"Desertec goes far beyond clean energy supply and can contribute to sustained prosperity in North Africa and the Middle East, benefiting both sides of the Mediterranean in line with EU’s neighbourhood policy."
Desert power – A key contribution towards sustainable energy supply in Europe and MENA
In September 2011 the Commission set out a comprehensive strategy for the EU's external relations in energy committing not only to the security of energy supplies in Europe but also to fostering international energy partnerships. I refer here not only to Norway, Russia and the members of the Energy Community, but also to our Southern Mediterranean partners with whom we are actively looking for further integration.
Tomorrow’s energy challenges cannot be met with today’s ways of thinking. Resource efficiency is a main driver of our economies. We need to efficiently use every natural resource and rely on renewable energy sources. In this respect, Dii is a pioneering initiative.
With solar radiation in North African deserts being significantly more intensive and stable than elsewhere, they offer ideal conditions for generating electricity from renewable energy sources.
But Desertec goes far beyond clean energy supply and can contribute to sustained prosperity in North Africa and the Middle East, benefiting both sides of the Mediterranean in line with EU’s neighbourhood policy. By 2050 more people will live in the MENA region than in the EU. Moreover, its population is much younger than in Europe and unemployment rates are high, increasing the urgency for job creation. Desert power can be an economic driver for host countries. A large-scale development of renewable energy will be an important contribution to local sustainable development by creating jobs and ensuring energy security, opening up new economic opportunities.
Major infrastructure investments are needed in Europe and in interconnectors with third countries such as North Africa to enhance market integration, competitiveness, security of energy supply and to prepare ourselves for the move to a low carbon economy. It is also in this context that on 19 October, the Commission proposed a regulation to define and build the essential infrastructure Europe needs with a 2030 perspective.
Furthermore, moving to low carbon and secure energy generation across the EU will require increased cooperation and coordination amongst Member States. We need to develop and put in place new coordination mechanisms. This has been broadly recognized at the informal Energy Council in September.
Also on the future market design of the energy sector important work lies ahead. These issues will be further addressed in the Roadmap 2050 that I intend to issue in December.
Achieving a long-term 2050 target of low-carbon energy supply requires action today. Some renewable energy technologies, like PV and CSP, are not yet fully cost-competitive and require support to build up economies of scale, which enable them to drive down cost-curves. However, support should be targeted to full market integration of renewable energies as soon as possible.
In the coming years, first reference projects can become a reality, notably in Morocco. They will be a first step in establishing desert power as a long-term contribution to a sustainable energy mix in Europe and North Africa and foster international energy partnerships in line with the EU external energy policy.
I am confident that collectively we can and will achieve this goal. The European Commission together with the Union for the Mediterranean will act as facilitators in promoting renewable energy projects in the Southern Mediterranean, together with national governments and the private sector.
I wish you a fruitful Dii Annual conference 2011!