Thesis - Re-mapping Solar Energy

FACULTY OF ECONOMIC, POLITICAL AND SOCIAL SCIENCES AND SOLVAY BUSINESS SCHOOL
Re-mapping Solar Energy Case
Study: Cooperation between
Europe and Egypt
2013-2014
Dina Hassan
Student ID: 102121
Promoter: Prof. Dr. Nikolay Dentchev
Master thesis submitted in partial fulfilment of the requirements for the diploma Master of
Management.

3
TABLE OF CONTENTS
1 Introduction................................................................................................................5
2 Research Method .......................................................................................................7
3 Literature Review ....................................................................................................10
3.1 Europe & MENA’s Current Situation Towards Climate Changes......................... 10
3.1.1 Change In Europe’s Economic Patterns And How It Affects The Environment... 13
3.1.2 Market Trends In Developing Countries ............................................................... 14
3.1.3 Summary................................................................................................................ 16
3.2 The Base of Cooperation Between EU and NA......................................................... 17
3.2.1 The Appearance Of International Agreement Gathering EU And NA.................. 18
3.2.2 EU Policy Energy Strategy Towards Foreign Relations........................................ 19
3.2.3 Summary................................................................................................................ 26
3.3 The Role Of Solar Energy Obligation........................................................................ 26
3.3.1 Feed in tariff policy system ................................................................................... 28
3.3.2 Quota models and clean development mechanism................................................ 31
3.4 Egypt’s Potentiality As A Host Country.................................................................... 34
3.4.1 Egypt's Economic Challenges As A Cooperation Motive..................................... 37
3.4.2 The Beginning Of Solar Energy In Egypt ............................................................. 39
3.4.3 The Energy Policy Strategy In Egypt .................................................................... 40
3.5 International Cooperation Could Promote Safety/Certainty.................................. 42
4 Conclusion ................................................................................................................45
5 Bibliography.............................................................................................................49

4
LIST OF FIGURES
FIG 1. SOLAR IRRADIATION................................................................................................................................................................. 10
FIG 2. EUROPE UNION ENERGY MIX IN 1995 AND 2007 .................................................................................................................... 11
FIG 3. PRODUCTION VALUE DISTRIBUTION IN EGYPTIAN INDUSTRIAL SECTOR................................................................................. 16
FIG 4. EU-EURO-MEDITERRANEAN PARTNERSHIP "TRADE IN GOODS" STATISTICS........................................................................... 19
FIG 5. THE CHANGING OF THE ENERGY RESOURCES’ MAP ................................................................................................................ 21
FIG 6. SYSTEM COST DEVELOPMENT PER KW IN PERCENT OF 2010 COST ESTIMATE........................................................................ 24
FIG 7. THE SHARE OF RENEWABLE ENERGY’S CONSUMPTION .......................................................................................................... 28
FIG 8. THE GHG TOTAL EMISSIONS FOR 1990 TO 2011...................................................................................................................... 33
FIG 9. THE EXPECTED MEGAWATT BY USING THE CSP AND PV ......................................................................................................... 43
LIST OF TABLES
TABLE 1. SHARE OF RENEWABLE IN GROSS INLAND ENERGY CONSUMPTION, 2010 ........................................................................ 31
TABLE 2. TECHNOLOGY TRANSFER’S STATUS UNDER CDM................................................................................................................ 32
TABLE 3. THE SELECTED LOCATIONS .................................................................................................................................................. 36
TABLE 4. EGYPT’S POPULATION AND ELECTRIC POWER INDICATORS (2007-2052) ........................................................................... 40
TABLE 5. THE SIX MAJOR AXES AND ITS RELATIONSHIP TO EACH OTHER.......................................................................................... 41
TABLE 6. THE SOLAR POTENTIAL BY REGION/PER YEAR IN ALGERIA ................................................................................................. 44

5
1 INTRODUCTION
This master’s thesis analyses and evaluates the problem of energy and climate changes likely to affect the
Mediterranean region and European Union in the near future. The proposed cooperation supposes to create
the idea of a new lifestyle with less pollution, less CO2 emissions and less threat to human life. The study
discusses how the clean energy solution, for a better life, can be reached through developing mutual
agreements on specific policies and international cooperation in the field of energy use.
The European Union has developed an ambitious program for renewable energy and climate change issues
(EC, 2010). In the coming decades, the increasing energy demand, accompanied with the shortage of global
energy, rising prices (IEO, 1995) and growing climate risks will lead to a real dilemma (United Nation,
2002). Furthermore, according to the Intergovernmental Panel on Climate Change, the EU must reduce their
global emissions before 2015, and have them further reduced to less than 50% of today’s emissions by 2050,
in order to achieve global climate security (IPCC, 2008), but this will only be achieved by converting the
energy system globalizing (WorldWatch Institute). Also, the commitment was made by the European Union
to stabilize their greenhouse gas emissions (GHG) to a certain level under a convention on climate change
(United Nation, 1998).
Yet, developing countries in the Middle East and North Africa (MENA) are more affected by global warming
than industrialized countries, because their agricultural productivity is eroded by the threat of droughts and
desertification (Howell and Allan, 1994). “Climate change-induced changes in both the seasonal runoff
regime and inter annual runoff variability can be as important for water availability as changes in the long-
term average annual runoff,” asserts the Intergovernmental Panel on Climate Change (2008, p58). In
addition, developing countries end up trying to belong to the industrializing group in order to progress and
achieve economic development, regardless of the climate change effect, thereby increasing global pollution.
Despite their differences, each political party may consider the challenges already facing them, and follow a
new strategic approach to energy that would help economic development and prosperity while working on
eliminating the GHG emissions. This approach can include generating renewable energy opportunities by

6
providing know-how, as well as scientific and technological solutions that are cost effective and highly
efficient, in order to provide reliable energy sources without forsaking economic development.
For the purpose of understanding the previous statements, the objective of this master thesis is geared
towards answering the following research questions in order to provide a clear picture of the present
importance of that kind of cooperation in solar energy and sustainable energy systems.
 Can Egypt and Europe cooperate on a large scale using Concentrating Solar Power (CSP) system and
High Voltage Direct Current transmission system (HVDC) for long distance to create a strategic
energy policy approach for the development of a sustainable solar energy infrastructure?
 Can this kind of cooperation be considered another type of dependency, like oil, and thus, a lack of
independence?
 What are the proposals and possible solutions to address the expected difficulties?
The remainder of this master thesis contains three chapters. First, we discuss the research method,
focused on the collection of secondary data. Second, our literature review assists in solving the dire economic
situation in Egypt while helping to achieve the objectives of EU energy and climate targets. The study
analyses and evaluates potential obstacles to solar technology use, the various theories that support or object
to the idea, as well as the problems with solar energy and its impact on the development of solar energy as an
alternative. It also takes into account the recommendations for and against the project to reach a win-win
situation. Third, we summarize the main findings of our study in conclusion.
When we re-discover, re-organize and re-map solar energy sources in the Sahara desert to meet the
challenges of internal energy demand, the benefits become worldwide.

7
2 RESEARCH METHOD
This study focuses on assessing the mutual benefits as well as the challenges and obstacles to realizing
an international agreement between the European Union (EU) and Egypt to invest in solar energy, using
Concentrating Solar Power (CSP) technology systems in Egypt’s Sahara desert.
To reach its results, this study has adopted a specific means of collecting, choosing and analyzing data,
through analyze and evaluate the current situation in both parties according to scientific, theoretical and
historical perspectives. The qualitative analysis is the concept I used to collect the date, in order to
understand the real motivation, real obstacles and real challenges, on order to analyze the cooperation idea
factors. Where, understanding the circumstances surrounding the idea, that including the common interests,
various risks as economic and political one, environment and all other perspectives may help to reach to
interact structured if we focused on the main reasons that may lead to success or failure the concept. There is
a specific qualitative approach I tried to apply which is Narrative research approach (Creswell, 1994) with a
structured method from academic books, scientific journal, academic articles, different reports, internet
resources, newspaper articles and independent magazines, in order to understand and analysis the
background, the circumstances and the history of similar situation to build a “comprehensive set of themes”
(Creswell, 1994). So we could reach to clear patterns and boundaries to the partnership idea. Also, the public
opinion through the journal articles and documented newspapers is essentially in my study, in order to show
the direction of normal people and their degree of awareness towards pollution, GHG emissions, climate
change and its effect. I assumed that their financial support and aid to that kind of idea will represent an
important step towards the success of the idea.
Also the policy energy details and its history in Egypt have a shortage of information especially after the
dissolution of the Organization for Energy Planning in 2006. There is no systematic information published on
the scheduled time and the Supreme Council Energy has no role there. Thus, I tried to use some information
from the public field supported by international studies and statistics that are officially documented.

8
I concentrate on the political risk, where according to what was proven from the study, it represents the
major risk from investors’ perspective. I have dealt with the historical perspective of how countries related to
one another regarding their mobility resources. Energy resources were considered the main tool for economic
performance around the world. It helped most of them achieve more progress, development and prosperity
that led to the increase of their GDPs. Fossil fuels were successfully used as a tool to change paths and
sovereign decisions. My target was to avoid falling into the same trap and to work on having the joint
cooperation in solar energy succeed
Then, it showed the investors and hosted country obstacles and challenges from their perspectives.
However, the study used vivid similar and applied examples in the area, in order to provide solutions that
alleviate barriers. The choice of countries was also done with several reasons in mind. There are several
countries in the Middle East and North Africa (MENA) region that could seemingly have more potential for
this kind of cooperation because of their lack of economic problems, and the relative stability of their
political status when compared to Egypt. This study focuses on Egypt for a number of reasons. Egypt is one
of the most important countries in the global Sun Belt countries, enjoying 2900-3200 hours of sunshine
(Comsan, 2010); thus, the rate of success of this project may be higher by a large margin in case of
cooperation. The Western Sahara occupies 68.1% of the area of Egypt; this immense desert begins from the
Mediterranean Sea to the Sudanese border in the south (UN, Egypt), and compared to other potential
countries, this amount of land in one country, almost free of population and full of Solar Radiation, could be
a real investment capital land to the other partner (Fig1). Also, its geographical location near European
countries (Maniatis and Tite, 1981) can facilitate the hassle of transportation and decrease the potential of
loss when carrying electricity, saving costs (Fig1). Moreover, Egypt is considered a virgin country in this
field on a wide scale, so it can make a big difference for each of the parties if they decide to cooperate and
exploit the advantages owned by each other. As for the choice of the other partner represented in European
Union, the reasons go back to the EU being one entity and having “developed beyond a mere market and is
more than an international organization” (Eriksen, 2007). All 28 states are under the same political ceiling,
foreign policy, defense system and single currency, sharing the same exterior problems and the same fears

9
that may threaten their security in case of a decrease in energy support. Additionally, the European Union
already has international obligations that force it to reduce its global CO2 emissions and stabilize its
greenhouse gas emission to a certain level (IPCC, 2008), it is looking for more progress and economic
development with less climate risk. According to Eurostat, the dependency of EU on Energy imports from
non-EU member resources represented 50% in 2010 and is expected to increase to 70% in 2015. Thus, the
research for an ambitious plan in order to meet their needs can come from external sources to support its
emerging energy and help it abide by its agreements without affecting its desired level of development.
Looking at each part’s elements, it appears that there will be some challenges that would hinder the success
of the project and get it out of control, unless there are solid bases and laws governing this relationship. There
are some main issues that must be resolved and clarified not become real challenges later, including Egypt's
internal problems, especially political instability that have exacerbated after the revolutions of the Arab
Spring, as well as its lack of technology and weakness of government. These themes could also excite
controversy, where the Egyptian authority could potentially consider the project a representation of a new
kind of colonialism. There are many challenges facing Egypt and its national security and it is supposed that
there will be a plan to protect the project from internal disturbances and the instability of the political
situation.
The collected data contains different sets, views and analyses that could give a kind of intimation of
noncompliance, but the goal is to collect all possible potentials, obstacles and situations that appear not to be
related, and bind them together to reach a description of what may be hindering this kind of cooperation.

10
Fig 1. Solar Irradiation.
Source: Dii (2012)
3 LITERATURE REVIEW
EUROPE & MENA’S CURRENT SITUATION TOWARDS CLIMATE CHANGES3.1
Starting in 1990, the renewable methods of energy generation (such as wind energy, geothermal, and
solar energy) began to spread widely as alternative energy sources to fossil-generated energy (Matsubara,
Urai and Yamashita, 2010), which is considered one of the fundamental factors of global climate change. The
increase in carbon dioxide (CO2) concentration, which causes global warming and pollution, has been well
documented (EG Science, 2008). Energy is a vital element for economic performance and industrial growth
and the need for finding sustainable alternatives has become inevitable, especially in developing countries
where industrial growth is needed as a contributor to the general raising of the economic level.
The world is currently facing climatic changes caused by the global increase for energy demand,
which, in turn, causes an increase in the greenhouse effect. Economic performance around the world is
looking for more progress, development and prosperity, which leads to a continued increase in the demand
for energy and thereby widespread climate change, representing the greatest threat all over the world (Wirth,

11
Gray and Podesta, 2003). These recent consequences impose on the globe’s leaders to find an alternative.
Such an alternative would need to have no negative impact on growth and prosperity to solve the hard
equation of climate change.
The current renewable energy production in European power may be high enough for its electricity
demands today, but future demand for electricity will increase due to expanding industries and economies.
The next figure shows the EU energy mix between 1995 and 2007 as a response to reducing nuclear power. It
may be difficult to achieve the full “decarbonised target” in a way that is reasonably sufficient and cost
efficient using a decentralized power grid within Europe. If so, countries outside Europe can help achieve
this desired target (Battaglini, Lilliestam, and Knies, 2009, p. 296).
EU Energy mix 1995 (Total 532 GW) EU Energy mix end 2007 (Total 775 GW)
Fig 2. Europe Union Energy Mix in 1995 and 2007
Source: EWEA and Platts PowerVision, 2008
The MENA region, on the other hand, may face a real challenge regarding shortage of fresh water, a
type of climate change that would be particularly evident to and impactful on individuals and communities,
in the amount of water available to them (Shuman, 2012). The threat of climate change to security, especially
in Africa, poses a real challenge and adopting new policies in line with this new reality has become a
necessary inescapable step (Brown, Hammill and Mcleman, 2007). The climate threat to “scarce water,
collapsing agricultural yields, encroaching desert and damaged coastal infrastructure” may cause more
instability in the region and more conflicts between neighbouring countries (Brown, Hammill and Mcleman,
2007). At the same time, however, neglecting economic & social development in developing international
climate policies in the region for the sake of controlling climate change could potentially lead to task failure.

12
Hence, controlling the impact of climate changes in the region has to include taking into consideration the
economic and social conditions and the political experiences of the region (Brown, Hammill and Mcleman,
2007). Continuing to ignore the economic problems in developing climate policies for the region, as well as
having developing countries disregard environmental problems by neglecting to use or implement the
guidelines and recommended programs for preserving the environment and decreasing GHG emissions as
stipulated in Article 12 under the resolution of the Conference of the Parties serving as the meeting of the
Parties to the Kyoto Protocol (United Nation, 1998) will lead to worsening the situation globally. The
Intergovernmental Panel on Climate Change states, “In densely populated coastal areas of Egypt, China,
Bangladesh, India, and South-East Asia (FAO, 2003), desalination costs may be prohibitive. In these areas,
particularly in Egypt, research in new desalination technology is required to reduce the costs, especially
with the use of nonconventional energy sources that are associated with lower GHG emissions. Also,
desalination of brackish water can improve the economics of such projects” (2008, p58). International
obligations may not represent the real motivation that forces developing countries to work towards mitigating
their greenhouse gas emissions (considering it’s a vital option for their near future) and to change their
behaviour towards climate change, especially when they have to choose between their interests and economic
development on one end and fulfilling the obligations on the other, where the latter could impede or slow
down economic growth. In this case, the EU would have to lend a helping hand to MENA in order to exceed
the traditional phase in converting their energy sources to renewable ones. According to Chandler and
Schaeffer (2002), the per capita in developing countries represents an average 1/6 comparing to developed
countries, so developing countries will continue in their traditional plans in order to achieve more
development and more prosperity, while ignoring international obligations (Chandler and Schaeffer, 2002).
In his report, Barker compared the two scenarios: one where there were no additional climate policies and
one where there were, stating, “an increase of baseline global GHG emissions by a range of 9.7 to 36.7
GtCO2-eq (25 to 90%) between 2000 and 2030. In these scenarios, fossil fuels are projected to maintain
their dominant position in the global energy mix to 2030 and beyond. Hence, CO2 emissions from energy use
between 2000 and 2030 are projected to grow 40 to 110% over that period” (2007, p 22). This means that

13
climate policies can play a main role in changing energy components and lead to more prosperity if applied
in proper ways that match the economic situation in region. Chandler and Schaeffar assume that if climate
policies are addressed to work on economic development, poverty alleviation, local environmental protection
and energy security from one side and international climate protection from another, without hindrances from
either side to the other, reducing global gas emissions in developing countries can work. They provide Brazil
as an example, asserting, “A tax incentive for buyers of cars with low-powered engines, adopted to make
transportation more affordable for the middle class, accounted for nearly 2 million tons of carbon abatement
in the year 2000” (2002, p. 7), as they used the tax incentive to eliminate their gas emissions through the
middle class with a real motivation for them to do so: better living standards. The real change happens if the
motivation comes into contact with a country’s reality.
3.1.1 CHANGE IN EUROPE’S ECONOMIC PATTERNS AND HOW IT AFFECTS THE ENVIRONMENT
During economic development in the European Union, there was an increase in the services sector
due to changing customer demand patterns. This trend was high labour and low capital -intensive. One
advantage with this labour-intensive trend is that it leads to a decrease in the unemployment problem,
especially in the educated sector. At the same time, low capital-intensive trends cause less effects on global
pollution from countries in the European Union, also leading to more sustainable development in different
areas. In most developing countries, economic patterns have been going in the opposite direction, where the
industrial sector has become the main factor in achieving economic growth (Soubbotina, 2000).
On another note, the idea of mitigating the Carbon effect has become one of the most important
priorities on the EU’s agenda, supported by patterns demand. According to Mccrone, Usher, Sonntay-
O’brien, Moslener and Gruning (2013), the year 2012 saw significant declines in the cost of PV systems,
reaching 40%, and the system of re-selling the remaining renewable energy at subsidized prices was raised
with a large increase. Even low investment in solar energy increased by an average 11% in 2012 compared to
2011 for reasons mentioned later. However, the number of PV megawatts installed increased from 28.8GW
in 2011, to 30.5GW in 2012 (Mccrone, Usher, Sonntay-O’brien, Moslener and Gruning, 2013). Returning to

14
2007, developed countries invested two and half times what developing countries did in the renewable field;
this percentage increased by 18% in 2012 as the investment reached to average 224$ billon. However, this
amount is considered a huge one relative to 2011; it is less than average by 11% when comparing to 2009
and 2004 (approximately 1 and ½ times in 2009 & 6 times to 2004), but achieved only 6.5% of global
sustainable electricity generated. The positive effect was decreasing carbon dioxide by 900 megatons, while
GHG remained very high (Mccrone, Usher, Sonntay-O’brien, Moslener and Gruning, 2013). There are some
reasons for this decline, such as investors’ concerns towards the policies destabilize the support for
renewable energy, as in case in Spain when they begin to decrease the tariff support towards the PV projects
for year 2010 till 2012, and the same in Italy. (Mccrone, Usher, Sonntay-O’brien, Moslener and Gruning,
2013). The lack of sun radiation in a region may cause a real gap between the demand and supply.
The solution may not only be in the treatment of the interior reasons for the decline in the proportion
of internal investment, but could also be heading for the European Union from beyond the scope of the
European border to work on scaling the outside in the field of renewable energy (Correlje and Van Der
Linde, 2006). It has redirected energy security policy so that it is an integral part of the EU’s foreign trade
and relations and security policy. The EU is supposed to work on developing its own strategy, investing
actively in dialogue with producing countries in North Africa, Iran and even Russia, in order to get support
for its energy security (Correlje and Van Der Linde, 2006).
3.1.2 MARKET TRENDS IN DEVELOPING COUNTRIES
It’s important to understand who has the upper hand in developing countries, especially in a region
like MENA, and how they manage their economic policies. This can be useful later on in reaching the right
contact points to deal with that kind of cooperation. According to Jorgenson,“Governance is part of the
investment climate of a country and investment decision is mainly driven by profitability motives” (as cited in
Aysan, Nabli and Veganzones-Varoudaks, 2007). Hence, the good governance institution can play an
important role in creating a stable and secure environment for private investment. Also, the International
Finance Cooperation (IFC) provides the chance to capture high quality data to the private investment sector,

15
while at the same time, good governance leads to high administrative quality and controls corruption,
bureaucratic quality and law and order (Aysan, Nabli and Veganzones-Varoudaks, 2007). This shows that
private businesses across countries can succeed greatly if there are good governance institutions.
Egypt is an example for developing countries, as it is known to have been an agricultural country until
the 19th century (IDA, 2006). However, Egypt needs to achieve more economic growth in the 21st
century.
Total investment in Egyptian factories until 2007 reached LE 17,633,128 billion, the equivalent of 1,959,236
billion Euros (IDA, 2006). The chemical industry represents an average 14% of the industrial sector, with 56
factories (IDA, 2006), while ceramics and anti-melting material manufacturing represents 7% of the Egyptian
industrial sector and is considered one of the most important industries in Egypt. The production value
distribution in the Egyptian Industrial Sector is clear in Fig 3. While expansion in the industrial sector may
help in solving a lot of economic problems, through, for example, decreasing unemployment rates and
increasing per capita incomes, it could unfortunately also increase the source of pollutants by growth in the
chemical and ceramic industries (EEAA, 2002). This is an example of the phenomenon of the pursuit of
economic progress in the absence of climate policies geared to cope with this growth, as referred to before by
Chandler and Schaeffer (2002).

16
Fig 3. Production Value Distribution in Egyptian Industrial Sector
Source: EEAA 2002
3.1.3 SUMMARY
Society, private business and governance institution in developed countries dedicate huge efforts to
mitigate carbon dioxide and GHG emissions. However, the problem is still prevalent in a huge percentage.
According to the previous view, and my personal point of view, the treatment is not supposed to only include
the interior problems of developed countries because any such solution would merely represent temporary
solutions, such as investors’ worry about the removal of subsidies on renewable energy sources or the
imposition of obligations on developing countries without considering their realities. In contrast, the kind of
cooperation suggested in this study would lead to an abundance of renewable energy for both sides and swap
assured access to both parties. With regards to the previous analysis, the two parties of the suggested
partnership have totally different patterns and move in opposite directions, with each working according to
its own agenda, priorities and interests despite the fact that climate change is threat to parties all over the
textile and leather
industry
21%
food industry
20%
metal mixing
17% chemical industries
14%
metal products
12%
ceramic and anti-
melting material
manufacturing
7%
metal extraction
5%
pulp and paper
industry
3%
wood industry
1%
textile and leather industry
food industry
metal mixing
chemical industries
metal products
ceramic and anti- melting
material manufacturing
metal extraction
pulp and paper industry
wood industry

17
world. It is important to bind climate polices/obligations to each party’s interests in order to guarantee their
efficiency and effectiveness, and that parties are not only searching for a trap exit to climate change while
ignoring interior issues that could cause disruption to their wheels of production to them. The suggestion is
that policies need to address each of the parties in different area for them to be able to achieve the required
economic development and at the same time maintain standard rules for the climate target.
THE BASE OF COOPERATION BETWEEN EU AND NA3.2
It has been proven that there exists a close relationship between policy and environment policy on one
hand and the relationship between quality of lifestyle, health and scientific and technological progress on the
other (Lallas, 2001). From these relations, the political role begins, where it is assumed to have an efficient
role in reducing or preventing the effects of major factors that threaten the environment, human health and
the quality of life. The idea of linking political support and financial aid or “adaptation fund” to third world
or developing countries by certain conditions related to reducing greenhouse effects and pollution could
mitigate the negative impact on the environment and could be a means of the political and economic
cooperation among countries aimed at declining the response to climate change (United Nation, 1998).
Moreover, “Many Countries are expected in the 21st
century to expand their use of energy from the sun and
other renewable energy source to change the state of living conditions there” (Brown, 2002, p13). They
don’t need it for the sake of changing their lifestyles or for climate change, but also in order to address the
expected and dangerous problems from climate change that would definitely affect their economic situations
and per capita incomes if they continue with the same energy scenario.
The World Bank shares one of these views. According to one of its studies, it sees the region as a
potential market to accommodate “80,000 jobs in construction services and manufacturing by producing
between five and seven gigawatts of electricity” (Friedman, 2011). Walters, the World Bank Manager for
Energy and Transport in the Middle East and North Africa (MENA) region said, “As the megawatts continue
to scale up in the MENA region, eventually you'll have an export industry. Then you're creating permanent

18
jobs. You have a whole Research and Development (R&D) side. That's the potential we're seeing”
(Friedman, 2011). Toukan, Jordan's Minister of Energy and Mineral Resources, also supports this kind of
cooperation, by likening it to the idea of “building the seeds of science and technology" (Friedman, 2011).
Similarly, Professor Amin, Dean of Engineering at Egypt's Helwan University, suggests creating a,“EU-
MENA Solar Energy Center of Excellence to exchange research and blueprint of priorities that benefit both
European and North African countries such as Egypt, which boasts the world's first solar thermal power
plant and has attracted billions in solar and wind development in the past decade” (Friedman, 2011). This
means that between EU and Sahara countries, there are common interests in the fields of economics, politics
and the natural environment and as Battaglini, Lilliestam, and Knies (2009) assert: renewable energy is “the
truly sustainable solution” to achieve both targets.
3.2.1 THE APPEARANCE OF INTERNATIONAL AGREEMENT GATHERING EU AND NA
The Barcelona Declaration, which was adopted by the Euro-Mediterranean Conference in November
1995, confirmed the importance of comprehensive solidarity in cooperation between Europe & North Africa
and agreed “to establish a comprehensive partnership among the participants of the Euro-Mediterranean
partnership through strengthened political dialogue on a regular basis, the development of economic and
financial cooperation and greater emphasis on the social, cultural and human dimension, these being the
three aspects of the Euro-Mediterranean partnership” (EEAS, 1995). As a direct consequence of this kind of
agreement, the Union for the Mediterranean was created by 43 Euro-Mediterranean Heads of State and
Government in Paris on 13 July 2008 (UFM, 2008) in order to establish a healthy and solid trade area
partnership based on peace, political dialog and stability between Europe and Mediterranean countries. Also
the Mediterranean Solar Plan (MSP) was established in order to improve energy efficiency in the area, where
it was supposed to achieve 20 GW of renewable energy by 2020 in the region and work on encouraging the
new business and investment in that field (Komendantova, Patt and Williges, 2011). The following statistics
show how this partnership is going in a positive direction even in light of recent changeable events (Fig4) .

19
Fig 4. EU-Euro-Mediterranean partnership "trade in goods" statistics
Source: European Commission, Trade, Policy, Countries and regions, Euro-Mediterranean partnership
3.2.2 EU POLICY ENERGY STRATEGY TOWARDS FOREIGN RELATIONS
The history of energy throughout the ages has proven its impact on foreign policy and international
relations, as energy is the main factor of mobility on earth (Brown, 2005). This may be the main indicator for
the future role that clean energy will play in foreign policy among the countries (Brown, 2005) such as “the
consequence of the location, development, and utilization of energy sources in the basis that drives the
science of energy” (Brown 2005, p 5). However, even the appearance of the solar thermal obligation in Israel
as a kind of response to the Energy crisis in 1980; it took two decades to re-adopt the same idea during 1999
in Barcelona, which was enforced in 2000 (ESTIF, 2007). However, during 1980-1990, energy prices were
not high and the problem of climate change was outside the circle of attention (ESTIF, 2007). History of fuel
oil production has proven the above theory to be correct. Oil production increased from “65.2 to 71.9 million
barrels per day between 1990 and 1999, with the Middle East being the largest oil producer, followed by
Western Europe” (Brown, 2005, p 11). Oil availability and pricing have been profoundly affected by past
crises that have occurred in the largest energy-exporting region of the world. These historical events include,
among others, the 1973 “Arab Embargo”, the Iran-Iraq war of 1980 and the Gulf War of 1990. This proves
the central role played by politics in the Middle East and how significant they can be to the field of energy
(Amineh, 2007).
Energy security is playing an important role to the EU, where countries of the EU may be looking for
support from outside, using policy tools to secure themselves and have a kind of prevention (Correlje and

20
Van der Linde, 2006). Besides, accelerating in the development of renewable energy became essential in
order to achieve their decarbonisation targets according to the IPCC agreement (IPCC, 2008). Both targets
need to find a way in order to achieve their plans; otherwise more complications and delays may arise. Fig
(5) shows the future energy plan. The renewable energy market has become wider and it has opened a new
energy finance, especially for the clean energy sector, with an average 59 billion dollars in 2005, where the
investors became more interested particularly after the policies that supported their business in Europe
(Mendonca, 2009). Moreover, investment on a large scale became an important option where the CSP
projects became wider, expanding and more prevalent in many countries, in order to achieve more than 15%
of the electricity (International Energy Agency, 2010). Despite all of this expansion in the EU,
Komendantova, Patt and Williges (2011) see that the United States went a long way in this field beginning 20
years ago in California with a vast territory rich in solar scans. While Europe suffered from a lack of these
two advantages, the space and the sun radical (komendantova, Patt and Williges, 2011) were already plentiful
in their close neighbour countries in NA. That’s why Correlje and Van der Linde suggest that Energy policy
has to be an integral part of EU foreign policy and have an active role in foreign relations, security and
political relations with other countries. Through more flexible relationships with other countries such as
Africa and Russia, Europe can guarantee support and energy security (Correlje and Van der Linde, 2006)
The following figure projects how the map of energy resources is changing and gives an indication of
the future, which will not depend on petroleum as before.

21
Fig 5. The changing of the energy resources’ map
Source: EIA AE02012
3.2.2.1 International Political Initiative
Wirth, Gray and Podesta (2003) agree that the key point to achieve the required target lies in
international political initiative with developing countries: “Political Coalition”. They also relate the advent
of globalization, terrorism and widening social differences to global energy concerns. This kind of initiative,
attached to clear and strict objectives, can tip the scales and be the cause of change in relations. Enemies of
the present can be allies in the future through converting the energy conflict to mutual energy interest and
turn ambitious long-term agendas into reality. They suggest using global consensus about fixing the threats
caused from climate change by using talent, expertise and technological innovations to mobilize new, long-
term, strategic approaches for energy policy. This will achieve economic growth and poverty alleviation in
many poor regions in developing countries lacking electrical services. Another thing that must be fixed is the
mismanagement of power distribution, which contributes to increasing the ration of poverty and inequality in
society. Another important point discussed by the same book is how to make the automotive and oil
industries accept new strategies and new technologies for reducing emissions. Governments in each country
have an essential role in this conversion, by creating a transition period of 10 to 15 years for industries to
adapt new systems. Later, this new technology can encourage new investments, using the new technology to
increase productivity, reduce emissions and create new vacancies. The authors assert, “The automotive and

22
oil industries objective is not to prop up dictators in the Middle East or to sully the natural world, it is to
provide a return to their shareholders; making fuels, cars, trucks, and buses that are clean and profitable,
thus is something to agree on” (Wirth, Gray and Podesta, 2003, p 148).
3.2.2.2 Investment Perspective in NA: Egypt case
Large-scale investment in NA, and in Egypt specifically, became necessary according to the
agreements and other reasons mentioned above. Where investment outside Europe may seem like an
advantage from a policymaker’s perspective, it could also raise investors’ concerns for several reasons,
including problems surrounding the area and also the weakness of the technology available. Hermann, a
member of Germany's parliament and head of the European Association for Renewable Energy, said in his
criticism of the Desertec foundation, “Sahara power for northern Europe is a mirage". According to him, the
initiative to use solar and wind energy sources in MENA to provide the EU with 15% of renewable energy
and sufficiently clean energy for the sake of the climate and reliability is a mirage with no possibility of
success; he believes that this vision is a waste of money and effort without interest because of its huge cost
(Hermann Scheer, 2009). High costs and problems regarding the region could be reasons behind the
weakness of investment of EU Foreign Direct Investment (FDI), which represents only 15% of investment
concentrated in Egypt, Libya and Algeria (Komendantova, Patt and Williges, 2011). However, the cost of
carbon dioxide is 20 Euros per ton, while the cost of constructing new power stations in Europe, without
administrative expenses, ranges between “EUR 0.055 and 0.075 per kWh (Olkiluoto 3, nuclear) and EUR
0.045 – 0.055 per kWh (Neurath 2 and 3, lignite), depending on interest rate and economic lifetime (AFP,
2008; Ernst & Young, 2006; RWE, 2009), while the costs of new nuclear power stations ranging between
EUR 0.085 – 0.145 per kWh (Cooper, 2009)” (Battaglini, Lilliestam, and Knies, 2009, p290, 292, 293). In
Addition, the population in Europe, the Middle East and North Africa (EUMENA) is expected to increase by
45% by 2050, accompanied by an increase in power demand to more than 8000 TWH. The largest population
increase is expected to be in Turkey and Egypt, creating the highest demand for electricity there. These
countries as well as Saudi Arabia, Jordan and Syria will represent 33% of the EUMENA total “as much as

23
the four largest EU economies Germany, France, UK and Italy together” (Dii, 2012). By integrating power
systems within EUMENA, the region may succeed in supplying Europe 20% of its electricity need and
avoiding climate risk. Consequently, the high power demand in Egypt and the ME could lead to less
exportation of electricity in order to meet their domestic requirements. However, MENA can “contribute to a
50% CO2 reduction” (Dii, 2012). Moreover, “Desert power helps improve the competitiveness of the
EUMENA power system by making the achievement of ambitious CO2 reduction goals more economic. The
competitive advantage of EUMENA-wide power system results from a total of 1110TWh of annual power
exchange, thereof 1087TWh from MENA to Europe and 23TWh from Europe to MENA3. Thus, the trade
balance amounts to 1064TWh of annual net exports from MENA to Europe. The Connected Scenario saves
€33bn. per year in system cost. For the approx. 1110TWh of annual power exchange between MENA and
Europe, this amounts to approx. 30€/MWh (Dii, 2012, p 5, 10).
Battaglini, Lilliestam, and Knies (2009) also suggest combining the centralized and decentralized
renewable options. The centralized one depends on the High Volt Direct Current (HVDC) transmission
technology system to minimize losses, and the decentralized one depends on multitudes of scattered
generation sources. They termed this need for energy in Europe and other places as the “SuperSmart Grid
(SSG)”. The same paper shows that the high cost of this technology will not be a problem in the near future.
The average cost of this technology is about “EUR 0.25 per kWh in Spain and some EUR 0.15 per kWh in
southern USA and in the desert of North Africa” (Battaglini, Lilliestam, and Knies, 2009). These prices may
be reduced with the increased use of this technology because “costs are reduced through learning by doing”
(Battalini, Lillestam, and Knies, 2009).

24
Fig 6. System Cost development per KW in percent of 2010 cost estimate
Source: Dii (2012)
Therefore, facing, dealing and addressing investors’ concerns related to investing on a large scale
using CSP technology is necessary and crucial in order to cure the imbalance that is caused by high costs,
climate changes and the increase in the population.
The economic concept to high risk means more profit, but the risk is already known and the key to
dealing with it is somehow clear. In the NA case, the risk can be more dangerous and unclear, representing
the real barrier towards the project in NA and Egypt with its recent status, as the expected profit to that high
risk may not be achieved if there is no clear view to that kind of risks and how to deal with them. Mendonca
(2009) discussed in his paper the advantages of the feed in the tariff system and how it helps in minimizing
the investors’ cost and economic risks especially in the beginning; Spain is a real practical example to this
system (Mendonca, 2009). Later, the study will handle the advantages and disadvantages of feed in tariffs.
Unfortunately, the feed in tariffs may lead to decreasing the economic risk, but the political risk and
the unstable situation in NA and in Egypt, especially after the recent events, may lead to obstructing
everything. Al Khattab (2011) declares, “The recent growth in diplomatic, civil and military conflicts
presents evolving challenges for international business. These risks create new sources of country risk”.
Komendantova, Patt and Williges (2011) present a survey with officials in FDI about their concerns in the

25
region, where their concerns mostly revolve around the weakness of the government and the bureaucracy, the
spread of corruption, theft and nepotism, and that there is no specific destination to facilitating the tasks. Also
the ignorance of people towards the importance of these kinds of projects makes it easy to neglect and not act
towards reviving these projects (Komendantova, Patt and Williges, 2011). In the European Union and others,
there is a significant degree of awareness of cultural and industrial progress and their culture has been able to
understand the dangers of heat emissions and environmental pollution with the support of their governments
and the people in addressing this risk. It is important to make a right and solid base from the beginning by
convincing and teaching governments how to adopt people’s behaviors towards a sustainable life in order to
have them accept the idea of sustainability, and also because public opinion represents a form of pressure on
governments towards supporting sustainable projects (Blackstone, 2013).
The previous section referred to FDI in NA, which is considered very weak. However, according to
the World Investment and Political Risk Report in 2013, FDI is expected to invest at higher rates in the
coming years, since “After plummeting in 2011 from an earlier peak in 2008, flows into the MENA region
rebounded by 43 percent in 2012 to reach $19 billion, reflecting underlying investor durability even in the
face of political risk. The rebound was particularly strong in Egypt, which had been adversely affected by a
deteriorating economy, an uncertain political outlook, and significant downside risks. FDI flows there
reached nearly $3 billion in 2012, having registered net divestments in the previous year” (WIPR, 2013,
p.16). Hence, FDI increased in region, especially in Egypt despite its security and political circumstances.
This potentially shows that there are advantages of investment and profitability that make them attractive
even in the face of risks in the region.
The Multilateral Investment Guarantee Agency (MIGA) - Economic Intelligence Unit (EIU) Political
Risk Survey from World Bank Group shows that due to the high rates of political and economic risk, the
Arab Spring conflict and the instability in the region and especially in Egypt, has led to an increase in the role
of the Political Risk Insurance (PRI) industry with “New insurance by members of the Berne Union” by 33%
in 2012 and similar growth in 2013. Yet, the role of FDI is supported by MIGA guarantees, which protects
investments against political risks. Also, the bureaucracy and corruption in developing countries increased

26
and “in 2006-2012 were nearly double what they were in 2000-2005, despite the global financial crisis,
resultant economic recession, the Arab Spring, and renewed political uncertainty in many countries” (WIPR,
2013, p12). Not only FDI was affected, but the Export Credit Agencies (ECAS) also became very important
to the investment community and particularly in the recent period. Even the Islamic Corporation for the
Insurance of Investment and Export Credit (ICIEC) adapted its system in order to match the new situation
(WIPR, 2013).
3.2.3 SUMMARY
The energy policy role in oil history shows how the international relationship can be flexible and
changeable according to the situation and direction, which may also play an important role in identifying how
we want the future international relationship between the parties of the cooperation to be in accordance with
the current interests of both sides. Where energy security is still the main concern for all sides, and this kind
of agreement is proof, everything revolves around the main axis of energy, climate change and its related
problems. Also, an increase in FDI’s role in the NA region regardless of the negative economic and political
situation is reassuring that the region already enjoys international attention. In addition, increasing all these
movements in order to support business in the region indicates that investors see the possibilities of success,
even with the political and economic circumstances. The new trend of insurance association work on
adapting with the investors’ concerns, which takes into consideration the supply and demand needs, also
helps mitigate their fears towards political risks. All of these indicators show the possibility of the success of
the idea and that this success is sought by all parties.
THE ROLE OF SOLAR ENERGY OBLIGATION3.3
The solar thermal industry in Europe was never as important as it is now (ESTIF, 2007). The interest in
alternative energy has increased with the recent mounting environmental problems, creating the so-called
“political environment” (ESTIF, 2007, p. 9). The same document shows that the main reasons for speeding

27
up solar obligations were support by local governments, regardless of their political affiliation and the new
trend of imposing solar commitments in the development of new architectural structures (ESTIF, 2007). In
addition, the Industry, Research and Energy Committee (ITRE) adopted an amendment on July 9th, 2007,
calling for a type of cram to all member states to use a certain percentage of renewable energy as a source for
heating consumption, and to be mandatory in new buildings construction (ESTIF, 2007). This is obvious in
the following statement, “The Commission to speed up the widespread adoption in all Member States of best
practice regulations making it compulsory, at least in the case of major renovation of buildings and new
buildings, for a minimum proportion of the heating requirement to be met from renewable sources as has
already been implemented in a growing number of regions and municipalities” (ESTIF, 2007, p. 10). It
seems that the renewable energy policy debate became essential in the European agenda; “if European would
cover 50% of its hot water consumption with solar, the savings would be roughly 12 mtoe (multiplies tonne
of oil equivalent) per year, or 1% of the EU s final energy consumption. This is equivalent to the total
consumption for space and water heating of almost 10 millions households” (ESTIF, 2007, p. 13). According
to Eurostat (2010), the real share to renewable energy consumption represented 12.5% in 2010 compared to
8.5% in 2005. This means 60% of Europe’s total target for 2020 has been achieved. Renewable energy
represented 14.3% in 2010, and the total heat consumption was 19.6% of electricity consumption and 4.7%
of fuel transport consumption (European Environment Agency, 2013). The following figure shows the share
of renewable energy’s consumption in EU.

28
Fig 7. The share of Renewable energy’s consumption
Source: European Environmental Agency (2013), Eurostat, Statistics of the European Union (Eurostat)
3.3.1 FEED IN TARIFF POLICY SYSTEM
For the previous reasons, it was logical that some policies appear to serve renewable energy targets
and help achieve the planned program towards the climate. Recently solar energy and other renewable energy
types have become very important sources of energy in many European countries, where the appearance of
feed in the tariff policy system leads to avoiding some obstacles faced by investors that may hind the
required plans. Applying the feed in tariff policy system creates incentives for the deployment of renewable
energy. The policy of feed-in tariffs operates as a kind of incentive to encourage the new generation of
industries and investors to rely on renewable energy resources. This policy works on imposing an obligation
on energy companies to urge them to buy renewable power at a pre-determined price set by the government.

29
Meanwhile, the government provides suitable compensation for those companies for the additional cost. That
way, it can be a tool to let investors re-organize their energy resources in order to get the maximum benefits
(Karekezi and Muzee, 2009). In spite of the importance of the idea of incentives, industries may end up
seeking new techniques. Mcfeely and Eakin (2013) suggest following a certain technique called “Plug n
Play” as the Universal Serial Bus (USB). This technique gives a multiple options for consumers and works
on increasing sales. By applying the same technique in the PV industry field, the cost can be reduced. This
can happen if the consumer of electricity customizes his demand, then the PV industry can give simple and
easy designs and law installation costs. This combination can lead to more profitability and a higher quality,
such as the example when “SolarTech enlisted a module standards team from the December 2012 workshop
participants to identify a definition path for 60- and 72-cell crystalline silicon solar module standards. The
committee analyzed several factors with the goal to define a proposal best serving the entire industry.
Module performance can be impacted by tight inter-cell dimensional tolerances, and concretively large
inter-cell dimensions reduce footprint efficiency” (Mcfeely and Eakin, 2013). As there is no time to be more
reactive in this field, the customers begin to change the whole failing modules system, but not as one of a
group since it would be useless (Mcfeely and Eakin, 2013).
Zhang (2013) finds the feed in tariff system has become the most common and most widely used, in
order to encourage the deployment of renewable energy globally and make renewable energy compete with
fossil fuels in the context of cost. Table 1 shows the Renewable energy consumption in EU. In 2012, there
were 65 countries that choose the feed-in tariff system, in order to contribute to the dissemination of
Renewable Energy. Despite the instability of its cost effectiveness, these countries succeeded to issue 75% of
global solar photovoltaic and 45 % of global wind capacity (Zhang, 2013).
In spite of the importance of this system, there are some obstacles that can hinder the success of this
policy, especially in developing countries. The unclear procedures and non-distribution of responsibilities
and roles in their proper places can lead to more cost and long administration work time to begin with. This is
in addition to poor knowledge of renewable energy technology and how it can make a difference in quality of
life. These kinds of obstacles can make the feed in tariff policy useless and can be insufficiently effective in

30
achieving its objectives (WFC, 2013). Also, Zhang (2013) pointed out that feed-in tariff (FITs) policies
cannot be totally relied on as the only way to deploy renewable energy. The system is supposed to submit an
adequate incentive matching with the demanded volume of renewable generation. Paying too much can lead
to weak investment performance, when it depends only on more support. This high support represented by
energy consumers may cause counterproductive responses towards development, especially in developing
countries, when the energy consumer allocates a large proportion of his/her income to energy and potential
with the possibility of higher tariffs (Zhang, 2013). However, Weis and Anderson (2010) see the FIT
guarantees profits to the renewable electricity supplier and also guarantees an opportunity to make an impact
in the country in the transitional phase; it is also seen as a main tool of globally sustaining renewable energy.
Germany is one of the most successful countries to have implemented this system, where its target was
transmitting 15% of its energy to renewable Energy and employing 300,000 people in this field and up until
2010, they had succeeded. The province of Ontario in North America is another successful application of this
tariff, where “Clear Sky advisors have estimated Ontario’s FIT will create 70,000 solar jobs at a cost of one
Tim Horton’s donut per month” (Weis and Anderson, 2010). This is in addition to many of countries that
have taken positive steps towards legislation of the Feed in Tariffs (Weis and Anderson, 2010). The same
author attributes the success of this system to some essential reasons, such as that it is easy for anyone to be
in the Feed in tariff program, which works on encouraging people to produce and work in renewable energy,
so people became a part of the transformation stage. The tariff works on reducing the costs of renewable
energy sources and consumers share any incremental costs; hence, the system depends on long-term
contracts, which leads to a kind of stability in the market. These reasons contribute to deploying the TIF
program, which leads to deploying the Renewable Energy (Weis and Anderson, 2010).

31
Table 1. Share of renewable in gross inland energy consumption, 2010
Source: Eurostat (online data codes:nrg_100a,nrg_1071a and nrg_1072a)
3.3.2 QUOTA MODELS AND CLEAN DEVELOPMENT MECHANISM
Also the “quota models” considers another way to reduce the high costs related to investing in
renewable energy technology. This method is not dependant on a fixed tariff as the feed in tariff policy
system, but rather the market plays the main role in settling the price. According to Pegels (2009), this
method is able to reduce the cost of the technology. However, the price is determined through the market,
which means the existence of high risks of the future price may lead to negative affect “in development of
such earlier –stage technology” (Pegels, 2009, p. 16). However, the advantages of the quota model over the
feed-in tariff system support the technologies used in renewable energy and also easily expand the grid in
case of an increase in the development of renewable energy sources (Lang, Mutschler, 2013).

32
There is the Clear Development Mechanism method (CDM) provided by the Kyoto Protocol in order
to help decrease the carbon effect. It works on transferring the technology related to clean development
including hardware and software elements from developed countries to developing countries, as its main
target is to decrease the “abatement costs” (Dechezlepretre, Glachant, Meniere, 2007, p. 2). Regarding those
methods and up until May 2007, there were 644 projects registered under that system, the paper refers to the
study presented by Haites (2006) who approved that the technology transfers to only a third of 860 projects.
Next figure shows the status of CDM towards the projects that fall under that CDM system (Dechezlepretre,
Glachant, Meniere, 2007).
Nature of
technology
transfer
No. of
projects
% of
projects
% of annual
emission
reduction
Average reduction
per project (kt
CO2eq/yr)
Transfer 279 43% 84% 403
Equipment 57 9% 6% 133
Knowledge 101 15% 14% 185
Equipment
+knowledge
121 19% 64% 714
No transfer 365 57% 16% 59
Total 644 100% 100% 208
Table 2. Technology transfer’s status under CDM
Source: Dechezlepretre, Glachant, Meniere, 2007.
Pegels (2007) finds that CDM provides a chance to create more financial sources in developing
countries that could help in solving the funds problem. According to Pegels’ (2007) point, the CDM achieved
widespread success in China and India, but failed in a country like South Africa, since the performance and
experience deficiencies may not cope with CDM regulations. However, the Designated National Authority
(DNA) in South Africa is trying hard to enhance CDM methods by establishing “capacity –building

33
workshop” (Pegels, 2009, p. 20). Also, Karakosta and Psarras (2011) discussed the effects of CDM projects
in Egypt and how they could be a simple tool to switch from coal to natural gas and lead to “power
generation in oil/gas exporting country in which Egypt is included”; in Egypt, energy efficiency can be
considerable through “energy efficiency intervention and process modernisation in most countries of the
region” (Karakosta and Psarras, 2001, p. 829). CDM is considered a flexible tool which different countries
can adapt their targets and needs according to and work towards sustainable energy projects. Even with these
advantages, CDM projects represent only 161 projects in Africa of 6147 globalized. Egypt was home to 15
projects until 2011. Indeed, the reasons for this small number may be the lack of interest by major countries
and international companies to focus on this technique and mechanism, in spite of evidence of its
effectiveness and the possibility of it succeeding in developing countries (Karakosta and Psarras, 2013).
However, the Kyoto Protocol, the convention on climate change and its target at reducing emissions through
a set of obligations, has seen its effects on the EU for the previous year. The greenhouse emissions went
down from 2010 to 2011 by 3.3% in EU-27 and 4.5% in EU-15, where the highest countries were Finland,
Belgium and Denmark (EEA, 2011). The overall reduction decreased by 8% from 2008 to 2013 in EU-15
(EEA, 2013).
Fig 8. The GHG Total Emissions for 1990 to 2011
Source: National emissions reported to the UNFCCC and to the EU GHG Monitoring Mechanism provided
by United Nations Framework Convention on Climate Change (UNFCCC) 1990-2011.

34
On a different note, at the start of 2002 and with the high and increasing economic growth rates in
countries like China, India and other developing countries, more demand for fossil fuels made greenhouse
emissions to increase by 9% in China and 6% in India in 2011. While the utilization of renewable energy
resources has increased rapidly in recent years as a reaction to the climate change, this wasn’t the case
before. According to Olivier, Janssens- Maenhout and Peters (2012), it took 12 years from 1993 to 2004 to
increase them from 0.5% to 1%, in contrast to only 6 years from then to reach 2.1% in 2011, representing
only 0.8 billion tonnes from emissions in 2011. Also, United States has contributed to the increase in
emissions by 0.4% in 2011 (Olivier, Janssens-Maenhout and Peters, 2012)
Developing countries, excluding China and India, have increased their emissions by 2% in 2011, but
this increase is considered better than the huge increase in 2010 of 7%, due to the economic recovery
program and the global recession in 2009 (Olivier, Janssens-Maenhout and Peters, 2012). However, the
same study gave an average of cumulated CO2 from 2002 until 2011 of 420 billion tonnes and predicted that
if greenhouse emissions increased by the same rate, the cumulative total will exceed the current total by a
great deal in the next two decades (Olivier, Janssens-Maenhout and Peters, 2012).
However, attempts to reduce internal administrative obstacles, including the work of the enactment
solar obligation to enhance the internal use of solar thermal energy, were considered insufficient to reach the
EU’s ambitious target of supplying 20% of Europe’s needs with renewable energy by 2020. These efforts
also failed to cover the possible uses of solar energy in the industrial field or to solve issues of oil
dependence and climate change (EREC, 2011).
EGYPT’S POTENTIALITY AS A HOST COUNTRY3.4
This study focuses on sustainable and clean solar energy for Egypt and the European Union through
mutual cooperation. The geographic location of Egypt within the global Sun Belt qualifies it to become one
of the biggest exporters of solar energy worldwide, because it is advantageous with solar energy. Countries
that enjoy high solar irradiation can be boosters to countries that enjoy less of it, as is clear in Figure 1.

35
So, there is profit from the Geographic Synergies advantages. It’s important to distinguish the
countries that already have solar irradiation advantage, in order to compensate countries that have a shortage
of this kind of resources since “Efficiency is consistently available across the country, so states with fewer
renewable can exploit efficiency opportunities to compensate” (ACEEE, 2007, p. IV).
In Egypt, the incident solar radiation global directed and diffused on a horizontal surface during
January 1990 till December 2010 (Lat. 30105N and Long.31115’E) (Khalil and Shaffie, 2013).
Unfortunately, the measurement tools for solar radiation are inaccurate in developing countries, so the
measurement depends more on meteorological data and horizontal solar intensity. El-Sebaii and Trabea
(2002) conducted their study in four locations in Egypt (Matruh, Al-Arish, Rafah and Aswan) to make sure
that any location in Egypt can be measured using correlations to get the diffuse radiation in long terms
performance. Both studies showed that Egypt is a potential country for Solar Energy project due to its
location and its solar radiation, with 2900-3200 hours of sunshine (Comsan, 2010), emphasizing that “The
Mediterranean basin countries possess good wind energy potential, while Solar energy potential seems to be
extremely wise and well distributed” (Karakosta and Psarras, 2013). However, the turnout on projects related
to solar energy is very weak due to the weakness of possibilities and the government's inability, where the
only solar energy project using CSP technology in Egypt is Kuraymat with an overall capacity of 140 MW
“120 MW combined cycle and 20 MW solar input” (NREL, 2013). According to the Egyptian Electricity
Holding Company’s annual report for 2011/2012 by the Ministry of Electricity and Energy (MOEE), the
peak load reached 23470 MW in 2010/2011 and 25705 MW in 2011/2012 (MOEE, 2011/2012). The annual
core inflation rate quickened to 6.9 percent in September 2013 from 6.6 percent in August 2013, while the
annual electricity, fuel and utilities (EFU) inflation rate increased to 2.1% from 1.6% (Ministry of Finance
report, 2013), meaning that the amount of electricity production expected from Kuraymat project will not
succeed to cover except a small percentage of the interior needs of electricity, especially with population
growth expected to reach 110 million by 2031 and 128 million by 2051 (President Hosni Mubarak on Egypt's
Population, 2008). The use of solar energy will increase maps and geographical and temporal distribution of
the surface of the sun, which has become increasingly important in order to raise the size of the surface as a

36
source of energy (Shaltout and Hassen, 1990). The shortage and weakness in local support can give a motive
to enhance and fast the cooperation with EU on the Egyptian government side.
Location Latitude(N) Longitude(E) Elevation (M)
Matruh 31 ° 21¢ 27 ° 13¢ 38
Al-Arish 31 ° 07¢ 33 ° 45¢ 32.0
Rafah 31 ° 13¢ 34 ° 12¢ 73.0
Aswan 23 ° 58¢ 32 ° 47¢ 191.7
Table 3. The selected Locations
Source: El-Sebaii and Trabea 2002
It’s clear that Egypt is very rich with natural energy resources and it does not abbreviate on just solar
radiation, with the raise in gas production evidence of how Egypt enjoys a variety of natural energy wealth.
Suding (2011) declares, “Egyptian power generation is characterised by a prevalence of natural gas, the
absence of coal, as well as rather low generation losses due to significant hydro-power and a substantial
capacity of efficient combined by cycle natural gas plants” ( Suding, 2011).
The wind resources also have a good potential, with wind capacity production raised from 1133 GWh
in 2009/2010 to 1485 in 2010/2011 with a variance 31.1% (MOEE, 2010/2011). The New Renewable Energy
Authority (NREA) has already achieved 547 MW of wind farm capacity and 140 MW from a solar thermal
power plant in 2011 (MOEE, 2010/2011).
Moreover, the Egyptian Electricity Holding Company (EEHC) occupies a center of excellence in the
export of clean energy (EETC) and NREA; they already have a plan to achieve ambitious targets of 20% RE
generation by 2020 (MOEE, 2010/2011). According to Suding (2011), their plan will need at least 1000 MW
of solar power, which means at least 20 plants’ capacity; this will need huge financial and technical support
where Egypt is already lacking in these requirements (Suding, 2011). The Egyptian government owns the
natural energy resources that can make the country occupy a centre of excellence in export the clean energy,
but they lack the financial and technical support, so they are “effectively mobilizing private investment under

37
the new modalities, starting construction in other areas of Egypt and strengthening the transmission system”
(Suding, 2011, p. 4435).
Another advantage related to economic cost is that Egypt is considered one of the countries with
privileges in law investment cost, where law land costs and labour costs and wages (ITIDA, 2010) will
enhance, attract and motivate investors to the area.
3.4.1 EGYPT'S ECONOMIC CHALLENGES AS A COOPERATION MOTIVE
The study handled the investor’s perspective to challenges, obstacles and the expected problems in
case investing in Egypt. But in this part, it will discuss the domestic barriers and challenges from Egypt’s
perspective. These barriers and challenges may represent the motives towards joint cooperation with the
countries of the European Union, despite the weakness of its government and the deterioration of their
political status.
Since the Arab spring, Egypt has suffered from a critical economic situation accompanied by unstable
policies in the region as well as a lack of water and irrigation, as a result of population growth and climate
change threats to water and food security (Brown, Hammill and Mcleman, 2007). The conflict between
Egypt and the Nile Basin countries, especially after the recent Egypt-Ethiopia crisis on the construction of the
Ethioia Renaissance Dam on the Blue Nile also presents a real threat to security in Egypt. The threats of
floods and drought problems, as well as any potential decrease to Egypt’s water share could lead to
decreasing the proportion allotted per capita in water and electricity generated by the High Dam (Kameri
Mbote, 2007). A historical agreement in 1929 between Egypt and Britain, when Ethiopia was under British
occupation, prevents the construction of any dam affecting the amount of water flowing to Egypt or without
the permission of Egypt (Khazem, 2013). Recently, some countries of the Nile Basin countries have objected
to this Convention, which was conducted under colonization and demanded re-broadcast in terms of shares
allocated to each country, where the share of Egypt and Sudan in accordance with this convention is 90% of
the total share of the Nile water and only 10% to the other Basin Nile countries (Khazem, 2013). This
conflict might affect Egypt's share of Nile water negatively, despite the confirmation of Ethiopian Prime

38
Minister Desalegn that the dam has no impact on the water share reaching Egypt and Sudan. Amani Ismail,
Chief of Fisheries, has confirmed that the construction of the dam may cause a loss of about 18 million cubic
of the total water that reaches Egypt and Sudan, as well as a 25-30% decrease in electricity generation
produced through the High Dam (Gulhane, 2013). Decreasing Egypt's share of Nile water while increasing
population growth (which will happen in the largest proportion in less developed countries among the poorest
areas) may lead to an increase in the desertification problem (United Nation, 2011). Moreover, this will lead
to growing unemployment rates, increasing prices, and an increasing inflation rate that would create a real
disaster if there is no alternative solution, where a real disaster may occur in Egypt (Howell and Allan, 1994).
Water shortage in NA can be solved through solar energy technology implementation in the Sahara region,
and this way the water shortage problem can be a motive to speed up international cooperation in that area.
According to Lamei, Van der Zaag and Von Munch (2008), the idea of implanting solar energy technology
on a large scale in the Sahara area should be supported as there is new technology beginning to be applied in
the region called Reverse Osmosis (RO), which depends on fossil in order to work and after the increase in
fossil prices and the Kyoto Protocol regulations towards mitigating GHG emissions in 1999, solar energy
became the alternative for a region enjoying solar radiation. RO began in Egypt on a small scale “up to
5MW; 10000-15000 m3/d product water capacity” (Lamei, Van der Zaag and Von Munch, 2008). This
technology, if applied on a large scale using CSP technology in the Sahara region, could solve a part of water
shortage that faces the increasing population. These can be real drivers that motivate Egypt to change its
energy mix in order to achieve more interior economic development and avoid predicted disasters in case the
current situation does not change.
At the same time, Egypt cannot ignore a lot of “Bedouin tribes” who have lived in the Sahara for
thousands of years. The lives and rights of desert people have to be taken into consideration when
establishing any joint agreement, to decrease the risks of terrorist attacks and ensure reliable cooperation
(Battaglini, Lilliestam, and Knies, 2009).

39
3.4.2 THE BEGINNING OF SOLAR ENERGY IN EGYPT
There is an optimistic view of the situation, where the real beginning of solar energy’s utilization in
Egypt was in 1910, when it was decided to make “practical, industrial scale, solar engines using solar
thermal parabolic collectors” (Comsan, 2010, p. 1). These were located in southern Cairo to produce steam
that was transformed to water for irrigation. That project made Egypt one the first countries to utilize solar
energy. In 1986, the National Authority for Renewable Energy (NREA) was founded to support renewable
energy technology. In 2007, the Supreme Council for Energy was established to work on attracting new
investments in that field with the aim of making solar energy in Egypt account for 20% of total electricity
demand by 2027. The idea of using solar energy for electricity generation and water supply can help Egypt
face its shortage in both fields. This would coincide with the rapidly increasing population in a country
considered to be one of the fastest growing populations in the world; according to the Cairo Demographic
Centre, by 2031, Egypt’s population is expected to reach 110 million and 128 million by 2051. This number
is not commensurate with its current energy (Comsan, 2010). The next table gives an indication of Egypt’s
population and electric power.
Year 2007 2012 2017 2022 2027
Population(million) 78.3 85.2 92.1 98.8 105.1
Per Capita installed power (MW/c) 0.28 0.34 0.41 0.48 0.55
Total (GW) 21.9 29.0 37.8 47.1 57.7
Installed power annual growth rate (%) 4.4 5.8 5.4 4.5 4.0
Year 2032 2037 2042 2047 2052
Population(million) 111.1 116.5 121.2 125.3 128.5
Per Capita installed power (MW/c) 0.63 0.72 0.82 0.92 1.02
Total (GW) 70.0 84.0 100 115 132
Installed power annual growth rate (%) 4.0 3.7 3.5 2.8 2.7

40
Table 4. Egypt’s population and electric power indicators (2007-2052)
Source: Comsan (2010) - Population in Egypt. National Population Conference, Cairo, Egypt, June 2008.
3.4.3 THE ENERGY POLICY STRATEGY IN EGYPT
The appearance of an energy policy strategy in Egypt was in 2007 by National Democratic Party
(NDP) in order to meet the national demand of energy for the next 15 years and stating, “Under existing
plans, Egypt hopes to produce up to 20 % of its electricity from renewable energy by 2020 while also
developing a nuclear power program (EIA, 2012)” (Raslan, 2013). It included important supporting points
that were supposed to serve national security and work on increasing clean energy resources to meet the
country’s needs while maintaining the volume of oil at a certain point with no extra raise (Raslan, 2013). In
Suding’s (2011) view, it was a positive and important step towards sustainability, especially if needs were
planned to be met from renewable energy sources. However, the policy ignored the energy efficiency plan
and did not relate the effect of energy consumption of fuel on the environment, climate change and pollution.
This indicates that this point is still far from being on the government's agenda and the people remain
unaware of the extent and seriousness of the situation which has negatively affected their lifestyles, health
and economic standard (Suding, 2011). Raslan (2013) sees a declination in transmission losses in the
National Unified Power System from 6.56% in 1998/1999 to 3.8% in 2007/2008, but it’s not enough to cope
with future demand. There is a possibility to cope with future demand if the Government plans to increase its
commitment to infrastructure investment with a minimum of $45bn. According to international investment,
EFG Hermes’ report states that the “capacity of 2000-3000 MW is required – approximately 10% of the
installed capacity” in order to improve the efficiency & meet the increase in national demand (Raslan, 2013).
The geographical position of Egypt and its richness in natural resources may force governments and global
policies to address the imbalance in the existing administration and take a step towards exploiting the wealth
of Egypt and towards joint cooperation between countries in order to achieve gains for both parties. There is
a successful model that shows how joint cooperation and addressing the imbalance would lead to further
gains, with an example of natural gas production. Natural gas has become an important resource for Egypt’s

41
future energy because of both previous discoveries and the potential ones, as “Proven reserves stand at 65
trillion cubic feet (tcf) in 2004 up from 55 tcf in 2002 and 40 tcf in 2000, with probable reserves estimated at
120 tcf”(Algarhi, 2005). It is expected that discoveries in the coming years will reach 3 trillion by 2025
because of cooperation and mutual benefits with international companies and FDI in this field, which
represent technology, capital and financial investment experience while Egypt represents the source of
energy (Suding, 2011).
On the other hand, and according to Rashad (2006), the economic, environment and social factors are
the main ones for sustainable development. She noted the efforts undertaken by the Egyptian Ministry of
Electricity and Energy in order to achieve and ensure energy efficiency and effectiveness combined with the
quality of life. However, this cannot happen without the exploitation of new sources of renewable energy.
Regarding the same paper, she emphasizes that this development cannot take place unless there is focus on
some of the important axes, which are “individual development, social system, government, infrastructure,
economic system and resources and environment” (Rashad, 2006, p. 23). The next table shows this relation.
Table 5. The six major axes and its relationship to each other.
Source: Rashad S., Atomic Energy Authority
Individual
Development
Development
Social System
Government System
Economic System
Environment Resource System
Infrastructure system

42
INTERNATIONAL COOPERATION COULD PROMOTE SAFETY/CERTAINTY3.5
While the world is being subjected to a new energy crisis that may be the worst ever, according to
Williams and Alhajji (2003), there is a limit in global energy excess capacity, and “Strategic Petroleum
Reserves” (SPR) could reach their lowest level since 1973 and 1979. This means that the situation is worse
than previous decades when the global economic level was not as large as today. The energy crisis and oil
dependency is growing day after day. This growth leads to rising international energy prices and increases
threats to economic and national security (Williams and Alhajji, 2003). There is another fear that solar
energy resources from outside the EU will create the same oil dependency scenario, where “Building solar
power plants in politically unstable countries opens you to the same kind of dependency as the situation with
oil” (Asbeck, 2009).
The disruptions in oil supplies from Venezuela due to a political crisis as well as wars in the Gulf show
that any secure source is only a temporary one and is subject to change with any political updates, since
“Change in politics is faster than the change in the life of an oil field from exploration to depletion”
(Williams and Alhajji, 2003 p 5). Even with the presence of the Organization of Petroleum Exporting
Countries (OPEC), the intergovernmental organization for stability and control loses control when prices are
rising due to its few members who have little excess energy capacity (Williams and Alhajji, 2003). However,
by reducing oil dependency, the effect on national security may decrease in return. This can happen by
investing in sources with no or with very few carbons, benefitting several areas: reducing dependency on oil,
pollution, and opening a new field to a new technology that may benefit its supplier (Beddor, Chen, Deleon,
Park and Weiss, 2009). Also, Battaglini, Lilliestam, and Knies suggest three points to guarantee safety and
certainty: variety in resources, flexibility in power systems, and decentralized large shares for renewable
energy throughout Europe’s grid. North Africa is regarded as one of these sources of diversification, which
lowers the level of oil dependency, and establishes a stable long-term relationship with the EU that would
enhance the benefits in the power sector for both sides. The fear of renewing the idea of colonialism from

43
developed countries or the exploitation of exporting countries to achieve a particular interest will make
working on stability within the relationship not an easy task. Despite these difficulties, a country like Norway
has succeeded in becoming a security source by separating exported oil or gas for its personal benefit. At the
same time, reasons that cause security sources to become insecure ones should not be overlooked, which
happens when one of the parties ignores the other’s requirements.
In addition, some projects are already beginning to take place in the renewable energy field, like the
Morocco Dessert Project, for the sake of energy strategy and targeting energy efficiency from renewable
energy (Moroccan project of solar energy, 2009). Also, in Tunisia, the project TU Nur is further developing
the export of solar energy from the Sahara to Europe using CSP technology, proving “the mirage no longer
exists” (Till and Kevin, 2013). Other meetings aim at reshaping the form of cooperation between the EU and
Mediterranean Countries (MC), such as the Paris Summit of 2008 (Sarkozy, Barroso, Solana, 2008). These
various organizations and global agreements represent another kind of challenge in order to unite and achieve
common goals. Also, the geographical location to Algeria made Algeria one of important recourses to Solar
Energy, because the “Solar potential of about 170 000 TWh / year, is 4000 times the current electricity
generation of Algeria” (Guendour, 2012, p10). Hence, Algeria has issued its renewable energy program till
2030 for the sake of sustainable energy and more economic development. It aims to generate 22,000 MW
using PV and CSP technology, located as follows: 12,000 MW for local consumption and 10,000 MW for
export (Zafar, 2013).
Fig 9. The expected Megawatt by using the CSP and PV
0
1000
2000
3000
4000
5000
6000
7000
8000
2011 2015 20202025 2030
CSP
0
500
1000
1500
2000
2500
3000
PV

44
Source: Societe Algerienne De L'electricite Et Du Gaz and Guendour, 2012.
This project is considered one of the most important projects in the region. In spite of the unstable
situation in the region, the Algerian government insists on the success of the project and is working to resolve
all the obstacles that could impede it, providing all the required facilities, securities, technologies and experts
that for the project to move forward. This is in addition to working on increasing public awareness about the
concept of renewable energy, a green economy and sustainable development. Furthermore, Algeria is part of
the Desertec project to provide Europe with 15% of its electricity needs by 2050 (Zafar, 2013).
Regions Coastal highlands Sahara
Area (%) 4 10 86
Average duration of sunshine
(hours / year)
2650 3000 3500
Average energy received
(kWh/m2/year)
1700 1900 2650
Table 6. The Solar Potential by region/per year in Algeria
Source: Societe Algerienne De L'electricite Et Du Gaz and Guendour, 2012.
In Egypt, some positive steps have already been taken towards solar water heating, where a large
percentage of the hotels especially on the coasts of the Red Sea and the southern Mediterranean depend on
that technology to face water supply shortages. Also, the Egyptian Ministry of Electricity and Energy
(MOEE) has adopted a project to generate electricity using the Solar Combined Cycle (ISCC) innovation,
which “is the integration of steam generated by solar energy into a combined cycle power plant, which will
require a larger steam turbine to generate electrical energy from the additional solar-generated steam”
(Comsan, 2010, p. 6). There is a strong trend aimed at exploiting the Egyptian Sahara using CSP technology
to generate solar energy. The idea of making the “Mediterranean Ring Project” (or transmission grid) to link

45
North Africa, Spain, Turkey and Europe through Greece could lead to more efficiency and increase energy
security (Comsan, 2010).
Most of these positive steps may refer to the importance of Sustainable Energy to developing countries’
futures. Despite the obstacles and challenges that face the weaker parties, namely developing countries
especially in NA, in terms of political instability and deterioration of their economic situations, these
countries insist on exceeding and overcoming most of these difficulties. Previous models are examples of
this; they are already supported by international experience and cooperation with multinational companies,
which were proven successful and continuous and have overcome most difficulties.
4 CONCLUSION
This study is based on reviewing the literature, including theories, relevant experiences, articles,
scientific opinions, textbooks and journal articles that concern the strategies and guidelines regarding energy
efficiency and renewable energy. Also, public opinion and the average reader of some press documents may
be important to take into account, where his support, his countenance and his social responsibilities at some
point in the project will represent a financial aid. They will demonstrate how this project for remapping of
energy can provide a new concept for future energy, and can also change the shape of relations between
Europe and Mediterranean countries by challenging obstacles and objections with scientific solution.
The cooperation between Egypt and the EU will have some common and shared interests. Europe
represents the capital investment, the scientists and experts, while Egypt represents the solar recourse, land
capital investment and a country with job vacancies, especially if it enjoys low labor cost advantage;
according to the Global Competitiveness Report of the World Economic Forum 2009/2010, Egypt was at 70
level up from 81 in 2008/2009 due to the upgrading of Egypt's infrastructure in all categories and the positive
developments on the labor market efficiently. The cost of doing business in Egypt is much lower than
Eastern Europe, when compared to India (ITIDA, 2010).

46
A clear and concrete energy policy plan addresses the reality of the region and its problems, while at the
same time achieves the basic objectives of these policies; this is the key to the potential of a successful
cooperation between the Europe Union and Egypt because it depends on addressing several challenges,
which are mainly political issues. If the law is directed at fixing the country’s domestic economic problems
and working to reduce pollution and climate variables, there will be completion to energy efficiency and the
required sustainable energy development may be achieved.
The domestic barriers hindering the project could in reality boost it. Indeed, a country like Egypt may
rely on such projects if willing to change its reality with regard to the deterioration of economic situation,
living standards and pollution’s adverse effects, in addition to decreasing the number of people below the
poverty line. If the Egyptian government succeeds in organizing and managing that kind of projects, the solar
radiation in Egypt may help to solve economic problems.
Furthermore, policymakers and investors would have a good opportunity to achieve political and
financial gains after working to mitigate political and economic risks by global institutions and international
insurance companies; it would achieve much of the gains in case of focusing on the region. Experience has
shown and reflected, for example, in some of the programs provided by the World Bank the success of the
idea, where the adapted and modified programs may decrease the defect and mitigate the current risk and
barriers.
Also, Europe and North Africa have the chance to simultaneously succeed without any negative impacts
on each other and without reducing each other’s fair share. However, political factors are a double-edged
sword. They can play a key role in international initiatives between developed and developing countries and
help in creating cooperation regarding renewable energy. However, because there are always at least two
opinions for every important issue, politics can also hinder these kinds of initiatives. Terrorism, pressure
from government intervention, unstable political situations and struggles for power are the fuel used to thwart
these kinds of initiatives. The entire production of local renewable energy for the Europe Union may be
enough to satisfy its current needs. On the long run, though, the rising demand, on-going economic
development, and a growing population will cause the entire supply to fall short of demand. Of course, fossil

47
fuels are not the ideal solution anymore because of their expected higher prices and increasing shortage, and,
more importantly, their effect on global warming. Large scale cooperation between Europe and Egypt to
produce solar energy for their energy needs could be one of the most positive solutions in solving their
energy problems while decreasing greenhouse emissions. If this cooperation is attached to the common
interests and goals of both parties, there will be material gain and much progress, guaranteeing more
development and economic growth.
The study tried to concentrate on the numerous international laws that are issued to protect the
environment and reduce greenhouse gas emissions, but these laws may be superficial and useless for some
countries, especially developing countries. The outlook to solving environmental problems is still seen as a
partial problem for some countries and communities that don’t have a globalized view, and whose only aim
is limiting the problem for a few short run economic development plans in order to achieve quick gains,
rather than providing a long-term solution. Even economic problems are strongly related to climate changes,
like water shortages, contamination of drinking water and the spread of disease; however, looking for radical
solution would already cost much to a country like Egypt.
According to the Intergovernmental Panel on Climate Change, the EU must reduce their global
emissions before 2015 by no less than 50% of today’s emissions by 2050 in order to achieve global climate
security (IPCC, 2008). This new strategic approach to energy must be followed if they plan to achieve their
target. Also, Egypt should begin its clean and clear energy policy and work on decreasing its carbon dioxide
proportion. From here, the recommendations for the future, the idea revealed itself, where I assumed that
both targets may not be achieved unless there is cooperation on both sides.
The analysis tries to reach the key engine, the real motives and indicators that affect the success or
failure of these relations. There are two axes that need to be resolved if we are to realize the effective results.
The first axis is investors’ concerns in NA investment that are centred around the following points: the
economic risk related to the high cost and shortage of technology and the policy risk that includes instability,
bureaucracy and the weakness of interior government, where studies have shown that the fear of the risk of
terrorism comes at a later stage after investors’ environment concerns. The second axis is the host country’s

48
perspectives centred in the idea of re-colonialism, the lack and ineffectiveness of the interior energy policy
and consumer demand patterns and economic performance. I tried to show the interior problems faced by
European countries in investing in renewable energy and how these problems are beneficial to the proposed
partnership and vice versa. This means it will be the original nucleus for that cooperation. The main obstacle
is the political situation and all of its contents, which may result in spoiling the idea, but could be eliminated
if we assume that the major international institutions will strengthen their efforts in the project in region by
addressing the proposals to reduce political risk developments, for example, the MIGA program and
increasing the role of the Political Risk Insurance (PRI) industry presented by the World Bank and other
institutions; this is what I tried to prove.
In addition, the socio-economics and awareness of climate change problems are already vulnerable, but if
the Egyptian government together with international institution worked on increasing this kind of awareness,
it would succeed in achieving financial sharing from society, where the high cost of technology and the
infrastructure and risks that accompany it would considered some of the main obstacles. In addition, the
policies related to cost, like the CDM program and others, would play an important role in decreasing the
cost, if applied in a good way. Moreover, the potential to decrease the cost and risk is high if more
investment goes into this field to reach a sustainable energy at the end. Also, I assumed a scenario where
society will play an important role in supporting the financing problem in case of a comprehensive awareness
campaign for people of developing countries. In addition, the role that the government needs to prove to its
people and to the international level that it is capable of protecting and serving a project of that volume.
One option includes no cooperation and is limited to only domestic production, with some laws that limit
or restrict the increase in greenhouse gas emissions, therefore causing the inability to cover the deficit, while
increasing pollution, climate changes and natural disasters. The other option involving cooperation will
mitigate business, which would inspire economic growth and increase GDP. Comparing the costs of these
two assumptions concludes that the initiative costs of cooperation far outweigh the costs associated with the
lack of cooperation. The costs involved with perpetuating sustainable energy resources will lead to
decreasing the threats causing climate change, which is better than increasing costs that would be required to

49
fix damages of climate change. The EU would have to lend a helping hand to NA in order to exceed the
traditional phase of converting their energy sources into renewable ones. In this case, NA would make a
fully financial, economic contribution and the EU would be successful in achieving its target and beating
climate change problems worldwide. At the end, the overall benefits will be for all parties. It’s time for the
emergence of a new technology era involving renewable energy resources. If nations are not willing to profit
from each other and take a real step towards cooperation in large scale, their political and economic conflicts
will lead to real catastrophes that would equally damage people everywhere.
5 BIBLIOGRAPHY
A Study for the World Future Council (WFC), the Heinrich Böll Stiftung (HBS) and Friends of the Earth
England, Wales and Northern Ireland (FoE-EWNI) (2013).
Al Khattab A. (2011). The Role of Corporate Risk Managers in Country Risk Management: A Survey of
Jordanian Multinational Enterprises. International Journal of Business and Management 6 (1): p 274-
282
Algarhi A. S. (2005). Oil and Natural Gas in Egypt. The American University in Cairo. Department of
Economics.
American Council for an Energy-Efficient Economy: ACEEE (2007). The Twin Pillars of Sustainable
Energy, Synergies between Energy Efficiency and Renewable Technology and Policy, Report E074,
Washington.
Amineh M.P. (2007). The Greater Middle East in Global Politic, Netherlands.
Annual Energy Outlook (2012): EIA AEO2012.
Arrillage, J. (1998). High Voltage Direct Current Transmission. 2nd
ed. London: The Institution of Electrical
Engineers.
Aysan A.F, Nabli M.K, Neganzones-Varoudakis M.A (2007). Governance Institutions and Private
investment: an Application to the Middle East and North Africa. Journal of the Development
Economies, 45 (3): 339-377.
Barker T. (2007), Synthesis Report. An Assessment of the Intergovernmental Panel on Climate Change.
Presented at IPCC Plenary XXVII, Valencia, Spain, 12-17 November.

Thesis - Re-mapping Solar Energy

Thesis - Re-mapping Solar Energy

Recommended

Recommended

More Related Content

What's hot

What's hot (7)

Viewers also liked

Viewers also liked (12)

Similar to Thesis - Re-mapping Solar Energy

Similar to Thesis - Re-mapping Solar Energy (20)

Thesis - Re-mapping Solar Energy