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Clean Technology Fund (CTF)

Concentrated Solar Power in Middle East and North Africa 9 June 2011 Philippe Roos (proos@worldbank.org). Clean Technology Fund (CTF). A Climate Investment Fund (CIF) Low-carbon technologies with potential for long-term savings of greenhouse gas emissions

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Clean Technology Fund (CTF)

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  1. Concentrated Solar Power inMiddle East and North Africa9 June 2011Philippe Roos (proos@worldbank.org)

  2. Clean Technology Fund (CTF) • A Climate Investment Fund (CIF) • Low-carbon technologies with potential for long-term savings of greenhouse gas emissions • Financing for demonstration, deployment and transfer of such technologies • Donor countries pledged over $6 billion to CIFs • Funds to be disbursed as grants, highly concessional loans or risk mitigation instruments • Donors include US ($2bn), UK ($1.4bn), Japan ($1.2bn), Germany ($800m), France ($300m), Norway ($200m), Spain ($150), etc.

  3. Why MENA, Why CSP? • Middle East & North Africa (MENA), amongst the world's best conditions for CSP • Abundant sunshine, low precipitation, plenty of unused flat land close to road networks and transmission grids • Close to Europe, where green electricity is much valued • Concentrated Solar Power (CSP), a technology of choice for climate change mitigation: • Still expensive, but with unexploited economies of scale and economies of experience • Proven technology, utility friendly • Transferable to developing countries, for both energy and manufacturing

  4. A Long Term Vision

  5. The CTF Investment Plan • Supporting the development of the first gigawatt • Generation projects in 5 countries • Algeria, Egypt, Jordan, Morocco, Tunisia • At least $4 billion • First project under way: tranche 1 of the 500 MW Ouazarzate complex in Morocco • Selected transmission projects • Jordan, Tunisia • $1.6 billion • Intra-MENA optimization, exports to Europe

  6. CTF Contribution • Endorsement by Trust Fund Committee in December 2009 • $750 million earmarked • Funds to be channeled through World Bank Group (IBRD, IFC, MIGA) and African Development Bank (AfDB) • Highly concessional terms and conditions • 40 year maturity, 10 year grace period • 0.25% service fee

  7. Financing the Plan • CTF contribution • Public & private sponsors: national utilities & IPPs • Public & private lenders: multilateral & bilateral donors, commercial lenders, ECAs • Guarantees and risk mitigation instruments

  8. Challenges • Implementation of policy and regulatory environment in MENA and EU • Arranging suitable financing package for each project

  9. Opportunities • Security of supply for non oil producers, increased export potential for oil producers • Export of electricity to Europe • Local manufacturing • Job and wealth creation • Export of components

  10. Local Manufacturing • World Bank commissioned study carried out in 2010 by Ernst & Young and the FraunhoferInstitute • Significant manufacturing potential in the region • Strong manufacturing base (auto and aero subcontracting) • Major CSP technology manufacturers already involved in 3 ongoing hybrid CSP projects in the region (Morocco, Algeria, Egypt) • Target components • Construction and civil works • Mounting structures • Non-CSP-specific elements (piping, cables…) • Then, mirrors and possibly float glass • Later, production of receivers

  11. Impact on Local Economies • Increased local content • Job creation up to 80,000 by 2020-2025

  12. Conclusion • A key technology for climate change mitigation and security of energy supply in the region • Many challenges but implementation of the investment plan is under way • To bridge the financial gap, efforts are required on all fronts: MENA countries, donors, European Union • Local manufacturing, for much needed job and wealth creation • Opportunities for project developers and equipment manufacturers

  13. http://arabworld.worldbank.org (tab on Solar)

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