EGYPT, TUNISIA EVENTS & BIG SUN

North African uprisings put CSP investors on alert; CSP developers and investors in North Africa are keeping a watchful eye on events in Tunisia and Egypt. Could current social unrest affect confidence in the region?
Jason Deign, 4 February 2011 (CSP Today)

"…CSP industry player[s] with an interest in North Africa…[are watching] developments there with interest…[T]he situation there could already be prompting insurers to ponder the need for more restrictive coverage or higher premiums on CSP projects.

But a bigger concern for developers might be if recent events shake investor confidence in the region. For now, the prevailing attitude seems to be one of ‘wait and see’."

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"…Solar Millennium Group has pulled its personnel out of the Kuraymat solar-thermal plant as a ‘precautionary measure’…The whole area around the 150 MW hybrid solar and natural gas facility, which is about 100km from Cairo and houses a number of other power plants, is now under military control…But the company remains committed to the region… [The] increasing demand for energy…[and] increasing population [will not change if or when the government in Egypt does]…

"…[European Investment Bank] investments in the region [are not expected to change with politics]…As far as Tunisia and Egypt are concerned…[no] plans slated for the region will be affected…[T]hat the Mediterranean Solar Plan has helped implant solar power projects, and jobs, in the region could confer the sector with a degree of immunity amid the protests…There is similar sentiment at Desertec, probably the largest development programme that could be affected…"

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"…[I]t is difficult to say how much of the current attitude is conditioned by the fact that neither Egypt nor Tunisia has particularly well-developed CSP markets…While Nur Energie is planning a development in Tunisia and Egypt has been tipped as a promising market for CSP, so far the only major project to have entered operation is Kuraymat, which is a joint venture with Egypt’s Orascom Construction Industries…

"…Concerns might mount if social unrest spreads to other countries…particularly to Morocco, the poster child for CSP in the region, which has on-the-ground developments…[Insiders expect] some problems with European and US investors…until the political situation is resolved…For a region already under scrutiny for issues such as transparency and regulatory security, that is hardly good news."