Study Project TRANS-CSP Trans-Mediterranean Interconnection for Concentrating Solar Power (WP04 Socio-Economic Impacts) Project for the Research & Development Programme of the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) NREA

WP04 Socio-Economic Impacts Scope: Assess the impacts of the TRANS-CSP scenario with respect to wealth creation, compatibility, security of supply and cost of electricity. Result: The TRANS-CSP scenario can eliminate the negative impacts of the present fossil-nuclear supply system and accellerate economic development in MENA.

Oil $/bbl, Coal $/ton Gas $/MBTU Spot prices for coal have doubled, oil & gas tripled, uranium increased by 4 times in the past 5 years

Source: ExternE Program The hidden cost of cheap energy: additional external costs of power generation in EU assessed by the ExternE program span width of several EU countries

External Costs of Energy

Instead of being escalating, volatile and hidden, renewable energy costs tend to decrease due to learning and economies of scale, as long as market introduction continues under a reliable legal policy framework similar curves for all renewables fuel price level of the 1990ies achievable in 2015

TRANS-CSP: Investment for Least Cost Electricity TRANS-CSP Mix: Energy Mix as described here incl. RUE, RES and CCS Mix 2000: Maintaining exactly the Power Mix like in the Year 2000 with CCS No Nuclear: Mix like in the Year 2000, but substituting Nuclear by Coal & CCS invest phase least cost phase

European consumers pay today billion per year more for fuels for power generation than in the year The fuel cost escalation has lead to a loss of GDP of approximately 1.5 % an increase of unemployment of about 0.8 % an increase of consumer prices of 2.4 % European citizens pay about 80 billion per year for fossil and nuclear energy in form of subsidies and external costs, in contrast to 8 billion /y for the market introduction of the total renewable energy portfolio. Security of supply is enhanced by the diversification of the portfolio of assets by renewables that has a high energy economic value which up to now has been neglected by energy policy. TRANS-CSP potentially eliminates the negative socio-economic impacts of the present unsustainable power system and leads to a secure, low cost and reliable supply after 15 years investment phase. TRANS-CSP: Socio-Economic Impacts in Europe

Additional Positive Impacts in MENA: Concentrating Solar Thermal Power Plants combined with Sea Water Desalination in Coastal Desert Areas Energy + Water + Income = Sustainable economic development in arid regions (artist view created with Google Earth) HVDC Link AC Grid

Photo of the top of a Linear Fresnel Concentrating Solar Collector and artist view of a greenhouse installed underneath to protect the plants from excessive irradiance and evaporation. This could be a concept for multi-purpose plants for power, water and horticulture. Other local uses include shade for parking and the production of steam for cooling and process heat. Source: Solarmundo, DLR Power, Water, Shade, Income: A Solar Powered Desert Development Machine

Principle of a concentrating solar collector (left) and a solar power station with combined thermal sea water desalination (right). The generated electricity can be used for domestic power, for export and for further desalination via reverse osmosis. At present, a project of this type is developed in Jordan. The AQUA- CSP study starting in July 2006 will assess its potentials in MENA. Concentrating Solar Thermal Power: A Technology for Sustainable Energy and Water

The sun-belt and the technology belt can become very powerful when they begin to understand themselves as a community: a community of energy, water and climate security; a community for their common future. H.R.H. Prince El Hassan Bin Talal President of the Club of Rome Address for World Energy Dialogue, Hannover Messe, April 2006