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1 Developing the Concentrated Solar Power in MENA Region Ms. Hela Cheikhrouhou Division Manager Infrastructure Finance, Private Sector Operations, AfDB.

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Presentation on theme: "1 Developing the Concentrated Solar Power in MENA Region Ms. Hela Cheikhrouhou Division Manager Infrastructure Finance, Private Sector Operations, AfDB."— Presentation transcript:

1 1 Developing the Concentrated Solar Power in MENA Region Ms. Hela Cheikhrouhou Division Manager Infrastructure Finance, Private Sector Operations, AfDB MENASOL Conference- Cairo, May 2010

2 Who We are AfDB is the Pan-African Multilateral Development Bank Infrastructure Finance, Private Sector Development, and Regional Integration are institutional top priorities AfDB leverages its AAA balance sheet to support the economic development in its regional member countries AfDB has consistently been a major financier to the Energy Sector in North Africa Originator for Clean Technology Fund Co-financings in Africa, along with WBG 2

3 3 AfDB’s lending operations AfDB has 2 lending windows: Public and Private Public window Governments or state owned enterprises Sovereign Concessionary terms Private window - Privately owned enterprises - “Financially strong” government owned enterprises Non sovereign Commercial terms Recipient Guarantee Financial terms

4 4 Senior Debt – tenor and currency adapted to project needs; debt arranging capacity: –African Financing Partnership– DFI co-financing platform –A-B Syndication Program– leveraging the AfDB Preferred Creditor Status Guarantees – partial risk, partial credit Subordinated Debt Equity – direct, or indirect (equity funds) Technical Assistance, incl. for carbon credits The AfDB selects its private instruments to meet investee company’s needs

5 Key Private Investment Selection Criteria Consistency with AfDB Strategy in the Regional Member Country Commercial Viability Expected Development Outcomes AfDB Additionality 5

6 6 Hydro Power Wind energy Co-generation Geothermal... Solar Power (Mainly CSP) The AfDB is actively building a pipeline of Clean Energy Investments across the Continent

7 7 Project nameCountryCapacity (MW) Bujagali Hydropower IPP Uganda250 Beni Matar Solar/Gas Thermal Power Station Morocco 250 MW 30 MW Solar Kuraimat Solar/Gas Thermal Power Station Egypt150 MW Sample Past Clean Investments :

8 8 parabolic trough (PSA) solar tower (SNL) linear Fresnel (Solarmundo) parabolic dish (SBP) AfDB is working with North African Governments, IFIs and interested private investors to support Solar Energy Scale-up. Why?

9 9 Areas physically favorable for CSP development (DLR,2005)

10 10 Levelized Costs of CSP technologies as compared to gas fired power plants (Unit: US$/MWh)

11 11 Cost of CSP Power Generation by Location

12 12  MENA region has amongst the best physical conditions for solar power in the world  CSP is of particular interest to utilities due to scalability and dispatch-ability  Exploiting the potential scale economics in MENA will help accelerate global adoption of CSP through unit cost reductions Advantage of Solar Scale-up program in MENA (1)

13 13  Growing strategic importance of renewable energy in the Mediterranean and Gulf region including for regional integration  Good potential for enhancing local content through technology transfer  Possibility of “green” stimulus packages that create employment through investment in transmission, generation, and equipment manufacturing Advantage of Solar Scale-up program in MENA (2)

14 14 Renewable energy targets in North African countries Algeria 2017: 5 % power generation based on renewable energy 2025: 10 % power generation based on renewable energy 250 MW CSP planned based on feed-in tariffs (300 % bonus-system) 450 MW cogeneration Egypt 2010: 3 % electricity demand from renewable energy 2020: 20 % of the electricity from renewable energy, of which 12 % from wind Planned feed-in tariff for smaller plants (wind, solar) Morocco 2020 : 42 % contribution of renewable energy to electricity generation Renewable law approved by Council of Ministers- now due for Parliamentary approval Target for CSP: 2000 MW by 2020 Tunisia 2012: 4 % contribution of renewable energy Investment incentives for renewable Feed-in tariffs and self-generation policy for renewables expected

15 15 CSP Projects in Clean Technology Fund Investment Plan CountryNo. of Projects LocationCapacity (MW)Est. cost (US$ million) CTF Contribution (US$ million) Algeria3Megahir Naama Hassi R’mel II 80 70 322 285 58 51 Egypt2Kom Ombo Marsa Alam [1] [1] 70 30 370 270 51 44 Morocco3Tan Tan [2] [2] Ain Beni Mathar Ouarzazate 50 125 100 240 525 440 35 90 72 Tunisia3IPP-CSP Project ELMED-CSP Tunisia-Italy transmission 100 100+ 450 1140 73 40 Total11~800 MW4,800640 [1][1] This is a project with 8 hr storage so the size of the solar field will be equivalent to a 60 MW project. [2] This is a CSP-desalination project[2]

16 16 Objectives & Rationale: Increase the production capacity using clean energy resources in order to secure the energy mix and reduce GHG emission Development and promotion of clean technology Possibility for Export of electricity to Europe There is possibilities to combined the technology with other renewable resources (Hybrid system) Possibility to benefit from the carbon credit

17 17 Possible Transmission lines within North Africa and to Europe

18 18 Transmission Line Length km Technology Capacity MW Voltage kV Status Losses [ 1] [ 1] % Costs Mio. US$ Morocco- Spain 60HVAC2x700400Existing3.0150 Algeria-Spain 240HVDC2x1000400 Feasibility studies 2.4650 Algeria-Italy 800HVDC1000500 Feasibility studies 5.0975 Tunisia-Italy 400HVDC500400 Feasibility studies 3.1780 Libya-Italy 580HVDC1000400 Feasibility studies 4.0650 [1][1] Losses of HVDC: based on NorNed Parameter overview for transmission lines

19 19 Summary: In order to enable the implementation of the CSP Projects there will be need for: Concessional Financing Clear policy (national & international) Costs reduction by increasing production of unit number Local production Capacity building


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