Thursday, 17 May 2012
 
 
World Bank to Back Morocco Concentrated Solar Power Plant E-mail
Tuesday, 14 September 2010 11:12
The Clean Technology Fund Trust Fund Committee (CTF TFC) has endorsed the Investment Plan for Concentrated Solar Power in the Middle East and North Africa Region, which aims at mobilizing $5.6 billion (including $750 million from the CTF) to accelerate deployment of 1 GW of Concentrated Solar Power (CSP) generation capacity, doubling the worldwide CSP installed capacity.
Morocco is the country with the largest proposed capacity in the MENA CSP CTF IP. The first plant to be developed under the CSP scale-up initiative is the 500 MW Ouarzazate plant in Morocco, which is the largest proposed CSP plant in the world.
Morocco imports nearly all its energy needs (97%) and its energy mix is dominated by oil and coal (87% of primary energy demand).  The challenge faced by Morocco is how to meet fast growing demand while at the same time reducing the carbon intensity of the power sector and enhancing security of supply. In this context, the Morocco Solar Plan, launched in November 2009, is the cornerstone of the country’s climate change mitigation strategy. The US$ 9 billion Solar Plan calls for the commissioning of five solar power generation plants between 2015 and 2020, for a total  capacity of 2000 MW,
Aided by a strong commitment to reforms and energy demand management, Morocco is ideally positioned to serve European markets and to use this positioning to take a technology and market lead, both through its geographic position and through the recent creation of enabling regulatory conditions for integration of RE in the energy system. 

The proposed project aims at increasing production of renewable energy through development of Phase 1 of a 500 MW CSP plant.   The project will also contribute to Morocco’s objectives of reducing import dependency and CO2 emissions, through increased penetration of renewable energy.  Other global and regional objectives include mitigating climate change through acceleration of global deployment of CSP, meeting EU’s renewable energy objectives, while creating a source of revenues for the Moroccan energy sector, and creating the Mediterranean regional electricity market.

The project will support a PPP between MASEN and a competitively selected private partner (s) to develop 125-250 MW (phase I of the 500 MW Ouazarzate plant which is part of the Morocco Solar Plan) of CSP (parabolic trough and/or tower) with 6 hour storage in order to contribute to peak load coverage at a site about 10 km East North East of Ouarzazate. The site is well suited for solar projects, especially for development of CSP, because of excellent solar resources and the availability of water.  The technical characteristics and size of the project have been determined after thorough analyses of technological options and market surveys by a reputable technical advisor. 
MASEN has hired transaction, tax and legal advisors (IFC is the transaction advisor) and a technical consultant.  The Moroccan Government requested use of CTF for the Ouarzazate plant. Other concessional financing is likely to come from the European Neighbourhood Investment facility (NIF) as well as from other countries.  Requests have been made for loans from several IFIs, and a steering group representing all concerned financiers meets monthly to review the status of project preparation
The preliminary environmental impact study is under way, as are DNI measures and various other related studies (seismic, water, etc). An expression of interest was launched in March 2010 and attracted over 200 responses.  A prequalification is in process to establish a short list in early fall.  Construction is expected to start mid-2011 for a commissioning by 2015.  Meeting MASEN’s ambitious schedule requires a well coordinated effort of all co-financiers, including the World Bank, as well as a streamlined processing.


Safeguard policies that might apply include Environmental Assessment (OP/BP 4.01), given that the project has potential (adverse) environmental risks in its area of influence, given notably the needs for water (for cooling and mirror cleaning). The choice of cooling technology may turn out to be decisive for the extent of water use from the project.

It is to be determined whether other safeguard policies apply, notably Safety of Dams (OP/BP 4.37), given that the project depends on an existing reservoir for water provision. Given the isolated desert environment, it is unlikely that the policies on Natural Habitats (OP/BP 4.04); Physical Cultural Resources (OP/BP 4.11); and Involuntary Resettlement (OP/BP 4.12) apply, but this will be verified.

INTEGRATED SAFEGUARDS DATA SHEET

CONCEPT STAGE

Report No.:  AC5627

 

 

Date ISDS Prepared/Updated: 09/15/2010

 

I.  BASIC INFORMATION

 

A.  Basic Project Data

 

Country: Morocco

Project ID: P122028

Project Name: MA-Ouarzazate Concentrated Solar Power

Task Team Leader: Silvia Pariente-David

Estimated Appraisal Date: November 18, 2010

Estimated Board Date: March 24, 2011

Managing Unit: MNSSD

Lending Instrument: Specific Investment Loan

Sector: Renewable energy (100%)

Theme: Climate change (100%)

IBRD Amount (US$m.):        200.00

IDA Amount (US$m.):               0.00

GEF Amount (US$m.):              0.00

PCF Amount (US$m.):               0.00

Other financing amounts by source:

            Borrower                                                                                           0.00

            African Development Bank                                                          265.00

            Clean Technology Fund                                                                200.00

                                                                                                                  465.00

 

 

B.  Project Objectives [from section 2 of PCN]

The proposed project aims at increasing the penetration of renewable energy in power generation in Morocco and reducing energy import dependency.

  

  The project will also contribute to the global and regional objectives of mitigating climate change through acceleration of global deployment of CSP, meeting the EU's renewable energy objectives and creating the Mediterranean regional electricity market. 

 

C.  Project Description [from section 3 of PCN]

The project will support a PPP between MASEN and a competitively selected private partner(s) to develop, in one or two steps, 125-250 MW (phase I of the 500 MW Ouazarzate plant which is part of the Morocco Solar Plan) of CSP (parabolic trough and/or tower) with 6 hour storage in order to contribute to peak load coverage at a site about 10 km East North East of Ouarzazate.

  

  The main technical characteristics and size of the project have been determined after thorough analyses of technological options and market surveys by a reputable technical advisor.  While storage increases the investment cost, the Moroccan counterparts determined that it was essential for displacing fossil fuels and ensuring security of supply.  If storage was not included, then peak load would have to be covered by fuel oil or diesel-fired power generation capacity. 

 

D.  Project location (if known)

The project is to be located about 10 km East North East of Ouarzazate, a town of approx. 50,000 inhabitants situated in the southern-central part of Morocco about 160 km south-east from Marrakesh.

  

  The site is well suited for solar projects, especially for development of CSP, because of excellent solar resources and the availability of water. 

 

E.  Borrower’s Institutional Capacity for Safeguard Policies [from PCN]

The implementing agency of the project is a special purpose vehicle (Solar Project Company) to be created between MASEN and a competitively selected private investor/developer with strong financial, technical and project management and implementation capability.

  

  For the purpose of this project MASEN with the support of ONE (Office National de l#Electricité) has commissioned an Environmental Impact assessment in April 2010.  This EIA has been reviewed and updates should be provided before Appraisal, including a proper consultation process.  The capacity of MASEN in the area of environmental and social safeguards will be assessed during upcoming preparation mission in September and appropriate capacity building measures will be recommended.

  

  As part of the requirements for the establishment of the SPV mentioned above, environmental and social assessment capacity will determined. As soon as it is established it will have to commission and submit to the Moroccan Ministry in charge of environment a project EIA with appropriate mitigating and monitoring measures. The capabilities of the counterpart entity that will enter into the SPV will be fully assessed during the selection which will be carried out by MASEN with the assistance of reputable technical and transaction advisors on the basis of the requirements mentioned above. The process will be supervised and the evaluation report submitted to the Bank and other donors/financiers for no objection. 

 

F.  Environmental and Social Safeguards Specialists

Mr Andrea Liverani (MNSSO)

Mr Gael A. Gregoire (MNSEN)

 

II.  SAFEGUARD POLICIES THAT MIGHT APPLY

Safeguard Policies Triggered

Yes

No

TBD

Environmental Assessment (OP/BP 4.01)

X

 

 

The project has potential (adverse) environmental risks in its area of influence, given the needs for water (for cooling and mirror cleaning); and given the risk of toxic fluid leaks. 

Natural Habitats (OP/BP 4.04)

 

 

X

Desert environment, likely no natural habitat. TBD. 

Forests (OP/BP 4.36)

 

X

 

No forests in vicinity, relevant triggers do not apply. 

Pest Management (OP 4.09)

 

X

 

No relation to project. 

Physical Cultural Resources (OP/BP 4.11)

 

 

X

Currently no evidence of physical cultural resources. Applicability of policy TBD, as required by policy. 

Indigenous Peoples (OP/BP 4.10)

 

X

 

No indigenous peoples in project area. 

Involuntary Resettlement (OP/BP 4.12)

 

 

X

To be determined whether project will result in loss of land to local communities. 

Safety of Dams (OP/BP 4.37)

 

 

X

Project depends on water supply from a nearby reservoir. Applicability of this policy is TBD. 

Projects on International Waterways (OP/BP 7.50)

 

 

X

No international waters involved. 

Projects in Disputed Areas (OP/BP 7.60)

 

X

 

Project not located in disputed area. 

 

 

Environmental Category:   A - Full Assessment

 

III.  SAFEGUARD PREPARATION PLAN

 

A.   Target date for the Quality Enhancement Review (QER), at which time the PAD-stage ISDS would be prepared:  10/21/2010

 

B.    For simple projects that will not require a QER, the target date for preparing the PAD-stage ISDS:  N/A

 

C.  Time frame for launching and completing the safeguard-related studies that may be needed.  The specific studies and their timing[1] should be specified in the PAD-stage ISDS.

August - October. 

 

IV.  APPROVALS

 

Signed and submitted by:

 

 

Task Team Leader:

Ms Silvia Pariente-David

09/13/2010

Approved by:

 

 

Regional Safeguards Coordinator:

Mr Hocine Chalal

09/13/2010

Comments: 

Sector Manager:

Ms Anna M. Bjerde

09/13/2010

Comments: 

 

 




Silvia Pariente-David,  Senior Energy Specialistsparientedavid@worldbank.org


 


 

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Comments (7)add comment

Morcelli said:

Algeria & Morocco. Partnership?
Algeria is not for this project even though they are saying they are. They want to control the production and not handing it to Europe. Smart. Losing control over Solar energy in North Africa means Algeria's gas resources will be useless. Basically suicidal for Algeria that relies 95% on these resources to survive.
Solar energy in Morocco can actually solve the Moroccan sahara problem. When the gas become less vital, Algeria will no longer drool to get a piece of the Moroccan sahara by proxy.
I am sure that Moroccans know that and they have every reason to push for this project.
wouldn't be nice for Morocco and Algeria to partner on this project and make Europe pay for their efforts and solve our own energy deficiencies?
Bouteflika is approching 80 years old and he is not in the mood to think about 20 years from now, He is still thinking 1950-1960. What a shame that we have no power to change things for the better of the maghreb people.
M6 asked a zillion time bouteflika to turn the page and start a new beginning but he refused.
It's time for the Algerian people to rid themselves of bouteflika and his gang and we rid ourselves of the crooks and the incompetent that are only looking after themselves.

09/18/10

titi said:

...
Frankly, I don’t see the point in countering such project if the Europeans are to support the financial side, the repercussions for morocco can only be beneficial in providing (thousands) jobs for engineers and technicians, maybe not for the design but certainly for on site management and maintenance..

This project will also provide a cleaner affordable and more reliable source of energy to Morocco either directly from the project itself or from replica projects for which we will have already developed the necessary know-how potential..

Those who have reservations need to start by asking themselves two questions, what are the alternatives? What is the project going to cost us not only financially but also socially and environmentally?
09/17/10

SaidZ said:

Analyst
Given the global economic and environmental trends, Morocco must embrace such projects. This way, Europe's economy and that of Morocco are interdependent. Economic interdependence, per my international relations expertise, have always led to increasing economic cooperation between nations, decreasing the prospect for conflicts, etc. All in all, it appears that this is the safe way to a cleaner future, cleaner air, less particles in the air, and less cancer.
09/16/10

Morcelli said:

...
Moroccans will definitely get all positions related to cleaning and wiping the solar panel mirrors. It is a lot safer than jumping on somone's car at the red light to wipe his/her windshield. Morocco will undoubtedly have the apprehend and the experience in doing these jobs. Let the Europeans get the boring upper level jobs. Moroccan negotiators will make more money from people wiping the solar panels anyway.

09/14/10

Aziz El Alami said:

...
Projects of this magnitude are great for our Country – Thousands of Jobs would be created, roads will be built, restaurants, hotels…etc. not to mention the opportunities the Moroccan workers (from engineers to laborers) would have to work and LEARN from such a project; couple that with the massive revenue the Moroccan government would enjoy simply by being the host of such a gigantic project… This is without a doubt a step in the right direction.

This is a good project and a great opportunity. It ought to be celebrated, welcomed and encouraged. We need more of these projects not less. Look at where China was not too long ago… They went from being the world’s factory and almost laughing stock to now being one of the world’s strongest economies… We are not there yet – but if this project comes to fruition, it would be a great step towards Morocco’s economic recovery and resurgence.
09/14/10

Datae said:

...
You're not mistaking my friend. Because Morocco lacks the expertise to handle such technologies, only a few jobs will be created for locals. Most of the support, engineering and other commercial aspects will be handled remotely.
A significant window of opportunity is presented to Morocco however. Morocco needs to invest heavily in its schools/universities and needs to train and produce people capable of managing runnning and overseeing such technologies....
09/14/10

anonymous said:

...
I don't see how the Moroccan people will benefit from this project. From what im reading it seems like huge solar plants will be built, financed for the purpose of generating power to our European neighbors not the moroccan market. I might be wrong so please correct me if i am.
09/14/10

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