Environmental Engineering Reference
In-Depth Information
However, the project also has drawbacks. The biggest problem is that the
produced energy is very expensive at the beginning. For this reason, the project
must be financially supported. This support must be primarily done by Morocco,
because they are going to be under the obligation to buy the energy (due to the
PPA). The low average energy price will force the state to counteract against the
expensive new solar energy. Morocco might use the concession fee to “refinance”
the energy. Yet, this leaves the question of whether there is any contribution to the
economic development of the host state if there is no concession fee left. As
mentioned above, the project will not be transferred very soon. As a result, the
only benefit for Morocco will be the concession fee. If this fee is completely
consumed by subsidies, there will be nothing left for the state. In the worst case
scenario, the concession fee will not be enough. This might be an argument against
a contribution to the economic development of the host state, as nothing would be
left of the concession fee, which is itself a vital part of the initial “acceptance” of the
contribution requirement.
It is almost impossible to set abstract guidelines if the situation turns negative.
The importance of the Desertec Concept for the future makes it necessary to adjust
the terms of the positive and negative effects. It would be wrong to define these
terms too narrowly, as they are connected to the length of the actual implementation
of the project. E.g. short-term negative effects might be outweighed by long-term
positive effects. Due to the importance of the project, the approach towards this
problem should not be too strict. Looking at the positive “side-effects” of the
Desertec Concept, like a cleaner environment, less CO
2
, no risk of nuclear power
plants in the MENA region, and an increase in the number jobs and knowledge, it is
easy to see how the project would contribute to the economic development of the
host state. Furthermore, there must be a separation between the short-term positive
effects and long-term positive effects. On a short-term scale, there is the concession
fee and an increase in jobs and knowledge. If the concession fee is missing, the
amount of positive short-term effects on the economic development of the host state
will be greatly reduced. However, the long-term positive effects also require
consideration. The fact that these benefits will be visible in years to come or that
they cannot be valued in money does not make them irrelevant. On the long-term
scale, a cleaner environment and a reduced risk of nuclear catastrophes combined
with the knowledge to run this project and the possibility to export energy to Europe
is clearly a contribution to the economic development of the host state. Hence, the
overall assessment reveals that the Desertec Concept would contribute to the
economic development of the host state.
4.11 A Certain Amount of Uncertainty Remains
Finally, a lot of uncertainties remain. The Desertec Concept is a unique project, so it
is impossible to predict all the risks or challenges it will eventually face. Therefore,
it is important that the PPP is set up in a flexible way if it is to survive. Other
