ALGERIA TO SEND SUN TO EUROPE

Algeria expects EU New Energy producers will be unable to build the infrastructure to generate 20% of European electricity from New Energy sources by 2020 despite the best incentives policies in the world. Algeria is betting that when the EU sees it cannot reach its goal, it will help pay for a cable across the Mediterranean to carry Algerian solar power plant-generated electricity at least as far as Spanish and Italian markets.

Spanish solar energy authorities apparently believe the Algerians' bet is smart because they are partnering on the solar power plants.

Luis Crespo, secretary-general, Spanish solar energy group Protermo Solar: “We’re talking about all of Europe getting 20% of its primary energy from renewable sources in 2020 – for that, it’s certain that Europe will have to count on the importation of clean energy from Africa…”

EU nations will presently not pay the higher price for North African solar energy-generated electricity to fund the new long distance transmission because they are subsidizing their own solar and wind industries with feed-in tariffs.

Chakib Khelil, Oil Minister, Algeria: “That’s the problem. I said, ‘Would you give me the 30% (premium) you give to renewable energy? They said no, it’s only applicable to Europeans…”

But Algerian conglomerate NEAL and Spanish solar energy giant Abengoa are investing in a solar/natural gas plant in Algeria in anticipation of a bigger prize, the opportunity to harvest Algeria’s enormous resources when the transmission by which they can be delivered is developed.

Trans-Mediterranean transmission? Sounds pretty ambitious. Is it possible?

Luis Crespo, Protermo Solar: “The answer is completely unqualified - it’s possible to export solar electricity to Europe. The technology is already in use…”

The Trans-Mediterranean Renewable Energy Cooperation (TREC) is making plans. 2000-megawatt cables designed to link North Africa with the EU grid were supposed to be laid alongside two new natural gas pipelines connecting Algeria to Spain and Sardinia. Construction began in April on one of the pipelines but, so far, no cables.

The good news: Obviously if pipeline can be laid, so can cable.

And there is a hedge in this bet. OPEC nations are growing as rapidly as any population in the world and are already struggling to keep up with their own natural gas demand. North Africa could end up keeping its sun at home and and leave the EU to find another source of energy.

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Algeria harvesting solar energy with eyes on Europe market
14 May 2008 (Dow Jones Newswire via Gulf Times)

WHO
Luis Crespo, secretary-general, Spanish solar energy group Protermo Solar; Badis Derradji, executive director, NEAL

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WHAT
Algeria is building solar power plants to take advantage of its enormous solar energy assets and studying the possibility of building high voltage transmission across the Mediterranean to supply Europe with solar powered electricity.

WHEN
- This will be Algeria’s 1st attempt at large scale solar power production.
- The Abengoa/NEAL hybrid plant will come online in 2010.
- Algeria’s goal is obtaining 10% of its power from New Energy by 2030.

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WHERE
- Algeria sees Spain and Italy as markets for its solar energy.
- Morocco, Egypt and Algeria are building hybrid solar/natural gas plants pioneered 2 decades ago in California.

WHY
- Algeria’s hybrid solar/natural gas plant will get 34 megawatts of its 150-megawatt capacity form solar energy. The $315 million plant is 66% owned by Spanish solar energy giant Abengoa and 34% owned by NEAL, an Algerian consortium.
- Algerian solar potential: 169,000 terawatt-hours/year. Total European forecasted electricity demand in 2020: 3,500 terawatt-hours/year.

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QUOTES
- Chakib Khelil, Oil Minister, Algeria: “There’s no question we want to do it: we have the space for it, we have the (solar) radiation…”
- Franz Trieb, solar researcher, Institute of Technical Thermodynamics: “It’s a beginning. The entrance of solar into such a (technologically) conservative environment - it’s a first step…”
- Badis Derradji, executive director, NEAL: “We’re looking at this as a pilot project to start getting involved in solar but eventually we aim to become among the leaders. We don’t want to miss the train…”
- Shokri Ghanem, head, Libyan oil policy: “We have an abundant supply of sun I think one day we will be exporting solar energy instead of oil. We would love to, but right now, it’s the economics.”