Market Development and financial framework
The MENA region offers excellent conditions for renewable energy. However, today, some renewable energy technologies are still too expensive to compete with other forms of power generation on a cost basis. Dii’s markets group addresses this gap and is working towards finding solutions how to close it, the goal being to ensure market integration of desert power as soon as possible. Assessment of market potential for desert power on both sides of the Mediterranean, in MENA and European countries, marks the starting point of this analysis. Based on expected cost developments, quantification of the gap is possible and levers -- how to minimize it as well as ultimately bridge it -- are addressed. Countries in North Africa and the Middle East could act as producers, off-takers or transmission partners. Concessional climate financing for MENA countries could open the gate to leverage economies of scale and hence globally influence cost curves. This development is assisted by a growing set of climate finance instruments, supporting the scale-up of renewable energiy in MENA.
