SOUTH MEDITERRANEAN COUNTRIES: Growing with the wind

1
SOUTH MEDITERRANEAN COUNTRIES Growing with the
wind
17th March 2009
2
Agenda

• Mediterranean markets
• Installed power
• Financing
• South Mediterranean markets
• Gamesas windfarms and experience
• Pros and cons of wind investment in the area
• Evolution of requirements
• Conclusion

3
Mediterranean Markets installed power
Source GWEC end 2008
4
Mediterranean Markets projects financing

• North Mediterranean Project finance/Corporate
  Finance
• East Mediterranean ECA (Export Credit Agency)
• South Mediterranean Development funds against
  sobern guarantee (BEI, kfW, JBIC, DANIDA, Spanish
  FAD)

5
Mediterranean Markets projects financing
Project Finance
ECA
Government Loans
Others
6
South Mediterranean Countries Gamesas windfarms
in South Mediterranean countries

• Approx. 800 MW in the last 5 years

• Customer ? government (MoroccoOffice National
  Electricité, Tunisia Société Tunisienne
  Electricité et Gaz, Egypt New and Renewable
  Energy Agency)

• Financing ? European development funds (BEI, KFW,
  Spanish FAD, Danida) and Japanese (JBIC)

• Contracting ? 96 EPC contracts between Gamesa
  and governments under turn-key basis after
  international tendering (WTGs, civil electrical
  works included)

• Technical adaptation to the markets ? small size
  windturbines (850 kW -1360 kW), high temperature,
  protection to dust (sand) corrosion ambient
  package

Bizerte 120MW
Tetouan I,II,III 32MW
Tanger 140 MW
Sidi Daoud I, II, III 40MW
Essaouira 60 MW
Zafarana 120120 MW
Zafarana 8085 MW
Wind market in the South Mediterranean countries
has been developed by the governments of this area
7
South Mediterranean Countries pros and cons to
invest in the development of wind

• Pros

• Excellent wind regimens sites with higher number
  of equivalent hours comparing to North
  Mediterranean (3500-4200 hours)

• Low land fees

• Less height limitation nor noise constrains

• Green certificates/ carbon credits can be sold to
  European countries

• Industrial local companies interested in windfarm
  development as reliable electricity supply
  back-up solution.

• Governments interested in private development
• Morocco ? ENERGIPRO
• Egypt ? first IPP/BOT international bid will be
  launched in the following months
• Turkey ? 1st November 2007 applications bid
  launched by government

8
South Mediterranean Countries pros and cons to
invest in the development of wind

• Cons

• No fixed renewable law and legal framework for a
  investment of 20 years
• Drafts but no firm contractual rules
• Price per kWh very low (3-4 cents of Euro per
  kWh)

• Morocco ? ENERGIPRO legal framework, no real
  contract
• Egypt ? draft of renewable law

• Electrical grid adaptability for wind energy
  connection technical improvement of transport
  infrastructure and grid quality need to be
  improved

9
South Mediterranean Countries evolution of the
requirements (I)

• Local manufacturing

• Towers
• Small size WTGs tower easy to manufacture with
  local means
• Big size WTGs manufacturing needs important
  investment in means, factory facilities and
  technical competences.
• Blades
• Manual process ? manpower necessary technical
  competences, important cost in quality control
• Nacelles
• No local manufacture of the nacelles equipment
  (gearboxes, transformer, generator, control
  boards).
• Assembly process of components has a high
  technical risk with low revenues.

10
South Mediterranean Countries evolution of the
requirements (II)

• Multimegawatt windtubines

• Lack of local means for transport, erection and
  maintenance ? increase of Cost of Energy.
• Negative economical impact in infrastructures
  (foundations, roads, assembly platforms) which
  penalize the Cost of Energy
• Technical performance comparable to lt 1MW WTGs
  (voltage ride through, reactive power
  generation)

Small size windturbines lt 1 MW have the optimum
Cost of Energy comparing to multiMW WTGs
11
South Mediterranean Countries wind opportunities
Egypt
Morocco
Tunisia
South Mediterranean Countries
12
Thank you for your attention