Concentrated Solar Power in Middle East and North Africa 9 June
2011 Philippe Roos ([email protected])
Slide 2
Clean Technology Fund (CTF) A Climate Investment Fund (CIF)
Low-carbon technologies with potential for long-term savings of
greenhouse gas emissions Financing for demonstration, deployment
and transfer of such technologies Donor countries pledged over $6
billion to CIFs Funds to be disbursed as grants, highly
concessional loans or risk mitigation instruments Donors include US
($2bn), UK ($1.4bn), Japan ($1.2bn), Germany ($800m), France
($300m), Norway ($200m), Spain ($150), etc. 2
Slide 3
Why MENA, Why CSP? Middle East & North Africa (MENA),
amongst the world's best conditions for CSP Abundant sunshine, low
precipitation, plenty of unused flat land close to road networks
and transmission grids Close to Europe, where green electricity is
much valued Concentrated Solar Power (CSP), a technology of choice
for climate change mitigation: Still expensive, but with
unexploited economies of scale and economies of experience Proven
technology, utility friendly Transferable to developing countries,
for both energy and manufacturing 3
Slide 4
A Long Term Vision 201520202050 MENA CSP CapacitySeveral
hundred MW Several GW Several dozen GW Cost of CSP++++++ Cost of
fossil fuels/CO2++++++ Concessional finance for CSP MENA++++0
Export market++++ Domestic market+++ 4
Slide 5
The CTF Investment Plan Supporting the development of the first
gigawatt Generation projects in 5 countries Algeria, Egypt, Jordan,
Morocco, Tunisia At least $4 billion First project under way:
tranche 1 of the 500 MW Ouazarzate complex in Morocco Selected
transmission projects Jordan, Tunisia $1.6 billion Intra-MENA
optimization, exports to Europe 5
Slide 6
CTF Contribution Endorsement by Trust Fund Committee in
December 2009 $750 million earmarked Funds to be channeled through
World Bank Group (IBRD, IFC, MIGA) and African Development Bank
(AfDB) Highly concessional terms and conditions 40 year maturity,
10 year grace period 0.25% service fee 6
Slide 7
Financing the Plan CTF contribution Public & private
sponsors: national utilities & IPPs Public & private
lenders: multilateral & bilateral donors, commercial lenders,
ECAs Guarantees and risk mitigation instruments 7
Slide 8
Challenges Implementation of policy and regulatory environment
in MENA and EU Arranging suitable financing package for each
project 8
Slide 9
Opportunities Security of supply for non oil producers,
increased export potential for oil producers Export of electricity
to Europe Local manufacturing Job and wealth creation Export of
components 9
Slide 10
Local Manufacturing World Bank commissioned study carried out
in 2010 by Ernst & Young and the Fraunhofer Institute
Significant manufacturing potential in the region Strong
manufacturing base (auto and aero subcontracting) Major CSP
technology manufacturers already involved in 3 ongoing hybrid CSP
projects in the region (Morocco, Algeria, Egypt) Target components
Construction and civil works Mounting structures Non-CSP-specific
elements (piping, cables) Then, mirrors and possibly float glass
Later, production of receivers 10
Slide 11
Impact on Local Economies Increased local content Job creation
up to 80,000 by 2020-2025 11
Slide 12
Conclusion A key technology for climate change mitigation and
security of energy supply in the region Many challenges but
implementation of the investment plan is under way To bridge the
financial gap, efforts are required on all fronts: MENA countries,
donors, European Union Local manufacturing, for much needed job and
wealth creation Opportunities for project developers and equipment
manufacturers 12