Berliner Boersenzeitung - Sun-soaked North Africa pushes for cheap energy

EUR -
AED 4.015821
AFN 73.791892
ALL 98.68196
AMD 422.635149
ANG 1.97074
AOA 999.876216
ARS 1065.726922
AUD 1.623466
AWG 1.969923
AZN 1.846655
BAM 1.955028
BBD 2.207849
BDT 130.668435
BGN 1.955715
BHD 0.412167
BIF 3225.85649
BMD 1.093339
BND 1.430349
BOB 7.556053
BRL 6.104325
BSD 1.093478
BTN 91.803991
BWP 14.541395
BYN 3.578226
BYR 21429.435338
BZD 2.20413
CAD 1.504292
CDF 3143.347737
CHF 0.937321
CLF 0.036854
CLP 1016.902927
CNY 7.734601
CNH 7.742366
COP 4605.68859
CRC 564.684907
CUC 1.093339
CUP 28.973471
CVE 110.222007
CZK 25.348069
DJF 194.724937
DKK 7.460407
DOP 65.834923
DZD 145.504475
EGP 53.120956
ERN 16.400078
ETB 133.237149
FJD 2.430218
FKP 0.832642
GBP 0.83799
GEL 2.979342
GGP 0.832642
GHS 17.438198
GIP 0.832642
GMD 74.346871
GNF 9435.40597
GTQ 8.456701
GYD 228.770767
HKD 8.496104
HNL 27.167652
HRK 7.433621
HTG 144.064466
HUF 401.123493
IDR 17072.918601
ILS 4.115091
IMP 0.832642
INR 91.827973
IQD 1432.434721
IRR 46018.618806
ISK 148.70474
JEP 0.832642
JMD 172.783395
JOD 0.774851
JPY 162.687133
KES 141.051389
KGS 93.153183
KHR 4446.286037
KMF 493.587002
KPW 984.004064
KRW 1474.766056
KWD 0.33513
KYD 0.91124
KZT 542.355971
LAK 23912.813617
LBP 97914.095912
LKR 320.253619
LRD 211.04768
LSL 19.209014
LTL 3.228344
LVL 0.661349
LYD 5.233982
MAD 10.733613
MDL 19.330957
MGA 5023.063699
MKD 61.590695
MMK 3551.120922
MNT 3715.164302
MOP 8.753046
MRU 43.29151
MUR 50.386632
MVR 16.793608
MWK 1895.969138
MXN 21.257463
MYR 4.687114
MZN 69.837034
NAD 19.210419
NGN 1771.306976
NIO 40.244486
NOK 11.743516
NPR 146.888049
NZD 1.794756
OMR 0.420906
PAB 1.093468
PEN 4.073193
PGK 4.298363
PHP 62.612766
PKR 303.717123
PLN 4.302188
PYG 8527.71272
QAR 3.986845
RON 4.975898
RSD 117.005747
RUB 105.994789
RWF 1472.132519
SAR 4.105656
SBD 9.036473
SCR 15.092973
SDG 657.609842
SEK 11.36743
SGD 1.428026
SHP 0.832642
SLE 24.979837
SLL 22926.756843
SOS 624.95909
SRD 35.111435
STD 22629.900287
SVC 9.568224
SYP 2747.045806
SZL 19.204597
THB 36.455179
TJS 11.645498
TMT 3.826685
TND 3.370785
TOP 2.560708
TRY 37.493487
TTD 7.42407
TWD 35.180683
TZS 2979.347764
UAH 45.079922
UGX 4018.43259
USD 1.093339
UYU 45.441652
UZS 13972.486061
VEF 3960676.290518
VES 41.113255
VND 27137.755843
VUV 129.803348
WST 3.058574
XAF 655.704238
XAG 0.03507
XAU 0.000413
XCD 2.954802
XDR 0.813486
XOF 655.704238
XPF 119.331742
YER 273.770772
ZAR 19.139012
ZMK 9841.358739
ZMW 29.031543
ZWL 352.054563
  • RBGPF

    63.3500

    63.35

    +100%

  • SCS

    -0.4300

    12.6

    -3.41%

  • RYCEF

    0.0600

    6.94

    +0.86%

  • RELX

    -0.3500

    46.36

    -0.75%

  • AZN

    -0.6350

    76.87

    -0.83%

  • GSK

    -1.0300

    39.21

    -2.63%

  • RIO

    0.4900

    66.84

    +0.73%

  • CMSC

    0.0700

    24.59

    +0.28%

  • BCC

    -3.4400

    138.95

    -2.48%

  • BCE

    -0.4500

    32.86

    -1.37%

  • NGG

    0.0500

    65.68

    +0.08%

  • VOD

    0.0100

    9.74

    +0.1%

  • JRI

    0.0000

    13.22

    0%

  • CMSD

    0.0900

    24.77

    +0.36%

  • BP

    0.3600

    32.34

    +1.11%

  • BTI

    -0.3700

    35.11

    -1.05%

Sun-soaked North Africa pushes for cheap energy
Sun-soaked North Africa pushes for cheap energy / Photo: FETHI BELAID - AFP

Sun-soaked North Africa pushes for cheap energy

Solar panels glint in the sun on a Tunisian lagoon, part of a long-delayed drive to harness the North African country's vast renewable energy potential.

Text size:

While industry insiders complain of red tape, fossil fuel prices that soared after Russia's February invasion of Ukraine created a powerful incentive for such investments across the Maghreb region.

"Algeria, Tunisia and Morocco, each have an abundance of solar energy resources as well as ample wind energy resources," said Michael Tanchum, an expert on the sector.

"Extreme price pressures on natural gas, especially in Europe, have changed the calculus for investments in renewable energy."

Omar Bey, of French-based renewables developer Qair, hopes the firm's 200-kilowatt floating solar station on a lake next to a Tunis industrial park can be a prototype for bigger projects nationwide.

"Tunisia doesn't have any choice but to go for renewables, given the situation around hydrocarbons and particularly gas," he said, adding that innovations like floating solar stations could help.

Being on reservoirs or lakes helps cool the panels, making them more efficient, and "means we can use water instead of taking up land that can be used for other things like farming or homes," Bey said.

It also helps reduce evaporation, another benefit in the water-stressed region, he said.

Tunisia, on the sun-drenched Mediterranean Sea, is well-placed to produce clean energy both for domestic use and for export to energy-hungry Europe.

In 2015 the country set ambitious targets for renewables.

But last year green sources accounted for only 2.8 percent of the country's energy mix and the rest came from natural gas, according to the state Tunisian Company of Electricity and Gas (STEG).

Tanchum, a non-resident scholar at Washington's Middle East Institute, said "political paralysis" was holding the sector back.

Tunisia has suffered more than a decade of turmoil since its 2011 revolution. Ideological wrangling has often taken precedence over transforming the economy, which depends heavily on food and energy imports.

The state's fuel subsidies bill soared 370 percent in the first half of this year compared to the same period of 2021, official figures show.

Yet, despite incentives to push for renewables, such efforts have been held back by legal and administrative obstacles, according to Ali Kanzari, president of an association representing solar firms.

"Sometimes (imported solar panels) sit for a month or more in customs," he said.

"We need more flexible laws. Everything needs to be sped up."

- Morocco leads -

One major solar station in the desert near Tataouine was finally connected to the grid in October, two years after its completion. Project head Abdelmomen Ferchichi blamed difficulties in getting permits, and the station's distance from the grid.

Bey said "misunderstandings" among some union members within STEG, wary of attempts to privatise the sector by stealth, had also delayed development.

"Today, all that's behind us," he said.

Tanchum told AFP that despite the renewables potential of the entire Maghreb, "only Morocco has emerged as a regional leader".

Morocco decided in 2009 to boost renewables to 52 percent of its energy mix by 2030 and it currently produces around a fifth of its electricity from clean sources, according to the government.

Its energy ministry says "this vision has started bearing fruit, with 111 renewable energy projects completed or under development".

They include a solar and wind facility to generate more than 10 gigawatts of power and send it to the United Kingdom via a 3,800-kilometre (2,360-mile) undersea cable.

Tunisia dreams of doing something similar.

In October, it applied for a European Union grant for an 800-million euro ($828 million) cable to Italy covering 200 kilometres, to go online by 2027.

For Kanzari, the association president, the link can't come soon enough.

"They're going to have a cold winter" in Europe, he said. "If we'd had a cable that was ready, and four or five gigawatt solar power stations in the desert, we'd be selling electricity and earning hard cash."

Tanchum said that although Maghreb countries could benefit from this type of project, much of the energy should be for domestic use, so they "don't become the green battery of Europe".

- Algeria's ambitious target -

Neighbouring Algeria, Africa's top natural gas producer, has set the ambitious target of 15,000 megawatts from solar by 2035.

The first part of a 1,000-megawatt project is set to come online by late next year, but for now the country generates just three percent of its electricity from the sun.

Intissar Fakir, head of the North Africa and Sahel Programme at the Middle East Institute, said Algeria's cash glut from gas exports is going to upgrade the fossil fuel infrastructure, not to renewables.

There are also "big hurdles for foreign investment in the sector -- not least Algeria's notorious bureaucracy," she added.

(Y.Yildiz--BBZ)