The Desertec Industrial Initiative (DII) may generate up to $90 billion per annum for the Middle East and North Africa (MENA) region by selling electricity to Europe.

Consulting company A.T. Kearney has reportedly said if the project is implemented and becomes successful, it will translate into an investment/payback ratio of 1:5.

The firm reportedly said solar thermal power is one lever to reduce the expected supply demand imbalances in the Middle East, and it estimates the total imbalance for the year 2020 will be around 4.5 GW in Abu Dhabi only.

A consortium of 12 of Europe’s largest blue chip firms has already signed a Memorandum of Understanding in Munich for the initiative. The DII planning entity is to be established as a GmbH (limited liability company) under German law by 31 October 2009.

The objective of this initiative is to analyse and develop the technical, economic, political, social and ecological framework for carbon-free power generation in the deserts of North Africa.

Read more: Desertec