Applicable Subject Number: 1 GLOBAL, REGIONAL AND NATIONAL POLICIES AND MARKETS Policies for the Future: Spreading Awareness of Wind Opportunities (North Africa) Sahara Wind Project By: Khalid Benhamou Managing Director, Sahara Wind 32, Rue Lalla Meryem Souissi, Rabat 10100 - Morocco. Tel: +212 61 33 20 68 Voice/Fax: +212 37 65 08 41 E-mail: kb@saharawind.com www.saharawind.com Sahara Wind Project Abstract: Although the vast majority of the world’s wind energy capacity is currently installed in Europe, the wind resource of this continent is rather limited. Indeed, very few countries in continental Europe are exposed to windy climatic conditions, whereas a very high population density limits the available use of land. Instead of expanding into new markets in order to take advantage of better conditions and possible synergies that may be developed on a regional basis, the European wind power industry is currently focusing its efforts on the development of its off-shore wind potential. This solution, even if it cannot be applied to every EU country, has the advantage to overcome most of the natural limitations that hamper the development of wind power in Europe. Since this industry has thrived on subsidized premium prices paid for wind generated electricity available almost exclusively in Europe, the development of the costly off-shore wind power option reinforces further the justifications for sustaining the prices. As a result, the current research trends in wind turbine design tend to favor the development of larger, sometimes gigantic machines aimed at reducing the impact on the costs of sea foundations for Off-Shore applications. This will have perverse effects on the export capacity of what could have been a promising (almost exclusive) European technology to proliferate beyond the EU’s subsidized market setting. The latest trends where the EU market represented 88% of world’s wind market in 2002 seems appalling. In fact, the largest share of the world’s wind energy potential lies in developing countries that have much better possibilities and where it has not yet been fully exploited. Some preliminary estimates based on almost a decade of on-site wind measurements, have proven that North Africa, particularly the Trade Wind blown Atlantic coastline of Morocco through Mauritania, has one of the world’s largest wind energy potential. The objective of the project is to enable the demonstration that a large scale wind energy project can be commercially viable and self-sustaining only in the Moroccan/Mediterranean setting and possibly beyond. The initial project concept targets a large, 5 GW scale on-grid wind energy production facility in the Tarfaya area (in South Morocco), aimed at supplying at competitive costs the Spanish renewable electricity market, through a dedicated High Voltage DC export line. A 5 GW High Voltage Direct Current (HVDC) transmission line can transfer wind generated electricity from the Saharan plateaus to Spain, over a distance of 1300 km with losses of about 4%. According to our conservative estimates, the steady trade winds blowing in this area, shall enable us to deliver the equivalent yearly production of 5 GW capacity of Wind Power to Spain, within the European Union at costs as low as: Euro 3,7 cents/kWh. This price that take into account all infrastructure costs, HVDC lines with sea cables, converting station, and transmission losses have been obtained assuming a yearly average production of 3400 Full Load Hours, with a price of 1000 €/kW rated Wind Turbine capacity, 5 % real interest rate, 20 years lifetime, 2% of total investment as annual Operation & Maintenance costs. The specific costs of wind energy have dropped significantly in the last 20 years, and the average costs of installed wind power in Spain were down already to 850 €/kW in the year 2000. If we consider the fact that wind turbines used in the Sahara desert won’t require any of the costly design features required in Europe, the price of wind turbines are expected to drop even further. Besides, on such large power project, local manufacturing will enable tremendous economies of scale to be made. The Saharawind project serves as an initiative of a market based, renewable energy option that addresses global climate change issues, while creating large business and investment opportunities. The option of utilizing large wind blown areas in the vicinity of Europe such as the Saharan coast is economically competitive and would enhance the energy security of Europe’s by adding new "clean" capacity to its grid with a diversified source of supply. Morocco and Mauritania have very little economical resources, and regional economical issues, are key to this region’s survival. The labor intensive and sustainable aspect of the renewable energies match very well with the nature of this regions economical challenges. Enabling non-oil producing North African economies to participate in being integrated to the European Union’s economy, utilizing clean renewable resources that otherwise cannot be taped, represents a win-win situation for all. While the EU is most active politically in the enforcement of environmental targets worldwide, the implementation of these, will represent quite a challenge that some countries within the EU will have to meet. Due to its rapid economic development, the Iberian peninsula has for instance, increased its greenhouse gases emission by 50% since 1990. As the fifth largest greenhouse gas emitter of the EU, Spain with its actual progressive energy policy towards renewables, will still miss its Kyoto greenhouse gases emissions target requirements by over 30% in 2010, according to the EU Commission environment directorate’s most recent survey. As a consequence, and despite EU burden sharing agreements and ‘over-cutting’ measures by other member countries, the EU may not be in a position to meet its Kyoto target requirements by 2010. The unveiling of the large wind power potential of the Sahara wind resource combined with the tremendous wind power developments that have taken place in Europe, have contributed to develop our current project concept. The overall goal of the Sahara Wind project is to propose a more comprehensive approach to the wind energy developments in Morocco (or North Africa) by linking them to Spain’s and to some extent Europe’s. As a unique power integration opportunity between Europe and North Africa, the 5 GW Sahara Wind Project would offset over 20 million tons of CO2 emissions/year if produced by fossil energies such as coal. To sequestrate this carbon, the planting of over one Billion trees would have been necessary. This represents a significant gain for the environment, considering the fact that not a single tree can be planted in the Sahara desert, where the project is located. Such a large scale project would provide a tremendous boost to the Wind power industry clearing its path to a bright sustainable future. Curriculum Vitae: Khalid Benhamou Born in Brussels, Belgium 1967. Grew up in Morocco, attended French High School (baccalauréat 1986) Graduated as an Engineer from California Polytechnic State University, in 1991. From 1992 until 2000 Occupied various positions within the King of Morocco's private Farms operations. Promoted the use of Wind Energy and erected Morocco's first large wind turbine, in the Sahara Atlantic Coast, on one of the King's farms, in 1995. With the tremendous Wind Power development taking place in Europe, the potential of this area appeared obvious and the prospect for exporting electricity to Europe through a specialized transmission line became a viable option. The legal framework of this option was discussed within the EU commission in Brussels in 1998. Today, Sahara Wind has been set up as a private company in order to develop the project, and line up private investors in a consortium that will be large enough to secure equity funds for this project. Further information’s on myself (Complete CV) available upon request.