Innovative Energy Efficiency Instruments for the MENA Region

This consulting assignment, “Innovative Energy Efficiency Instruments for the MENA Region”, is a part of the overall GIZ project “Policy dialogue and knowledge management on low-emission development strategies in the MENA region” that ran from 2014 to 2021 to support the partner countries in the MENA region in identifying and implementing suitable policy instruments for achieving their climate-change-mitigation targets for subsectors. This assignment included two phases. Phase A was carried out to identify and assess innovative instruments’ potential relevance for promoting energy efficiency (EE) in five MENA countries. Phase B was carried out to design three instruments aimed at helping achieve long-term energy savings and demand flexibility in Jordan and to implement a pilot project involving the use of one of the three designed instruments with support from a local partner. The objective of the assignment was to support MENA countries in the design and implementation of cost-effective innovative EE policies, thereby helping accelerate the region’s energy transition and transform the region’s economy toward sustainability.

The two phases are being implemented consecutively. Phase A: Conducting a comprehensive study on innovative instruments for promoting EE in the MENA region Econoler conducted a comprehensive study on innovative instruments to help identify, evaluate, develop, disseminate and establish tailor-made and innovative solutions for promoting and improving EE in the MENA region by giving careful consideration to the current political and legal frameworks in the selected countries and by considering the financing mechanisms and funds available to EE measures.   After completing the comprehensive study, in coordination with GIZ, Econoler team delivered presentations covering the study results, findings and recommendations to the GIZ, the BMU and the selected stakeholders and decision-makers in the MENA region. Phase B: Developing a case study on the options for power-utility-managed energy-saving and demand-side-management measures for Jordan’s electricity system.   Phase B consisted of two sub-phases, as summarized below:

• Phase B.I: Developing a case study on the financial incentives for large electricity consumers

The Econoler team developed and assessed options regarding financial incentives for large electricity consumers connected to Jordan’s power transmission system to help improve demand-side increased flexibility and long-term energy savings. Following the review of these options by Jordan’s relevant authorities and receipt of these authorities’ written commitment to support a pilot project, Phase B.II was carried out.  

• Phase B.II: Providing assistance with a pilot project for implementing a mechanism for incentivizing large electricity consumers to achieve energy savings.

To properly carry out Phase B.II, Econoler developed a comprehensive report and detailed plan as well as provided support for implementing MEPS for industrial energy using equipment in Jordan. The results and findings were presented to the key stakeholders in Jordan to ensure their involvement.