Countries Targeted

Countries of the Southern and Eastern Mediterranean.

Partners

Lead organizations: European Commission (EC), Center for Mediterranean Integration (CMI), World Bank.

Other partners: Agence Française de Développement (AFD), Association of Mediterranean Energy Regulators (MEDREG), Association of Mediterranean Transmission System Operators (Med-TSO), European Bank for Reconstruction and Development (EBRD), Fraunhofer-Institute for Systems and Innovation Research ISI, Mediterranean Association of National Agencies for Energy Management (MEDENER), Observatoire Méditerranéen de l’Energie (OME), Union for the Mediterranean.

Regional Context

Whilst the Mediterranean region is one of the most vulnerable regions to the effects of climate change, it is also the region with one of the best potentials for climate mitigation. The region is an ideal place for renewable power generation, given its abundant solar and wind resources, its stock of unused flat land and its proximity to international markets with ambitious emission reduction targets—namely the European countries. Developing the vast renewable energy potential of the Southern shore would be beneficial as it would enable both Northern and Southern countries to meet their CO2 reduction objectives at the least cost.

Using large amounts of renewable energy requires flexible power systems. The creation of an integrated Euro-Mediterranean regional electricity market would contribute to power system flexibility, as it would increase the area over which supply and demand would be balanced in real time, making it less likely that resources would be unavailable when needed. 

Objectives

The overall objective is to support the transition to a low-carbon economy in the Mediterranean by (i) disseminating knowledge on how to succesfully achieve low carbon growth in the Mediterranean and (ii) raising awareness on the benefits of Mediterranean energy market integration.

To reach this objective, in 2015 the CMI launched the Mediterranean Forum on Electricity and Climate Change, a discussion platform among countries, international organizations, regulators and electricity companies. Forum events cover issues such as the role of Mediterranean integration in the implementation of the Paris Agreement, the benefits of regional energy market integration for renewable energy scale-up and barriers to building interconnectors to achieve Mediterranean energy market integration.

Selected Outcomes

Increased understanding of the opportunities and implications of the European union “clean energy for all Europeans” package

In partnership with the European Commission and building on the workshops organized as part of the Mediterranean Forum on Electricity and Climate Change since the European Commission proposed the “Clean Energy for All Europeans” Package in late 2016, the CMI published a briefing paper “Clean Energy for All Europeans” Package: Implications and Opportunities for the Mediterranean.

The aim of this paper is to inform Southern and Eastern Mediterranean countries about the opportunities offered by the Package and the implications for their electricity markets. It explores options for larger cooperation between Southern and Eastern Mediterranean countries and European Union Member States and outlines possible actions for non-EU Mediterranean countries interested in cooperating with the European Union in the electricity sector. A first draft of the paper was presented to the members of the Forum on April 10, 2019 to collect their feedback and comments; the paper was then published in August 2019.

Mediterranean policymakers informed and engaged on the issue of fiscal reforms for low carbon growth

In partnership with the World Bank, the CMI organized a workshop (Marseille, France, October 18-19, 2018) to (i) discuss fiscal reforms that are critical for a low carbon energy transition in the Mediterranean and (ii) share country experiences and knowledge on the design of fiscal reforms conducive to the energy transition.

The discussions were structured around three main themes: energy subsides and their impacts on public investment and growth, environmental tax reforms and their implementation, and the use of support schemes to promote renewable energy resources. Participants in the workshop, which included representatives from finance ministries from the South of the Mediterranean, agreed that this workshop was effective in guiding them in their on-going process of carbon price reforms.