NREA Study Project TRANSCSP TransMediterranean Interconnection for Concentrating

NREA Study Project TRANS-CSP Trans-Mediterranean Interconnection for Concentrating Solar Power (Introduction & Summary) Project for the Research & Development Programme of the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU)

“The sun-belt and the technology belt can become very powerful when they begin to understand themselves as a community: a community of energy, water and climate security; a community for their common future. ” H. R. H. Prince El Hassan Bin Talal President of the Club of Rome Address for World Energy Dialogue, Hannover Messe, April 2006

50 Countries analysed within the MED-CSP and TRANS-CSP Studies Scandinavia Western Europe Eastern Europe South-Eastern Europe Western Asia North Africa Arabian Peninsula

30 Countries analysed within the TRANS-CSP Study Scandinavia Western Europe Eastern Europe South-Eastern Europe Look for www. dlr. de/tt/trans-csp

25 Countries analysed within the MED-CSP Study (not discussed here) Southern Europe Western Asia North Africa Arabian Peninsula Look for www. dlr. de/tt/med-csp

Scope What are the renewable electricity potentials in EUMENA* and how could they be linked to provide firm power capacity at low cost? Ø Database for Decision Makers Ø Renewable Energy Resource Assessment Ø Power Demand Assessment Ø Sustainable National Electricity Supply Scenarios Ø Basis for National Guidelines to Initiate and Follow that Path * Europe, Middle East, North Africa

Economy A strategy for sustainability must satisfy all aspects of the energy policy triangle: Ø low cost of energy Ø low environmental impact Ø low conflict potential Ø low risk and vulnerability Ø fair access to energy Ø economic stability Ø energy supply security Ø power on demand Ø international cooperation Energy Policy Triangle Security Compatibility

Technology Portfolio: ü Coal, Lignite ü Oil, Gas ü Nuclear Fission, Fusion ü Concentrating Solar Thermal Power ü Geothermal Power (Hot Dry Rock) ü Biomass ü Hydropower ü Wind ü Photovoltaic ü Wave / Tidal ideally stored energy storable energy fluctuating energy Sustainable Mix: ü Inexpensive (least cost, no long term subsidies) ü Secure (diversified, on demand, redundand, undepletable) ü Compatible (low pollution & climate change, fair access)

Plenty Renewable Energy Resources in EUMENA In brackets: (Typical Yield in GWhel/km²/y) Biomass (1) Geothermal Energy (1) Wind Energy (30) Hydropower (30) Solar Energy (250) Every 10 km² in MENA yield 15 million barrels of fuel oil per year in form of solar energy

Economic Renewable Electricity Potentials vs. Demand in EUMENA > 630 000 What would be a sustainable mix ?

TRANS-CSP: Electricity Generation in Europe 5 resources, mostly imported and limited 10 resources, mostly domestic and unlimited

TRANS-CSP: Installed Capacity in Europe At any time, peak power demand is covered with an extra 25 % reserve of firm power capacity

TRANS-CSP: Import Dependency vs. Current Trend

Electricity Cost of Power Technologies (Example Spain) CO 2 Capture and Sequestration (CCS) included in fossil fueled generation costs after 2020 CSP in solar only operation

TRANS-CSP: Investment for Least Cost Electricity invest phase least cost phase Example Spain TRANS-CSP Mix: Energy Mix as described here incl. RUE, RES and CCS Mix 2000: Maintaining exactly the Power Mix like in the Year 2000 with CCS

Adequate Political and Legal Framework Required ü Diversification of the energy portfolio is a key to energy security. ü The cost-stabilising effect of renewables must be valued adequately. ü RD&D for the cost reduction of renewables must be extended. ü Feed in tariffs are very effective instruments for market introduction. ü A EUMENA free trade zone for renewables should be established. ü Evaluation and negotiation of HVDC interconnections must start soon. ü Subsidisation of all energy technologies should be limited to a reasonable time span and subsequently reduced to zero. ü European support for MENA for the market introduction of renewables can attenuate the growing pressure on fossil fuel resources that would otherwise origin from the economic growth of this region, thus helping indirectly to secure fossil fuel supply in Europe. ü As a long term perspective, EUMENA could become a Community for Energy, Water and Climate Security.

Public and Private Investment by Renewable Electricity Feed-In Laws ü Low private investment risk through long term power purchase agreement granted by law ü Low equity interest rates required by private investors due to low investment risk ü Least cost market introduction of renewables through low equity interest rates of private investors ü Diversity of supply through individually adapted feed-in tariffs for each technology ü Stimulation of private investment and R&D for cost reduction through retrogressive feed-in tariffs ü Feed-in laws provide public investment over limited time span to stimulate private investment for the market introduction of renewables ü The initial tariff addition is covered by the consumers who benefit from future cost stability. Due to initially low renewable shares, the effect on consumer prices is very low.

TRANS-CSP: CO 2 Emissions in Europe RUE Rational Use of Energy RES Renewable Energy Systems CCS Carbon Capture & Sequestration Avoided CO 2 is calculated with respect to a mix as in the year 2000 including nuclear power

Security and Redundancy of Power Supply by a Future TRANS-Mediterranean HVDC Grid

Comparing Strategies for Electricity in Europe Electricity Mix dominated by Renewable Energy with Fossil Fuel Backup Electricity Mix dominated by Fossil Fuels and Nuclear Power Diversified supply and renewable resources Supply based on few and limited resources Domestic sources dominate the electricity mix Low vulnerability of decentralised generation Energy imports dominate the electricity mix Low hazardous waste, recyclable materials Low risk of contamination or major accidents Requires public investment over limited time Low environmental impact Trend to lower cost and low price volatility Power on demand by a well balanced mix Based on proven and demonstrated technologies High vulnerability of large generation units Unsolved disposal of nuclear waste and CO 2 Risks of nuclear proliferation and accidents Requires long-term continuous subsidisation Climate change and pollution Trend to higher cost and high price volatility Power on demand by ideally stored energy Still requires major technical breakthroughs: Safe fission and breeder technology. Commercial fusion reactor. Carbon capture and sequestration.

Conclusions Ø Renewable energy sources backed by fossil fuels can provide sustainable, secure and least cost electricity for Europe, with a share of 80 % in 2050. Ø Within 15 years, a well balanced power mix leads to less expensive electricity than business as usual. Domestic sources will reduce the import of fuels. Ø Solar electricity from concentrating solar power stations in MENA transferred to Europe via high voltage direct current transmission can provide firm capacity for base- , intermediate- and peaking power, and supply up to 15 % of the European demand at a cost of 5 cent/k. Wh. Ø Carbon emissions can be reduced to 25 % compared to the year 2000. 1 % of the European land will be required for the power mix, equivalent to the land presently used for transport and mobility. Ø European support for MENA for the market introduction of renewables can attenuate the growing pressure on fossil fuel resources that would otherwise result from the economic growth of this region, thus helping to secure fossil fuel supply also in Europe. The necessary political process should be initiated by a renewable energy partnership and a common free trade area for renewable energies in EUMENA and culminate in a Community for Energy, Water and Climate Security. Long term power purchase agreements guaranteed by law (e. g. feed-in tariffs) can provide an adequate frame for industry and investors.