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Posts Tagged ‘Morocco’
GIM Releases New Case Study on Solar Energy in Morocco

About the author

Wafa Elgarah is an Assistant Professor at Al Akhawayn University in Ifrane, Morocco and Academic Coordinator of the Post-experience Graduate Programs. She holds a PhD in Management Information Systems from University of Central Florida, USA and an MBA in Marketing and Management from University of North Texas, USA. Her research has appeared in outlets such as Data Base for Advances in Information Systems, Communications of the AIS as well as numerous international research conference proceedings. Prior to joining academia, Dr. Elgarah worked in several companies where she played key roles in IT based projects and new products and services marketing initiatives. Her research interests include Decision Support Systems, E-government and Design theories.

About the case study

About two million people live without access to electricity in Morocco, mostly in remote rural areas where scattered and unevenly distributed homes make their connection to the national power grid difficult. As a solution, the National Office of Electricity (ONE) opted for a decentralized system of electrification using renewable energies, and initiated several programs, one of them called Maison Energie (ME).

The program was launched in 1997 with the objectives of providing renewable energy access to remote areas, lowering the use of wood and hence protecting the environment, and creating employment and income generating opportunities in rural areas. A ME (Energy House) is a micro-enterprise that commercializes various forms of solar energy including photovoltaic systems, solar water heaters and ovens in rural and peri-urban areas. Owners of the micro-enterprise are local young entrepreneurs, who also provide installation and maintenance services.

The program is supported by UNDP in collaboration with many partners including the Center for Renewable Energy Development (CDER), the Ministry of Energy and Mines (MEM), ONE and several other private and public organizations and associations involved in selecting, training and supporting these entrepreneurs.

300 self-sustainable MEs were fully operational as of 2009, and there is an estimated potential for 2,000 to 4,000 MEs in both rural and urban areas. In addition, the program has generated about 1,000 permanent jobs and between 3,000-4,000 temporary positions. So far, about 43,000 photovoltaic kits have been installed, and it is estimated that 16,000 photovoltaic installations would result in a savings of 32,000 tonnes of CO2 over 10 years compared to traditional energy sources.

To download the Maison Energie case study from the GIM database, please click here.

 
GIM Releases New Case Study on Microfinance for Liquefied Petroleum Gas in Morocco

About the author

Wafa Elgarah is an Assistant Professor at Al Akhawayn University in Ifrane, Morocco and Academic Coordinator of the Post-experience Graduate Programs. She holds a PhD in Management Information Systems from University of Central Florida, USA and an MBA in Marketing and Management from University of North Texas, USA. Her research has appeared in outlets such as Data Base for Advances in Information Systems, Communications of the AIS as well as numerous international research conference proceedings. Prior to joining academia, Dr. Elgarah worked in several companies where she played key roles in IT based projects and new products and services marketing initiatives. Her research interests include Decision Support Systems, E-government and Design theories.

About the case study

In many developing countries, including Morocco, there is still a high dependence on traditional biomass fuel in rural areas, which has many negative consequences, such as deforestation, greenhouse gas emissions, health issues and gender inequality. Liquid Petroleum Gas (LPG) represents a safe and clean alternative to traditional energy sources. The “Liquid Petroleum Gas Rural Energy Challenge” was launched in six pilot countries as a partnership between the United Nations Development Programme (UNDP) and the World LP Gas Association (WLPGA) with the aim of providing access to clean energy through use of LP Gas, improving standards of living in rural areas and creating a viable and commercially sustainable LP Gas market. In Morocco, the programme, launched in 2005, was coupled with a microfinance initiative aimed at financing new or existing LPG-based businesses. Three LP Gas operators contributed funds and technical assistance to the initiative and a microfinance institution, the Zakoura Foundation, joined to manage the loan process. 135 loans were given to small and micro businesses in different sectors such as hotels, restaurants and artisans, totaling USD 135,200. In addition, the project is empowering women, who represent about 27% of loan holders, and increased awareness in rural areas about the dangers and health hazards of using traditional biomass fuels. The use of LPG also decreases air pollution due to smoke generated by burning traditional biomass fuels, and reduces illegal cutting of wood from forested areas.

To download the Microfinance for LPG case study from the GIM database, please click here.

 
Q&A with Brahim Allali, author of Promasol and Temasol case studies (Morocco)

Brahim Allali is a Professor at HEC Montreal where he teaches Entrepreneurship and Small Business Management as well as International Strategic Management. Dr. Allali holds an Msc in International Business, another one in Banking from ITB-CNAM (France), and a PhD degree in Business Administration from HEC Montreal affiliated with the University of Montreal. Before dedicating himself to teaching, research, and consulting, Doctor Allali had spent many years working in industry and banking. He is also a Consultant with many international organizations such as the WTO, the World Bank, International Trade Centre, and Islamic Centre for Development of Trade. Doctor Allali has published two books: “Audit-export” and “Vision des dirigeants et internationalisation des PME”, as well as many scientific and professional papers. He has also given many presentations on Entrepreneurship, Small Business Management, Corporate entrepreneurship, and International Development.

TEMASOL is a joint-venture between the oil and electricity French companies TOTAL and EDF created in 2002 within the framework of a national program championed by Morocco’s National Electricity Office aiming at electrifying rural regions of the country through renewable sources of energy.

To download the TEMASOL case study from the GIM database, please click here.


PROMASOL was launched in 2002 by the Moroccan Ministry of Energy and Mines to promote the market of Solar Water-Heaters (SWHs) in Morocco through quality improvement and certification, awareness raising campaigns, and training and certification of qualified solar water-heaters’ installers.

To download the PROMASOL case study from the GIM database, please click here.


What is the basic value proposition of TEMASOL and PROMASOL?

In Morocco, only 12% of rural homes had access to electricity until 1994 when the government, through the National Electricity Office (ONE), decided to expand access to electricity in rural areas. As ONE could not cost-effectively supply grid-based electricity to all rural homes because of their remoteness, it decided to delegate electricity distribution in these areas to a few subcontractors.

TEMASOL was awarded the largest concession thanks to the expertise of its parent companies and its partners both in solar energy and in rural electrification. The success of TEMASOL in supplying the first 16,000 households with photovoltaic kits encouraged ONE to grant it new contracts to supply electricity to more than 58,000 scattered homes and hamlets in 29 provinces. More than mere access to a brighter lighting, access to electricity provided by TEMASOL has brought to these people the right to enjoy better welfare and productivity.

As for PROMASOL, it strives to democratize access to solar water-heaters (SWH) in Morocco. Indeed, for a country with 3,000 hours of sun per year (5.5 kwh/m2/day), continuing to almost totally depending on imports for its energy needs would seem a real paradox. Moreover and in addition to reducing the burdensome energy bill and reallocating the country’s limited resources towards developmental and social projects, having recourse to solar energy entails many unquestionable benefits at economic, environmental and social levels.

What were some of the challenges hindering TEMASOL’s development and growth and how did the company overcome them?

TEMASOL faced many challenges such as cash-flow difficulties due to late payments, high upfront capital cost, local agents’ training costs, increasing costs induced by rapid growth, lack of local capacity, difficulty of doing R-D, and the absence, in the contract with ONE, of a provision permitting to adjust prices to follow costs fluctuations. TEMASOL managed to overcome most of these challenges thanks to technical assistance provided by its parent companies EDF and TOTAL, the physical presence in rural areas of the company’s agents to collect monthly fees from customers and provide after-sale services to end users, and subsidies received from the Moroccan government through ONE. However, no solution has been found yet to the problem of the price adjustment mechanism.

What was the role played by the UNDP in PROMASOL?

PROMASOL is a key component of a comprehensive program initiated in 1997 involving UNDP and the Moroccan ministries of Agriculture, Environment, and Energy and Mines (MEM) with a view to preserving environment, strengthening sustainable development, and promoting renewable energies. In this context, PROMASOL was assigned the mission of promoting the solar water-heater (SWH) market in Morocco while other programs have been striving for implementing solar-energy-based solutions in other fields such as hammams heating (traditional steam rooms) and rural electrification through photovoltaic systems.

In this context, PROMASOL was created after a funding agreement was signed in 2001 between the Moroccan MEM, and the UNDP. Its management was entrusted to the Center for Development of Renewable Energies (CDER) within the framework of cooperation between the MEM, the FGEF, the UNDP, and other partners. Its cost amounted to USD 43,270,000, of which UNDP directly contributed USD 250,000, in addition to USD 500,000 within the framework of a UNDP-funded project on environment protection and natural resources management.

What role do the Moroccan government and the National Electricity Office play in these two models?

In the TEMASOL project, both the Moroccan government and the National Electricity Office (ONE) played a critical role in creating a conducive environment to starting the business and providing the initial opportunity for its development. The government decided to expand access to electricity to rural areas and allotted the necessary funds to finance such an ambitious program. ONE made it come true by subcontracting its implementation to companies such TEMASOL and tightly supervised the whole process since its inception.

Regarding the PROMASOL program, it was instigated by the government through the Ministry of Energy and Mines and implemented by the Center for Development of Renewable Energies.

Based on these two experiences, what are the prospects of mainstreaming solar energy in Morocco and beyond?

The success of all solar energy projects in Morocco such the ones implemented by TEMASOL and CDER (PROMASOL), has encouraged the Moroccan authorities to launch even more ambitious solar projects. In this respect, a solar energy project worth USD 9 billion which officials said will account for 38% of the country’s installed power generation by 2020. The project will involve five solar power generation sites across Morocco and will produce 2,000 megawatts of electricity by 2020.

What has been your personal experience going through the GIM training and case research process?

Before participating in the GIM training on writing cases that took place in Bratislava, Slovakia, in July 2009, I had written several successful cases dealing with managerial and organizational situations some of which had been published in scholarly journals. This is to say that I was not expecting to learn new things during the Bratislava workshop. However, the case research process presented during the workshop was so effective and so helpful that I started using it since then and until now in writing new cases. For instance, a few months after the Bratislava workshop, I was hired by Industry Canada to write six case studies on small-large firms’ strategic alliances. The new-learned method proved extremely effective in collecting, selecting, organizing, and analyzing data. The output was of such an excellent quality that Industry Canada officially congratulated me.

In addition to the new case method, the GIM training taught me to always consider the social, economic as well as environmental impact of situations that I study in addition to their challenges and constraints.