The Sudanese government has committed to developing 2GW of CSP in order to access water, irrigate farms and power villages. CSP Today talks to Marc Benmarraze, CEO of Solar Euromed, the company designated to develop the first 250MW of Sudan's concentrated solar power.
By Rikki Stancich in Paris
Last month, French CSP developer and Technology Provider, Solar Euromed, announced an exclusive agreement with the Ministry of Energy and Mining of the Republic of Sudan for the development, construction and operation of 2GW of CSP over the next decade.
The first two projects (100 MW and 150 MW, respectively) are expected to come online by 2014. The objective of the projects is to provide affordable power and water supply to several affected Sudanese regions, including the Darfur region.
CSP Today speaks to Solar Euromed CEO, Marc Benmarraze, to learn more about how this ambitious project will take shape.
CSP Today: Solar Euromed recently announced a deal with the Sudanese government for the development of 2GW of CSP over the next decade. Can you please explain more about the deal?
Marc Benmarraze: We have a framework program in place from 2010 – 2020 over the next ten years, we will start with 100 MW program ( CSP only) with an application for power and water. We need to use CSP to access ground water reserves and to provide irrigation and power in the Darfur region.
The second project is an ISCC plant – CSP combined cycle, which will be gas-fired. This will not be in the Darfur, or western region; rather it will be in the Eastern region, where there is a lack of electricity and water.
The objective is to use CSP to power desalination plants. In the eastern region there are plentiful gas resources, we will combine the gas and solar resource to respond to the local needs.
CSP Today: What role will Solar Euromed play – is it solely the developer or will it also be sourcing and providing some of the project finance?
Marc Benmarraze: Solar Euromed is solely the developer. The government will provide all guarantees to raise the funding – we are talking about a country with significant oil and gas reserves.
A state-owned oil and gas company, which is healthy financially, has committed to partially financing the project. The project will be developed under an IPP scheme, but we will be leaving the majority of the equity open to investors, with the government providing the sovereign guarantee. We are also open to other interests.
The challenge will be sourcing funding, so at this stage the previously-mentioned oil company is willing to provide a variable amount.
CSP Today: Has Solar Euromed negotiated any PPAs yet?
Marc Benmarraze: The PPAs will be different from project to project. On the basis of the PPA there will be a need for guarantees and the involvement of the gas project will be dependent on the project’s requirement and the appetite of the external investors.
We are currently in discussion with two utilities for PPAs for both the 100MW and the 150 MW projects.
In the central region, there is a complete network governed by National Electricity Corporation. But in the Western region there is no network; it is all local networks, given that it is a desert region. In this case, the local government will negotiate the PPA.
The first plant will be located near the capital of North Darfur. The PPA is being signed both with the local government in North Darfur and central government.
CSP Today: What CSP technology will the project employ?
Marc Benmarraze: Initially we intend to use our own fresnel technology, but we are open to partnering with our German, Spanish, Italian and other European colleagues.
The potential of the project is huge, so there is an opportunity for other technology developers, EPC contractors, operators, and financial institutions to cooperate with us in addressing this niche and to deploy 2GW of CSP over the next decade. There is no way we alone could service that demand.
CSP Today: Is Solar Euromed working in collaboration with the Deserted Joint Initiative?
Marc Benmarraze: To date the Dii has been lead by our German colleagues, with the current focus on Algeria. But there is considerable potential in Saharan Africa, including Sudan .
Yes, the partners of the Desertec Initiative are welcome to participate and we already work together. However, it should be noted that the primary focus of these projects is to service local demand and afterward the export of renewable energy to Europe, The objective is to harness solar power to generate electricity, power and water, with a tremendous humanitarian content.
To respond to this article, please write to the editor:
Rikki Stancich: rstancich@gmail.com
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