DESERTEC Industrial Initiative: a win-win partnership

1. BoukhalfaYaici, Cevital Energies Renouvelables DESERTEC Industrial Initiative: a win-winpartnership MENA Regional Concentrated Solar Power Scale-Up Program Tunis, October 21-22, 2009

2. Agenda • Industrial perspective from Cevital’sside • Current situation • Opportunities • DesertecIndustrial Initiative: • Focus on the activities in the field of power generation on the sun and wind as sources of energy • Creating the politicalframework • Benefits for all

3. Industrial perspectives from Cevital’sside • Current situation • General aspects: From foodprocessing to industrialsectors • US $ 2 billion in 2008 • 7,400 people • Two digits rate growthsince 1999. • Industrial aspects: More than 20 subsidairies • Float-glass lines (2007: 600 T/d; 2010: 800 T/d) • Concretefab; Construction • Energy: a new sector • 2x25 MW cogeneration power plant (December 2009) • 1x17 MW electrical power plant (February 2010) • 3 MW CSP pilot plant (2012)

4. Industrial perspectives from Cevital’sside • Opportunities • Algeria: • Hugesolar radiation • Close to Europe • Comparative advantages • Cevital: • Local manufacturing: Solar mirrors, collectors • Construction: Civil work, engineering • Power plant: Operating & Maintenance Source: REMAP. Delivrable 3.1., January 09

5. The deserts represent the largest but least exploited source of clean energy on earth “Within 6 hours, deserts receive more energy from the sun than humankind consumes within a year.” Dr. Gerhard Knies (Chairman of the Supervisory Board of the DESERTEC Foundation) • Thrilling scientific theory RequiredCSP collector area necessary to meet the world’s energy need in 2005 21/10/2009

6. The DESERTEC concept (I) Origin and Vision • Developed by the Club of Rome’s TREC Initiative (Trans-mediterraneanRenewable Energy Cooperation) • Vision: Providing Europe (EU), the Middle East and North Africa (MENA) with a sustainable supply of renewable energy by the year 2050

7. The DESERTEC concept (II) Basic assumptions and facts • „Sources of renewable energy are abundant • „DESERTEC mainly aims to make use of solar energy from the deserts, the biggest energy resource available on earth • „More than 90 % of the world‘s population are living in areas that are less than 3.000 km away from deserts and thus could be supplied with clean power • „DESERTEC offers an integrated solution for a variety of mankind‘s key future problems: Climate change, lack of energy, lack of drinking water, further economic development for MENA

8. The DESERTEC concept (III) • Feasibility studies MED-CSP (2005) Concentrating Solar Power for the Mediterranean Regionfocuses on the electricity and water supply TRANS-CSP (2006)Trans-MediterraneaninterconnectionforConcentrating Solar Powerfocuses on the interconnection of the electricity grid of Europe, the Middle East and North Africa (EUMENA) with the purpose of supplying about 15% of the European electricity demand by solar energy imports from the South by the year 2050 AQUA-CSP (2007)Concentrating Solar Power forSeawater Desalinationanalyses the potential of concentrating solar thermal power technology for seawater desalination in the Middle East and North Africa Commissionedby 21/10/2009

9. The DESERTEC concept forms the basis of the Desertec Industrial Initiative (DII) Memorandum of Understanding (MoU) • 12 companies and the DESERTEC Foundation signed a Memorandum of Understanding. • The objective of this initiative is to analyse and develop the technical, economic, political, social and ecological framework for carbon-free power generation in the deserts of North Africa.

10. The DII has the overall mission to put the DESERTEC concept into practice *In line with MoU signed at the Founding Meeting on July 13th, 2009 • Mission of DII The mission* of the DII is to accelerate the roll-out of the DESERTEC concept with the target of supplying EUMENA with power produced from sun and wind as renewable sources of energy in MENA and establishing related industries there. The aim hereby is to cover 15% of the European and substantially more of the MENA electricity demand by 2050. To achieve this mission four areas can be derived on which the initiative has to focus within the next three years: Creation a of favorable regulatory and legislative environment Development of a roll-out plan Proposal of concrete reference projects Additional or more detailed studies, where needed (e.g. on feasibility)

11. The vision of DESERTEC helps to build bridges between EU and MENA Benefits of the DESERTEC concept for the EUMENA region • Close cooperation between the EU and the countries of the MENA region on introducing renewable energies in the market and building power distribution networks (grid) • New potential for economic, ecological and social development, particularly in the MENA region (e.g. seawater desalination) • Growth, development and employment opportunities for the MENA region as a result of substantial private investment • Greater energy security in the EU/MENA countries • Reduction of carbon-dioxide emissions and thus a significant contribution to climate protection targets

12. Objectives of the DESERTEC industrial initiativeMajor challenges are politics and regulations • Overview of the main modules Regulatory and legislative environment • Analysis and negotiation of a substantial (sustainable), political and legal framework for the implementation of the DESERTEC concept • Analysis of the important legal and political conditions for the rollout plan in MENA and Europe (eg. Feed-in Tariffs) • Investigation of possible barriers in the energy industry across the value chain and elaboration of necessary adaptation measures. • Identify favorable locations in the MENA Europe, safekeeping and governmental assistance of the involved countries and states • Detailed planning of the rollout until 2020. Rough planning until 2050 • Determination of the aimed capacity for every country as well as power system planning including requirements for European transmission grids • Development of a time table for the rollout and a rough business plan containing funding and investment concepts • Simulating the development of energy demand, (cut in) CO2 emissions, … • Finding possibilities to involve local industries Roll-out plan Additional studies • Initiation of reference projects in order to demonstrate the feasibility of the DESERTEC concept • Specified by location, expected output and amount of byproducts • Consideration of the energy transmission from MENA to Europe • Assumptions regarding technologies (including the generation concept, storage and network as basis for feasibility studies

13. Communication A flyer on DESERTECIndustrial Initiative • The DESERTEC concept and the main objectives of DII are detailed on a flyeravailableduring the Meeting. • For more information: • boukhalfa.yaici@cevital.com • Thankyou.