INVESTING IN RENEWABLE ENERGY: THE GEF EXPERIENCE

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INVESTING IN RENEWABLE ENERGY: THE GEF EXPERIENCE ( investing-in-renewable-energygef-experience )

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Solar hot water systems on roofs CASE STUDY: TUNISIA—SOLAR WATER HEATING OUTCOMES By contributing 35 percent of the cost of investment before tax in solar water heaters (including installation), the GEF grant, together with Belgian cofinancing, helped incentivize users to invest in solar water heaters rather than in conventional, less environmentally friendly water heating technologies. During project implementation, solar water heater installations tripled: about 80,000 m2 (56 MW) of solar water heater panels were installed, of which 51,060 m2 (35 MW) were installed in the framework of the project. The CO2 emission reductions that can be attributed to the GEF project amount to about 25,000 tonnes annually. Good quality control and system maintenance mechanisms in place will ensure efficient and effective ongoing operation. Project Title: Solar Water Heating in Tunisia GEF Agency: World Bank GEF: US$4.0 million Cofinancing: US$16.9 million Dates of Implementation: 1994–2004 OBJECTIVE The project aimed (1) to help Tunisia encourage substituting solar energy for fossil fuels in public and commercial private institutions in order to mitigate global warming by maximizing CO2 displacement, and (2) to demonstrate solar water heating’s potential to reduce global warming. Solar thermal power The most significant technology to have received GEF support is CSP technology. The GEF has supported three countries and a global project to harness the potential of solar thermal power. The projects were funded with US$149 million of GEF resources and leveraged US$890 milliion in confinancing. They will lead to the installation of an electric capacity of 70 MW. The GEF, in partnership with the World Bank, developed a portfolio of three CSP demonstration plants in Mexico, Morocco, and Egypt. The projects built solar fields, typically of 30 MW, as part of hybrid gas-turbine plants. Successful hybridization of gas turbine and solar power plants enables such projects to dispatch power at will, making them more economically attractive. However, these projects have progressed very slowly, indicating that the technology did not meet with the enthusiastic uptake originally anticipated. Only recently have new plants been planned and constructed in developed countries, most notably in Spain, where generous incentives were provided through a high feed-in tariff for solar energy. Spurred by these activities, the projects in Egypt, Mexico, and Morocco are moving forward. 14 THE GLOBAL ENVIRONMENT FACILITY

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