Dii – creating a market for renewable
energy from the deserts in Europe, North
Africa and the Middle East
Munich, 27.01.2014
© Dii GmbH 24 January 2014 2
Solar and wind resources in EUMENA more than sufficient for
1,2 bn people in coming decades
© Dii GmbH 24 January 2014 3
Dii’s mission is to enable an integrated market place in
EUMENA in which desert renewable energy will be competitive
Benefits for EUMENA from desert energy (solar and wind) and integrated markets
Vision
Reliable
Sustainable
Job creation effects
+
Energy security
Cost effective
+
+
© Dii GmbH 24 January 2014 4
Large amounts of cheap RE energy to be expected from the
deserts based on cost differences
EUMENA Solar and Wind potentials compared to electricity demand (2050 cost)
24 January 2014
© Dii GmbH
4
10
20
30
40
50
60
70
80
90
100
110
5,000
10,000
15,000
20,000
25,000
30,000
35,000
0
Europe
EUMENA
MENA
EUMENA demand
Europe demand
MENA demand
Generation potential in TWh/a
© Dii GmbH 24 January 2014 5
“Cook the elephant in pieces”
Dii’s mission to be implemented at different levels
Mission and Strategy
Project Enabling
Dii together with MENA partners currently works on
identifying a portfolio of projects in MENA with ideal
conditions using a range of self developed tools. This will
create a stream of business opportunities for a range of
stakeholders.
System Strategy
Dii Study
“Desert Power 2050” shows that an integrated EUMENA power system based on renewable energy is a highly valuable
perspective for the entire region. In report “Getting Started”, Dii demonstrates how this can be implemented, by formulating
recommendations on the appropriate policy choices that need to be made now.
Country Strategy
Studies on MENA countries present analyses of sites, grids,
regulation, markets and socio-economic aspects. They form
the basis for concrete projects.
© Dii GmbH 24 January 2014 6
Already today, PV, Wind and perhaps Concentrated Solar
Power are economically viable options for MENA countries
Expected cost of RE installations in North Africa and the Middle East today and in 2020
PV and wind viable options
in all MENA countries
Due to extensive use of oil
fired generation in Libya,
Egypt, Saudi Jordan and
Syria, sometimes CSP viable
option today
Spread is result of different
finance and resource
conditions in the countries
Renewable energy cost
Note: RE LCOE calculated based on identified sites and country-specific cost of capital estimates; Conventional generation has been estimated with 40€/MWh for
Coal, 60€/MWh for CCGT, 90€/MWh OCGT for and up to 200€/MWh for oil-fired power plants.
Source: Dii
0
5
10
15
20
25
30
[€t/kWh]
CSP with
8h storage
PV
Wind
Conven
-tional
Lower cost (base/mid load)
Higher cost (mid/peak load)
Cost reduction potential
until 2020
CSP with
8h storage
PV
Wind
Conven
-tional
© Dii GmbH 24 January 2014 7
An accelerated built up of renewables would require financial
support, however setting free fossil energy subsidies!!
RE support expenditures in EUMENA beyond 2020 with well-designed support [€ bn]
Renewable energy cost
Note: Real values in €2013, no discounting. Cost of RE installations are partially site and country specific; here an “average” EUMENA site has been assumed
Source: Dii
0
5
10
15
20
25
30
35
40
45
50
2050
2045
2040
2035
2030
2025
2021
Wind on-shore
CSP
Wind off-shore
PV
Cumulative RE subsidies in
EUMENA
over
30 years
:
~ €390bn
(€13bn p.a.)
Annual
energy/fossil fuel
subsidies in Saudi Arabia:
~ €45bn p.a.
Annual
energy/fossil fuel
subsidies worldwide:
~ €405bn p.a.
© Dii GmbH 24 January 2014 8
Comparing RE incentives in Europe with subsidies for fossil
fuels in MENA: transition may not be easy, but highly rewarding
RE incentives in Europe [% of GDP]
Non-RE subsidies in MENA [% of GDP]
Source: Germany (BMU 2013), Italy (UPI 2012), Spain (Reuters 2012), EU-27 (RE-Shaping 2012 – BAU high demand scenario ‘11-’15), Algeria, Egypt, Saudi Arabia (IEA
– WEO 2012), Morocco (Reuters 2011), Tunisia (IMF 2012)
Tunisia
Algeria
7.1%
Morocco
Saudi
Arabia
10.7%
NA
Egypt
6.2%
10.6%
8.0%
5.0%
NA
2.4%
2.6%
8.3%
1.1%
6.0%
0.45%
Italy
Spain
EU-27
0.27%
0.49%
Germany
0.77%
Reducing subsidies on fossil fueIs in MENA countries will lead to more realistic market prices and
hence to earlier competitiveness of renewables!!
Electricity
Fossil fuel
© Dii GmbH 24 January 2014 9
Industrial cooperation: Dii is backed by a unique international
industry network
On the one hand competitors, on the other hand partners in shaping a market
Network
Source: Dii as of August 2013
© Dii GmbH 24 January 2014 10
Co-ordinated actions among key stakeholders
Dii
Media (Press,
TV, Online,
Social Media)
Political
Stakeholders
(MENA, EU)
Industries,
Associations
Civil Society
(NGOs)
General Public
Scientific
community
© Dii GmbH 24 January 2014 11
Dii identified highly attractive sites in MENA with a RE potential
of 800GW close to demand centers and existing infrastructure
© Dii GmbH 24 January 2014 12
Visit our website for more insights:
www.dii-eumena.com
Disclaimer
The following terms and conditions govern any release of information by Dii GmbH and its Affiliates (verbundene Unternehmen within the meaning of Section 15 et seqq. German Stock Corporation Act; "Affiliates"). Any information is provided to you at our sole discretion. No representation or warranty is made by us or any of our directors, employees, advisors and/or other agents and representatives ("Representatives") as to the accuracy, reliability and completeness of the information.
The disclosure of the information does not constitute or create any contractual relationship between you and Dii GmbH or any duty of care by Dii GmbH towards you and/or any other third party to whom the information is disclosed or into whose hands it may come. We accept no obligation to provide you with any updates and/or any further explanation on the information made available to you. Furthermore, we do not accept any obligation to correct any inaccuracies in the information made available to you. Any information was collected or prepared by us or on our behalf solely for our purposes and not with regard to possible interests of you or any third parties. Any use you make of the information is entirely at your own risk. To the extent it is legally permissible, we shall not be liable to you in any manner and on any legal grounds in connection with the information and any such liability is hereby excluded and waived. You will not, and you will ensure that neither your Affiliates, nor your or their Representatives will bring, or otherwise initiate, any claim, action, suit or proceeding against us or any of our Representatives with respect to any matter contained in, omitted from or otherwise arising in connection with, the information. Any claims by you for fraud or wilful misconduct (Vorsatz) as well as claims for injury of life, body or health shall not be affected by the foregoing. You acknowledge and agree that you will treat all information strictly confidentially. You must not disclose any information to third parties without our prior written consent other than your Affiliates and your and their professional advisors, provided that any such disclosure is permitted only if the recipient acknowledges and agrees in advance in writing (including fax and email) for the benefit of Dii GmbH to accept and be bound by these terms and conditions.
Any amendments to these terms and conditions must be made in writing. This applies also to any agreement which amends the foregoing requirement that all amendments must be made in writing. These terms and conditions shall be governed by and construed in accordance with the laws of the Federal Republic of Germany, excluding international private law (Internationales Privatrecht). The venue shall be Munich.
17 January 2012
Visit our Website available in Arabic, English and French:
www.dii-eumena.com
Or our page on Facebook:
www.facebook.com/DiiDesertEnergy
Disclaimer
© Dii GmbH 24 January 2014 13
Thank you for your attention
© Dii GmbH 24 January 2014 14
RE targets 2020
Project pipeline
MENA countries have recognized their potential:
50 GW renewable energy capacity targeted by 2020
Note: 1) Planned RE projects includes all projects that are either announced, in the tendering process or already awarded
Source: Dii analysis and individual country RE targets
Status Quo – RE Project Pipeline and RE Targets
Operating
Under construction
Planned
1CSP
PV
Solar (tbd)
Wind
Biomass
Geothermal
16
14
12
10
8
6
4
2
0
Syria
0.3
Jordan
1.3
1.3
Egypt
2.2
1.6
Tunisia
2.5
2.3
Morocco
4.7
4.2
Saudi Arabia
0.6
Libya
2.1
2.1
Algeria
2.2
2.2
1.2
5.0
7.0
10.0
2.8
1.5
0.8
4.6
0.5
0.8
3.3
0.6
4.2
2.0
2.0
23.6
0.4
2.7
1.1
0.9
0.6
1.8
1.2
0.6
9.1
7.2
0.4
1.5
1.0
© Dii GmbH 24 January 2014 15
Capacity of all RE projects in MENA with Dii partner
involvement [MW] 1,539
Notes: The boundaries shown on this map do not imply official endorsement or acceptance by Dii GmbH. Listed RE projects are non-off-grid projects with a capacity equal or above 1MW. Projects are only included when they are operational, under construction and/or if they have already been awarded and suppliers were chosen. COD = Commercial Operation Date
Dii partners in the project value chain of RE projects in MENA
Capacity of operatingRE
projects in MENA with Dii partner involvement [MW]
363 Capacity of non-operatingRE
projects in MENA with Dii partner involvement [MW]
1,176
Suppliers Developers Operators
Owners Financiers Consultants
Dii partners are taking part in the energy transition that is
shaping up in the MENA region
Project Involvement of Dii Partners
Company
Projects
Capacity
[MW]
Project Role(s)
Abengoa Solar
21
,
67
,
46
235
Supplier
ACWA Power
19
,
49
161
Owner, Developer, Operator
Flagsol
42
20
Supplier
Flabeg
42
,
67
120
Supplier
First Solar
65
,
69
23
Supplier
ILF Consulting
69
13
Supplier
Company
Projects
Capacity
[MW]
Project Role(s)
Italgen
10
,
13
8
Owner, Developer, Operator
Lahmeyer Int.
15
,
16
,
18
,
19
,
21
,
39
,
68
,
70
,
73
1,094
Developer, Consultant
Nareva Holding
11
,
14
,
15
,
16
502
Owner, Developer, Operator
Schott Solar
09
,
21
,
42
,
67
165
Supplier
Soitec
62
1
Supplier
PV
Wind CSP
© Dii GmbH 24 January 2014 16
