Middle East and North Africa Region Assessment of the Local Manufacturing Potential for Concentrated Solar Power (CSP) Projects

The study assess the competitive positioning and potential of MENA countries and companies in the manufacturing of key CSP components (e.g. concentrating mirrors, tracking systems, absorber tubes and storage systems). Fraunhofer identified in this project opportunities for local and international companies in the North African CSP market. Furthermore, economic and social-economic benefits are qualitatively and quantitatively evaluated from today to 2030.

In the MENA region the CSP-related industry (glass, mirrors, steal, energy engineering) are analyzed in an in-depth market research study which identify potential internal and external players for CSP components in the manufacturing sector. The main countries to be covered in our research are those who submitted CSP projects for financing by the Clean Technology Fund (CTF): Morocco, Algeria, Tunisia, Egypt and Jordan.

A key task of Fraunhofer ISE was to analyze the manufacturing processes of components and CSP systems to identify required manufacturing skills and production technologies know-how of the potential CSP companies in MENA. Additionally the future costs expectations for CSP components and the whole system is assessed in order to forecast the surrounding framework in which new companies of the MENA region have to produce CSP components competitively in the world market. An action plan is proposed to help developing the potential of local manufactured CSP components by a long-term strategy. A keystone for local manufacturing is a long-term support mechanism for CSP plants to build a local demand for CSP components in the renewable energy market of the MENA region. To evaluate the economic and social benefit of the development of local manufacturing the expected investment volume of CSP by the World Bank, by national renewable development plans and by international export plans (e.g. Desertec Industrial Initiative and Mediterranean Solar Plan) until 2020 is summarized to a potential market volume for local demand for CSP components in the next years.

The study results indicate that the local value added for CSP plants in the MENA region can reach up to 60 percent on average. Christoph Kost, head of the study at Fraunhofer ISE, estimates the effect due to local value added in the region to be 14.3 billion US dollars if sustainable, long-term demand is created. 60,000 to 80,000 new jobs, some of them highly qualified permanent positions, can be created in the MENA region by 2025. Countries stand to profit from the development of production capacities and extensive infrastructure construction projects in the field of renewable energies if they exploit their regional advantages and dismantle market barriers. European plant manufacturers and component suppliers also see large growth opportunities in this market in the medium term. Europe and MENA both stand to benefit from the enormous solar power potential of the region via new markets for the companies of the two continents.