Concentrated Solar Power (CSP) in the Arab World

Kevin Sara

CEO TuNur Ltd, Tunisia

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WHAT IS CSP?Concentrated Solar Power is Thermal Energy Generation from the Sun• CSP concentrates the sun’s radiation and uses it to heat a transfer fluid (water, molten

salt or oil) to very high temperatures above 550 oC • The heat transfer fluid is then flowing through a heat exchanger to generate superheated

steam at high pressures which will expand in a steam turbine to generate electricity

Simple Design, Well Known Materials• A CSP plant consists of a solar field (field of mirrors and tower with receiver on top) and a

power block (storage tanks, heat exchanger, turbine, generator, condenser, pumps)• With molten salt storage, the profile of the electricity generation can be similar to that of

fossil fuel and nuclear power plants

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HOW CSP WORKS?

Receiver

Solar field

Storage tanks

Heat exchanger Turbine + Generator

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BENEFITS OF CSPCSP is the cheapest renewable energy technology that can integrate storage into the system. • With storage, CSP can generate ‘dispatchable’ power – meaning that a CSP plant can

operate as base load or semi-base load power to meet customers’ needs• Unlike the intermittent nature of Wind or solar PV energy production profile

Other benefits include:• With air cooling, CSP requires very little water and has smaller environmental impact

compared to other technologies• Maturing technology but ample room for cost reductions• CSP supports sustainable development through local integration, manufacturing and

technology innovation

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COST OF CSPThe cost of CSP technology is falling rapidly• Technological developments, economies of

scale and use of local supply chains are pushing costs down

• In Morocco costs declined from $193/MWh in 2012 to $160/MWh in 2014

• CSP cost reductions expected to be in the region of 60 to 75% from 2012 levels in areas of high solar resources

CSP is one of the few renewable technologies that can eventually compete with fossil fuels

and nuclear power

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CSP IN THE ARAB WORLDWhy is CSP important to the Arab World?

• Solar resource is super-abundant in many Arab countries. • CSP technology can be manufactured locally, using existing supply chains.• As a technology which has not yet reached maturity, local R&D can make significant

contributions• CSP can be an important vector for foreign direct investment and drive exports of

electricity and technology. • Increase energy security by reducing reliance on subsidized domestic fossil fuels and

imports• New source of revenues from taxes, fees from land use, etc.

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THE ROLE OF CSP IN THE ARAB WORLD CSP has the potential to be one of the main sources of energy for Arab nations• Arab nations are currently experiencing:

• Rapidly growing energy demand• Finite fossil fuel resources • High cost of domestic fuel subsidies • Fluctuating global oil prices

• Arab nations present an excellent environment for CSP development:• High solar radiation levels and land availability allowing for highly efficient

production at lower costs• Young, educated and growing workforce

We expect CSP to experience significant growth in the MENA markets as countries look for alternative sources of energy to sustainably meet growing demand.

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IMPORTANCE OF CSP FOR EUROPE • In Europe there is:

• Lack of low carbon base-load power • Growing intermittency due to the huge increase of Solar PV and Wind power• New emission standards and new renewable energy targets• 50 GW of old inefficient coal and oil-fired power plants scheduled for

decommissioning • Nuclear phase out or freeze programs, from countries such as Germany,

Switzerland and France• However Europe does not have optimum solar resource and land availability to make CSP

efficient and at scale. But Europe can benefit from its proximity to North Africa….Importing CSP energy from MENA region could play an important role in decarbonizing Europe's grid, meeting energy demand and reducing the need for fossil fuels and new

nuclear power plants.

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The TuNur project is an utility scale solar export project linking North Africa to Europe.

The project consists of three parts;1. Solar power generation using CSP tower technology in

the Tunisian Sahara desert;2. Dedicated High Voltage transmission from the power

plant to the European grid;3. Distribution of the 9,000 GWh of dispatchable

renewable power to 2.5m European homes across Europe at prices comparable to other low carbon sources such as off-wind or new nuclear power plants.

TUNUR PROJECT

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TUNUR – BENEFITS FOR TUNISIA AND ARAB WORLD

The TuNur project will contribute significantly to socio-economic development of Tunisia and the region• Up to 60% of the project costs will be locally sourced with

the participation of existing Tunisian industrial companies and service providers

• The project is expected to create over 15,000 long term direct and indirect jobs in Tunisia and the region

• Technology transfer and local R&D will contribute to the building of a local supply chain for CSP with export potential to the rest of the MENA region and beyond

• The Tunisia government will earn revenues from taxes and fees for land use and rights of way; a percentage of the generated power will be available for domestic consumption as required

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Currently there is a combined total of 3540 MW of CSP projects in development, in construction or operational phase in the Arab World.

Many Arab countries are already implementing large solar energy programmes with a total of over 60GW in countries like Saudi Arabia and Morocco. Many Arab companies are already becoming world leaders in the industry.

THE ARAB WORLD, GLOBAL CENTRE FOR CSP

Masdar, UAE • Masdar Institute is a global leader in sustainable energy R&D• Global investor and developer in large clean energy projects• Shams 1, 100 MW parabolic trough plant in UAE

Moroccan Agency for Solar Energy (MASEN)

• Established to lead Moroccan solar target of 2000MW by 2020• Global leader in implementing and development of solar power plan

ACWA power, Saudi Arabia • Leading developer owner and operator of Solar power plants• Winning bidder for Noor I, II, & III in Ouarzazate, Morocco

TuNur – True North South Partnership, Tunisia

• 50% of TuNur owned by Tunisian and Maltese shareholders

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EUROPEAN GOVERNMENTS COULD DO MORE!European countries can benefit from imported solar from North Africa to meet nuclear and fossil fuel replacement goals and overcome the problem of intermittent renewables. Benefits of imported CSP: 1. Provide European countries with a non-intermittent renewable power source.2. Enable governments to meet 2020 and 2030 renewable energy targets3. Replace high carbon emitting coal and oil power plants4. Replacement for base-load nuclear power5. Reduce dependence on import fossil fuels including gas.Policy Action required • European governments could open markets (FIT regimes) to imports. Current policy

discriminates against imported renewable energy, these protectionist barriers should be removed.

• European governments facilitate the transport of base-load renewable energy across European borders to facilitate import projects.

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Tunur Ltd (Tunis Office) Nur Energie Ltd (London Office) Immeuble Eya, 25 North Row Rue Ile de Djerba, London Les Berges du Lac 2 W1K 6DJ1053, Tunis, Tunisie United Kingdom W: www.tunur.tn W: www.nurenergie.com

Contact Kevin SaraCEO Nur Energie Ltd, Chairman TuNur LtdE: ks@nurenergie.comM: 0044 780 234 4488T: 0044 203 691 6388

Thank you

Merci

شكرا