Enabling DESERTEC in EUMENA

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1 Dii GmbH Enabling DESERTEC in EUMENA Rene Buchler Chairman Siemens S.A. Tunisia Dii - Our way to enable DESERTEC in EUMENA / Page 1

2 Plans to produce power in the desert are not new Solar history Frank Shuman (pioneer in applying parabolic trough technology in desert): "One thing I am sure of and that is that the human race must finally utilize direct sun power or revert to barbarism" 1912 first installed parabolic trough collector by Shuman in Meadi, Egypt (produced the equivalent of 55 horsepower) Shuman planned to install no less than 20,250 square miles of reflectors in the Sahara World War I and the discovery of new oil fields stopped his plans Dii - Our way to enable DESERTEC in EUMENA / Page 2

3 Desertec concept makes use of renewable energy resources from deserts Desertec concept in Europe, Middle East and North Africa (EUMENA) A basic idea... Make use of renewable (mainly solar and wind) energy from deserts, the biggest energy resource available on earth Solar radiation EUMENA Wind potential EUMENA Source: DLR, NASA... with compelling benefits Broad reach >90 % of the world s population living less than 3,000 km away from deserts and thus could be supplied with solar power Holistic approach Integration into interconnected power markets Alignment with EU and MENA government initiatives on energy and climate protection (such as MSP, TRANSGREEN, etc.) Indirect benefits Consideration of socio-economic developments and spill over effects Roll-out potential Future extensions to water supply, growing biomass, etc. Dii - Our way to enable DESERTEC in EUMENA / Page 3

4 Dii to create conditions for a gradual use of energy from the MENA deserts Dii GmbH: Setup, mission & objectives Setup Dii GmbH was founded d in October 2009 as private sector initiative Broad and diverse international expertise throughout EUMENA Mission Pave the way for the Desertec concept and accelerate it Long-term target: Cover a substantial part of the MENA electricity demand and 15% of the European demand by 2050 Focus on MENA region Timeline: Three years Objectives Create a favorable regulatory and legislative environment (e.g. appropriate feed-in tariffs in Europe and MENA countries) Proposal of concrete reference projects no development (incl. location, size, technology, etc.) Develop a roll-out plan 2050 (incl. target capacity installed per country, timeline of ramp-up, grid concept, etc.) Perform additional studies as needed (e.g. demand development, cost roadmap, grid concept, etc. Dii - Our way to enable DESERTEC in EUMENA / Page 4

5 Currently, 17 Shareholders and 15 Associated Partners belong to Dii GmbH Dii GmbH: Shareholders and Associated Partners 17 Shareholders 15 Associated Partners Pay one-time stake and annual sponsoring fee Have equal voting rights in Dii GmbH shareholder meetings Participate atcpatein Dii working ggoupsa groups and dannual Dii conference Pay annual fee (do not have voting rights) Are kept up to date about all relevant developments of the project Can apply to participate in Dii working groups Are invited to the annual Dii conference Dii - Our way to enable DESERTEC in EUMENA / Page 5

6 Bringing the concept to realization preplanning phase until 2012 Dii roadmap Concept phase Creating conditions Projects phase Deliverables Detailed description of the concept Technical feasibility studies Create a favorable regulatory environment Propose and specify concrete reference projects Project realization and investments by partners and parties in the market Develop a long term rollout plan until 2050 Perform additional studies as needed (e.g. grid concept) Key yplayers NGOs and Research External stakeholders Project developers Institutes (DLR, CoR, EC, EU/MENA Technology providers DESERTEC Foundation) governments, other Investors BMU, BMWi industrial initiatives Shareholders and partners Dii - Our way to enable DESERTEC in EUMENA / Page 6

7 DESERTEC concept open for all field-proven technologies Relevant technologies to be applied for Desertec CSP PV Wind power HVDC ~680 MW 1) ~20 GW ~158 GW ~100 GW Concentration of sunlight to generate heat / steam Steam drives turbine and generates power 2) Power transmission over large distances Selected reinforcement of existing transmission grids Direct conversion of sunlight into electric energy Can be applied with tracking system Conversion of wind to electricity by wind turbines Applicable on- and offshore 1) With around 2 GW currently in installation 2) No steam turbine use for Stirling dish XX = worldwide installed capacity (status 2009) Dii - Our way to enable DESERTEC in EUMENA / Page 7

8 Connecting Desertec is not much different from what has already been proven in China and Africa Technical feasibility of long-distance power transmission HVDC transmission China HVDC transmission Congo Connecting EUMENA 1700 km 1400 km 1700 km HVDC has only ~3% transmission losses per 1,000 km >90 % of the world s population living less than 3,000 km away from deserts Dii - Our way to enable DESERTEC in EUMENA / Page 8

9 Proposals for Mediterranean grid connections strongly supports Dii s targets t Mediterranean grid connections Dii will strive for viable solutions with experts from ENTSO-E, Transgreen, Offshore North Sea grid and other initiatives or institutions Reinforcement of integrated grid infrastructure needed for EUMENA Several bottlenecks and gaps shall be solved (e.g. Pyrenees, Morocco, Tunesia-Italy, etc.) Dii - Our way to enable DESERTEC in EUMENA / Page 9

10 Dii faces three major challenges Major challenges for Dii in EUMENA 1. Stimulation Bridge the gap between costs of renewables and market prices until grid parity is achieved 2. Markets/Grids Power grids and markets to facilitate connection of major power sources and demand areas in EUMENA Optimal split between local and EU consumption to be determined 3. Investment conditions MENA countries to establish favorable conditions for large scale investments Dii - Our way to enable DESERTEC in EUMENA / Page 10

11 Dii - Our way to enable DESERTEC in EUMENA / Page 11

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