1. Jonathan Walters Sector Manager, Energy and Transport Middle East and North Africa World Bank

2. Favorable for Concentrated Solar Power (CSP) Worth considering for CSP Areas physically suitable for solar energy

3. Parabolic Trough Technology

4. Why solar energy is important for Middle East & North Africa (MENA)? Industrial diversification and job creation First mover advantage in an industry starting to take off For oil & gas producers: free up oil & gas for higher value added uses For oil & gas importers: energy security Export to high-paying green electricity markets in Europe

5. Why MENA’s scale-up is globally important? MENA and South Western USA/Mexico offer best solar resources; land, infrastructure and market access Therefore economies of scale can be achieved most effectively in these two regions, and then deployed elsewhere So major contribution to climate change mitigation

6. Investments in Renewable Energy (US $ billion) 6.5

7. Clean Technology Fund (CTF) financing

8. The CTF MENA CSP Investment Plan Scale-up investment plan includes about 1 GW at cost of $6-8 billion ($4 billion for generation, $2-4 for transmission) Accelerate global market momentum Projects in Morocco, Algeria, Tunisia, Egypt, and Jordan Cross-border transmission infrastructure included through projects in Jordan and Tunisia Investment Plan to be submitted for Trust Fund Review by end 2009 Financing from CTF (up to $750 m), development agencies, Clean Development Mechanism, and private sector

9. Financial Analysis Methodology Comparison of expected levelized energy costs for different financing packages and rate of return expectations Key Assumptions Estimates based on a 100 MW plant without storage 22.5% Capacity Factor US$ 4000/kW capital costs US$ 10/ton carbon credit carbon revenues

10. Financial Analysis Results for CSP in MENA ScenariosUS cents/kWh at 8% Equity IRR US cents/kWh at 12% Equity IRR (A)Commercial (no support) 0.250.29 (B) Scenario (A) + Carbon Finance 0.240.28 (C) Scenario (B) + 50% highly concessional debt ~ CTF terms 0.140.16

11. Proposed Financing Plan SourceProposed Amount CTFUp to US$ 750 million Other concessional financing US$ 750 million - US$ 1000 million Private sector /non- concessional official financing /Host governments US$ 4-6 billion Total * ~ US$ 6-8 billion * of which US$ 4 billion for generation projects

12. Objectives of Tunis Meeting Agree to work as development partners Confirm scope of the Investment Plan Agree to mobilize financing by Spring 2010

13. Next Steps after Tunis Finalize the Investment plan based on feedback from Tunis meeting CTF Trust Fund Committee review in December 2009 Donor coordination to confirm financing by Spring 2010

14. jwalters@worldbank.org