January 2008 Confidential strategy paper

ENERGY FROM THE DESERT - a solid basis for socio-economic development -

Free Energy International BV Eindhoven, the Netherlands

ABSTRACT: Deserts can be looked at as large lands with cruel surfaces, underground wealth, sunny and windy climate conditions and severe inhabitants living conditions. A more challenging and realistic way of looking at deserts is, as Regions with abundant and inexhaustible sources of clean energy and fresh water, offering a huge potential for socio-economic development This conclusion was made during our more than 10 years global co-operation in IEA PVPS Task 8 (Very Large Photovoltaic Power Systems for Desert Regions). The main driver for such socioeconomic development would be a VLS-PV power generation system, which would create a sustainable market for solar electricity, PV- and system components, installations and CO2 credits. This development would also create many jobs and would involve technology transfer from industrialized countries to desert countries. The generated electricity can be used for lighting, communication, entertainment, industrial and education purposes, but also for providing potable water, for irrigation, agriculture and mining. VLS PV-plants will contribute to energy security, provide fair access to energy for everybody and reduce the thread of climate change.

INTRODUCTION: As predicted by a German group of high level scientists (GWBU), the worldwide use of primary energy will more than double in the next decades and will be four times as much towards the end of this century. Since the availability of fossil fuels will not be sufficient for supporting this drastic increase and since our climate will be influenced badly by such increase, most of the growth in primary energy has to come from renewable energies. As can be seen in the graph, the major part of the energy at the end of the century will come from the sun. What we also can see is, that solar energy is practically non existing today. It is still difficult to predict how the development as indicated will take place, but we have to accept that something like indicated is most likely to occur.

Future energy scenario (GWBU, Germany)

In order to assess and to evaluate possible applications for photovoltaic (PV) solar energy, the International Energy Agency (IEA) installed international task groups. In PVPS Task 8, we investigated the potential for very large power generation systems in desert regions. The purpose of our work has been, to examine the possibilities for solving the world problems concerning fair access to clean energy and fresh water for everybody. We started with studying power generation by converting solar irradiation, directly or indirectly, into electricity. In addition, we touched on subjects as electricity transmission and storage, water pumping, (sea-) water desalination, irrigation, agriculture, community development and socio-economic development. During our work, we came to the inescapable conclusion that desert regions contain abundant and inexhaustible sources of clean energy and fresh water, offering a huge potential for socio-economic development. Therefore we shifted our focus from a technological approach towards a socio-economic approach.

STATEMENTS BY WORLD RECOGNISED INSTITUTIONS: IEA PVPS Task 8: - Step-by-step development is possible; relatively low initial investment and modular growth in conjunction with decreasing generating costs. - System evolution from standalone bulk systems via local grid networks to integrated networks to global networks. HRH Prince Hassan bin Talal, President of the Club of Rome, April 2006: - The sun-belt and the technology belt, when coupled together, can turn deserts into clean and inexhaustible power houses for the world. - Clean power for Europe and fresh water for the MENA regions would be a win-win situation to all of us. - Look at our deserts through new eyes as an overabundant and inexhaustible source of clean energy and fresh water. GN READER (Global Network for Renewable Energy Approaches in Desert Regions) [3]: - Deserts represent large lands with cruel surfaces, underground wealth, sunny and windy climate conditions and severe inhabitants living conditions. - Deserts contain abundance of renewable energy and high shortage of water. - Level of ground water is dropping due to large water pumping programs. - Salinity of ground water in these regions is increasing. Energy Declaration Amman 2006 [4]: - The current and even further increasing world energy demand results in: conflicts for the limited fossil fuels climate changes and other environmental degradations - The high rate of ground water extraction is unsustainable, leading to depletion of aquifers, to the decrease of their levels and to the increase of their salinity.

GENERAL CONCLUSION: Having studied the justification for above statements in depth and having discussed the relevant issues on a global level, we came to the inescapable conclusion that:

Desert regions contain abundant and inexhaustible sources of clean energy and fresh water, offering a huge potential for socio-economic development

SOCIO-ECONOMIC CONSIDERATIONS: 1. Potential benefits for desert countries: Economic: Create local market, local production and export of solar electricity and components (solar cells, modules, silicon, etc) and CO2 credits Social: Employment, international co-operation, technology transfer Security of energy supply: Secure sustainable future energy source Environmental: Climate change/Kyoto protocol Peace/poverty alleviation: Fair access for everybody to affordable and sustainable energy solutions Recognition: Become model country in desert regions Connected areas: Irrigation, agriculture, water pumping, desalination, transmission and storage, hydrogen technology

2. Creation of a local market: Standalone systems: Solar home systems in rural areas Grid connected systems: In urban areas, for those who have access to the grid Building integrated systems: In urban areas, for those who have access to the grid Solar electricity plants: Very large scale photovoltaic power generating systems in desert areas

3. Creation of local industry: Assembly of PV solar panels: For local use & export Manufacturing of solar cells: For local use & export Manufacturing of silicon: For local use & export

Installation, building and services: For local use Note: as a matter of fact, local industries for e.g. glass, concrete, aluminium and steel will benefit a lot from this development

4. Education: Awareness creation: At all levels Transfer of system- and application know how: To renewable energy institutes & energy companies Transfer of technology: To educational institutes Transfer of policy matters: To decision makers

5. Major stakeholders are: - Renewable Energy Institutes - Energy companies - Government institutions - Financing institutions - Educational institutes

MARKET EVOLUTION FOR SOLAR ELECTRICITY: 1. Rural electrification: After the initial development of PV solar electricity by the aerospace industry, this technology was adopted in the early eighties of the past century for rural electrification in developing countries. In the past decades, millions of solar home systems, consisting of a solar panel, a battery and some lights have been installed in rural Africa and have contributed to the improvement of the quality of life of the rural families. Also village systems, consisting of solar panels, batteries and a local electricity network have been developed and installed in many places.

Solar home system in Morocco

2. Grid Connected systems: In the past decade, the market for grid connected applications, mainly in industrialised countries like Japan and Germany has developed more strongly; PV solar installations on houses and buildings have been strongly promoted and subsidised, leading to a market growth of more than 40 % each year.
Solar roofs in the Netherlands

3. Large scale solar electricity generating systems: In recent years, the market for large scale solar electricity generation plants has developed more strongly, especially in southern Europe and the USA. Economies of scale and higher solar irradiation have lead to electricity prices which are approaching end-user prices in those countries. This kind of electricity generation is especially interesting for utility companies, who have easy access to electricity transmission systems.

Solar electricity generation plant in Springervillle, USA

TECHNOLOGY EVOLUTION: 1. Wafer based solar panels:

The first decades in the application of solar electricity systems have been dominated by the use of wafer based solar panels, notably mono-crystalline or multi-crystalline silicon panels. This technology has proven to be very robust. However, the cost reduction potential is limited and the relatively high need for silicon material has lead to availability problems. Manufacturers are trying to overcome these problems by designing panels with thinner wafers and by using newly designed solar grade silicon.

Multi-crystalline silicon panel

2. Thin film solar panels: Significant cost reduction can be achieved by applying thin film solar cell technology. In this case, very thin layers of semiconductor materials are deposited on glass, metal or plastic substrates and electrical connections are made by advanced laser structuring methods. Thin film solar panels have been a promise for cost reduction since many years and the results of intensive R & D at institutions and companies has resulted in lower costs per watt indeed; most effort today is put into the design of faster production processes and higher conversion efficiencies. Basically, three different semiconductor materials can be used, notably thin film silicon and compounds of cadmium telluride (CdTe) or copper indium gallium diselenide/sulphide (CIGS) materials. Manufacturers of thin film panels in each technology are rapidly expanding their production capacities, in order to utilise their potential economies of production scale.

Thin film solar panel

3. Concentrating photo-voltaic systems (CPV):

Another way of obtaining lower system costs and, consequently, lower electricity costs, is the use of concentration. In this case, the sunlight is concentrated by lenses or mirrors and concentration factors of 500 to 1000 are easily achieved. By concentration, expensive semiconductor material can be partly replaced by relatively cheap glass or plastic material for lenses and metal for cooling. Concentration systems need to be placed in direct sunlight and need to follow the sun. Therefore, they are only effective in at locations with a lot of direct sunshine and they need to be placed on suntracking systems.

Principle of solar concentration

Concentrating solar panel from Daido Steel, Japan

CPV tracking system at AIST, Japan

One of the attractive options for using concentrating solar panels in desert regions is, that a major part of the panels can be produced locally.

NETWORK EVOLUTION: The introduction of VLS-PV in desert regions can be made in discrete steps; At first, a stand-alone bulk system is introduced to supply electricity for surrounding villages or anti desertification facilities in the vicinity of deserts (stage 1). Secondly, plural systems are connected by a regional grid; this contributes to load levelling and reduced power fluctuation (stage 2). In the next stage (stage 3). The regional network is Very Large Scale PV system deployment scenario connected to a primary transmission line; generated electricity can now be supplied to a load centre and industrial zone. Total use, combined with other power sources and storage becomes important for matching the demand pattern and improving the capacity factor of the transmission line. Furthermore, by the time that stage 3 is reached, seasonal differences can be adjusted. Finally, a global network is developed (stage 4). Most of the energy consumed by human beings can be supplied through solar energy. For the last stage, a breakthrough in advanced energy transmission, such as superconducting cable, flexible AC transmission system (FACTS) or chemical media will be required.

CONNECTED AREAS: 1. Irrigation/agriculture: In many countries, the major part of the available water resources is used for agricultural purposes. The efficiency of most irrigation systems is still very poor and inefficient irrigation often leads to soil degradation.

Inefficient irrigation

PV-cell

ED
Pump

Water-Tank

Emiter
Improved irrigation system

Using PV solar power in combination with modern desalination techniques leads to more efficient irrigation systems. Less precious water is spoiled and salinity of the soil is prevented. Therefore, more efficient agricultural development can take place.

2. Seawater desalination: Desalination is needed because of: Increasing fresh water demand because of population growth Reduction of natural ground water resources Pollution or salinization of natural ground water

Water resources

Today, Reverse Osmosis systems may offer the best solution for desalination systems powered by (solar) electricity. Further cost desalination be expected innovative technologies. reduction of systems can because of desalination

Cost reduction potential of desalination processes

3. Transmission networks: Efficient transport of the generated electricity can take place by high voltage DC transmission networks. A second option is to convert and store the generated electricity into liquid hydrogen. In this case, transport can take place by ship. In future, the further development of super conducting technology may lead to transmission networks with very low losses.

Solar electricity for local use and export

Hydrogen for local use and export

Transport of electricity

Transport of liquid hydrogen

TOWARDS DEVELOPING PROJECTS: The technologies for converting solar irradiation into electricity and for transport and storage of electricity are widely available. We also believe that financing can be made available for excellent project proposals. Therefore, the main challenge is to make these excellent project proposals and to convince governments, energy companies and financing institutions to be positively involved in realising ambitious projects for the large scale generation of solar electricity. Connected issues, such as (sea-) water desalination, irrigation, agriculture, community development and socioeconomic development should be covered as well. We should focus on proven technology with substantial cost reduction potential and on a step by step development, with relatively low initial investment and modular growth in conjunction with decreasing costs. For these reasons, we will focus on electricity generation by converting solar irradiation directly into electricity (photovoltaic systems).

Project development: For developing realistic projects, we want to cooperate with influential local institutions that have sufficient expertise and a powerful network. The target size of the projects should be in the order of 1 gigawatt, to be extended to 10 gigawatt in time. In order to make maximum use of the foreseeable price decreases, the first gigawatt should be built in steps during a time frame of e.g. 10 to 15 years. Community development should take place in parallel to the growth of the PV power plant. Such kind of long term planning will allow the creation of a sustainable local industry for all required materials, components and services.

For more information:

Free Energy International BV mail: P.O. BOX 9564, 5602 LN Eindhoven, Netherlands office: Ambachtsweg 23, 5627 BZ Eindhoven, Netherlands phone: +31 40 2901242; fax: +31 40 2421049 e-mail: peter@vandervleuten.net websites: www.freeenergyinternational.com/ www.energyfromthedesert.com

Energy from the Desert III

Expected 2009

Expected

Published in 2003

Published in 2007

Expected in 2009