MENA Concentrated Solar Power (CSP) Investment Plan. Jonathan Walters Sector Manager, Energy and Transport Middle East and North Africa World Bank. Areas physically suitable for solar energy . Favorable for Concentrated Solar Power (CSP) Worth considering for CSP.
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MENA Concentrated Solar Power (CSP) Investment Plan Jonathan Walters Sector Manager, Energy and Transport Middle East and North Africa World Bank
Areas physically suitable for solar energy Favorable for Concentrated Solar Power (CSP) Worth considering for CSP
Why solar energy is important for Middle East & North Africa (MENA)? • Industrial diversification and job creation • First mover advantage in an industry starting to take off • For oil & gas producers: free up oil & gas for higher value added uses • For oil & gas importers: energy security • Export to high-paying green electricity markets in Europe
Why MENA’s scale-up is globally important? • MENA and South Western USA/Mexico offer best solar resources; land, infrastructure and market access • Therefore economies of scale can be achieved most effectively in these two regions, and then deployed elsewhere • So major contribution to climate change mitigation
Investments in Renewable Energy (US $ billion) 6.5
Clean Technology Fund (CTF) financing • A new multi-billion fund ($5 billion pledged so far) managed by World Bank for climate change mitigation to finance “transformational” projects • Terms are very concessional; 40 year term, 10 yr grace, 0.25 % service fee, zero interest rate, for renewable energy projects • MENA representatives in CTF Trust Fund Committee: Egypt and Morocco
The CTF MENA CSP Investment Plan • Scale-up investment plan includes about 1 GW at cost of $6-8 billion ($4 billion for generation, $2-4 for transmission) • Accelerate global market momentum • Projects in Morocco, Algeria, Tunisia, Egypt, and Jordan • Cross-border transmission infrastructure included through projects in Jordan and Tunisia • Investment Plan to be submitted for Trust Fund Review by end 2009 • Financing from CTF (up to $750 m), development agencies, Clean Development Mechanism, and private sector
Financial Analysis Methodology • Comparison of expected levelized energy costs for different financing packages and rate of return expectations • Key Assumptions • Estimates based on a 100 MW plant without storage • 22.5% Capacity Factor • US$ 4000/kW capital costs • US$ 10/ton carbon credit carbon revenues
Proposed Financing Plan * of which US$ 4 billion for generation projects
Objectives of Tunis Meeting • Agree to work as development partners • Confirm scope of the Investment Plan • Agree to mobilize financing by Spring 2010
Next Steps after Tunis • Finalize the Investment plan based on feedback from Tunis meeting • CTF Trust Fund Committee review in December 2009 • Donor coordination to confirm financing by Spring 2010
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