Introduction - Investing into North African Solar Power - page 6

necessary to implement a solar thermal power plant. A cooperation of several
companies still seems to be a suitable solution in this case.

1.1.1.1.3 Conclusion

Although there was discord between Dii and the Desertec Foundation, this does not
mean that the whole concept failed. The concept and the foundation are still in place
and offer a great think tank and an interesting idea to facilitate a solar project in the
MENA region. The discord between Dii and the Desertec Foundation was not really
surprising as there have been differences in the past. One example is their differing
opinions on the primary supply of energy (MENA or Europe), which will be
discussed later on in this thesis. In hindsight, the discord was the first sign that
Dii was going to fail as it was not able to combine, accommodate or mediate
between all the different shareholders concerns.

'

s
demand today by 2050, 41 but it would be wrong to believe that the European
demand will remain at today

Admittedly, the MENA region s electricity demand will be the same as Europe

' '

s level. It is more likely that it will increase as more
of our daily life is “electrified”. Dii

'

s homepage supported this by stating that:
[F]rom the very beginning, the aim will be to start supplying electricity to the European
Union and to generate sufficient power to meet the needs of the producer countries as soon
as possible. The aim is to supply around 15 % of Europe

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s electricity by 2050. 42

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The aforementioned statement might also illustrate one of the main areas of
disagreement between the Desertec Foundation and Dii—Dii

' s primary goal was to

supply Europe. This goal was not Dii s alone as any investor might have focused on

the European market to recoup their investment. However, there was always the
risk that the needs of the MENA region would be sidelined in favor of those of the
primary customer—the European market. Despite its failure, Dii still serves as a
good example of an international investor for the following examination. Finally,
any investor that tries to realize the Desertec Concept can potentially become a
“Transnational Company” (TNC). A TNC is best understood as a company that
operates across borders, with operations contained in its host state and in at least
one other state. 43 Another main feature of a TNC is that there is a parent company
which has power over each of its branches. 44 An investor could be considered a
TNC from the moment of cooperation as it may operate in several countries, and as
an investor would retain majority control over all its branches.

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41 Sch¨ssler ( 2008 ), 221 (222).
42 Desertec Industries ( 2010b ).
43 Sch

obener et al. ( 2010 ) 60, Kap. 1 § 5 para 196.
44 Weh ( 2008 ), 60; This also includes the majority of shares, in: Weh ( 2008 ), 62.

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