Desert power – A vision takes shape
Munich Re, the Desertec Foundation and more than 50 international partners have successfully combined forces in the Dii industry initiative, which has been set up to build solar and wind power plants in Southern Europe and North Africa. This initiative will provide energy to supply much of the producer countries and at the same time meet a substantial portion of Europe’s energy needs.
As a founder member of the Dii industry initiative, Munich Re is participating in one of the world’s most ambitious renewable energy projects. Some 50 institutions and companies are currently working with the Desertec Foundation to realise a huge vision that goes back to an idea conceived by American entrepreneur Frank Shuman in 1913: to construct solar power plants in the Sahara supplying much of Europe, the Middle East and North Africa with renewable energy. The objective the alliance has set itself for 2050 is that a major share of the energy produced will remain in the producer countries whilst, at the same time, 15% of Europe’s energy needs will be met.
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Solar energy from the desert
The electricity will be transported to Europe via a high-voltage direct-current grid with minimal transmission losses.
(Source: http://www.dii-eumena.com/)
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Supporting climate-protection goals and increasing opportunities for development
The project has the potential to provide substantial economic, ecological and social benefit. Firstly, it will promote energy security in Europe, the Middle East and North Africa ( » EUMENA). Secondly, by attracting substantial investment it will boost growth and development opportunities in the producer states of the Middle East and North Africa ( » MENA). Initial reference projects are scheduled for implementation in Morocco, which already has a grid connection with Spain. In Summer 2010, state-owned solar energy agency MASEN (the Moroccan Agency for Solar Energy) invited tenders on behalf of the Moroccan government for the first plants to be constructed. Located at Ouarzazate, they will have a total output capacity of 500 MW. In just a few years’ time, they could be supplying electricity to the Moroccan and Spanish grids.
“We have to develop solution approaches in response to the challenges of power supply and climate protection that cover the needs of a growing population on a sustainable basis without coming into conflict with scarce resources and climate objectives.”
Ernst Rauch, in charge of the project that set up Dii within Munich Re
Improving living standards, safeguarding core business
Some of the electricity generated from renewable primary energy sources (solar/wind) could also be used, for instance, to power seawater desalination plants. In this way the project could also do much to improve the MENA region’s drinking water supplies.
Munich Re’s involvement in this » public-private partnership, which includes the Fraunhofer-Gesellschaft, the Max Planck Society and state-owned enterprises in the corresponding countries, is a prime example of our strategy of using our expertise and problem-solving skills to make the future insurable. At the same time, this is helping to safeguard the long-term profitability of our business.
Tapping into new fields of business and exploiting investment opportunities
Innovative renewable technology requires state-of-the-art coverage programmes that minimise the risks for developers, producers and investors. Whether water, wind or solar energy, we are constantly monitoring developments and can offer the right risk-transfer solutions. As a major investor worldwide, we try to maintain a diversified portfolio, which also means more direct investment in renewable energy. In the context of the initiative, our involvement in Dii GmbH gives us, as a strategic investor, an opportunity to play an even more active role in the transition to more climate-friendly energy sources. This commitment also clearly illustrates Munich Re’s desire to reconcile commercial interests with sustainable development and social responsibility.
The DESERTEC Foundation – the NGO partner in Dii GmbH ‒ took its commitment a stage further in November 2010 by setting up the DESERTEC University Network (DUN), in which 18 universities from six countries in North Africa are currently involved, together with a number of European universities. The aim of this research partnership is to promote local training programmes in the field of renewable-energy technologies in North Africa and the Middle East, providing jobs and development opportunities for young people. In the long term, the network will facilitate a global platform, permitting the implementation of projects of this nature in other parts of the world as well. As a DESERTEC Foundation partner, Munich Re, is closely involved in the network and is also using it to foster support for new technologies in the neighbouring countries.
