The first phase of DESERTEC will be launched in 2012. It is located near the city of Ouarzazate, in southwest Morocco, about 200 kilometers from Marrakech. This pilot solar power project will generate power from an area of 12 square kilometers, comprising a solar farm that will generate 500 MW. Plans are in place to build a large network of solar farms in Arab countries, linked together through ordinary high tension power grids, and the maximum output of the project is expected to cover around 15 percent of Europe's power consumption by 2050. The first features of the project were laid down by the Club of Rome and the WWF, as well as the German DESERTEC foundation. In July 2009, a consortium of 56 international companies was signed up for the execution of the project, led by German companies such as RWE, E.ON, Siemens, Deutsche Bank and other European companies. The estimated cost of the project is 400 billion euros, to be financed by international development banks, the EU and investment funds. There are plans to expand the project to include other deserts in Asia, Australia, America and Russia, with a view to export electricity to nearer consumption areas, such as the bloc of Southeast Asian countries. Other Arab countries are also poised to participate in the first stage of the project, including, in addition to Morocco, Tunisia, Egypt and Algeria. Here, it is worth mentioning that the agreement with Algeria was preceded by strong opposition from Algerian officials and experts seeking to improve Algeria's negotiating position, especially with regard to ownership and sovereignty over the solar power farms owned by foreign companies. This mega project, as it would be expected, raises several questions. First of all, why are such large-scale exports of electricity planned to take place from Arab countries to foreign markets? Is it not better to invest this energy locally or regionally, before starting to export it abroad? As it is, Arab countries export crude oil, petroleum products and natural gas, at a time when these countries or neighboring ones are in need of these products. The problem here lies in the failure to build the necessary power plants, and the lack of initiative and will among officials for a joint Arab electrical grid. In fact, the only grid of this type was built and funded by the Arab Fund for Economic and Social Development. Furthermore, corruption is endemic to the electricity sectors of many Arab countries, which in turn leads to lack of serious thinking about establishing join projects with neighboring countries. This is not to mention concerns regarding neighboring countries cutting off power supply as a result of chronic political disputes among Arab countries. At first glance, DESERTEC gives one the impression that it will eat at petroleum's market share. But in reality, all new power plants rely on natural gas, coal, nuclear energy, wind power or solar power. Therefore, this project will not reduce oil consumption, but will instead help add another energy source that is ecofriendly. Arab countries, even oil-producing ones, are seeking in earnest to introduce alternative renewable energy sources in generating increasing amounts of power for the domestic market. Yet many questions remain: How much of the energy generated will be actually used in Algeria? How will the technology be transferred, i.e. training Algerian youths? What revenues can be achieved from manufacturing equipment locally? How many will be employed by the project? What is the quantity of water it requires, and what will the electricity tariff rates be over this long period of time? *. Mr. Khadduri is a consultant for MEES Oil & Gas (MeesEnergy)
