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Solar power investment in North Africa: Reducing perceived risks

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  • Komendantova, Nadejda
  • Patt, Anthony
  • Williges, Keith

Abstract

Climate protection targets for mid-century imply a need to scale up European renewable power production to a level that may exceed the available land area within Europe's borders. One attractive solution, from a cost and feasibility perspective, is the development of large-scale concentrating solar power plants in North Africa and the Middle East. However, these developments are seen by many people as risky, in terms of both European energy security, and in terms of the risks faced by project developers. In this paper, we focus on the latter of theses issues. First, we examine the risks that project developers are most concerned about, and identify these as being associated not with terrorism and rogue state behavior, but rather with corruption and inefficient and unpredictable bureaucracies. Second, we identify a range of policy approaches that can reduce these risks, either by mitigating their consequences, or by seeking to eliminate their underlying causes. Third, we investigate the financial benefits of taking such steps to reduce or eliminate investment risks. We find the potential savings to European electricity consumers to exceed €200 billion.

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  • Komendantova, Nadejda & Patt, Anthony & Williges, Keith, 2011. "Solar power investment in North Africa: Reducing perceived risks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4829-4835.
    • Handle: RePEc:eee:rensus:v:15:y:2011:i:9:p:4829-4835
    DOI: 10.1016/j.rser.2011.07.068
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    10. Nadejda Komendantova & Leena Ilmola & Anastasia Stepanova, 2016. "Foreign Direct Investment in Russia: Stakeholders' Views and Perceptions," Journal of Economics and Behavioral Studies, AMH International, vol. 8(5), pages 184-193.
    11. Damien Bazin & Nouri Chtourou & Amna Omri, 2019. "Risk management and policy implications for concentrating solar power technology investments in Tunisia," Post-Print hal-02061788, HAL.
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    13. George A. Gonzalez, 2016. "Transforming Energy: Solving Climate Change with Technology Policy . New York : Cambridge University Press . 360 pages. ISBN 9781107614970, $29.99 paperback. Anthony Patt , 2015 ," Review of Policy Research, Policy Studies Organization, vol. 33(1), pages 111-113, January.
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    18. Komendantova, Nadejda & Schinko, Thomas & Patt, Anthony, 2019. "De-risking policies as a substantial determinant of climate change mitigation costs in developing countries: Case study of the Middle East and North African region," Energy Policy, Elsevier, vol. 127(C), pages 404-411.
    19. Escribano Francés, Gonzalo & Marín-Quemada, José María & San Martín González, Enrique, 2013. "RES and risk: Renewable energy's contribution to energy security. A portfolio-based approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 26(C), pages 549-559.
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    21. Krupa, Joel & Poudineh, Rahmatallah & Harvey, L.D. Danny, 2019. "Renewable electricity finance in the resource-rich countries of the Middle East and North Africa: A case study on the Gulf Cooperation Council," Energy, Elsevier, vol. 166(C), pages 1047-1062.

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