Corality has been mandated to develop Dii’s (Desertec Industrial Initiative) equity model which will be used to evaluate prospective renewable energy projects as part the Desertec initiative.
Dii is a private industry consortium working towards enabling Desertec’s vision of supplying Europe, the Middle East and North Africa (EUMENA) with sustainable power, by utilising the energy potential of the desert.
Understanding the financial viability of large scale solar and wind projects
The core objective with Desertec’s financial model is to understand the financial viability of different large scale solar and wind projects. The model will be used to present Desertec’s solar and wind projects to potential investors for analysis and buy-in. The first project the model will be applied to is a solar CSP project in Morocco. Following this the model will be used for other projects including solar PV and wind.
Corality is proud to assist Desertec in reaching its vision of supplying Europe, the Middle East and North Africa with sustainable power, by utilising the energy potential of the desert.
“The equity model we are in the process of building for the evaluation of a solar CSP project in Morocco will pave the way for a multitude of Desertec projects. Corality is excited to be part of a world scale consortium of like-minded businesses promoting renewable energy around the world” says Nick Crawley, Corality’s Managing Director
Desertec tender board impressed by Corality’s best practice modelling methodology SMART
Corality won the model build tender against 3 competitors. The tender board was particularly impressed with Corality’s strong understanding of the requirements in modelling financial parameters, our modelling capabilities and the benefits of our best practice modelling methodology SMART. Corality’s proven track record of project management, while working with Suntrace, renewable project advisors and KfW IPEX bank for various renewable and power projects also weighted in Corality’s favour.
The Desertec equity model will be developed according to Corality’s best practice modelling methodology SMART. The model will offer the flexibility needed to evaluate options of different capital structures with the ability to include different combinations of concessional debt, senior debt, sub-ordinated debt and equity.
“Corality has extensive experience in the renewable energy sector globally. We have built models for solar CSP, solar PV, Wind and less traditional renewable areas such as geothermal and biomass all around the world for developers large and small To extend our capabilities into Africa and support Desertec in their mission is an exciting opportunity to showcase our capabilities in modelling large-scale projects and taking them from equity evaluation to bankable stages using our SMART modelling methodology” confirms Anna Louie, Associate Director
The Desertec vision – supplying Europe, the Middle East and North Africa with sustainable power
Dii is a private industry consortium working towards enabling Desertec’s vision of supplying Europe, the Middle East and North Africa (EUMENA) with sustainable power, by utilising the energy potential of the desert. Dii was founded under German law as a GmbH (limited liability company) in Munich on the 30th October 2009 by 13 signatories from North Africa and Europe.
The Middle Eastern and North African (MENA) deserts offer excellent irradiation conditions for large scale solar and wind power generation. The power generated from sun and wind is intended primarily to meet the local demand of the producer countries but can also be exported to Europe. The overall objective of Dii is to create a market for renewable energy from the deserts .The long-term goal is to satisfy both a substantial part of the energy needs of the MENA countries and to meet approx. 15% of Europe’s electricity demand by 2050.
Dii’s rollout plan aims to indicate the pathway to the fastest possible integration of renewable energies into the market without reliance on subsidies. Dii estimates that market parity for renewable energy from North African and the Middle Eastern deserts could be reached between 2020 and 2025.
Contact Corality on contact@corality.com to find out more about Corality’s work in the renewable energy sector and our best practice modelling methodology SMART.
