Desertec Industries Enabling Desertec in EUMENA

13. Kölner Sonnenkolloquium

Paul van Son Desertec Industries

Cologne, 29.06.2010 = 300 x 300 km

Frank Shuman (pioneer in applying parabolic trough technology in desert): 'One thing I am sure of and that is that the human race must finally utilize direct sun power or revert to barbarism'

1912 first installed parabolic trough collector by Shuman in Meadi, Egypt (produced the equivalent of 55 horsepower) Shuman planned to install no less than 20,250 square miles of reflectors in the Sahara World War I and the discovery of new oil fields stopped his plans

Setup Mission

Dii was founded in October 2009 as Pave the way for the Desertec private sector initiative by 12 industrial concept companies and the Desertec Create broad acceptance in MENA foundation countries In March 2010, four additional Long-term target of the Desertec shareholders joined Dii concept: Cover a substantial part of Broad and diverse international the MENA electricity demand and expertise throughout EUMENA 15% of the European demand by 2050 Based on broad acceptance Pragmatic approach, step-by-step Timeline: Three years

17 Shareholders 20 Associated Partners

In cooperation with associations and other industrial initiatives: ENTSO-E, ESTELA, OME, TRANSGREEN, MEDRING, MSP, etc.

'What has to be done to cover 15% of the European and substantially more of the MENA demand with power from sun and wind in 2050?'

Create a favorable Propose and specify Develop a long term Perform additional regulatory / legis- concrete reference rollout plan until 2050 studies as needed, e.g. lative environment projects Ramp up – 2020/ Demand Markets for Representative of outlook 2050 development. Renewable Energy the Desertec from MENA concept High level 'Business Cost roadmap plan' for desert Framework for Demonstrate power Technology survey electricity industry systematic feasibility Grid concept Framework for etc. investments

Concept phase Creating conditions Projects phase

Deliverables Detailed description of Create a favorable regulatory Project realization and the concept environment investments by partners Technical feasibility Propose and specify concrete and parties in the market studies reference projects (e.g. in MOR, TUN) Develop a long term rollout plan until 2050 Perform additional studies as needed (e.g. grid concept)

Key players NGOs and Research External stakeholders Project developers Institutes (DLR, CoR, EC, EU/MENA governments, Technology providers DESERTEC Foundation) other industrial initiatives Investors Various German Shareholders and partners ministries, e.g. BMU, BMWi, etc.

Possible electricity transmission routes for reference projects What is a Dii reference project?

1. Reflect the key aspects of the overall Desertec concept Identify best resource areas and adequate mix of generation (solar, wind) Investigate benefits for MENA (local supply, jobs, knowledge transfer) Identify robust transmission paths for export of MENA renewable energy electricity to EU Organize offtake in EU (Art. 9, flexible cooperation mechanisms) 2. Reference project clusters to be large enough to justify grid upgrade new construction to tap best resource site areas 2-3 large site locations Per site up to 1 GW Intensive talks to all other North African and 3. Technical, economical and regulatory roll-out Middle East countries continued potential

Relevant technologies to be applied for Desertec

CSP PV Wind power HVDC

~820 MW 1) ~20 GW ~158 GW ~100 GW

Des- Concentration of Direct conversion of Conversion of wind to Power transmission cription sunlight to generate sunlight into electric electricity by wind over large distances heat / steam energy turbines Selected reinforce- Steam drives turbine Can be applied with Applicable on- and ment of existing and generates power 2) tracking system offshore transmission grids Pros & Is dispatchable Can operate in Low LCOE compared Only ~3% transmission Cons with storage diffuse light to other renewables loss per 1,000 km High efficiencies Easy to maintain Requires low amount Large investment costs Requires large Requires large of land / sea amount of land amount of land Offshore turbines Needs direct solar No economical challenging to install radiation electricity storage and connect to grid XX = worldwide installed (sunbelt) solutions available yet Requires correction of capacity (status 2009) forecast deviation 1) With around 2 GW currently under construction 2) No steam turbine use for Stirling dish © Dii GmbH June 2010 9 How to reach competitiveness of Renewable Energy from the deserts? Drivers for competitiveness of desert power

Accelerated cost degression of CSP, PV, wind and HVDC systems

Break- even of desert power compared with conventional power: between 2020-2030

Rising fossil Rising environ- fuel price mental costs

Dii will strive for viable solutions with experts from ENTSO-E, Transgreen, Offshore North Sea grid and other initiatives or institutions Reinforcement of integrated grid infrastructure needed for EUMENA

Several bottlenecks and 'gaps' shall be solved (e.g. Pyrenees, Morocco, Tunisia-Italy, etc.) Source: MED-EMIP

Approach of MEDRING study

1 Spain – France Accelerate capacity increase of link

2 2 Tunisia – Italy Accelerate construction of a interconnection line (should allow transport of pure renewable energy)

HVDC transmission China HVDC transmission Congo Connecting EUMENA

1,700 km

1,400 km 1,700 km

HVDC has only ~3% transmission losses per 1,000 km >90% of the world‘s population living less than 3,000 km away from deserts

1. Stimulation Bridge the gap between costs of renewables and market prices until competitiveness is achieved

2. Markets / Grids Power grids and markets to facilitate connection of Optimal split between local major power sources and demand areas in EUMENA and EU consumption to be determined

3. Investment conditions Create broad acceptance in MENA countries and establish favourable conditions for large scale investments

The sun does its work already, sending abundant energy to the deserts every day. Now it will be our turn to make better use of it! Let's start... www.dii-eumena.com