READYING AFRICA FOR BIG SUN

Creating fertile ground for CSP in the desert
Jason Deign, 1 July 2010 (CSP Today)

"North African nations such as Algeria and Morocco are ideally located for [Concentrating Solar Power (CSP) solar power plants]. But they will need to offer a lot more than sunshine in order to satisfy investors…

"Juan Alario…the European Investment Bank’s head of Renewable Energies…holds the key to €5 billion in [CSP] finance…[W]hen referring to North Africa his counsel is not directed at CSP operators, but authorities…[because] developing solar power [requires]…a clear regulatory framework, clear permits and permitting processes, and access to networks and sufficient [network] capacity…[and] North African countries have problems in all these…"

The EU is dying to buy into this sun. (click to enlarge)

"…[North Africa has excellent natural assests but a] region has to offer more than just flat land and sunshine…Alario says North African countries should go as far as possible in ensuring investors only have to shoulder the technical risks of a CSP project.

"One simple measure governments can take, for example, is buying energy in dollars so investors do not face exchange rate worries…. States could go even further and carry out their own environmental studies on proposed CSP sites, so projects do not get nixed in advanced stages of development…"

EU investors will build the transmission if North African nations can guarantee the safety of the investment. (click to enlarge)

"In North Africa, these states theoretically have a big incentive to make CSP work…However, CSP has its rivals…[A]dministrations in oil-rich nations may be swayed to fund hybrid projects instead of pure CSP as a way of appeasing the petrochemical industry…[but] if solar can provide cheap and efficient energy then that would allow oil to be diverted to other, potentially more profitable uses…

"If…early projects…pave the way for stronger support of solar energy, and the political will to introduce a favourable, durable regulatory framework, then investment is likely to follow…Alario insists the European Investment Bank is keen to mobilise cash to back North African projects that can feed into the Mediterranean Solar Plan…"