North Africa and Middle East Solar Country Profiles

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North Africa and Middle East Solar Country Profiles Morocco In November 2009, Morocco announced an ambitious solar programme, to install 2 GW of solar capacity by 2020.

Energy Minister Amina Benkhadra has said Morocco is open to all kinds of partnership to achieve the goals.

1 North Africa and Middle East Solar Country Profiles Morocco In November 2009, Morocco announced an ambitious solar programme, to install 2 GW of solar capacity by With a combination of PV and CSP providing 20% of the country s electricity.the estimated cost will be $9 billion. Energy Minister Amina Benkhadra has said Morocco is open to all kinds of partnership to achieve the goals. In line with this the Moroccan Agency for Solar Energy (MASEN), a public-private venture, has been set up to lead the project. The project consists of five power generation sites that will produce 2000MW of electricity, with a combined surface area of 10,000 hectares, in Ouarzazate, Ain Bni Mathar, Foum Al Oued, Boujdour and Sebkhat Tah. The five power stations will account for 38% of Morocco s installed power generation by MASEN will accept bids by individual firms or companies teaming up in consortiums. Pre-qualification bids being invited are for the construction of one or more thermo-solar units with a capacity of at least 125MW at the planned complex, near the southern town of Ouarzazate. The Ouarzazate solar independent power project, is in the more distant pipeline a 500 MW plant whose EPCs should be awarded in the second quarter of The country is currently commissioning its first ISCC project, the 470 MW plant at Ain Beni Mathar, which will have a 20 MWe solar component. The installation features a 180,000 m² solar field, with 224 solar collector assemblies in 56 loops. Abener, in collaboration with Abengoa Solar and Teyma have engineered, designed and built the plant under the terms of a turnkey contract with Moroccan state energy company ONE. Overall Morocco s solar plan means big-ticket contracts could be up for grabs from major European, mainly French energy concerns, such as GDF Suez; oil giant Total; Areva, which specializes in building nuclear plants, and St. Gobain which manufactures mirrors and photovoltaic panels. Algeria Algeria currently claims 2.28 MW of installed solar, and 73.3 kw of wind. Algeria s national goal is to meet 6% of its energy demand from renewables by 2015, with 200 MW wind, 170 MW solar thermal, 5.1 MW solar PV by 2015, plus 450 MW of cogeneration. One solar thermal plant is under construction, and two Integrated Solar Combined Cycle (ISCC) hybrid plants, each with 70 MW of CSP, will be developed between 2010 and The 320 million ($440 million) 150 MWe Hassi R Mel Project is being built on behalf of New Energy Algeria (NEAL) by two Abengoa subsidiaries: Abener and Abengoa Solar. The project will adjoin an existing Sonelgaz power station at Tilghemt. At approximately 180,000 m², the two parabolic solar fields will comprise 224 parabolic collectors (Solucar) in 56 loops and the solar contribution is estimated at some 20 MWe. The solar installation will work in conjunction with two 42 MW SGT-800 gas turbines and a 80 MW SST-900 steam turbine, supplied by Siemens. Algeria s largest private company Cevital is planning to build an $8 billion solar power complex to export renewable electricity to Europe. The plant will be able to generate about 2000MW of power, which is similar to what a mid-sized nuclear power station in the U.S. produces. The company is now seeking foreign investors to help fund the project.

Tunisia Tunisia plans to implement 40 solar energy projects within a public-private partnership over the 2010-2016 period.

In addition, Clean Development Mechanisms (CDM) will generate approximate 130 million euro revenue (240 million dinars) for 10 year-period (on the basis of 10 euro per tonne).

2 Tunisia Tunisia plans to implement 40 solar energy projects within a public-private partnership over the period. The plan will allow an estimated CO2 emission reduction of 1,300,000 tonnes per year. In addition, Clean Development Mechanisms (CDM) will generate approximate 130 million euro revenue (240 million dinars) for 10 year-period (on the basis of 10 euro per tonne). Targeting an annual energy saving of 660 ktep, that is 22% of the overall forecast for Tunisia s energy consumption reduction by 2016, the Tunisian Solar Plan confirms the country s ambition to become an international hub for energy production and exportation and its commitment toward sustainable development. The private sector has started this initiative as Mitsui Engineering aims to build a tower-type concentrated solar power plant (CSP) with 5 megawatts capacity in El Borma in southern Tunisia, following a feasibility study planned early next year, under a joint project of the Japanese and Tunisian governments. The El Borma plant will be coupled with a 39 MW gas turbine combinedcycle plant, which combines gas and steam turbines to generate power more efficiently. The Japanese government, which announced initial plans for the project in July, has said operation is expected to start around The project, led by Japan s trade ministry, is aimed at helping Japanese companies gain know-how in CSPs, seen as a key next-generation technology to turn plentiful desert sunlight into electricity. Egypt In February 2008, Egypt s Supreme Council of Energy approved a plan for the country to produce 20% of its electric power from renewable sources by A new electricity act, currently undergoing consultation, will go some way to facilitating this. Currently, independent power producers sell to the EEHC, but the new electricity law will allow private companies to sell their output directly to consumers. The new law will also include a feed-in tariff for renewables. Egypt s first large-scale solar development is 90 km south of Cairo at Kuraymat. The solar component of the ISCC plant is being built on behalf of the NREA by Solar Millennium. The Egyptian Electricity Ministry has unveiled plans to build a new $700m 100MW solar power plant between 2012 and 2017 that should further establish the country as one of the leading developers of utility-scale solar plants. It would be the second major solar plant in the country as Egypt edges towards the target of generating 20% of its energy from renewables by According to reports in the local Al-Ahram newspaper, the solar power project at Kom Ombo, near the Aswan High Dam hydro-electric plant, will be financed by a number of international institutions, including the African Development Fund and the World Bank. Additional finance is also expected to be provided through the UN s Clean Development Mechanism (CDM) carbon offsetting scheme. The project is part of a five-year plan running from designed to establish the Egypt as one of the top generators of solar energy in North Africa, electricity ministry undersecretary Aktham Abou el-ella told news agency Reuters. The vast majority of Egypt s power is currently provided by natural gas-fired power stations, with a small percentage coming from large scale hydroelectric plants on the Nile delta.

Jordan Jordan currently generates 1.5% of its power from renewable sources, and its policy is to reach 7% by 2015 and 10% by 2020. Pipeline projects suggest that Jordan is thinking big.

3 Jordan Jordan currently generates 1.5% of its power from renewable sources, and its policy is to reach 7% by 2015 and 10% by Pipeline projects suggest that Jordan is thinking big. In January 2010 a new Renewable Energy Law was passed, under which the National Electric Power Company (NEPCO) will be required to purchase all electricity produced by independent and small-scale renewable plants at full retail price. Ziyad Jibril, Head of the Energy Ministry s renewable energy department, also confirmed that NEPCO will be required to cover the cost of connecting renewable energy projects, whether wind farms, solar energy stations or other technologies, to the grid. In concentrating solar thermal power, MENA Cleantech has its first solar project in the pipeline: the 100 MW JOAN1 project is expected to enter operation in 2013 and will be the largest CSP project in the world using direct solar steam generation. In a recent interview, MENA Cleantech founder/ceo Samer Zureikat said he hopes to have the contracts in place for this project by the end of 2010 and to commission the plant in Back in October 2009 it was announced that JOAN1 will use Ausra s reflector technology. Saudi Arabia While it has not developed significant renewable energy as yet, Saudi Arabia does plan to develop solar over the next 5 10 years, even expressing ambitions to export solar energy, according to media reports. As part of its solar programme, Saudi Arabia is focusing on solar water desalination. Typically oil fuelled, there are 28 or so desalination plants, which supply some 70% of the country s drinking water as well as electric power. However, solar desalination using various solar technologies has been trialled and operated at small scale in various parts of the world. First Energy Bank has announced the establishment of a world class polysilicon production facility, the first of its kind and scale in the region, which is to be located in the Kingdom of Saudi Arabia. The $1 billion project will cover a total area of approximately 375,000 sq m in Al Jubail Industrial City 2. The project, is expected to start production in It will have a total production capacity of 7,500 tonnes per annum. It is expected that future expansion of the project facility (in second phase) would include investments in downstream sector such as manufacturing of ingots, wafers, cell and modules.

United Arab Emirates The UAE, led by initiatives of Abu Dhabi, have taken a leading role in providing clean energy in recent years, both within the region and elsewhere largely through the Masdar

Abu Dhabi has a target of achieving 7% of its generation capacity from renewable sources by 2020 In June 2010, Masdar appointed a consortium of Total and Abengoa Solar as a partner to own, build and

4 United Arab Emirates The UAE, led by initiatives of Abu Dhabi, have taken a leading role in providing clean energy in recent years, both within the region and elsewhere largely through the Masdar Initiative and its component parts. Abu Dhabi has a target of achieving 7% of its generation capacity from renewable sources by 2020 In June 2010, Masdar appointed a consortium of Total and Abengoa Solar as a partner to own, build and operate what will be the world s largest CSP plant and the first of its kind in the Middle East, Shams 1. Located about 120 km southwest of Abu Dhabi, Shams 1 will cover an area of 2.5 km², with a capacity of approximately 100 MW. Its solar field will consist of 768 parabolic trough collectors, which will be supplied by Abengoa Solar. Construction is due to begin later this year and to take two years. The project is registered under the United Nations Clean Development Mechanism (CDM) and is eligible for carbon credits. This is the first CSP plant registered under the CDM and the second project registered for Masdar. Oman Oman targeted 2010 to take bids for concentrated solar plant as it seeks to meet $800 million demand for new energy generation. The government of Oman is reviewing six pilot projects to harness energy from wind and solar, as well as recruiting international advisers to conduct a feasibility study for a large solar plant. The news comes as the government is establishing policies to encourage renewable energy as a way to spur economic development, according to the Times of Oman. This year Oman will float a tender this year for its first large-scale renewable energy project, a concentrated solar power (CSP) plant expected to generate between 50 and 200 megawatts (MW) of power. The Government actively promotes the use of renewable technologies through the AER study which identified solar and wind as having significant potential, and now PAEW are responsible for supervising a feasibility study and competition process for renewables.

Qatar German-based SolarWorld and Qatar s Foundation for Education, Science and Community Development have established a joint venture called Qatar Solar Technologies to spearhead Qatar s and

Though the solar power market in Europe and the United States currently dominates output, the MENA region s conducive climatic conditions have prompted billions of dollars in investment pledges,

Following on from this centrotherm photovoltaics signed an agreement with Qatar Solar Technologies to construct a silicon factory with a planned annual production capacity of 3,600 tons.

The research will be performed at Qatar Science & Technology Park.

5 Qatar German-based SolarWorld and Qatar s Foundation for Education, Science and Community Development have established a joint venture called Qatar Solar Technologies to spearhead Qatar s and SolarWorld s expansion in to the Middle East and North Africa (MENA) photovoltaic (PV) market. Though the solar power market in Europe and the United States currently dominates output, the MENA region s conducive climatic conditions have prompted billions of dollars in investment pledges, indicating that the region is the one to watch in the coming years. Following on from this centrotherm photovoltaics signed an agreement with Qatar Solar Technologies to construct a silicon factory with a planned annual production capacity of 3,600 tons. This is the first polysilicon production facility on the Arabian Peninsula. Also Chevron and GreenGulf signed an agreement to study solar energy in Qatar. The research will be performed at Qatar Science & Technology Park. The project will collect and evaluate the data provided by technologies to be located at a 35,000 square meter solar test site at QSTP. The project will also study the performance of different photovoltaic and solar thermal technologies. The project reportedly supports QSTP s strategy for assisting in the development of a national solar energy industry in Qatar. Solar technologies vary in their sensitivity to dust and heat and use different amounts of land and water, which can reflect their relative costs. Measurements obtained over a period of years under Qatar climate conditions are expected to help local planners evaluate, select and install technologies best suited to local conditions. Technology Choices for MENA CPV CSP Thin Film

6 Industry Insight Kuwait s Solar Energy Market: challenges worth solving? Kuwait has a promising renewable energy market, but will a lack of solutions to address sand storms, high electricity prices and financial incentives, give the government cold feet over marrying its money with solar energy projects? Kuwait, the world s fourth-largest oil exporter, is facing a rising energy demand due to economic expansion, and has witnessed reoccurring power cuts particularly during summer months. The OPEC member plans to boost power capacity to around 16,000MW from 10,000MW, by as early as Although Kuwait s government has shown interest in exploiting solar energy, there remains the challenge of excessive dust in the region, creating a major obstacle to the country s solar energy growth. The major requirements of Kuwait (and the GCC region), for which solar energy can play a significant role in the future are water heating; water desalination; food production; autonomous or stand-alone power generating systems for remote areas, and security applications. Kuwaiti market attracts international suppliers The Kuwait Chamber of Commerce and Industry (KCCI) recently announced the government s intention in using solar energy as part of its $120bn development plans. Speaking to a German business delegation, Ali Muhammad Al-Ghanim, chairman of KCCI had said that the multi-billion dollar plan will be initiated in Kuwait during the next five years, stressing that Kuwait has always been a patron of German products. Non-German European suppliers, however, have also been entering Kuwait s solar market. Fortune CT, a UK-based company was awarded a project by KCC Engineering and Contracting Co. this year to design, supply and install solar PV systems for lighting at Kuwait Oil Company (KOC) in West Kuwait. The project involves six sites, each having an off-gird solar energy system comprising of solar panels, controllers, batteries, inverters and other accessories. Japan has also been a reliable partner to Kuwait when it comes to providing the know-how. The lighting at a number of ministries, state institutions and departments will be powered via solar energy by early This followed the completion of a study by the Ministry of Electricity and Water (MEW) which involved reviewing the Japanese experience in solar energy. Japan s Toyota T Suchu Corporation signed an agreement with Kuwait s MEW to provide assistance to ministries and authorities working on new projects carried out by the private sector. Under the agreement, a solar plant capable of generating 1,250MW will be established in Al-Abdali in east of Kuwait, at an estimated cost of $650 million, and tenders were invited by the end of last year. There are plans of opening another tender for carrying out huge electricity and water desalination projects in Al-Zour area, worth $2.5-3 million. Existing Solar-Powered Projects Several solar energy exploitation programmes have been made in Kuwait for heating and power production, both by thermal and photovoltaics. More than 140 research projects were conducted by the Kuwait Institute for Scientific Research (KISR) since 1974, totalling around $50m. For example, a solar cooling project for the Ministry of Defence s office building- operational since features 172 collectors covering an area of 300m2. Solar thermal applications are also operational in Sager Al-Rashood school and the Kuwait English School in Salwa area. KISR s own solar house project, which serves as an application laboratory since 1984, has a daily electricity load of 2.5kWh, with 76 PV modules and 48 batteries capable of storing 34kWh. Moreover, a solar power plant in Sulaibia complex consists of 56 parabolic trough dishes and a storage thermal unit of 50kWh, with a maximum power production of 125 kw and a maximum thermal production of 530 kwh. The Sulaibia complex also contains a plant for water production; in the form of a solar pond coupled to a MSF desalination unit. High levels of dust threaten technology efficiency Because of the high solar irradiation in the region, customers in Kuwait prefer to buy solar PV systems for domestic and commercial use, solar cathodic protection systems, solar powered billboards, and solar water heating systems. However, the high incidence of dust storms, which cause panels to become caked in dust and performance to suffer, has shaken the government s confidence in solar energy efficiency under such weather conditions. An article published in the local newspaper Al Watan Daily, cited that sources at the MEW doubt if solar energy would be of any use in Kuwait. They explained that solar energy from photovoltaic systems would not be effective in temperatures above 48 degrees Celsius as they totally rely on sunlight rather than heat. As for the Fresnel lenses used in CSP plants, they rely on boiling water, which means dusty climates would void its very function. Both systems require large areas, the MEW sources said, and for the country to produce 1MW, it needs to provide 1,000 square metres- making the process extremely impractical.

7 German solar leaders see potential in CSP Germany s Solar Millennium believes that amongst solar power technologies, CSP offers several unique advantages for Kuwait. For example, its thermal storage capability allows a planable and reliable power supply, which is especially important for the stabilization of rather small energy grids like in Kuwait, explains Alexander Jacobsen, Head of Corporate Communications at Solar Millennium. On top of that, CSP plants can be used for sea water desalination, which make it a perfect match for the desert environment. Last but not least, the added local value is estimated to be higher, since not only the construction but also local setups of suppliers and industry followers (e.g. Glass & Steel) would provide GDP and job effects. Schott Solar CSP has a similar standpoint. From a technical point of view, CSP probably is a very interesting technology for Kuwait (as it is for all states with sufficient sun radiation and adequate space to build solar power plants), said Klaus Bernhard Hofmann, Spokesman of the Schott Group. Generally speaking, stable and long-term feed-in tariffs are most suitable to boost markets and increase confidence of investors in CSP technology. Kuwait experiences one of the highest levels of solar insulation in the world, reaching 900 W/sq m. on coastal areas and almost 1,000 W/sq m. inland. Rare cloudy days and constant high air temperature allow high collector efficiency and low convection losses. Nevertheless, the GCC countries, including Kuwait, will not be able to proceed with solar energy projects with the high subsidies of electricity prices as well as the absence of incentives. The cost of kwh in the GCC is less than in Japan by 22 times, 15 in Germany, 11 in the UK and 3.4 in India. Martin Kalhöfer, Director of the Africa/Middle East department at Germany Trade & Invest states that the development of the solar energy market is dependent on the given administrative frameworks and political will as well as technological advances and the price of competing energy sources. Especially with the unparalleled low price of oil in the GCC states, the creation of incentives for alternative energy sources is even more critical. MENASOL 2011 If you found this interesting then will definitely find MENASOL 2011 a valuable way to learn more about solar in the MENA region, and how you can capitalise on these business opportunities. MENASOL 2011 was created to provide a forum and optimum networking environment for the solar industry in the MENA region. Attendance is an absolute requirement for every person and organization involved in developing, manufacturing, and financing solar projects anywhere in North Africa and Middle East. According to Kalhöfer, before anything, sustainability should become a greater focus in construction projects. A LEED certification (Leadership in Energy and Environmental Design), which is a voluntary certification program, strengthens and advances the achievements of sustainable building. New standards should also support the implementation of, for example, solar-equipped rooftops. Further measures like research cooperation, calls for proposals for solar installations and the attraction of clean-tech industries to the country could further advance these technologies in Kuwait. Foreign Business in Kuwait Like other GCC countries, Kuwait is opening its markets and setting new priorities for its economy. This includes investments in technologies of the future, including for the domestic market. The expansion of the country s infrastructure as well as the development of new industries and technologies, are creating a number of new opportunities for German and Kuwaiti partners, explains Kalhöfer. While as Kuwaiti and GCC nationals are allowed to pursue commerce in Kuwait, foreigners (non-gcc nationals) may not pursue trade or business unless they join Kuwaiti partners. Furthermore, the capital owned by the Kuwaiti partner(s) must at least be 51 percent of the total capital. Therefore, a foreign firm, including a partnership, cannot set up a branch nor perform any commercial activities in Kuwait except through a Kuwait agent. It can take between one month to three months to establish and register a new business enterprise, depending on the type of the company. Although foreign individuals and firms are not permitted to acquire commercial licenses in their own name, a new privately managed free trade zone in Shuwaikh area allows 100 percent foreign ownership of business within the zone, with neither import duties nor tax on foreign corporate income. With tax and financial incentives put in place, paired with technological advances to curb electricity prices and sand storm damage, Kuwait could harness more of its sunshine to fuel its electricity needs. You will be able to see the jampacked 2 day agenda, topics being discussed on the CSP and PV tracks, who the 40+ speakers and the great event features that makes this a must attend event for generating solar business in the MENA region. E VE EXCLUSIVE To find out more just have a look at the 12 page event brochure here: D EX I S C O U N T V ENTER MCP11RPT and receive 100 OFF the ticket price U N T

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