IN-DEPTH: MENA eyes alternative energy hub

Countries in the Middle East and North Africa are increasingly seeing CSP as an opportunity to expand their energy portfolio.

By CSP Today staff writer

The twin crises of climate change and peaking oil have led to a general willingness to develop a renewable energy economy.

But while the MENA region has taken some decisive steps over the last couple of years to expand its energy portfolio, the rationale has been quite different from elsewhere in the world.

More than climate change and oil demand, it is factors like water scarcity and population growth rate that need to be addressed in this region.

The move towards solar power generation in the MENA region could ultimately be motivated by the need to provide an infinite source of energy to meet the endless demand for clean and renewable water, according to Samer Zureikat, managing director, MENA Cleantech.

Energy demand, perfect conditions and significant capital investment opportunities all continue to make this region a highly attractive place for solar technologies.

The approach of some of the markets has been very positive. For instance, Abu Dhabi is working on a plan to position itself as “the international hub for alternative energy”. It has embraced a broad portfolio of solar technologies including CSP.

As well as feeding power into the grid in Abu Dhabi, the authorities are also looking at developing renewable energy projects with in-country partners. For instance, Torresol Energy, a joint venture between Masdar and Spanish engineering group Sener, has already finalised plans for three solar power plants in Spain with an approximate combined value of €800 million.

Solar exports a step closer

In addition to meeting its own energy needs, solar power from this region is also significant in the context of supplying Europe.

Solar Power generated in the MENA region could also be delivered to Europe and thereby strengthen the economic and social stability in that particular region,” said Christoph Fark, managing director, Schott Solar CSP GmbH.

Fark added that higher solar irradiation compared with southern European countries allows it to achieve lower levered electricity costs.

Solar Millennium, which through its subsidiary Flagsol is already working on Eygpt’s first parabolic trough solar field, believes that due to the higher solar radiation in North Africa, a solar thermal power plant located there could generate three times the energy possible in Germany, for the same investment.

To secure energy supplies in Europe, it could be possible to cover 10% to 25% of European energy demand using solar thermal power plants in the MENA region by 2050,” Solar Millennium's spokesperson Sven Moormann told CSP Today in an interview earlier this year.

Importing energy from solar thermal power plants in North Africa would enable Europe to secure its power supply on a long-term basis through a greater mix of different energy sources.

Gathering momentum

A majority of countries in the MENA region have realised the vast potential of solar power and the role it could play in their energy mix.

However, until recently, solar power technologies could not survive outside of their regional ‘incentive-scheme environment’ in order to be competitively deployed in the MENA region,” added Zureikat.

Jordan, Egypt, Algeria and Morocco all have support schemes for renewable energy at various stages of development and implementation, said Zureikat. He added that Abu Dhabi is also a pioneer in the deployment of CSP and thin-film technologies, even though it is not doing so under a legislative scheme.

Projects

include Abu Dhabi Future Energy Company’s (Masdar) plant at Madinat Zayed. Masdar has indicated that the construction of this CSP plant in Abu Dhabi is now estimated to cost about $520 million to $550 million.

The company, which is expected to start commercial operation of the Shams 1 CSP plant in 2011, will award the main construction contracts soon. Last year, Masdar had asked for bids to build, own and operate a 100MW CSP plant in Madinat Zayad. But it decided to delay the process before calling for new bids earlier this year.

According to Zureikat, CSP has the potential to play an active role in the MENA markets today as most innovations are driving down costs and improving robustness.

At the same time, new electricity market regulation in countries such as Jordan, Egypt, Morocco and Algeria is creating space for independent power producers relying on renewable energy sources to play a role in that sector, added Zureikat.

Power of CSP

Studies by the German Aerospace Center (DLR) show that, within 40 years, solar thermal power plants in particular will be capable of generating economically more than half of the electricity needs of the EUMENA region (Europe, the Middle East and North Africa) at that time.

In order to meet today’s global power demand of 18,000 TWh/year, it would suffice to equip about 0.3% of the world‘s deserts (about 90,000 sq km) with solar collectors. About 20 sq metres of desert would be enough to meet the individual power demand of one human day and night.

CSP, CPV and Thin Film Summit MENA

Samer Zureikat, managing director of MENA Cleantech, and Christoph Fark, managing director of Schott Solar CSP GmbH, are scheduled to speak at the CSP, CPV and Thin Film Summit MENA, scheduled to take place in Abu Dhabi on June 2–3 this year.

For more information, click here:

http://www.newsolartoday.com/mena09/agenda.shtml

or Contact: Sara Lloyd-Jones by email sara@csptoday.com