Strong growth in the capacities of solar thermal power plants can currently be observed around the world, the Fraunhofer Institute for Solar Energy Systems ISE reports in a press release. So far, these Concentrating Solar Power (CSP) plants have been constructed mainly in southern Europe and the US, even though North Africa and the Middle East actually have the biggest global application potential and thus the largest opportunities for this technology.

This region stands to profit greatly from the expansion of CSP capacity in the future as shown by a new study on behalf of the World Bank by the Fraunhofer Institute for Systems and Innovation Research ISI and the Fraunhofer Institute for Solar Energy Systems ISE. The study’s results indicate that European plant manufacturers and technology providers are also very interested and ready to get involved in North Africa and countries of the Middle East.

World Bank’s Clean Technology Fund supports the development of solar thermal power plants in MENA countries

The background to the study is reportedly the World Bank’s Clean Technology Fund (CTF), which is supporting the development of solar thermal power plants in MENA (Middle East & North Africa) countries. An investment program is intended to help finance new power plants in the MENA region, develop a local CSP industry as well as attract additional investment and allow MENA countries to participate in the global expansion of renewable energies. The success and acceptance of solar power plant construction in the five countries examined (Egypt, Algeria, Jordan, Morocco and Tunisia) depend heavily on the integration and participation of local industry, Fraunhofer reports.

Action plan to realize local production capacities

The study “MENA Assessment of Local Manufacturing Potential for Concentrated Solar Power (CSP) Projects” was conducted by Fraunhofer ISI and Fraunhofer ISE in cooperation with Ernst & Young. Working together with industry in North Africa and Europe, the researchers analyzed the CSP value chain, the production processes of a solar thermal plant’s core components and the industry potentials in the MENA countries. An action plan to realize local production capacities is shown in the form of a roadmap. Mario Ragwitz, who heads the study at Fraunhofer ISI, emphasizes that such an action plan is able to tap a large potential of the local value added and the turnover and jobs associated with this.

80,000 new jobs could be created in the MENA region

The study results indicate that the local value added for CSP plants in the MENA region can reach up to 60 percent on average. Christoph Kost, head of the study at Fraunhofer ISE, estimates the effect due to local value added in the region to be USD$14.3 billion if sustainable, long-term demand is created. 60,000 to 80,000 new jobs, some of them highly qualified permanent positions, could be created in the MENA region by 2025. Countries stand to profit from the development of production capacities and extensive infrastructure construction projects in the field of renewable energies if they exploit their regional advantages and dismantle market barriers.

According to Fraunhofer, European plant manufacturers and component suppliers also see large growth opportunities in this market in the medium term. Europe and MENA both stand to benefit from the enormous solar power potential of the region via new markets for the companies of the two continents.

Presentation and discussion of the study in Cairo

The results of the study were presented to the Egyptian Energy Minister at the end of September in Cairo and communicated and discussed at a workshop attended by more than 120 local and international industry representatives, government officials from the five target countries and project partners.

The two Fraunhofer Institutes founded the Fraunhofer Center for Renewable Energy Innovation Policy RENIP in 2009 with the objective of combining the experience of Fraunhofer ISI in systems analysis and innovation research with the broad technology expertise of Fraunhofer ISE in the field of renewable energies in order to conduct joint detailed technology and economic analyses.

2011-02-10| Courtesy: Fraunhofer ISE | solarserver.com © Heindl Server GmbH

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