible to develop demand and reduce
the prices of systems thanks to competition, which will in turn boost the expansion of the market and
hence help to set Morocco on the path of low carbon growth.
- Creating a high-quality market in the long term on the basis of a strong and balanced public-private
partnership by establishing a quality management system within the programme through a system of
operator accreditation, training leading to a qualification for installers and certification of equipment,
which would make it possible to create an adequate and highly-qualified supply of installation and
services.
The following table presents the activities planned under the NAMA and the entities responsible for implementation.
Activities Comments / Explanations Entity responsible
Financial activities

Investment subsidy for solar pumping MAPM/MEF/ADEREE/MEMWE


system Decrease over time from 50 per cent of the investment cost in year 1 to 40 per cent in year 518 (FDE)/ADF/CAM

Concessional credit line A credit line for Crédit Agricole du Maroc to finance solar pumps with no limitations on resources international donors
Interest rate rebate 2.5 per cent interest rate rebate for vulnerable farmers CAM
Loan system for farmers Bank loans on favourable terms for farmers CAM
Technical activities

Categorizing farms and assessing potential


Improving knowledge of demand ADEREE
Market analysis

Drawing up a detailed procedure manual for the mechanism created MEMWE


Revising or possibly drawing up new agreements between stakeholders MEMWE
Establishing the arrangements for managing NAMA funds MEMWE
Implementation of a financial mechanism
Creating the operational management unit for the programme MEMWE/ADEREE
Implementing the programme management system (Management Information System, etc.) MEMWE/ADEREE

18
PIF of GEF Project ID 5539, Promoting the development of photovoltaic pumping systems for irrigation (05/02/2014).
Developing quality standards for equipment ADEREE
Procuring and implementing testing infrastructures to test and certify pumps, generators and associated
ADEREE/MAPM
equipment
Design and implementation of a quality
control system Establishing the rules on the eligibility of pumping system equipment for the programme ADEREE
Developing and implementing the supplier and installer accreditation system ADEREE/MAPM
Establishing the procedures for quality control upon receipt of systems ADEREE/MAPM
Creating a training system that leads to a qualification for installers ADEREE
Training institutional actors to manage the programme ADEREE
Capacity building Training and raising the awareness of Crédit Agricole du Maroc and other banks in relation to financing
MEMWE/ADEREE
for solar pumping systems
Implementing a used equipment recycling programme ADEREE
Capacity building in the management, control and organization of ADEREE ADEREE
Drawing up the farmer communications plan ADEREE/MAPM
Awareness-raising and communications Developing appropriate communications tools ADEREE/MAPM
Conducting periodic communications campaigns ADEREE/MAPM
Evaluating communications campaigns and adapting them accordingly ADEREE/ MAPM
MRV of GHG emissions
Design and implementation of a quality
MRV of financing MEMWE/ADEREE/MAPM
control system
MRV of benefits in terms of sustainable development
Activities Coordinator Key actors 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Financial activities
Implementation of a subsidy on the investment MEF/ADEREE/CAM
MEMWE
cost
Central Bank/
Setting up of a dedicated concessional credit line MEMWE
CAM/ADEREE
Interest rate rebate of 2.5 per cent for vulnerable MEF/ADEREE/CAM
MEMWE
farmers
Bank loan on favourable terms for farmers MEMWE MEF/ADEREE/CAM
Technical activities
MEMWE/MAPM
Improving knowledge of demand ADEREE

Creation of a financial mechanism

Drafting of a detailed procedure manual for the ADEREE/MAPM/CAM


MEMWE
mechanism

Revision or possibly drafting of new agreements ADEREE/MAPM/CAM


MEMWE
between stakeholders

Establishment of the arrangements for managing ADEREE


MEMWE
NAMA funds
Creation of the operational management unit for ADEREE
MEMWE
the programme
Implementation of the programme management ADEREE/MAPM/CAM
MEMWE
system (Management Information System, etc.)
Design and implementation of a quality
control system
Development of quality standards for equipment ADEREE Profession19
Procurement and implementation of testing MAPM/profession
infrastructures to test and certify pumps, ADEREE
generators and associated equipment
Establishment of the rules on the eligibility of Profession
ADEREE
pumping system equipment for the programme
Development and implementation of the supplier Profession
ADEREE
and installer accreditation system
Establishment of procedures for quality control Profession
ADEREE
upon receipt of systems
Capacity building
Implementation of a training system that leads to Vocational training
ADEREE
a qualification for installers
Training of institutional actors to manage the ADEREE/MAPM/CAM
MEMWE
programme
Training and awareness-raising of CAM and other CAM
banks in relation to financing for solar pumping MEMWE
systems
Implementation of a used equipment recycling MAPM
ADEREE
programme
Capacity building in the management, control and
ADEREE
organization of ADEREE
Awareness-raising and communications
Drafting of a farmer communications plan ADEREE MEMWE
Development of appropriate communications MEMWE
ADEREE
tools
Running of recurrent communications campaigns ADEREE MEMWE

19
Professional representation of solar pumping system suppliers.
Evaluation of communications campaigns and MEMWE
ADEREE
adaptation where appropriate
Design and implementation of an MRV system
ADEREE/MAPM/profession
MRV for GHG emissions MEMWE

MRV for funding ADEREE/MAPM/CAM/MEF


MEMWE

ADEREE/MAPM/profession
MRV for sustainable development benefits MEMWE

Design and set-up phase

Implementation phase
Source of data for Responsible
Activities Indicator Frequency
indicator entity
Financial activities
Implementation of the subsidy on the investment cost Implementing decree MEF/MEMWE Annual MEMWE
Creation of a dedicated concessional credit line Funding agreement signed with a donor Central bank/CAM Annual MEMWE
Specific loan system established by CAM for Central bank/CAM Annual MEMWE
Interest rate rebate of 2.5 per cent for vulnerable farmers
vulnerable farmers
Special loan system created by CAM for vulnerable Central bank/CAM Annual MEMWE
Bank loans on favourable terms for farmers
farmers
A market analysis study is carried out ADEREE Annual MEMWE
Improving knowledge of demand

Implementation of the financial mechanism


Drafting of a detailed procedure manual for the mechanism created Detailed procedure manual for the mechanism ADEREE Annual MEMWE
drafted in consultation with all stakeholders

Revising or possible drafting of new agreements between Agreements signed between the various MEMWE Annual MEMWE
stakeholders stakeholders

Drafting of the terms for management of NAMA funds NAMA fund management entity established MEMWE Annual MEMWE
Management procedures manual drafted
Setting up of an operational management unit for the programme Operational management unit for the programme ADEREE Annual MEMWE
set up within ADEREE
Setting up of a programme management system (Management Data management software for the programme is ADEREE Annual MEMWE
Information System, etc.) set up and operational

Design and implementation of the quality control system

Establishment of quality standards for the equipment Moroccan standards for PV pumping systems are ADEREE Annual ADEREE
drafted
Procurement and implementation of testing infrastructures to test Testing and certification equipment is procured ADEREE Annual ADEREE
and certify pumps, generators and associated equipment and installed

Establishment of rules on the eligibility of solar pumping system Number of certified PV pumping systems ADEREE Annual ADEREE
equipment for the programme
Development and implementation of the supplier and installer Number of suppliers and installers accredited ADEREE Annual ADEREE
accreditation system
Establishment of quality control procedures upon receipt of systems System receipt manual is drafted ADEREE Annual ADEREE

Capacity building
Implementation of a training system that leads to a qualification for Number of installers trained ADEREE/Vocational Annual ADEREE
installers training centres
Training of institutional actors to manage the programme Number of persons trained MEMWE Annual MEMWE
Training and awareness-raising of CAM and other banks in relation Number of managers trained CAM/banks Annual MEMWE
to funding for solar pumping systems
Number of pumps collected ADEREE Annual ADEREE
Implementation of a used equipment recycling programme
Number of pumps recycled
A piece of software to manage programme data is ADEREE Annual ADEREE
created and operational
Capacity building in the management, control and organization of
Number of inspectors trained
ADEREE
Number of technicians hired to strengthen the
control and management of the programme

Awareness raising and communication


Drafting of a communications plan for farmers Communications plan drafted ADEREE Annual ADEREE
Development of appropriate communications tools Number and type of tools developed ADEREE Annual ADEREE
Running of recurrent communications campaigns Number of campaigns conducted ADEREE Annual ADEREE
Evaluation of communications campaigns and adaptation where Impact of campaigns on the market ADEREE Annual ADEREE
appropriate
Indicator Parameters to assess the Data source for the indicator Frequency Level of Entity
indicator uncertainty responsible
Government support Total amount corresponding to Calculated using: Programme information system Annual Moderate ADEREE
the subsidy on the investment (programme
- Annual installed capacity
cost management
- The average price per KW
unit)
installed
International donation Total amount of loan interest Recorded by the NAMA funds NAMA funds manager Annual Low MEMWE
rate rebates manager Programme information system
International credit line Total amount committed for the Recorded by programme donors and Donors Annual Low MEMWE
credit line CAM CAM
Bank loans Total amount of loans granted by Recorded by CAM Programme information system Annual Low ADEREE
CAM CAM (programme
management
unit)
Number of loans granted Recorded by CAM Programme information system Annual Low ADEREE
CAM (programme
management
unit)
Private investment Total invested by farmers as an Calculated using: Programme information system Annual Low ADEREE
advance - Annual installed capacity (programme
- The average price per KWp management
installed unit)
- Total subsidy amount
- Total amount of loans granted
National and Programme expenditures for Recorded in the programme's Programme accounting Annual Low MEMWE
international support for support activities accounting documents documents
the NAMA activities
Impact Indicator Indicator measurement parameters Source of data for the indicator Frequency Level of Responsible
uncertainty entity
Capacity of the solar pumping system installed Recorded by the programme Annual Low ADEREE
under the programme / number of wells information system
equipped with solar pumping systems
Breakdown of substituted wells (proportion of Calculated from data processed by the Annual Low ADEREE
diesel, proportion of butane, etc.) programme information system
Average daily volume pumped by solar systems Estimated on the basis of Annual Moderate ADEREE
Greenhouse gas (m3/KWp) measurement of a sample by ADEREE
Impact on climate
emissions Average consumption of diesel per m3 pumped Calculated from data processed by the Annual Low ADEREE
change
avoided programme information system
Average consumption of butane per m3 pumped Calculated from data processed by the Annual Low ADEREE
programme information system
Emission factors of butane and diesel IPCC or national data if applicable When Low MEMWE
updated by
IPCC or
MEMWE
Level of Entity
Impact Indicator Indicator measurement parameters Source of data for the indicator Frequency
uncertainty responsible
Capacity of the solar pumping system installed Recorded by the programme information Annual Low ADEREE
under the programme / number of wells system
equipped with solar pumping systems
Breakdown of substituted wells (proportion of Calculated from data processed by the Annual Low ADEREE
diesel, proportion of butane, etc.) programme information system
Average daily volume pumped by solar systems Estimated on the basis of measurement of Annual Moderate ADEREE
Impact on balance Reduction in the (m3/KWp) a sample by ADEREE
of payments country's energy bill Average consumption of diesel per m3 pumped Calculated from data processed by the Annual Low ADEREE
programme information system
Average consumption of butane per m3 pumped Calculated from data processed by the Annual Low ADEREE
programme information system
Average annual cost of importing diesel
Average international price of diesel and butane and butane Annual Low DOP/MEMWE
MEMWE/MEF
Capacity of the solar pumping system installed Recorded by the programme information Annual Low ADEREE
under the programme / number of wells system
equipped with solar pumping systems
Breakdown of substituted wells (proportion of Calculated from data processed by the Annual Low ADEREE
diesel, proportion of butane, etc.) programme information system
Average daily volume pumped by solar systems Estimated on the basis of measurement of Annual Moderate ADEREE
Reduction in the
(m3/KWp) a sample by ADEREE
Impact on public government subsidy
Average consumption of diesel per m3 pumped Calculated from data processed by the Annual Low ADEREE
finances on butane and
programme information system
diesel
Average consumption of butane per m3 pumped Calculated from data processed by the Annual Low ADEREE
programme information system
Average annual unit subsidy allocated to diesel
(dirhams/litre)
MEMWE/MEF Annual Low MEMWE
Average annual unit subsidy allocated to butane
(dirhams/kg)
Capacity of the solar pumping system installed
Recorded by the programme information
under the programme / number of wells Annual Low ADEREE
system
equipped with solar pumping systems
Number of supply companies accredited by the
Number of Recorded by the programme information
programme Annual Low ADEREE
companies founded system
thanks to the
Number of installation companies accredited by
programme
the programme
Recorded by the programme information Annual Low ADEREE
system

Number of solar equipment manufacturing


Survey Annual Moderate ADEREE
companies

Total number of employees in supply companies


Survey of accredited suppliers Annual Moderate ADEREE

Number of employees in installation companies Survey of accredited suppliers Annual Moderate ADEREE
Number of jobs
Social impact created by the Number of inspectors accredited by the
Recorded by the programme information
programme programme Annual Low ADEREE
system

Number of employees assigned to the task of


manufacturing the components used in solar Survey Two years Moderate ADEREE
pumping systems
Capacity of the solar pumping system installed Recorded by the programme information Annual Low ADEREE
under the programme / number of wells system
equipped with solar pumping systems
Breakdown of substituted wells (proportion of Calculated from data processed by the Annual Low ADEREE
diesel, proportion of butane, etc.) programme information system
Reduction of Average daily volume pumped by solar systems Estimated on the basis of measurement of Annual Moderate ADEREE
household (m3/KWp) a sample by ADEREE
electricity bills Average consumption of diesel per m3 pumped Calculated from data processed by the Annual Low ADEREE
programme information system
Average consumption of butane per m3 pumped Calculated from data processed by the Annual Low ADEREE
programme information system
Average price of diesel (dirhams/litre) MEMWE reports Annual Low ADEREE
Average price of butane (dirhams/kg) MEMWE reports Annual Low ADEREE
The data collected by the various stakeholders and sent in an annual report to ADEREE (responsible for
coordinating the implementation of the NAMA), will be recorded by ADEREE in an annual report containing
specific information about the solar roof programme. Standard calculation sheets will be used to report on the
indicators presented in the tables in Section 8.
Information given in the report will include, in particular:
- The report's objective(s) and intended audience;
- The year the report was written;
- The progress of NAMA activities based on the data collected, as presented in the table of progress
indicators;
- The updated reference scenario;
- The annual and cumulative sustainable development effects based on the indicators and data
presented above;
- The annual and cumulative impacts on GHG emissions in metric tonnes of carbon dioxide equivalent
and by individual greenhouse gas, based on the indicators and data presented above;
- The annual and cumulative funding provided under the programme including grants, loans and tax
incentives.
The reporting format could then be adapted to meet the requirements of specific entities, such as the UNFCCC
and international donors.
The following diagram gives an outline of the reporting process at the national and international levels.
An audit by a third party is proposed for impacts on GHG emissions and impacts on sustainable development.
Part of the cost of the audit will need to be covered by international donors. The auditors should be accredited
by accreditation bodies recognized by both the NAMA donor and the Moroccan government.
As a large number of activities will take place under the NAMA, a sampling method will be applied. The details
of this approach will be agreed on by NAMA donors and the Moroccan government. The annual report will
form the basis of the verification process.

There are two types of cost for the proposed NAMA:


 The investment costs of the solar pumping system, which shall be referred to as the “technology cost”.
 The costs of programmes related to the various NAMA activities described in the previous sections.

To evaluate technology costs, the specific average costs (dirhams/MWp) were estimated based on the current
prices in Morocco, and also based on a scenario of falling prices for PV technology worldwide. The graph below
shows the learning curve according to the IEA's “PV Technology Roadmap scenario”, updated and adapted for
Morocco.
Since panels are the most expensive part of a pumping system, we have relied on the scenario presented above
to evaluate the technology cost of solar pumping20 over the same period, 2014-2030.
On this basis, the total cost of total technology investments (TTIs) would amount to:
2015-2020 2015-2025
Cost of technology (million dirhams) 481 988
Cost of technology (million euros) 44 90

For the programme costs, the estimates are based on previous experiences in Morocco and in other similar
countries (e.g. communications plans, information systems, etc.) and estimates of the capacities required to
carry out the support activities. The following table presents a summary of costs by category of activity for the
2015-2025:
In thousand euros
Activity Total
Evaluation of the potential of farms and categorizing them 250
Development of standards and procurement of equipment testing and certification 350
infrastructures
Setting up of the funding mechanism 500
Training of actors and accreditation of suppliers 450
Implementation of a used equipment recycling programme 400
Capacity building in the management, control and organization of ADEREE 100
Development of the MRV system 500
Awareness-raising and communications 500
TOTAL 3,050

20
Reference system: Well depth: 40 m | Flow: 50 m3/day | Power of pump motor: 2 KW.
The cost of technology will be financed as described below:
Activities Item Amount Sources

Subsidy € 37.6 million


Investment subsidy21 ADF/MEMWE

Loans22 Concessional credit line €34.2 million International donors

Financing by farmers Own funds €18.0 million Farmers

Interest rate rebate Rebate of 2.5 per cent on €1.4 million NAMA
on loans23 the interest rate
Total cost of technology (2015-2025) €91.2 million

The funding model will therefore be as described below for the period 2015-2025:
Source 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Investment ADF + 50% 47% 45% 42% 40% 40% 40% 40% 40% 40% 40%
subsidy MEMWE

Loan International 30% 33% 35% 38% 40% 40% 40% 40% 40% 40% 40%
donors

Interest NAMA funds 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%
rate rebate

The impact of these measures would be very significant, especially for butane pumping, to which solar is not
currently a profitable alternative due to the level of the retail price subsidy for this energy (224 per cent in
2012). The subsidy on the investment cost subsidy planned by the government would thus make solar systems
profitable from 2020 onwards.
For diesel, solar pumping is already profitable given the gradual reduction in the subsidy allocated to diesel
since the introduction of partial indexing of the prices of certain petroleum products in Morocco in September
2013 (reduction in the unit subsidy allocated to diesel for 2014 of 2.15 dirhams/litre in January 2014 to 0.80
dirhams/litre in October 2014).
The provision of a dedicated concessional credit line contributed by international donors for this NAMA would
be a major asset which would enable Crédit Agricole du Maroc to easily increase its solar pump financing
portfolio without experiencing a shortage of funds. A rebate on the interest rate would be a considerable
advantage for vulnerable farmers who are excluded from traditional bank financing due to insecurity of land
tenure or the economic instability of their farms, giving them access to a financing offer that is suited to their
situation.

21
The investment subsidy will decrease over time, starting from 50 per cent in Year 1 and falling to 40 per cent
in Year 5. Source: PIF of GEF Project ID 5539, Promoting the development of photovoltaic pumping systems
for irrigation (05/02/2014).
22
The amounts of the loans to be granted to farmers will change over time in order to compensate for the
reduction in the grant.
23
Assumption: 80 per cent of farmers applying for loans are vulnerable.
Programme implementation costs will be shared between NAMA sources and the Moroccan
government as follows:
In thousand euros
Moroccan
Activity Total NAMA
government
Evaluation of the potential of farms and categorizing them 250 225 25
Development of standards and procurement of equipment 350 210 140
testing and certification infrastructures
Setting up of the funding mechanism 500 410 90
Training of actors and accreditation of suppliers 450 365 85
Implementation of a used equipment recycling programme 400 300 100
Capacity building in the management, control and organization 100 90 10
of ADEREE
Development of the MRV system 500 400 100
Awareness-raising and communications 500 400 100
TOTAL 3,050 2,400 650
The incremental costs to be covered with NAMA funds are as follows:
Support NAMA contribution in
million euros
Loan interest rate rebate 1.4
Technical support 2.4

Total 3.8

The amount of funding required for the proposed NAMA is €94 million, broken down as follows:

Activities Amount Sources

Investment subsidy € 37.6 million ADF/MEMWE

Concessional credit line €34.2 million International donors

Farmers' own funds €18 million Farmers

Loan interest rate rebate €1.4 million NAMA

€0.65 million Moroccan government


Technical support
€2.4 million NAMA

Total € 94.25 million

The programme's sustainability strategy targets both the technological and economic dimensions.
In terms of technology, the programme's sustainability is ensured through building the capacities of the various
industry players, who should then be able to drive the market development launched through the NAMA on
their own. These stakeholders include installers, suppliers, ADEREE, etc.
In addition, in order to ensure that the programme is sustainable and guarantee the results for the
beneficiaries of the systems, it would be necessary to incorporate into the specifications a requirement for a
minimum period of five years of maintenance of the solar pumping system, for which the installer shall be
responsible, reckoned from the date of final acceptance of the system. Maintenance agreements must include
a detailed list of the various interventions included in the agreement and state all of the interventions that are
covered by the guarantee.
Maintenance agreements must include, without being limited to, at least the following aspects:
 A general check on the system every quarter to be recorded in a maintenance log
 Replacement (supply and labour) of all small consumables (seals, fuses, lights)
 Repairs of any leaks and breakdowns
 Possible replacement of equipment held in stock (glass collectors)
 Other checks
 Any replacements of large equipment (after an estimate has been made and duly accepted by all
parties)
 etc.
In addition, to facilitate the implementation of the MRV system and ensure better monitoring of systems, it is
recommended that specifications require inclusion of a system for the local and remote monitoring of the
actual performance of the system. This system must make it possible to draw up energy reports for the system
and facilitate the detection and diagnosis of any faults.
In terms of economic sustainability, it is important to remember that the recommended funding mechanism is
scalable over time, given the decrease in the subsidy envisaged by local authorities for solar pumping systems.
The amounts of the loans to be granted to farmers will therefore change over time in order to compensate for
the reduction in the subsidy. A rebate on the interest rate is also proposed for vulnerable farmers who are
excluded from traditional bank financing due to insecurity of land tenure and/or the economic instability of
their farms, so that they can have access to funding that is tailored to their situation.
Source 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Investment ADF + 50% 47% 45% 42% 40% 40% 40% 40% 40% 40% 40%
subsidy MEMWE

Loan International 30% 33% 35% 38% 40% 40% 40% 40% 40% 40% 40%
donors

Interest NAMA funds 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%
rate rebate

In particular, financial support in the form of subsidies for the investment cost is crucial in terms of butane
pumping, to which solar would only be a profitable alternative from 2020 onwards.
Regarding the credit line, it is expected that beyond 2025 there will be no need for concessionality, given the
falling prices of technology. Consequently, local banks will be able to take over, relying on normal national or
international financial markets.
Finally, the technical support activities covered by the NAMA and the government are necessary, especially
during the first three years of the programme's launch. From then on, training and MRV should be covered
under the mechanism, and the costs spread between the consumer, providers and the government (ADEREE,
vocational training centres, etc.).
NAMA coordinating entity NAMA approving entity
Name of institution: ADEREE Ministère de l’Energie, des
Mines, de l’Eau et de
l’Environnement [Ministry of
Energy, Mining, Water and
Environment] (MEMWE)
Contact person: Abdelali DAKKINA

Address: Espace les Patios 1er Etage,


Angle Av Anakhil et Av Ben Barka,
Hay Riad – Rabat,
Morocco
E-mail: contact@aderee.ma
a.dakkina@aderee.ma

Telephone: +212 (0)5 37 28 73 53


Assumptions
Well depth 40 m
Flow 50 m3 per day
Power of pump motor 1.7 KW
Power of panels 2 KWp
Cost of installation including all taxes 48,500 dirhams http://elfa-solaire.com/devis.html
Exchange rate 11 dirhams/€

Cost of a pumping system over time


Dirhams
Cost of panels
Cost of controller, motor and pump end
Cost of pumping system

Cost of a pumping system over time


Dirhams
Cost of panels
Cost of controller, motor and pump end
Cost of pumping system
Energy savings
Energy saving for a diesel pumping system 1,350 litres/year
Energy saving for a butane pumping system 1,650 litres/year
965 kg/year
Saving on bill for a diesel pumping system 13,082 dirhams/year
Saving on bill for a butane pumping system 3,218 dirhams/year

Calculation of payback time

Cost of pumping system


Payback time without diesel system subsidy
Payback time without butane system subsidy
Investment subsidy
Payback time without diesel system subsidy
Payback time without butane system subsidy

Calculation of payback time

Cost of pumping system


Payback time without diesel system subsidy
Payback time without butane system subsidy
Investment subsidy
Payback time without diesel system subsidy
Payback time without butane system subsidy
KINGDOM OF MOROCCO
Ministry of Energy, Mining, Water and Environment
Directorate of Observation and Planning