Europe to Invest $560 Billion in Middle East Solar Energy
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Munich, Germany, 24 July 2009. A groundbreaking project to build massive solar farms in North Africa and the Middle East to supply Europe with clean power has begun.
The initiative, worth a reported $560 billion, is expected to supply Europe with 15 percent of its power needs by the middle of the century. [br]
Munich, Germany, 24 July 2009. A groundbreaking project to build massive solar farms in North Africa and the Middle East to supply Europe with clean power has begun.
The initiative, worth a reported $560 billion, is expected to supply Europe with 15 percent of its power needs by the middle of the century. [br]
The Desertec Industrial Initiative, or DII, is a joint project which includes engineering firms, financial institutions, and power companies. Siemens, Deutsche Bank, ABB, and RWE are among the partners.
DII is also expected to turn sea water into fresh water for farming and drinking, benefiting the dry nations hosting the solar farms.
While German business paper Handelsblatt warned of “eco-colonialism” and exploitation of these relatively poor nations, DII promised otherwise.
The host countries include Morocco, Egypt, and others from the Arab League.
Torsten Jeworreck, a member of the Munich Re board, said the consortium promised to work “as equals in a sincere and fair” way with the host nations. The signing of the agreement was held by German reinsurance firm, Munich Re.
Other doubts linger as even the most basic planning and forecasts have not yet been made. For example, the exact locations of the solar farms is still unknown, as are specifics such as when the project will begin and end, as well as its costs, profits, where the funding will come from, and more.[br]
In other words, at this stage it only seems to be an idea.
Sebastaian Zank, a renewable energy analyst at West LB bank said the project could be a success, but only “in the very, very long term.”
“As long as there are no transmission networks between these two continents this is more or less a nice future fantasy,” Zank added. “At the moment the costs are so high it is not economically viable.”
Though Zank conceded, “one can say that solar thermal energy will already be produced next year, but not with the intention of exporting this electricity to Europe”, in reference to North African plants.
Others thought the funds should be invested in Europe. “We could invest the 400 billion euros here”, said Hermann Scheer, a German Social Democratic deputy.
Bjorn Borgisky, EconomyWatch.com
