The most ambitious solar power plan ever conceived may be coming into some serious cash.

A group of 20 German firms is forming a consortium this July to begin
raising $555 billion for the much-discussed Afro-European solar
research project known as Desertec, the German newspaper Süddeutsche Zeitung revealed this week.

Desertec seeks to transform Saharan Africa into a solar hub for Europe
by constructing a supergrid of concentrating solar thermal plants (CSP)
on 6,500 square miles of North African desert. They claim their scheme
could eventually meet much of the continent’s electricity needs.

Half a trillion dollars in funding would certainly be a tremendous
start in that direction. In fact, that kind of financing would be
enough to power 15 percent of the continent by 2050.

Talk about a boost for Big Solar.

The news of the colossal cash infusion is grabbing global headlines.
And it’s no wonder. The firms involved are some of the heaviest hitters
in Europe: insurance giant Munich Re, German engineering leader
Siemens, Deutsche Bank, energy companies RWE and E.on, among others.

If these companies can bring the Desertec idea to life, it would be no
exaggeration to say they would change the face of solar energy
generation for the whole world.

The companies involved haven’t offered many details yet. But Torsten
Jeworek, a board member of Munich Re, delivered this dollop of
optimism:

“Technologically, the project is practicable,” he said.

CSP systems have been technically successful for years. The first
large-scale project was built in California’s Mojave Desert in the
1980s. As oil prices plummeted, CSP enthusiasm waned rapidly. But
recent concerns over climate and energy security have brought it back
from the dead. Spain and the U.S. Southwest have plugged in new
installations in recent years, with thousands more megawatts on the
way.

The allure of the technology is in its simplicity. CSP systems are
comprised of giant arrays of solar mirrors that concentrate direct
desert sunlight to drive a conventional steam turbine and generate
electricity. Simple, yes. But one cannot underestimate how powerfully
effective these systems could be for future utility-scale clean energy
generation.

Case in point is this claim by Desertec: If just 0.3 percent of the
light falling on the Sahara and Middle Eastern deserts could be
captured with these super solar mirrors, it could power all of Europe.

But the plan is not without challenges – the biggest being
transmission. Even a cursory discussion of details can’t help but raise
the question: Is it plausible to export 100 GW of solar power across
the Mediterranean into Europe without mass losses?

The answer, say the Desertec researchers, is yes – if nations were
to build High-Voltage Direct Current transmission lines that would
integrate with existing and less efficient HVAC transmission lines.
This would result in relatively minimal line losses of 10 percent or
less. The good news is that the technology exists. Prices remain
prohibitive, but signs are there that costs are dropping.

In March, Anthony Patt of the International Institute for Applied
Systems Analysis let the world in on what’s happening on the cost
front. He said the price of CSP for North Africa is indeed getting on par with alternative technologies. And most importantly:

“The cost of moving [electricity] long distances has really come down,” he said.

The actual details may come out sooner than anyone expected. Munich Re
claims that concrete plans will be on the table in just two years’ time
and energy could be flowing into Europe in 10.

Naturally, the project has its nay-sayers. Some say it’s far too
expensive and too risky relative to rooftop solar. Others in Germany
see it as an excuse for the government to ease back on support for
domestic solar projects. And accusations of greenwashing directed at
the companies involved have also been flying around. You can see a good
sampling of the criticisms here, in Spiegel Online’s coverage.

But there is a vital point that hasn’t been lost on most observers. The
discussion to raise big bucks for Desertec is being led by big business in the midst of a global financial meltdown.

Meaning, a group of major corporations may in fact be using the
downturn as an opportunity to green their operations and the world
energy supply, and, obviously, improve their bottom lines in the long
term.

What a novel idea.

Source