Will solar development survive in North Africa and Middle East?

In recent weeks the world has seen a dramatic change in the political structure in North Africa and Middle East. With all eyes of the world on the region the question remains what does the future economy hold and what does this mean for investment and the development of solar projects.

On first impression you are lead to think that solar energy development has been put to the back burner as these countries prioritise socio-economic stability, but that would not be telling the full story. There are two strong influences which have meant solar development is still on track in 2011.

Firstly, with the price of oil reaching $120 a barrel earlier this year and the fact that it has only dropped to $114 this week means the world is fast realising the vulnerability of relying on oil to meet the majority of our energy demands. Secondly, the nuclear power debate has been resurrected following the events in Japan, further promoting the use of alternative energy sources to meet our increasing power demands.

Dii a unique private industry joint venture, with the aim of exporting power to Europe have taken the perspective that the on-going transitions may perhaps delay their work temporarily, but they remain confident that it will not have any negative impact on the joint ambition to contribute to long-term prosperity by making better use of sustainable energy from the deserts.

Quite the contrary, they are convinced that the significance of large-scale renewable development for the local population and for export to EU will even grow, regardless of the political scenario. Desertec is also about the development of new industries in MENA, about investments, the creation of jobs and the transfer of knowledge and know-how.

Paul van Son, CEO of Dii will be speaking more about this at MENASOL 2011 taking place 4-5 May in Morocco. This is a key event in the solar calendar as senior level executives attend to  gain critical market intelligence on the region and network with government officials and industrial heavyweights.

Heidi Hafes, Event Director of MENASOL 2011 said ‘We are daily communication with the CSP and PV industry and are acutely aware of the lucrative opportunities the North Africa and Middle East region presents these companies. That is why MENASOL 2011 remains an important forum that facilitates valuable business knowledge and making important connections. We are pleased to say that the some of the delegates already confirmed include ABB, Siemens, Abengoa, Applied Materials, Dow, Alstom, Areva, BP Solar, Schott Solar, Total, Taqa Arabia, which illustrate the point that solar in this region continues to be important to their business and is being pursed.

For more information contact:

Heidi Hafes

Event Director
CSP, CPV & Thin Film Today
heidi@csptoday.com
+44 207 375 7206

http://www.csptoday.com/solar-conference

World Bank Mobilizing $5.6 Billion for CSP in North Africa

Morocco gets solar energy backing

The Clean Technology Fund Trust Fund Committee (CTF TFC) has endorsed the Investment Plan for Concentrated Solar Power in the Middle East and North Africa Region, which aims at mobilizing $5.6 billion (including $750 million from the CTF) to accelerate deployment of 1 GW of Concentrated Solar Power (CSP) generation capacity, doubling the worldwide CSP installed capacity.

Morocco is the country with the largest proposed capacity in the MENA CSP CTF IP. The first plant to be developed under the CSP scale-up initiative is the 500 MW Ouarzazate plant in Morocco, which is the largest proposed CSP plant in the world.

Source:  Bikywmasr.com

The Sahara Could Provide Europe with Electricity

The Sahara gets twice as much sunshine annually as most of Europe. The European Union wants to get 20 percent of its electricity from renewable sources within a decade. So why not build solar power plants across North Africa and ship the electricity north via power lines under the Mediterranean?

Over the past year, more than 30 European companies have joined the Desertec Industrial Initiative, a consortium that seeks a $560 billion investment in North African solar and wind installations over the next 40 years. The group is completing a feasibility study and hopes to be building its first power plant by 2013.

A separate group of companies called Transgreen, formed in July, is working on plans for the thousands of miles of high-voltage lines needed. The challenge is immense: Winning agreement from very different countries on two continents to carry out one of the biggest infrastructure projects in history.

Construction contracts

Many backers are eager for a share of rich construction contracts. They include engineering outfits such as Germany's Siemens and Swiss-Swedish group ABB and solar companies Abengoa Solar of Spain and First Solar of Arizona. Giant Italian utility Enel wants to rely less on Russian gas, and German insurer Munich Re sees the project as a hedge against damage from global warming.

"We are creating a large network of allies with complementary interests," said Desertec boss Paul van Son, a former Dutch utility executive.

There's little doubt that Sahara sun can power Europe. Cables already carry electricity under the Mediterranean - though the power flows from Spain to Morocco. And after years of false starts, scores of large-scale solar power plants are being built or in advanced planning stages, from the American Southwest to the Mideast.

"There is now a good track record," said Bernd Utz, head of Siemens' renewable energy division.

With the technology the consortium plans to use, solar-powered electricity costs at least four times as much per kilowatt-hour as power from coal- and gas-fired plants, according to Bloomberg New Energy Finance, an analysis group. Governments have used subsidies to support alternate energy companies until their costs are more in line with oil and gas. The United States awarded a $1.45 billion loan guarantee in July to reduce financing costs for the planned Solana power plant in Arizona, at 280 megawatts one of the world's largest.

The Sahara project envisions generating capacity equal to almost 400 Solanas. Where would the financing come from? Desertec and Transgreen member companies so far have put up less than $10 million for feasibility studies. They want Europe's governments to require utilities to pay more for Sahara-generated energy, a preferential arrangement that European countries use to spur solar and wind energy development at home.

Trouble is, Germany and Spain are reducing these rates, which the utilities often pass on to customers. The depth of political support in North Africa is another issue. Morocco, Tunisia, and Egypt back the project. Algeria wants to develop solar plants on its own. Some European critics, meanwhile, see a case of overreach.

"European countries can develop faster and cheaper than Desertec a renewable energy supply from indigenous sources," said Hermann Scheer, a member of the German Bundestag who heads Eurosolar, a solar research and advocacy group in Bonn.

Even Europe's sunniest regions, though, don't get enough sun to generate power as efficiently as in North Africa, says Abengoa Solar Chief Executive Officer Santiago Seage.

Room for mirrors

The Sahara's ample space is crucial because plans call for fields of mirrors, totaling hundreds of square miles, at more than 20 locations. The mirrors would concentrate the sun's rays to create heat and drive turbines - a technology known as concentrating solar power or CSP, that allows heat to be extracted and stored gradually so electricity is generated continuously. Plans also call for solar photovoltaic and wind turbine generators, whose energy costs less to produce than concentrating solar power but yet don't offer storage capacity.

"For utilities, CSP is a much more robust product," Seage said.

As the consortium feels its way forward, some European countries could strike bilateral deals with North African suppliers. Morocco, for example, has announced plans to build solar plants for its own use. Because Morocco's government can't afford the subsidies that would make solar power feasible inside its own borders, it might team up with Spain or France to help with financing in exchange for a share of output, suggests Logan Goldie-Scot, a London analyst with Bloomberg New Energy Finance.

"The (Desertec) project will happen," he said, but "it's likely to be a series of small projects."

Source:  This article appeared on page D - 5 of the San Francisco Chronicle

To Read more click here:

Integrating Solar: CSP and Gas Turbine Hybrids

An interesting move to increase solar integration is underway in North Africa and the Middle East, where a number of CSP and gas-fired combined cycle hybrids are under development.

Integrated Solar Combined Cycle (ISCC) technology aims to draw the environmental benefits of solar energy together with the operational advantages of a 'conventional' gas turbine-steam turbine combined cycle plant. While the solar resource partially substitutes fossil fuels, the installation can also supply energy to the grid whenever it is required. In addition, by taking advantage of the existing infrastructure associated with the development of a conventional thermal power plant – including but not limited to site access, power transmission links and a steam turbine power island – the economics of the concentrating solar thermal component are likely to be significantly enhanced.

In a combined cycle plant, the high temperature exhaust gas from the turbine is passed through a heat recovery steam generator from which high-pressure steam is used in a steam turbine. Such installations are now operating at above 50% efficiency and the technology is well proven. In ISCC installations, additional thermal energy from the solar collector field is effectively injected into the heat recovery steam generator (HRSG) of a conventional combined cycle plant. This boosts steam production and consequently electrical output. It also potentially allows CSP to be easily integrated into conventional fossil-fired thermal plants at relatively low extra cost.


Source:   Renewable Energy World               Read the full article here.
by David Appleyard, Associate Editor

Emerging Solar Markets in North Africa and Middle East

The UN, World Bank, African Development Bank, IFC, and League of Arab States were just a few of the speakers at MENASOL 2010 held in Cairo on May 4-5. Over 250 solar professionals attended not only from the MENA region but many international companies in Europe and the USA. The key reason for all delegates to attend was to get the inside track on how to finance, develop and build utility scale solar projects in the MENA region.

A clear message from all the speakers was that the solar potential for the regions was immeasurable and was defiantly shaping up to be the leading region that could harness the solar power and develop a booming industry for either domestic use or export to Europe.

The biggest European initiatives including the DESERTEC Foundation and Mediterranean Solar Plan outlined the bright future that could make Morocco, Algeria, Tunisia and Egypt the powerhouse for the rest of Europe.

It would not be fair to mention the recent activities in Saudi Arabia that which are pro actively working towards creating a solar industry as big or even bigger then the oil sector. An impressive statement, but with the government and private companies sharing the same vision, Saudi Arabia could once again be a leading energy provider.  And it doesn’t stop there as they are also looking at being a manufacturing base to supply the  PV and CSP community.

The future of solar for each country was discussed by government agencies and ministries and the practicalities of developing this projects were discussed by leading players such as Abengoa, Acciona as well as top research institutions such as DLR which gave the full picture on capacity building in region and how these projects can transform the education and employment of a country.

Obviously lots of steps need to be taken as there are many challenges that lay ahead, including the security for international investment, subsides & regulations. All of these were discussed and created interesting debate among the participants during the panel discussions and Q&A.

Heidi Hafes, Event Director,  New Solar Today said ‘The high level of participation and mix between the commercial and private sector was key to making this event so successful for those involved. Governments were able to use it as a platform to attract investment and businesses were able to develop the company strategy for the region. It is a well known fact that building relationships is fundamental to generate business, and even more so in the region…and having spoken to many of the participants this was definitely achieved.’

MENASOL 2010 has defiantly created some excitement for the solar industry and offered a realistic perspective of what the future holds for the MENA region.

    For more information or if you would like to purchase the presentations please contact:
Heidi Hafes, Event Director, New Solar Today

+44 207 375 7206
heidi@newsolartoday.com