The World Bank today approved $297 million in loans to Morocco to help finance the Ouarzazate Concentrated Solar Power Plant Project

The World Bank today approved $297 million in loans to Morocco to help finance the Ouarzazate Concentrated Solar Power Plant Project, taking a historic step toward realizing one of the first large-scale plants of this kind in North Africa to exploit the region's vast solar energy resources. With this approval from the Bank's Board of Executive Directors, Morocco takes the lead with the first project in the low-carbon development plan under the ambitious Middle East and North Africa Concentrated Solar Power (CSP) Scale-up Program. A $200 million loan will be provided by the International Bank for Reconstruction and Development, the part of the Bank that lends to developing country governments, and another $97 million loan will come from the Clean Technology Fund. "The World Bank is proud to provide the financing needed to make this large-scale renewable energy investment possible," said World Bank Group President Robert B. Zoellick. "Ouarzazate demonstrates Morocco's commitment to low-carbon growth and could demonstrate the enormous potential of solar power in the Middle East and North Africa. During a time of transformation in North Africa, this solar project could advance the potential of the technology, create many new jobs across the region, assist the European Union to meet its low-carbon energy targets, and deepen economic and energy integration in the Mediterranean. That's a multiple winner." The 500 megawatt (MW) Ouarzazate solar complex, as the first power site, will be among the largest CSP plants in the world and is an important step in Morocco's national plan to deploy 2000 MW of solar power generation capacity by 2020. The World Bank has supported Morocco's national Solar Power Plan since it was launched in 2009 and is now making this significant loan to co-finance the development and construction of the Ouarzazate Project Phase 1 parabolic trough plant through a Public Private Partnership between the Moroccan Agency for Solar Energy (MASEN) and a private partner. Ouarzazate Phase 1 will involve the first 160 MW and will help Morocco avoid 240,000 tons of CO2 equivalent a year. The Ouarzazate project will also contribute to Morocco's objectives of energy security, job creation, and energy exports. As a regional frontrunner in clean energy, Morocco is rising to the challenge of its international commitments made in the last two United Nations' climate summits and under the "Union for the Mediterranean." "The Ouarzazate first phase is a key milestone for the success of the Moroccan solar program," said Mustapha Bakkoury, President of MASEN. "While answering both energy and environmental concerns, it provides a strong opportunity for green growth, green job creation, and increased regional market integration. It will pave the way for the positive implementation of the regional initiatives sharing the same vision (Mediterranean Solar Plan, Desertec Industry Initiative, Medgrid, World Bank Arab World Initiative). The support of international financial institutions, like the World Bank, through development financing but also climate change dedicated financing, is essential to help bring the overall scheme to economic viability," added Bakkoury. Relevant Links North Africa Aid and Assistance Morocco International Organisations Energy Environment The Ouarzazate loan is in line with the World Bank's commitment to scaling up funding that helps developing countries cope with climate change and embark on a low-emission development path. The World Bank Group's renewable energy portfolio increased from a total of $3.1 billion between fiscal years 2008-09 to $4.9 billion in 2010-11. Given the simultaneous expansion of the overall energy portfolio during the same period, the renewable energy proportion rose from 20 percent to 23 percent. About the project: The World Bank, the Clean Technology Fund, the African Development Bank, the European Investment Bank, the Agence Française de Développement, European Union Neighborhood Investment Facility, and the Kreditanstalt fur Wiederaufbau are working with MASEN and a competitively selected private partner to implement Ouarzazate I.

You Might Also Like :