VZCZCXYZ0001
RR RUEHWEB

DE RUEHRB #1058/01 3121528
ZNR UUUUU ZZH
R 071528Z NOV 08
FM AMEMBASSY RABAT
TO RUEHC/SECSTATE WASHDC 9320
INFO RUEHCL/AMCONSUL CASABLANCA 4382
RUEHAS/AMEMBASSY ALGIERS 4921
RUEHTU/AMEMBASSY TUNIS 9735
RUEHMD/AMEMBASSY MADRID 6062
RUEHFR/AMEMBASSY PARIS 5134
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHMFIUU/DEPT OF ENERGY WASHINGTON DC

UNCLAS RABAT 001058 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR EEB, NEA/MAG, OES/STC AND OES/PCI 
DOE FOR EERE - PAUL DICKERSON 
USDOC FOR HQ/USFCS/USDOC/CS DG ISRAEL HERNANDEZ 
USDOC FOR 
3131/USFCS/OIO/RD/ANESA/CREED/GLITMAN/STAUHID I, 
HVINEYARD/MAC/ITA/USDOC, 
MICHELLEONEILL/OUS/ITA/USDOC 
 
E.O. 12958: N/A 
TAGS: ENRG SENV TRGY ETRD ECON EAID MO
SUBJECT: RENEWABLE ENERGY FOCUS OF DOE VISIT 
 
¶1.  (U) Summary: DOE/EERE Chief Operating Officer 
Paul Dickerson met with key government, industry, 
and development officials central to Morocco's 
efforts to expand its renewable energy portfolio and 
reduce its 96 percent dependence on imported energy 
sources during an October 28 visit to Rabat and 
Casablanca.  Dickerson explored options for U.S. 
firms to provide energy technology and products to 
Morocco and opportunities for investment, and 
invited further collaboration between DOE policy and 
technical experts and their Moroccan counterparts. 
End Summary. 
 
¶2.  (U) Dickerson briefed the Charge, ECON, FCS, and 
USAID representatives about the activities of the 
Department of Energy's Office of Energy Efficiency 
and Renewable Energy (DOE/EERE), noting that EERE 
can facilitate visits by foreign officials and 
researchers to U.S. labs to encourage efforts to 
promote renewable energy and energy efficiency. 
Dickerson highlighted EERE's work with the State of 
Hawaii to create an energy strategy aimed at 
producing 70 percent of energy needs locally by 
¶2030.  This approach, although designed for island 
states or nations fully dependent on imported 
energy, may have elements relevant for Morocco, 
which imports 96 percent of its energy needs, 
Dickerson observed. 
 
¶3.  (U) USAID reviewed for Dickerson its experience 
with energy efficiency/renewable energy projects, 
highlighting USAID's shepherding role in the 1982 
creation of a Center for Development of Renewable 
Energy (a project that required a USD 28 million 
investment).  A more recent activity is planned for 
later this year in collaboration with Harvard 
Business School that will engage students over a 
three week period to prepare an assessment of 
renewable energy strategies.  Dickerson expressed 
interest in forging collaboration between DOE and 
USAID in the renewable energy sector, for example in 
promoting U.S.-sourced energy technologies such as 
renewable energy-powered water pumping systems that 
may be recommended by the Harvard assessment. 
 
---------------------------------------- 
Development Bank Support to Green Energy 
---------------------------------------- 
 
¶4.  (U) African Development Bank (AfDB) Chief of 
Operations (Morocco) Herve-Marie Cariou and 
Financial Analyst Wadii Rais described for Dickerson 
AfDB's energy sector projects, key to the 
Infrastructure pillar of the AfDB's three-fold 
country strategy (the other two pillars are 
Governance and Social Services).  Energy sector 
projects account for 40 percent (USD 480 million) of 
the AfDB's total USD 1.2 billion portfolio of 
lending to Morocco.  This is divided into two 
projects.  The first is to bolster Morocco's 
electrical transmission interconnects with Spain and 
Algeria, a project nearing completion.  The second 
project supports the construction, training, and 
technical support for operation of a 470 megawatt 
(MW) combined cycle solar thermal electrical 
generation plant in Ain Beni Mathar (the project 
cost is shared by the Global Environment Facility 
(GEF) and Morocco's National Electricity Office 
(ONE)).  The plant will generate 20 MW from solar 
energy, and when completed is expected to be the 
first operational commercial combined cycle solar 
thermal plant in the world. 
 
¶5.  (U) The AfDB is currently developing a Clean 
Energy Investment Framework and action plan, pending 
board approval, to continue energy sector projects 
with a goal of minimizing environmental degradation 
and mitigating climate change.  Dickerson discussed 
EERE's interest in educating investors and 
governments about the variety of financial resources 
available through institutions such as the AfDB, as 
well as the Export-Import Bank and the Overseas 
Private Investment Corporation to support innovative 
projects in energy efficiency and renewable energy. 
 
---------------------------------------- 
Ministry of Energy Pushing Wind Projects 
---------------------------------------- 
 
¶6.  (U) Dickerson next met with Zohra Ettaik, the 
head of the Division of Renewable Energy and Energy 
Efficiency of Morocco's Ministry of Energy, Mines, 
Water, and Environment (MEMEE).  Ettaik noted 
Morocco's potential for renewable energy 
development, including 6,000 MW potential for wind 
energy generation, and high solar energy exposure 
with 3000 hours of sunshine per year.  Morocco has 
completed or is constructing almost 500 MW of new 
wind generation capacity, and expects private "self- 
generation" users to build another 1000 MW capacity 
by 2015 following implementation of new laws 
allowing self-generators to build up to 50 MW wind 
generators, and sell their excess to ONE. 
 
¶7.  (U) Ettaik described portions of Morocco's 
energy strategies for renewable energy and 
efficiency, including incentive tariffs for 
industrial and residential consumers to shift demand 
to off-peak hours (the regulations for which have 
just been published), and further study of extending 
daylight savings time to the entire year following 
Morocco's initial experiment with daylight savings 
time this summer.  Dickerson praised Egyptian 
success at saving energy through utilities providing 
more efficient bulbs at no cost to consumers, using 
savings in electricity subsidies to pay for the cost 
of the bulbs.  Ettaik explained that Morocco's 
Energy Ministry is finalizing such a program, paying 
local distributors 1 dirham per month (about 12 
cents) for each bulb they will purchase and provide 
freely to their consumers.  ONE has selected a 
French provider for light bulbs, but MEMEE has just 
issued a tender for suppliers of light bulbs to the 
smaller distributors who will participate. 
Dickerson asked if U.S. companies could compete for 
further Energy Service Company (ESCO)-type contracts 
to identify and implement energy savings in exchange 
for payment with the saved costs.  Ettaik noted that 
the new energy law under development in MEMEE may 
include that possibility, but the modalities and 
criteria for participation are not yet clear. 
 
¶8.  (U) Ettaik informed Dickerson that Morocco's USD 
1 billion Fund for Energy Development, endowed in 
part by USD 800 million in gifts from Saudia Arabia 
and the UAE, will begin operations in January 2009, 
under MEMEE's administration.  The "model 
convention" between MEMEE and the companies it will 
support is still under development, she 
acknowledged, but U.S. companies may be able to 
apply for funds for energy projects in Morocco. 
Finally, she noted, MEMEE intends to host a 
conference on the new energy strategy in January 
2009, and invites participation from the private 
sector (including U.S. firms) to debate and shape 
MEMEE's actions to develop Morocco's energy sector. 
 
¶9.  (U) Amal Haddouche, Director of the Center for 
Development of Renewable Energy (CDER), told 
Dickerson that Morocco is "at a crossroad" in its 
energy policy.  Public and political awareness of 
the advantages of renewable energy and energy 
efficiency have reached sufficient levels to spur 
actions.  Energy Ministry personnel used to have 
problems convincing politicians of the value of 
efficiency and renewables, Haddouche observed, but 
now politicians press the Energy Ministry to develop 
more renewable energy sources.  The new energy law 
under development should contain specific legal, 
regulatory and tax provisions to attract investment 
in the renewable energy sector, Haddouche predicted. 
Morocco has created several special investment zones 
throughout the country for clean energy development. 
So far, CDER has focused on attracting Spanish and 
German companies, but U.S. investment would also be 
welcome, Haddouche said.  CDER sees Morocco's 
geographic position as a driver of renewable energy 
development, if Morocco can become a supplier and 
transit point for energy commerce between European 
and African markets. 
 
¶10.  (U) The new energy law under development will 
also expand CDER's mandate to include promoting 
energy efficiency, Haddouche said.  CDER's 
reorganization will allow its regional offices to 
work more directly with private firms at identifying 
opportunities to increase efficiency and implement 
efficiency programs, particularly in Morocco's 
industrial sector.  CDER personnel would welcome an 
opportunity to learn from DOE experts on industrial 
efficiency, Haddouche noted.  Haddouche welcomed 
U.S. companies to participate in its energy 
efficiency projects, including through ESCO-type 
contracts.  She also encouraged U.S. firms to study 
the opportunities to work with the new Energy 
Development Fund to promote renewable energy and 
efficiency.  "We need more expertise" to meet 
Morocco's goal of reducing its energy use by 15 
percent, she stated. 
 
--------------------------------------------- 
ONE Supports Locally-sourced Energy Equipment 
--------------------------------------------- 
 
¶11.  (U) Dickerson next met with Tayeb Amegroud, 
head of Renewables Division and Driss Ouarraoui, 
counselor to the CEO on Energy Efficiency, of the 
National Electricity Office (ONE).  ONE plans to 
spend up to USD 1 billion in investments in the next 
5 years, including efforts to upgrade Morocco's 
electricity grid.  Amegroud further explained the 
self-generation provisions under ONE's "Energy Pro" 
initiative, modeled on the Kyoto mechanisms for 
promoting renewable energies, which supports self- 
production of up to 50 MW by heavy users, or a 
consortium of heavy users.  The Government of 
Morocco this summer raised the ceiling from 10 MW to 
50 MW to make the option more attractive to 
industry, and ONE now offers the option for these 
small producers of electricity to generate 
electricity away from their manufacturing plant 
site, feed it into the grid and recuperate it where 
it is needed.  This option, however, will also 
require further development of the electricity 
transfer infrastructure.   Because of the inadequacy 
and intermittency of supply of renewable origin 
(usually wind), ONE guarantees electricity supply to 
these self-producers, as well as the purchase of the 
excess production.  However, Ouarraoui noted that 
industrial users have no experience in energy 
efficiency and will need outside expertise to 
efficiently manage their energy production projects. 
 
¶12.  (U) Amegroud gave an overview of the new 
Chourouk initiative, which invites users to enter 
into a partnership agreement by which they offer the 
roofs of their buildings to ONE to install solar 
panels that will feed electricity into the grid. 
ONE has issued a pre-qualification tender for the 
supply of photovoltaic equipment.  The tender 
requires that the participating manufacturers of 
equipment commit to investing in a local 
photovoltaic panels production facility or in the 
manufacturing of other components of photovoltaic 
systems.  The government has created the KYOTO 
industrial pole in the Oujda region to host such 
activity. 
 
---------------------------------- 
CGEM Supporting Cleaner Production 
---------------------------------- 
 
¶13.  (U) Dickerson joined Said Mouline, the head of 
the Committee for Environment and Sustainable 
Development of the General Confederation of Moroccan 
Industry (CGEM) for a discussion of the Moroccan 
industrial sector's approach to energy efficiency 
and renewable energy.  Mouline is also the counselor 
on environmental issues to the CEO of the phosphate 
producer Groupe OCP, Morocco's largest corporation, 
and the head of the Moroccan Association of the 
Solar Industry (AMISOL).  Dickerson described DOE's 
support for the creation of Green Cities, such as 
the Masdar City project in the UAE, and Mouline 
reported that OCP is planning to convert a mining 
site in Khouribga into a new Green City project. 
Dickerson offered his office's support of resources 
and ideas for the Green City project, particularly 
regarding project management.  In addition to its 
Green City project, Mouline added, OCP is 
implementing 14 projects in energy efficiency at its 
different industrial sites. 
 
¶14.  (SBU) Comment: Energy efficiency and renewable 
energy are areas that Morocco recognizes have great 
potential to add to its energy supply, mitigate 
damage to its stressed environment, and create 
opportunities for GDP growth.  The criticality of 
both improving the efficiency of energy use and 
adding capacity was highlighted by last-minute 
intentional blackouts in Casablanca on November 3 
caused by excess demand.  However, the government 
and industry have not yet fully adopted a 
comprehensive approach to promote large scale 
efforts in either efficiency or renewable energy. 
The January 2009 review of Morocco's new energy 
policy, and the finalization and implementation of 
wind generation plans, the Fund for Renewable 
Energy, and incentives to promote private sector 
efficiency and renewable generation efforts, could, 
if effectively managed, alleviate Morocco's supply 
constraints and open new areas for economic activity 
and growth.  U.S. energy sector firms, with 
experience in implementing the types of projects 
that Morocco is now envisioning, may find 
opportunities to partner with Moroccan government 
and industry as Morocco takes new steps in energy 
efficiency and renewable energy.  End Comment. 
 
¶15.  (U) Mr. Dickerson did not have an opportunity 
to review this cable.