German firms set sights on energy from the Sahara (Feature)

By Christine Schultze Jul 9, 2009, 13:02 GMT

   Munich - An ambitious plan to harness the sun's energy in the Sahara desert and turn it into electricity for European households has raised eyebrows among experts.

   Some see it as publicity stunt, others call it unrealistic, while many wonder where the 400 billion euros (552 billion dollars) needed to finance the mammoth venture will come from.

   On Monday, the Desertec project is set to be launched by leading German companies, among them utilities giants RWE and E.ON, Deutsche Bank and electro-engineering group Siemens.

   'Of course it is still a long way off, but the enormous interest in the scheme shows we are on the right path,' said a spokesman for another member of the consortium, insurer Munich Re.

   The Desertec Foundation has long been obsessed with the idea of using the inexhaustible power of desert sun to solve the world's growing energy problems.

   'Within six hours deserts receive more energy from the sun than humankind consumes within a year,' says Gerhard Knies, chairman of the Desertec supervisory board.

   Using a network of solar thermal power plants and high voltage direct current transmission lines, some 15 per of Europe's electricity needs could be met from the desert, according to a study.

   These types of power plants use mirrors to concentrate sunlight to create heat which is used to produce steam to drive steam turbines and electricity generators.

The process is different from photovoltaics, the other popular form of solar power, which converts solar energy directly into electricity.

   Solar thermal technology has been used in California's Mojave desert since the mid-1980s and is also in operation in the arid region of Andalusia in the south of Spain.

   The direct current power lines will enable the electricity to be used in North Africa as well as Europe. 'We already have the technology available,' says Knies.

   Siemens estimates that an area of 300 x 300 kilometres in the Sahara fitted with parabolic collectors would be enough to meet the planet's entire energy needs.

   There are number of reasons why it took so long for the project to get off the ground.

   Firstly, there was a lack of pressure to search for an alternative to fossil fuels when the oil price dropped sharply after the world recovered from the oil shock in the early 1970s.

   Climate change was hardly on anyone's lips then.

   In the meantime, things have changed dramatically. Global warming and extreme weather patterns have led to flooding and other natural disasters, costing insurance companies like Munich Re enormous sums paid out in compensation.

   Dwindling resources and drastic increases in the price of energy has led to the conviction that new, transnational solutions need to be found, says Knies.

   'The time appears ripe for a truly comprehensive manoeuvre to combat climate change,' he adds.

   The German companies involved are taking a wait-and-see approach. 'We are still at a very early stage, says E.ON chief executive Wulf Bernotat.

   Munich Re points out that financing also needs to be resolved.

   There is also concern that political instability in some of the nations along the Sahara belt could scare away potential investors.