Brussels, 16/10/2013 (Agence Europe) - The Desertec Industrial Initiative (Dii) consortium, a project for a network of solar power plants in North Africa and the Middle East, is organising a conference in Rabat (Morocco) on 30-31 October on energy in the desert. The consortium's objective is to promote synergies - including with the Union for the Mediterranean (UfM) - for the production of electricity from important renewable energy sources - particularly solar energy, of which the region has plentiful supplies. The conference will make it possible to verify the validity of the large solar development projects in the region, whose initial objective is to target the European market, even if that goal is slowly fading.
Different types of power plant are in the planning or development stage, and Dii essentially believes that there remains much to do to create an interconnected electricity grid and to guarantee an open market in Europe, North Africa and the Middle East. The objective is ambitious but doubts are coming to light as to the future of renewable energy and the ambitious projects planned in the different countries of the region.
Created in 2009, Dii is a cluster of industrial partners which acts autonomously. The name Dii refers to the Desertec foundation, which is dedicated to promoting renewable energy as part of civil society. However, there is currently confusion as to the designation of the two structures. Dii, for its part, aims to forge industrial partnerships in the production of renewable energy. Its objective is primarily to satisfy the growing internal demand for electricity in the countries of the Africa-Mediterranean area, without excluding the supply of excess production to Europe in the long term, states the CEO of Dii, Paul van Son.
Contradictory explanations are sometimes given about the latter aspect, and this has aroused confusion. The doubts stem from the fact that van Son supposedly said in June that he “recognised” that the initial approach of the project - to supply Europe with 20% of its electricity needs - was a one-dimensional vision - based on the sole objective of exporting to Europe - and was to be abandoned. He admitted that Europe could support up to 90% of its own demand for electricity and did not at that stage need to import.
Questioned by EUROPE, van Son states that Dii “has always been coherent since its beginning in November 2009”. The project must, he says, “rather highlight the development of the desert's renewable energy for the local population, and perhaps also for sale on foreign markets, including Europe” but only “if there is demand or good prices on the foreign markets.”
Planning to supply Europe would indeed seem to be premature: “In particular, I observe that there is currently overcapacity of production in Europe and a certain lack in North Africa”. Sales should therefore rather be in the North-South direction. He mentions the example of Spain “which exports to Morocco and not the other way around”. In van Son's opinion, “time is needed for exports from the MENA region to Europe to become really substantial” and for exportable levels to be reached. He also says that the extension of grid connections must be accelerated between the European market and the countries of the Maghreb. Achieving this will be “very important to facilitate the market in one way or another”. Time is also needed to develop capacity before exports to Europe become interesting from a market point of view, van Son states.
This point of view highlights the Mediterranean's weak capacity of export to Europe. By extension, it could be induced that the feasibility of the Mediterranean solar plan remains to be proven while those who initiated it are still in search of resources to finance it. The weakening of this conviction - to exploit the tremendous resources of the South to sell on the market of the North, the European market, and “to supply it with sustainable energy” - could also temper the enthusiasm that accompanied the implementation of the fairly large plants in Ouarzazate (Morocco) financed partly by the EU, and those of smaller capacity planned in Algeria and Tunisia - all of which were conceived with the European market in mind. It can already be seen that the objective of targeting the European market has gradually moved to second place in the official speeches. In October 2012, the German giant Siemens announced it was withdrawing from solar energy and that it had decided to concentrate its renewable energy activities on wind and hydroelectric power. This period could almost be called a significant anniversary date.
All this comes against a backdrop of ten large European energy groups calling on the European Commission to abolish public subsidies to renewable energy (like wind) to the benefit of gas plants. AFP confirms this trend of abandoning solar energy. “Investment in renewable energy in the world dropped by 20% in the third quarter, with Germany even dropping to the lowest level since 2004, according to statistics published on Monday” 14 October, AFP states (our translation). Among the discouraging factors, Bloomberg highlights the political uncertainty in Europe, the temptation for shale gas in the USA, the brake on investment in solar and wind energy in China, and a general weakening of political resolve in several countries. (FB/transl.fl)