1. Developing Solar Energy
Industries in MENA
The Road from R & D to Commercialization – Better Productivity Better
Jobs” June 19-21, 2013, Murray Edwards College, Cambridge England
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2. MENA’s Comparative Advantage:
Significant Solar Resource in Proximity to a
Large Market for Solar Energy
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3. Concentrated Solar Power (CSP) has large
unexploited economies of scale
Proven technology, transferable to developing
countries –for energy and manufacturing

4. CSP costs are still high…

5. 5
…but there is a high potential for cost reduction
CSP levelized costs are forecasted to be reduced 50% by
2035 (3% per year)

6. 6
Ouarzazate I project (Noor I) – an
Innovative Financing structure
for lowest cost and optimal risk allocation
SPC
(Solar Power Company)
Equity (25%) Repackaged debt
Equity (75%)
PPP partners
Masen
Grant
Shareholders
(ONE, SIE, Hassan II Fund, State)
IFIs
Concessional financing
Gvt of
Moroc
co
Carbon Finance
ONE
MASEN
SPC
PPA1PPA2
(Δ) to be covered by
GoM, or by export if
possible
State
Support

7. CSP technology is more transferable
and closer to existing industrial
base in MENA
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8. Egypt – CSP components with
potential for local manufacturing
1. Condenser & Heat exchangers
• Existing stainless steel market
• Manufacture under international standard
• Adapt existing industries
2. Pumping Equipment
• Manufacture under international standard
• Motor and power electronics
3. Mirrors
• Cost of energy and transport
• Adapt existing float glass industry
4. Storage tanks
• Manufacture under international standard
• Adapt existing industries
5. Structure & Tracker
• Combine with PV support structure
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9. MENA countries are aiming to be
“center of excellence” instead of
low-cost and low-skilled centers for
manufacturing
• In the past, the development of potential CSP
industries in MENA was driven by the low cost of labor
and energy, and the proximity of Europe, but this is
changing.
• Pure subcontracting is now shifting toward more local
R&D and production of high-tech components
• Morocco is taking decisive steps in this direction by
creating: the Moroccan Agency for Solar Energy
(MASEN), the Moroccan Institute for Solar Energy
Research (IRESEN) and the Oujda “Clean Tech” park.
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10. Climate Innovation Center (CIC)
in Morocco to assist business in
manufacturing CSP components
• The CIC aims to strengthen capacity and attract financial
resources to support private sector in the manufacturing of solar
and other “clean” technologies. The CIC is at an early stage of
preparation (business plan).
• The planned key CIC activities are:
1. Financing: Grants (up to 50k) and access to VC funds.
2. Information: Website on solar technologies, Annual forum
“Morocco Cleantech” and e-bulletin on Cleantech market trends.
3. Advise/Training: Mentoring program for managers, Technical
trainings for engineers.
4. Networking: “Diaspora” network, Partnership with Universities
and Research Centers for knowledge transfer, Exchange
program with regional and international organizations.
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11. Thank you!
Jonathan Walters
Director, Regional Programs & Partnerships
World Bank
jwalters@worldbank.org
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