The world’s most ambitious concentrated solar power (CSP) project is set to proceed in the Middle East and North Africa under a revised plan from the internationally-backed Climate Investment Funds (CIF).
The CIF’s Clean Technology Fund (CTF) will release US $660 million to install 1,120 megawatts of solar power in Algeria, Egypt, Jordan, Libya, Morocco and Tunisia and is expected to attract $5 billion in private investment.
The CIF first approved the plan in 2009 and the program has begun in various stages in selected countries, but it has since been delayed due to political turmoil arising from the Arab Spring and economic uncertainty in Europe. The success of some projects in attracting outside investment also meant the initial $750 million in funding for the plan was cut to $660 million.
“The changes suggested by the countries in the plan make it a more viable and flexible plan which takes into account the realities each of these countries face,” stated Mafalda Duarte, African Development Bank (AfDB) coordinator for the CIF program.
According to a release, the revised plan now opens the door for concentrated solar photovoltaic (CPV) power technology and adds 200 megawatts to the original capacity goal of 895 megawatts.
The financial success of Morocco’s 160-megawatt Ouarzazate I CSP project (the first phase of the 500 megawatt Ouarzazate plant), which, according to the plan, indicated strong financial competition was present by offering a bid price of US 19 cents per kilowatt hour – one of the lowest levelised cost of CSP power in the world.
“We are looking forward to seeing more involvement by this kind of financing in the coming years, and hope it will help continue the dynamism of the solar power sector and its competitiveness with wind and other energy sources, including fossil fuels,” said Mustapha Bakkoury , President of the Moroccan Agency for Solar Energy (MASEN)
CTF allocations in the revised plan are:
– Morocco: US $218M for 300 MW (Ouarzazate II)
– Egypt: US $123M for 100 MW (Kom Ombo)
– Tunisia: US $62M for 50 MW (Akarit) (may increase to 100MW)
– Jordan: US $50M for up to 100 MW including CPV
– Technical assistance: US $10M
