Identifier
Created
Classification
Origin
09MUNICH162
2009-07-02 07:51:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Consulate Munich
Cable title:
Northern African Solar Energy: A Silver Bullet Against the
how-toVZCZCXRO4641 PP RUEHAG RUEHAST RUEHBC RUEHDE RUEHDF RUEHDH RUEHHM RUEHIK RUEHKUK RUEHLN RUEHLZ RUEHMA RUEHPB RUEHPOD RUEHROV RUEHSL RUEHTM RUEHTRO RUEHYG DE RUEHMZ #0162/01 1830751 ZNR UUUUU ZZH P 020751Z JUL 09 FM AMCONSUL MUNICH TO RUEHC/SECSTATE WASHDC PRIORITY 4831 RUEKJCS/SECDEF WASHDC RUCPDOC/DEPT OF COMMERCE WASHINGTON DC RHEBAAA/DEPT OF ENERGY WASHINGTON DC RUEHZG/NATO EU COLLECTIVE RUCNMEU/EU INTEREST COLLECTIVE RUCNFRG/FRG COLLECTIVE RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE RUEHEE/ARAB LEAGUE COLLECTIVE
UNCLAS SECTION 01 OF 02 MUNICH 000162
STATE FOR OES/ENV
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ENRG PREL SENV EU GM XF
SUBJECT: Northern African Solar Energy: A Silver Bullet Against the
CO2 Werewolf?
SENSITIVE BUT UNCLASSIFIED. PLEASE PROTECT ACCORDINGLY.
UNCLAS SECTION 01 OF 02 MUNICH 000162
STATE FOR OES/ENV
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ENRG PREL SENV EU GM XF
SUBJECT: Northern African Solar Energy: A Silver Bullet Against the
CO2 Werewolf?
SENSITIVE BUT UNCLASSIFIED. PLEASE PROTECT ACCORDINGLY.
1. (U) SUMMARY: Major European investors led by Germany are in the
preliminary stages of developing "Desertec," a 400 billion euro
renewable energy project with the potential to supply 15 percent of
Europe's power needs by 2050. The group electrified renewable
energy proponents with the announcement of a formal consortium
aiming to tap solar energy resources in the deserts of Middle
Eastern and Northern African (MENA) countries and transmit it as
electricity to Europe. Fresh water production and job creation
would be part of the project, which could make it attractive to
possible hosts of its infrastructure. END SUMMARY
Desertec - Solar Energy and Fresh Water
for Europe and Africa
--------------
2. (SBU) On June 15, 2009 the world's largest reinsurance firm,
Munich Re, announced a consortium of around 20 large German
companies which aims to build concentrating solar thermal power
(CSP) plants in MENA deserts and transfer the electricity to Europe
over high-voltage direct current (HVDC) cables. Although the
transmission distance would result in some power losses, the vast
solar resources in the MENA region make the project economically
feasible in the long-term. Although no official list of participants
has been published, it is known that the group includes a member of
the Arab League and a variety of Spanish and Italian interests.
Siemens, Deutsche Bank, and the German energy firms REW and E.ON are
involved, and the Social Democratic Party of Germany (SPD) has made
the plan central to its new energy strategy. The consortium will
meet on July 13 in Munich discuss its next steps.
Technical and Geopolitical Challenges Remain
--------------
3. (SBU) The projected investment of 400 billion euro through 2050
includes 50 billion for the construction of an advanced power
transmission grid and 350 billion to build the system of CSP plants.
Desertec uses existing technologies which have been successfully
implemented in Spain and the United States and will increase its
efficiency by utilizing solar collectors that superheat salt,
allowing the system to store heat and generate power around the
clock. Desertec faces tremendous financial, political and security
challenges in the historically unstable MENA region. Ernst Rauch,
head of the Munich Re Corporate Climate Center, admitted in a
meeting with Munich Pol/Econ that while Munich Re was "overwhelmed
with the positive, almost religious, reactions" to Desertec, "no one
will invest in a grid this size if the entire project is not seen as
feasible." Rauch hoped that a "win-win" arrangement with the
countries hosting Desertec would act as a regional stabilizer
because they, too, would benefit from the power, jobs and
desalinated water produced by the CSP plants.
Desertec Gives Killjoys Plenty to be Skeptical About
-------------- --------------
4. (SBU) Despite the hoopla surrounding Desertec, the project is
not devoid of criticism, even from some supporters. For example,
Wulf Bernotat, chairman of the board of energy giant E.ON, cautioned
an energy seminar at Munich's ifo Institute on June 29 that Desertec
would, for example, encounter enormous problems in Europe getting
permits and financial and political support for an entirely new
transmission network. Members of the energy industry that are not
poised to reap the project's benefits have tried to dampen
enthusiasm, such as Lars Josefsson, Vattenfall CEO and Climate
Advisor to Chancellor Merkel, who publically criticized the project
as being "unrealistic" due to its cost. He has noted Desertec's
vulnerability to terrorist attack. (COMMENT: Vattenfall is heavily
invested in the European coal industry and is lobbying for "clean
coal" with CCS technology as its solution to global warming. END
COMMENT) Much of the German solar power industry voiced concern that
the project would eliminate funding for smaller, more "realistic"
domestic projects.
Comment
--------------
5. (SBU) Current assessments of Desertec's feasibility range from
hopeful public enthusiasm to pessimism about the enormous political
and financial challenges. The consortium seems to be counting on
MUNICH 00000162 002 OF 002
public support as the catalyst needed to mitigate the skepticism.
6. (U) Consulate General Munich coordinated this report with
Embassy Berlin.
NELSON
STATE FOR OES/ENV
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ENRG PREL SENV EU GM XF
SUBJECT: Northern African Solar Energy: A Silver Bullet Against the
CO2 Werewolf?
SENSITIVE BUT UNCLASSIFIED. PLEASE PROTECT ACCORDINGLY.
1. (U) SUMMARY: Major European investors led by Germany are in the
preliminary stages of developing "Desertec," a 400 billion euro
renewable energy project with the potential to supply 15 percent of
Europe's power needs by 2050. The group electrified renewable
energy proponents with the announcement of a formal consortium
aiming to tap solar energy resources in the deserts of Middle
Eastern and Northern African (MENA) countries and transmit it as
electricity to Europe. Fresh water production and job creation
would be part of the project, which could make it attractive to
possible hosts of its infrastructure. END SUMMARY
Desertec - Solar Energy and Fresh Water
for Europe and Africa
--------------
2. (SBU) On June 15, 2009 the world's largest reinsurance firm,
Munich Re, announced a consortium of around 20 large German
companies which aims to build concentrating solar thermal power
(CSP) plants in MENA deserts and transfer the electricity to Europe
over high-voltage direct current (HVDC) cables. Although the
transmission distance would result in some power losses, the vast
solar resources in the MENA region make the project economically
feasible in the long-term. Although no official list of participants
has been published, it is known that the group includes a member of
the Arab League and a variety of Spanish and Italian interests.
Siemens, Deutsche Bank, and the German energy firms REW and E.ON are
involved, and the Social Democratic Party of Germany (SPD) has made
the plan central to its new energy strategy. The consortium will
meet on July 13 in Munich discuss its next steps.
Technical and Geopolitical Challenges Remain
--------------
3. (SBU) The projected investment of 400 billion euro through 2050
includes 50 billion for the construction of an advanced power
transmission grid and 350 billion to build the system of CSP plants.
Desertec uses existing technologies which have been successfully
implemented in Spain and the United States and will increase its
efficiency by utilizing solar collectors that superheat salt,
allowing the system to store heat and generate power around the
clock. Desertec faces tremendous financial, political and security
challenges in the historically unstable MENA region. Ernst Rauch,
head of the Munich Re Corporate Climate Center, admitted in a
meeting with Munich Pol/Econ that while Munich Re was "overwhelmed
with the positive, almost religious, reactions" to Desertec, "no one
will invest in a grid this size if the entire project is not seen as
feasible." Rauch hoped that a "win-win" arrangement with the
countries hosting Desertec would act as a regional stabilizer
because they, too, would benefit from the power, jobs and
desalinated water produced by the CSP plants.
Desertec Gives Killjoys Plenty to be Skeptical About
-------------- --------------
4. (SBU) Despite the hoopla surrounding Desertec, the project is
not devoid of criticism, even from some supporters. For example,
Wulf Bernotat, chairman of the board of energy giant E.ON, cautioned
an energy seminar at Munich's ifo Institute on June 29 that Desertec
would, for example, encounter enormous problems in Europe getting
permits and financial and political support for an entirely new
transmission network. Members of the energy industry that are not
poised to reap the project's benefits have tried to dampen
enthusiasm, such as Lars Josefsson, Vattenfall CEO and Climate
Advisor to Chancellor Merkel, who publically criticized the project
as being "unrealistic" due to its cost. He has noted Desertec's
vulnerability to terrorist attack. (COMMENT: Vattenfall is heavily
invested in the European coal industry and is lobbying for "clean
coal" with CCS technology as its solution to global warming. END
COMMENT) Much of the German solar power industry voiced concern that
the project would eliminate funding for smaller, more "realistic"
domestic projects.
Comment
--------------
5. (SBU) Current assessments of Desertec's feasibility range from
hopeful public enthusiasm to pessimism about the enormous political
and financial challenges. The consortium seems to be counting on
MUNICH 00000162 002 OF 002
public support as the catalyst needed to mitigate the skepticism.
6. (U) Consulate General Munich coordinated this report with
Embassy Berlin.
NELSON