Hunton & Williams Renewable Energy Quarterly, September 2009

Renewable Energy Quarterly
Industry Happenings
Sahara Sun to Power Europe?
As solar projects continue to surge, the horizons for development
have expanded to less likely places, such as Tunisia.
A German consortium is now building support for one of the
world’s most ambitious solar power projects to date. The
$573 billion endeavor, known as Desertec, would harness
solar energy from fields of mirrors in the Sahara and convey
power to a carbon-free network linking Europe, the Middle
East and North Africa.
Munich Re, a German insurance company, is the driving
force behind this major undertaking and has expressed
interest in playing a role as an investor and insurer once the
project gets off the ground. The technology envisioned would
collect solar rays to produce steam for turbines that produce
electricity, which would be transmitted through high-voltage
direct current (HVDC) cables.
Opponents of the initiative argue that the economic and
political risks are too great. In addition to the instability of the
region, the project would require 20 or more cables, each
costing up to $1 billion, to transmit electricity north beneath
the Mediterranean. Supporters counter that the project could
one day provide 15 percent of the energy used by Europe.
Desertec could also empower countries like Morocco to
export energy instead of importing.
The experts have yet to draft a business plan or determine
financing of the project. The next step in Desertec will be to
legally incorporate, which is planned for October 31.
Hydropower Gains Momentum with Boost from DOE
At the end of June, U.S. Department of Energy Secretary
Steven Chu announced up to $32 million in Recovery Act
funding specifically for modernizing the hydropower infrastructure,
increasing efficiency and reducing environmental
impact. In July, DOE announced its plans to provide up to
$30 billion in loan guarantees to companies investing in
new renewable energy projects, including hydropower. The
additional incentive of investment tax credits or grants has
further insured a swell of hydropower improvement and
advancement.
Hydropower is the nation’s biggest source of renewable
energy and the DOE is committed to improving the technology.
A major advantage to hydropower is the ability to store
and release the energy on demand. On September 15, the
DOE announced that 22 advanced waterpower projects
will receive up to $14.6 million in funding, which includes
conventional hydropower plants. Secretary Chu remarked
that “these projects will provide critical support for the development
of innovative renewable waterpower technologies
and help ensure a vibrant hydropower industry for years to
come.”
Queens Tests Con Edison’s Smart Grid Program
On August 4 Consolidated Edison Company of New York,
Inc., announced that Queens will be home to a $6 million
smart grid pilot program. The program features sophisticated
technology designed to improve the delivery of electricity to
the residents and the utility’s ability to respond to customer
use and power interruptions. Approximately 1,500 customers
will participate in the project, which will run for a period of
30 Renewable Energy Quarterly www.hunton.com