It is anticipated that the capacity of renewable energy in the Middle East and North Africa (MENA) will nearly double from 1.7 GW today to 3.3 GW by 2015. Morocco will be one of the large movers, and expected to expand its capacity from about 600 MW to 1.7 GW by 2015.
Taking into account capital available for the high risk phase of early-stage development is often limited in the emerging markets of MENA an initiative called the Renewable Energy Development and Investment Vehicle for MENA (Redimena) has been proposed. Redimena, if established, would co-invest some US$1 to US$5 million of risk capital per project to help these reach the construction phase. 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. The support of these local entrepreneurs as first movers will pave the way for further projects through demonstrating best-practice of project concepts and contractual arrangements. The aim is to identify investors to set up Redimena with some US$40 million.
Most governments in the MENA region have agreed on solid power expansion targets, which amount to a total of 50 GW by 2020.