The largest renewable energy project in history fails: only desert is left and we have lost $2 billion

Morocco renewable project

A renewable energy project that promised to change history seems to have failed. At the moment, there is only desert and an apparent loss of 2 billion dollars. Human beings are going through a period of energy transition. We need energy and several initiatives have already appeared that promise to exploit infinite and renewable energy.

However, not all the proposals that appear to try to meet human needs are successful. Sometimes they fall by the wayside due to lack of budget, impossibility of exploitation or disparity of opinions among the agents involved. The latter is the problem that has led a renewable project with great potential to be put on standby.

This renewable energy project has lost billions dollars: now there is only desert.

The dispute has been about the type of energy to be used. Morocco’s largest planned solar project has been delayed for this reason. The $2 billion, 800 MW Noor Midelt I power plant was scheduled to start operating this year, but construction has not even begun.

The delay began when the Energy Ministry and grid operator ONEE rejected CSP technology, different sources told Reuters. The state energy agency MASEN cleared the contract to make Noor Midelt I a reality in 2019. It was awarded to the consortium led by EDF Renouvelables.

It requested that the plant have photovoltaic (PV) technology, which is more affordable but has little capacity to store energy, and CSP, which is more expensive but continues to supply the grid for hours after dark.

However, since the contract was awarded, ONEE and the Ministry of Energy have communicated that they would only agree to purchase the power if MASEN switched from CSP to PV or modified the saline energy storage to batteries.

The renewable project continues to face delays for this reason.

MASEN and the grid finally reached a power purchase agreement, but discussions still continue between MASEN and the development consortium over technological details. MASEN warns that the proposal was delayed by the pandemic and is now in the final stage of development, but did not respond to Reuters’ questions about the dispute.

For its part, EDF Renouvelables said Morocco remains determined to restart development with a mix of photovoltaics, solar thermal and battery storage. It noted that all partners “remain committed.”

The Ministry of Energy said nothing about the dispute, but did comment that it “tries to be as technology agnostic as possible.” This is as long as the targets set in terms of cost, sustainability and safety are maintained.

Regarding financing, the World Bank and the European Investment Bank stated that their financing terms remain valid while MASEN and the consortium try to reach an understanding. For its part, the World Bank commented that construction will take 30 months once negotiations are finalized.

Morocco’s renewable project in trouble due to internal problems

According to sources speaking to the aforementioned media outlet, ONEE cited problems at Noor Quarzazate, Morocco’s most famous solar complex, as the reason for MASEN’s desire to change the project’s technology.

The technological problems represented an interruption in production at a 150 MW plant there for a year starting in the summer of 2021.

“Noor Ouarzazate helped put Morocco on the world map for large-scale renewable energy projects. But a closer look in terms of operating costs and maintenance issues shows that the plant is more of a liability,” someone close to Noor Midelt I communicated to Reuters.

Another source said, “In retrospect, Ouarzazate served as a testing ground for immature CSP technology.” For now, Morocco’s renewable project may go ahead, but only if an agreement is reached. In the meantime, the sovereign country in North Africa is working on other proposals such as its cloud experiment.

Source: ecoticias.com

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About Stu Turley 3359 Articles
Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.