German Development Bank KfW Signed Ourzazate Deal

The German Development Bank KdW (Kreditanstalt för Wiederaufbau) just signed a deal over $115 million to contribute to the first 160 MW phase of the Ourzazate CSP power plant in Morocco, which has a total project volume of $750 million. Other public partners include the World Bank at $200 million, the European Commission, the European Investment Bank, the African Development Bank, and the French Development Bank.

I think this is an excellent answer to the gloating of Rod Adams I blogged in the previous post, which might prove to be somewhat premature. While he might think that Desertec is “dumb & arrogant”, nobody is asking him to contribute a couple of hundred million dollars in the first place.

These are still only first steps on a long journey. It will take a couple of decades until electricity from Morocco arrives in Germany. But this is smart development policy, even if that part of the idea doesn’t materialize. Everyone in public finance who understands, like the World Bank does, that global warming is a serious problem, will be naturally inclined to support large scale renewable energy projects in developing countries.

Published by kflenz

Professor at Aoyama Gakuin University, Tokyo. Author of Lenz Blog (since 2003, lenzblog.com).

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