According to Brussels, North Africa and the Middle East holds around 2,300 gigawatts of renewable-energy potential, more than twice the EU’s current installed capacity. Solar and wind power can be produced 30 to 40 percent more cheaply than in Europe, the Commission estimates.
Yet the scale of the challenge remains enormous.
The Commission’s own estimates suggest the region will require well over €100 billion in investment by the end of the decade to fully exploit its renewable-energy potential. Officials acknowledged Tuesday that the €25 billion target is only a starting point.
The Commission hopes a new T-MED investment platform, due to become operational in September, will help bridge that gap by bringing together governments, development banks, project developers and private investors. At the same time, Brussels plans to push partner countries to simplify permitting procedures, improve grid access and strengthen regulatory frameworks in order to make projects more attractive to investors.
The initiative resembles a strategy Europe has pursued before. More than a decade ago, the Desertec project sought to harness North African solar power and export it to Europe. Despite early enthusiasm, the project ultimately failed amid political uncertainty, financing challenges and concerns over the cost of new infrastructure.
Similar projects in other parts of the world have also collapsed — the Sun Cable project, for example, which promised to power Singapore with Australian sunlight via what would have been the longest undersea power cable in the world, was a flop.