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Thorsten MarquardtProject Office Manager

RCREEE – Regional Renewable Energy Conference

February 4, 2010Sheraton Hotel Amman, Jordan

Desertec Industrial Initiative Enabling the DESERTEC Concept

Dii

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Solar power has been recognized ahead of time

„ I'd put my money on the sun and solar energy.

What a source of power!

I hope we don't have to wait 'til oil and coal run out

before we tackle that.“

Thomas Alva Edison, 1847-1931

„ I'd put my money on the sun and solar energy.

What a source of power!

I hope we don't have to wait 'til oil and coal run out

before we tackle that.“

Thomas Alva Edison, 1847-1931

Pictures: Abengoa Solar, Solar Millenium, ABB

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The deserts of the earth offer excellent irradiation conditions for large scale solar power generation

Excellent(> 2,200 kWh/m2/a)

Very good(> 1,800 kWh/m2/a)

Good(> 1,400 kWh/m2/a)

Not suitable(< 1,400 kWh/m2/a)

Solar irradiation globally

Source: Solar Millenium, iset, DWD, BMU, Solaraccess, BUND Naturschutz

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Vision: Providing North Africa, the Middle East and Europe (MENA) with a sustainable supply of renewable energy by the year 2050

Developed by the Club of Rome’s TREC Initiative (Trans-mediterranean Renewable Energy Cooperation)

DESERTEC concept is leading vision for Dii - Desertec industrial Initiative

Source: DESERTEC Foundation

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Basic assumptions and factsMake use of renewable, mainly solar, energy from the deserts, the biggest energy resource available on earth

More than 90 % of the world‘s population are living in areas that are less than 3,000 km away from deserts and thus could be supplied with solar power

Holistic approach

Integration of renewable energy and transmission grids

Socio-economic developments

Extensions to water supply, growing biomass etc.

The DESERTEC concept supports EU and MENA government initiatives on energy and climate protection (such as Mediterranean Solar Plan)

DESERTEC is leading concept for Dii – Desertec industrial Initiative

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Dii consortium: enable Desertec implementation in the MENA region

Consortium of 12 companies and the DESERTEC Foundation on 30/10/2009

Started with German, Spanish and Algerian shareholders. Additional shareholders and associated partners from MENA and EU are being acquired

Mission – Long term objective:

Cover a substantial part of the MENA electricity demand and 15% of the European demand by 2050

Create acceptance and conditions enabling investments

Connecting cultures and peopleCreating a regulatory frameworkEnabling feasible investments

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Focus areas of Dii within the next three years:

Main objectives of Dii until 2012

Regulatory and legislative

environment

Regulatory and legislative

environment

Creating acceptance and willingness in MENA and EU. Analysisand negotiation of a favorable legal and regulatory framework

Roll-out plan

Roll-out plan

Over all long-term strategy until 2050. Investment and financing guidance

Concrete reference projects

Concrete reference projects

Origination of early reference projects in order to demonstrate the feasibility of the concept

Additional studies

Additional studies

E.g: Survey on availability of primary energy, technology survey, market analysis (new investors)

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Dii contributes

Dii can add value to the region – and needs regional support

• Technological and industrial expertise and skills

• Project development

• Support for industrial development of MENA countries with development of market design

• Financing capability

• Acceptance and willingness to enable DESERTEC concept

• Support for development of reliable regulatory framework as basis for investments

• Close cooperation with local industry

• Financing capability

Dii might ask for

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Power generation from sun and wind

Dii is technology open – and technologies are existing

CSPConcentrating Solar Power

CSPConcentrating Solar Power

PVPhotovoltaic

Power

PVPhotovoltaic

Power

Wind PowerWind Power

HVDCHigh Voltage Direct Current

HVDCHigh Voltage Direct Current

Long Distance Power transmission by High Voltage Direct Current (HVDC)

Concentration of sunlight by mirrors and transformation into heatPower generation by steam turbinesHeat storage enables base load capability

Direct conversion of sunlight to electric energy (photoelectric effect)Large fields with trackers aligned to sunlightNo storage facilities, but sharp learning curve!

On- and offshore wind farmsLess space needed, but higher power volatilityDesert capabilities

Power transmission over large distances Selected reinforcement of existing transmission gridsDesign for EUMENA supergrid

Pictures: Solar Millenium, ABB, Siemens

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Challenge: be economically feasible – break even with conventional power is crucial

Accelerated cost degression of

CSP, PV, wind and HVDC systems

Accelerated cost degression of

CSP, PV, wind and HVDC systems

Rising environmental costs

Rising environmental costsRising fuel pricesRising fuel prices

Break-even of Sahara energy compared with conventional power:

Between 2020-2030

Break-even of Sahara energy compared with conventional power:

Between 2020-2030

Source: German Aerospace Center (DLR)

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Proposals for a Mediterranean ring connecting MENA with EU support DESERTEC concept

Source: Euro-Mediterranean Energy Fourm

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Renewable potential is huge – much higher than MENA total demand by 2050

Source: German Aerospace Center (DLR)

8,000

6,000

4,000

2,000

600,000

10,000

0Demand 2050Demand 2010

Europe

MENA

8,000

6,000

4,000

2,000

600,000

10,000

0Potential of Renewables

> 630,000

Demand 2050Demand 2010

Europe

MENA

Wave / Tide

Biomass

Wind

Hydro

Geothermal

Solar

Elec

tric

ity in

TW

h/a How does a

sustainable Mix look like?

How does a sustainable Mix

look like?

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Dii is about connecting people