Sahara Solar Parks on Tap

It’s not just oil companies that are trying to drum up their renewable energy efforts – German reinsurer Munich Re Group has set plans in motion to build solar parks in the Sahara desert. The company, facing claims for damage caused by climate change, is seeking backing from other leading European companies for a feasibility study on generating a significant proportion of Europe’s power needs from northern Africa.

The project created initially by the Club of Rome has attracted several big names like the Deutsche Bank, Siemens, E.ON, and RWE. “We have approached Munich Re to get industrial companies on board and Munich Re organized the meeting with the other companies,” said a spokesman for the Desertec foundation, which is fostering the idea to generate solar power in Africa. However, the start-up costs to begin such a large undertaking are considerable, said Desertec engineer Gerry Wolff. Although if developed the Sahara could be the answer to many electrical problems across the globe.

The 20 companies and Desertec aim to sign a Memorandum of Understanding (MoU) to found the Desertec Industrial Initiative which would commission studies on possible projects, he said. A first power station with a capacity of 2 GW in Tunisia with power lines to Italy would take five years to build once it gets regulatory approval, the spokesman said.

A possible long-term project could be a 100 GW solar thermal power station in northern Africa and the Middle East. It could be finalized by 2050 with power lines connecting it to central Europe and would cost an estimated $555.8 billion, he said.

From 2050, some 20% of the power needed in Europe could come from northern Africa, Hans Mueller-Steinhagen told Reuters.

Many see the Sahara Desert region as containing a great deal of energy that could expand into other parts of Europe. Some scientists calculated that 35,000 sq miles of the desert could yield the same amount of electricity as all the world’s power plants combined.

Munich Re Board member Torsten Jeworrek said: "Innovative thinking is required to develop insurance solutions of this kind. Whether it is a matter of classic water and wind renewable energy forms or new methods of power generation involving solar thermal plants or photovoltaics, ultimately it is always about minimizing the risks for investors. As a leading reinsurer, we are accordingly tapping into new business segments."