Environmental Engineering Reference
In-Depth Information
the plant (e.g. mirrors) up to 80,000 people per 20 GW.
598
The number of jobs
created because of a joint venture is significantly higher if production of all the parts
is within the host state.
599
In addition, it is vital to train and educate African
engineers.
600
The training of African engineers would also be a part of the knowl-
edge transfer, which is frequently demanded by ICSID tribunals. Finally, the
Desertec Concept could also have positive effects on the environment. There is
no question that the replacement of conventional power plants by solar thermal
plants takes pressure off the environment. The cutback on CO
2
emissions and thus
cleaner air are just two examples of the benefits for the environment. The support of
environmental protection through new technology is also within the interest of the
developing country and the international community.
601
Secondly there is the subjective element. The scope of the subjective contribu-
tion includes compliance with the host state
s laws and compliance with declared
local development objectives. As mentioned above, compliance with the law cannot
be assessed at the moment. However, the second requirement is important as it
requires the investor to keep to its promises and declarations. Since the Desertec
Concept is a different kind of project, this requirement might be more relevant than
in other investments. It underlines the need that an investor primarily supplies
Morocco and not Europe. The concentration throughout the whole project must be
on the MENA region, respectively the host states. If an investor fails, there is a risk
that it will not be considered an investment anymore. This might also happen
despite the concession fee. Nevertheless, if an investor keeps it promises, the
Desertec Concept would also fulfill the subjective requirement. Assessment of
these elements by ICSID tribunals might be difficult, as economic development is
mostly a political term and difficult to assess. The ICSID Convention focuses on
legal questions and does not deal with national policies. Nevertheless, it offers a
guideline in a field where legal political issues overlap.
'
3.7.5.5 Cost Efficiency
One problem remains, and this is connected to the concession fee. As mentioned
above, the produced energy from the Desertec Concept will cost more at the
beginning than conventional energy. Hence, it is necessary to support solar thermal
energy with feed-in tariffs or subsidies. In both cases, the state must pay this money
itself, which could lead t the fact that the benefits Morocco has from the concession
fee and taxes could be consumed by the need to subsidize the project. The fact that
the need for subsidies exists prior to the start of the project is rather unusual because
it indicates that the product is not at all competitive. This is almost contrary to the
598
Komendantova (2010).
599
Komendantova (2010).
600
Saß (
2009
), 27 (30).
601
Herdegen (
2003
), 13 (29).
