Solar projects in the Mediterranean: progress and questions

 Energy is probably the sector in which the reality of Euro-Mediterranean rapprochement is the most tangible. In organizing a breakfast meeting on Mediterranean solar projects, Ipemed showed that this is not just a hot topic, but one that generates a great deal of interest, since no less than 80 people attended the meeting organized in Paris on 26 November. Some significant lessons and information can be gleaned from the event.


Including :

André Merlin, CEO of Transgreen

Paul Van Son, CEO of Desertec

Mustapha Bakkoury, President of Moroccan Agency for Solar Energy

 

Electricity’s strategic role



For André Merlin, president of Medgrid (ex-Transgreen), electricity will play a crucial role in Euro-Mediterranean rapprochement. Aside from the fact that it uses low-carbon means of production (i.e. nuclear, geothermal, wind and sun), it faces some significant challenges, both in Europe and in the South and East. The first of these is the 20-20-20 target: to reach 20% energy efficiency, 20% renewable energy in the energy mix, and 20% greenhouse gas reduction by 2020. For the South and East Mediterranean, the challenges are considerable since this region will face a significant rise in electricity demand. “Increased means of production will need to be accompanied by developing interconnected electric networks,” judged André Merlin, who sees this as the best way of reinforcing solidarity and interdependence between countries South and East of the Mediterranean (SEMCs).

 

Desertec and Medgrid: partners, not competitors

The media like to oppose these two initiatives, one of which is of German origin and the other French. The leaders of the two structures are nevertheless categorical: they are complementary. “We shall be working together and shall soon be signing a partnership agreement,” explained Paul van Son, Managing Director of Desertec Industrial Initiative (Dii). The split does seem clear: Dii’s objective is to help install solar power stations in the South of the Mediterranean, while Medgrid will take care of transport and electricity infrastructure. In both cases, the two entities will act as research departments rather than investors. “Dii does not possess the 400 billion euro that need investing in the South Mediterranean,” explained Paul van Son. Similarly, Medgrid is not going to spend the 5 billion euro or so required to strengthen the electric connection between Europe and North Africa. Dii and Medgrid do have something in common: both have been obliged to change their names (formerly Desertec and Transgreen respectively) because their original choices were already registered.

 

Morocco, genuine solar energy strategy

Also present was Mustapha Bakkoury, president of the board of the Moroccan solar energy agency (MASEN). He summed up the ambitions of his country regarding solar energy in particular and renewable energy in general. “Morocco has no option but to develop renewable energy sources, including solar,” explained the Moroccan leader, mentioning the unrelenting rise in hydrocarbon prices. “Solar energy is a domain with high stakes when it comes to energy, the environment, politics and regulations.” He insisted on the fact that it is not enough for Morocco to build solar power stations to meet steeply rising levels of domestic energy demand. The country needs to analyze the whole production chain, define a regulatory framework, think about the issue of networks, and anticipate problems linked to projects’ profitability. In 2020, 42% of Morocco’s electricity production will come from renewable energy sources, in other words, if this target is met, the highest rate of all South Mediterranean countries and even the Arab world. “Electricity produced in Morocco will essentially be for local use but we also plan to export some of it,” added Mustapha Bakkoury.

 

Unanswered questions

As Ipemed’s president Radhi Meddeb pointed out, many questions still await answers. Firstly, will Europe buy green electricity produced in SEMCs? And will this exported energy benefit from incentive tariffs enabling a return on the huge investments agreed to by the South and East Mediterranean? Secondly, will Europe, which is pushing for the creation of solar power stations in the South Mediterranean, encourage a transfer of technology, or will it maintain a monopoly comparable to its current domination in manufacturing industrial equipment? Lastly, do electricity interconnection projects between North and South disguise the former’s desire to stop the latter from having their own civil nuclear power stations? If it could sell electricity to Southern countries through interconnected networks, Europe might be passing on a message to its neighbours that they don’t ultimately need nuclear power in their energy mix. Ipemed will continue to tackle all of these questions over the coming months.