World Bank Supports Morocco’s
Bold Solar Power Plans
Nov. 17, 2011 - web.worldbank.org
The World Bank today approved $297 million in
loans to Morocco to help finance the Ouarzazate Concentrated
Solar Power Plant Project, taking a historic step
toward realizing one of the first large-scale plants
of this kind in North Africa to exploit the region's
vast solar energy resources.
With this approval from the Bank’s Board of
Executive Directors, Morocco takes the lead with
the first project in the low-carbon development plan
under the ambitious Middle East and North Africa
Concentrated Solar Power (CSP) Scale-up Program.
A $200 million loan will be provided by the International
Bank for Reconstruction and Development, the part
of the Bank that lends to developing country governments,
and another $97 million loan will come from the Clean
Technology Fund.
“
The World Bank is proud to provide the financing
needed to make this large-scale renewable energy
investment possible,” said World Bank Group
President Robert B. Zoellick. “Ouarzazate demonstrates
Morocco’s commitment to low-carbon growth and
could demonstrate the enormous potential of solar
power in the Middle East and North Africa. During
a time of transformation in North Africa, this solar
project could advance the potential of the technology,
create many new jobs across the region, assist the
European Union to meet its low-carbon energy targets,
and deepen economic and energy integration in the
Mediterranean. That’s a multiple winner.”
The 500 megawatt (MW) Ouarzazate solar complex, as
the first power site, will be among the largest CSP
plants in the world and is an important step in Morocco’s
national plan to deploy 2000 MW of solar power generation
capacity by 2020.
The World Bank has supported Morocco’s national
Solar Power Plan since it was launched in 2009 and
is now making this significant loan to co-finance
the development and construction of the Ouarzazate
Project Phase 1 parabolic trough plant through a
Public Private Partnership between the Moroccan Agency
for Solar Energy (MASEN) and a private partner. Ouarzazate
Phase 1 will involve the first 160 MW and will help
Morocco avoid 240,000 tons of CO2 equivalent a year.
The Ouarzazate project will also contribute to Morocco’s
objectives of energy security, job creation, and
energy exports. As a regional frontrunner in clean
energy, Morocco is rising to the challenge of its
international commitments made in the last two United
Nations’ climate summits and under the “Union
for the Mediterranean.”
"
The Ouarzazate first phase is a key milestone for
the success of the Moroccan solar program,” said
Mustapha Bakkoury, President of MASEN. “While
answering both energy and environmental concerns,
it provides a strong opportunity for green growth,
green job creation, and increased regional market
integration. It will pave the way for the positive
implementation of the regional initiatives sharing
the same vision (Mediterranean Solar Plan, Desertec
Industry Initiative, Medgrid, World Bank Arab World
Initiative). The support of international financial
institutions, like the World Bank, through development
financing but also climate change dedicated financing,
is essential to help bring the overall scheme to
economic viability," added Bakkoury.
The Ouarzazate loan is in line with the World Bank’s
commitment to scaling up funding that helps developing
countries cope with climate change and embark on
a low-emission development path. The World Bank Group’s
renewable
energy portfolio increased from a total
of $3.1 billion between fiscal years 2008-09 to $4.9
billion in 2010-11. Given the simultaneous expansion
of the overall energy portfolio during the same period,
the renewable energy proportion rose from 20 percent
to 23 percent.
About the project: The World Bank, the Clean Technology
Fund, the African Development Bank, the European
Investment Bank, the Agence Française de
Développement, European Union Neighborhood
Investment Facility, and the Kreditanstalt fur
Wiederaufbau are working with MASEN and a competitively
selected private partner to implement Ouarzazate
I.
For more information, please visit the Projects website.
