Worldbank and ESMAR, Middle East and North African Region Assessment of the local manufacturing potential for CSP projects, 2011
The Middle East & North Africa (MENA) region has amongst the world’s best conditions for concentrated solar power (CSP): abundant sunshine, low precipitation, plenty of unused flat land close to road networks and transmission grids. It is also close to Europe, where green electricity is much valued.
However, high initial capital costs remain a significant issue for adoption of CSP technology. To make CSP projects in MENA cost effective in the short to medium term, a combination of factors is necessary, including local incentives, concessional finance and export of green electricity to Europe.
In the longer term, to make concessional finance less critical, generation costs will need to be dramatically lower. This implies that investment costs, and therefore manufacturing costs of the main components and systems, need to decrease. It will be made possible by a combination of technical innovation, economies of scale, and experience curve effect.
To assess the local manufacturing potential for CSP components in the MENA region, a study was commissioned by the World Bank with donor support from the Energy Sector Management Assistance Program (ESMAP). It was carried out during the year 2010 by Ernst & Young (France) and the Fraunhofer Institute (Germany). A stakeholder workshop was conducted on September 30th, 2010, in Cairo, and feedback was received from the client countries, industry participants and donors. The AfDB and World Bank teams actively participated in the review and finalization of the study.
Summary (8 pages): download here
Full report (223 pages): download here