The Desertec Industrial Initiative (Dii) is currently in the process of developing an investment vehicle to support renewable energy development in the MENA region.
Dii is aiming for the project — which is known as the Renewable Energy Development and Investment Vehicle for MENA, or REDIMENA for short — to support the development of enough new renewable energy capacity to double the region’s total capacity by the year 2015. That would mean growing the capacity from the current 1.7 GW up to around 3.3 GW.
Dii, which comprises partner companies from a total of fifteen different countries, announced the somewhat surprising goal last week at the 4th Dii Desert Energy Conference in Rabat, Morocco.
PV Magazine provides more:
Project developers are an important driver in reaching this ambitious goal, Dii said. However, it pointed out that the amount of capital available for the high risk phase of early stage development is often limited in MENA’s emerging markets.
The Renewable Energy Development and Investment Vehicle for MENA (REDIMENA) is a fund dedicated to overcoming such hurdles by co-investing between €1 million and €4 million of risk capital per project to help them reach the construction phase.
“North Africa and the Middle East are at the beginning of an impressive energy transition based on wind and sun,” explained Dii CEO Paul van Son. “A well-developed, shovel-ready project then builds the basis for the much larger amounts of private sector investment necessary for constructing a renewable energy power plant. This is why Dii has launched REDIMENA for promising projects”
The next step in the development of the investment vehicle will be a feasibility study done with the help of the Hamburg-based consulting company Suntrace. Currently, Dii is aiming to set REDIMENA up with about €30 million ($40.5 million) of initial funding.
Image Credit: Solar via Wikimedia Commons