MENASOL 2010 Hela Cheikhrouhou

7/30/2019 MENASOL 2010 Hela Cheikhrouhou

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Developing the Concentrated Solar Power

in MENA Region

Ms. Hela Cheikhrouhou

Division Manager

Infrastructure Finance, Private SectorOperations, AfDB

MENASOL Conference- Cairo, May 2010


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Who We are

AfDB is the Pan-African Multilateral Development Bank

Infrastructure Finance, Private Sector Development, andRegional Integration are institutional top priorities

AfDB leverages its AAA balance sheet to support theeconomic development in its regional member countries

AfDB has consistently been a major financier to the EnergySector in North Africa

Originator for Clean Technology Fund Co-financings in Africa,along with WBG

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AfDBs lending operations

AfDB has 2 lending windows: Public and Private

Public window

Governments orstate owned enterprises

Sovereign

Concessionary terms

Private window

- Privately owned enterprises- Financially stronggovernment owned

enterprises

Non sovereign

Commercial terms

Recipient

Guarantee

Financial terms


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Senior Debt tenor and currency adapted to project needs;debt arranging capacity:

African Financing Partnership DFI co-financing platform

A-B Syndication Program leveraging the AfDB Preferred CreditorStatus

Guarantees partial risk, partial credit

Subordinated Debt

Equity direct, or indirect (equity funds)

Technical Assistance, incl. for carbon credits

The AfDB selects its private instruments

to meet investee companys needs


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Key Private Investment Selection Criteria

Consistency with AfDB Strategy in the RegionalMember Country

Commercial Viability

Expected Development Outcomes

AfDB Additionality

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Hydro Power Wind energy Co-generation Geothermal ... Solar Power (Mainly CSP)

The AfDB is actively building a pipeline of Clean

Energy Investments across the Continent


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Project name Country Capacity (MW)

Bujagali Hydropower

IPPUganda 250

Beni Matar Solar/Gas

Thermal Power StationMorocco

250 MW 30 MW

Solar

Kuraimat Solar/Gas

Thermal Power StationEgypt 150 MW

Sample Past Clean Investments :


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parabolic trough (PSA) solar tower (SNL)

linear Fresnel (Solarmundo) parabolic dish (SBP)

AfDB is working with North African Governments,

IFIs and interested private investors to support Solar

Energy Scale-up. Why?


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Areas physically favorable for CSP development (DLR,2005)


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196

102

80

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CSP Wind Gas CCGT Simple Cycle GT

Levelized Costs of CSP technologies as compared to gas fired power plants (Unit:US$/MWh)


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Cost of CSP Power Generation by Location


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Growing strategic importance of renewable energy in the

Mediterranean and Gulf region including for regional

integration

Good potential for enhancing local content through

technology transfer

Possibility of green stimulus packages that create

employment through investment in transmission,

generation, and equipment manufacturing

Advantage of Solar Scale-up program in MENA (2)


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Renewable energy targets in North African countries

Algeria

2017: 5 % power generation based on renewable energy

2025: 10 % power generation based on renewable energy

250 MW CSP planned based on feed-in tariffs (300 % bonus-system)

450 MW cogeneration

Egypt

2010: 3 % electricity demand from renewable energy

2020: 20 % of the electricity from renewable energy, of which 12 %

from wind

Planned feed-in tariff for smaller plants (wind, solar)

Morocco

2020 : 42 % contribution of renewable energy to electricity generation

Renewable law approved by Council of Ministers- now due for

Parliamentary approval

Target for CSP: 2000 MW by 2020

Tunisia2012: 4 % contribution of renewable energy

Investment incentives for renewable

Feed-in tariffs and self-generation policy for renewables expected


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CSP Projects in Clean Technology Fund Investment Plan

Country No. ofProjects

Location Capacity (MW) Est. cost (US$million)

CTF

Contribution

(US$ million)

Algeria 3 Megahir

Naama

Hassi Rmel II

80

70

70

322

285

285

58

51

51

Egypt 2 Kom Ombo

Marsa Alam[1]

70

30

370

270

51

44

Morocco 3 Tan Tan[2]

Ain Beni Mathar

Ouarzazate

50

125

100

240

525

440

35

90

72

Tunisia 3 IPP-CSP ProjectELMED-CSP

Tunisia-Italy

transmission

100100+

450450

1140

7373

40

Total 11 ~800 MW 4,800 640

[1] This is a project with 8 hr storage so the size of the solar field will be equivalent to a 60 MW project. [2] This is a CSP-desalination project


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Objectives & Rationale:

Increase the production capacity using clean energyresources in order to secure the energy mix and reduceGHGemission

Development and promotion of clean technology

Possibility for Export of electricity to Europe

There is possibilities to combined the technology withother renewable resources (Hybrid system)

Possibility to benefit from the carbon credit


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Spain

Italy

400-kV

EgyptLibya

TunisiaAlgeria

Morocco

in use

in project phase

HVDC (f easibility study)

3x220 kV 2x 220 kV

1x 150 kV

2x 90kV

2x220 kV 2x220 kV

New 400 kV transmission line

Possible Transmission lines within North Africa and to Europe


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Transmission

Line

Length

kmTechnology

Capacity

MWVoltage

kVStatus

Losses[1]

%

Costs

Mio. US$

Morocco-

Spain60 HVAC 2x700 400 Existing 3.0 150

Algeria-Spain 240 HVDC 2x1000 400 Feasibilitystudies

2.4 650

Algeria-Italy 800 HVDC 1000 500Feasibility

studies5.0 975

Tunisia-Italy 400 HVDC 500 400 Feasibilitystudies 3.1 780

Libya-Italy 580 HVDC 1000 400Feasibility

studies4.0 650

[1] Losses of HVDC: based on NorNed

Parameter overview for transmission lines


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Summary:

In order to enable the implementation of the CSPProjects there will be need for:

Concessional Financing Clear policy (national & international)

Costs reduction by increasing production of unit

number Local production

Capacity building


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THANK [email protected]

MENASOL 2010 Hela Cheikhrouhou

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