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Developing the Concentrated Solar Power in MENA Region
Ms. Hela Cheikhrouhou
Division Manager
Infrastructure Finance, Private Sector Operations, AfDB
MENASOL Conference- Cairo, May 2010
Who We are
• AfDB is the Pan-African Multilateral Development Bank
• Infrastructure Finance, Private Sector Development, and Regional Integration are institutional top priorities
• AfDB leverages its AAA balance sheet to support the economic development in its regional member countries
• AfDB has consistently been a major financier to the Energy Sector in North Africa
• Originator for Clean Technology Fund Co-financings in Africa, along with WBG
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AfDB’s lending operations
AfDB has 2 lending windows: Public and Private
Public window
Governments or state owned enterprises
Sovereign
Concessionary terms
Private window
- Privately owned enterprises - “Financially strong”
government owned enterprises
Non sovereign
Commercial terms
Recipient
Guarantee
Financial terms
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• Senior Debt – tenor and currency adapted to project needs; debt arranging capacity:
– African Financing Partnership– DFI co-financing platform
– A-B Syndication Program– leveraging the AfDB Preferred Creditor Status
• Guarantees – partial risk, partial credit
• Subordinated Debt
• Equity – direct, or indirect (equity funds)
• Technical Assistance, incl. for carbon credits
The AfDB selects its private instruments
to meet investee company’s needs
Key Private Investment Selection Criteria
• Consistency with AfDB Strategy in the Regional Member Country
• Commercial Viability
• Expected Development Outcomes
• AfDB Additionality
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• Hydro Power• Wind energy • Co-generation• Geothermal• ... Solar Power (Mainly CSP)
The AfDB is actively building a pipeline of Clean Energy Investments across the Continent
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Project name Country Capacity (MW)
• Bujagali Hydropower IPP
Uganda 250
• Beni Matar Solar/Gas Thermal Power Station
Morocco250 MW 30 MW
Solar
• Kuraimat Solar/Gas Thermal Power Station
Egypt 150 MW
Sample Past Clean Investments :
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parabolic trough (PSA) solar tower (SNL)
linear Fresnel (Solarmundo) parabolic dish (SBP)
AfDB is working with North African Governments, IFIs and interested private investors to support Solar Energy Scale-up. Why?
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Areas physically favorable for CSP development (DLR,2005)
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196
10280
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CSP Wind Gas CCGT Simple Cycle GT
Levelized Costs of CSP technologies as compared to gas fired power plants (Unit: US$/MWh)
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Cost of CSP Power Generation by Location
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MENA region has amongst the best physical conditions
for solar power in the world
CSP is of particular interest to utilities due to scalability
and dispatch-ability
Exploiting the potential scale economics in MENA will
help accelerate global adoption of CSP through unit cost
reductions
Advantage of Solar Scale-up program in MENA (1)
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Growing strategic importance of renewable energy in the
Mediterranean and Gulf region including for regional
integration
Good potential for enhancing local content through
technology transfer
Possibility of “green” stimulus packages that create
employment through investment in transmission,
generation, and equipment manufacturing
Advantage of Solar Scale-up program in MENA (2)
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Renewable energy targets in North African countries
Algeria
2017: 5 % power generation based on renewable energy2025: 10 % power generation based on renewable energy250 MW CSP planned based on feed-in tariffs (300 % bonus-system)450 MW cogeneration
Egypt
2010: 3 % electricity demand from renewable energy2020: 20 % of the electricity from renewable energy, of which 12 %
from windPlanned feed-in tariff for smaller plants (wind, solar)
Morocco
2020 : 42 % contribution of renewable energy to electricity generationRenewable law approved by Council of Ministers- now due for
Parliamentary approvalTarget for CSP: 2000 MW by 2020
Tunisia2012: 4 % contribution of renewable energyInvestment incentives for renewable Feed-in tariffs and self-generation policy for renewables expected
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CSP Projects in Clean Technology Fund Investment Plan
Country No. of Projects
Location Capacity (MW) Est. cost (US$ million)
CTF Contribution (US$ million)
Algeria 3 MegahirNaama
Hassi R’mel II
807070
322285285
585151
Egypt 2 Kom OmboMarsa Alam[1]
7030
370270
5144
Morocco 3 Tan Tan[2]
Ain Beni MatharOuarzazate
50125100
240525440
359072
Tunisia 3 IPP-CSP ProjectELMED-CSPTunisia-Italy transmission
100100+
450450
1140
737340
Total 11 ~800 MW 4,800 640
[1] This is a project with 8 hr storage so the size of the solar field will be equivalent to a 60 MW project. [2] This is a CSP-desalination project
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Objectives & Rationale:• Increase the production capacity using clean energy
resources in order to secure the energy mix and reduce GHG emission
• Development and promotion of clean technology
• Possibility for Export of electricity to Europe
• There is possibilities to combined the technology with other renewable resources (Hybrid system)
• Possibility to benefit from the carbon credit
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Spain
Italy
400-kV
EgyptLibya
TunisiaAlgeria
Morocco
in usein project phase
HVDC (feasibility study)
3x220 kV 2x 220 kV
1x 150 kV2x 90 kV
2x220 kV 2x220 kV
New 400 kV transmission line
Possible Transmission lines within North Africa and to Europe
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Transmission Line
Length km
TechnologyCapacity
MWVoltage
kVStatus
Losses[
1]
%
CostsMio. US$
Morocco-Spain 60 HVAC 2x700 400 Existing 3.0 150
Algeria-Spain 240 HVDC 2x1000 400 Feasibility studies 2.4 650
Algeria-Italy 800 HVDC 1000 500 Feasibility studies 5.0 975
Tunisia-Italy 400 HVDC 500 400 Feasibility studies 3.1 780
Libya-Italy 580 HVDC 1000 400 Feasibility studies 4.0 650
[1] Losses of HVDC: based on NorNed
Parameter overview for transmission lines
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Summary:
In order to enable the implementation of the CSP Projects there will be need for:
• Concessional Financing• Clear policy (national & international)• Costs reduction by increasing production of unit
number• Local production• Capacity building
