Barcelona, 26 October 2010
	Ladies 
and Gentlemen,
	Thank 
you for inviting me to the first annual conference of the Desertec 
Industrial
	 
	Initiative. What 
brings us together today lies at the core of the European Union
	 
	policy in two ways.
	First, 
it is about inventing new energy solutions – we all know how crucial this is 
for
	 
	our future, 
especially for security of supply, competitiveness and low-carbon 
future.
	And, 
second, it is about developing a new industrial partnership together with 
our
	 
	neighbours in 
the Mediterranean.
	 
	This is why the 
European Commission welcomes the objectives of the Desertec
	 
	Initiative and the enthusiasm of all the partner companies coming from 
the EU and
	North 
Africa. Your consortium managed to gather companies from all the 
countries
	 
	concerned in the 
North and in the South: this is a fundamental condition of success
	 
	and I trust that DESERTEC will continue to develop in an inclusive and 
open
	 
	manner.
	Tomorrow’s energy challenges cannot be met with today’s technologies 
and
	 
	conventional 
ways of thinking. Resource efficiency will become one of the main
	 
	drivers of our economies. We will need to efficiently use every natural 
resource and
	 
	to strongly rely 
on renewable energy sources. In this respect, DESERTEC is apioneering 
initiative.
	The 
Commission is preparing a strategy to "decarbonise" the energy sector by 
2050,
	 
	which will 
mention the possibilities to develop large scale renewable energies in 
the
	 
	Mediterranean.
	But, 
renewable energy is not only about the environment. It’s also about security 
of
	 
	supply because 
renewable energy sources limit our exposure to volatile
	 
	hydrocarbons supplies. It is thus as strategic for Europe to develop 
solar power
	 
	production in 
the South as it is to develop large wind farms in the North.
	 
	In addition, action is necessary to achieve competitive prices of 
renewables.
	 
	At the same 
time, the European Union is engaged in a true partnership with the
	 
	Southern-Mediterranean Countries, notably through our Association 
Agreements.
	 
	The
	 
	socio-economic 
development of our partners
	 
	and the interest 
and support to
	 
	them so that 
they develop means to face their own energy challenges in the South 
is
	 
	a shared 
objective. It will require increased amounts of energy over the 
coming
	 
	decades. 
Therefore, an initiative like DESERTEC will succeed if it 
convincingly
	 
	meets two 
conditions:
	- 
First, it benefits our Southern Partners in order to meet their own security 
of
	 
	supply – this 
means that part of the electricity needs to be dedicated to the 
local
	 
	markets at an 
affordable price;
	- 
Second, the right choices in terms of industrial investment, technology 
transfer
	 
	and 
employment.
	What 
is the European Union doing to support projects like 
DESERTEC?
	We 
believe that – beyond the first pilot projects – large scale investments in 
the
	 
	renewable energy 
sector will only be possible if the right framework conditions are
	 
	put in place. Several of our partners in the South have started 
ambitious energy
	 
	sector reforms 
and regional market integration is starting to gain momentum. The
	 
	EU is accompanying these initiatives through its bilateral and regional 
programmes.
	 
	Our 
interventions will continue to focus on setting the right framework conditions 
for
	 
	investments in 
renewable sources.
	It is 
only a few weeks ago that the Commission launched its latest initiative in 
this
	 
	field. The 
technical assistance project "Paving the way to the Mediterranean 
Solar
	 
	Plan”, will 
contribute to establish harmonised legislative and regulatory 
frameworks
	 
	for renewable, 
improve knowledge transfer and enhance capacity building.
	Conditions for a large-scale roll-out of Concentrated Solar Power (CSP) 
as a
	 
	financial viable 
technology must clearly include the available local and regional 
grid
	 
	infrastructure 
and possibilities for crossing the Mediterranean. Here, major 
initiatives
	 
	are underway. 
Our European financing institutions, including the European
	 
	Investment Bank and national institutions have become a major source of 
financing
	 
	of Mediterranean 
energy infrastructure. This is a tendency I anticipate will continue
	 
	and be strengthened, when the EU agrees on a set of energy 
infrastructure priorities
	– part 
of a coherent proposal for an energy policy framework – that I shall 
present
	 
	next 
month.
	In the 
European Energy Infrastructure Package the Commission, will focus on
	 
	strengthening the European grid and the first and fundamental action we 
have to
	 
	take to ensure a 
European and global functioning of the energy market. I think we
	 
	have to look at the broader picture – not only the EU’s internal 
infrastructure. In this
	 
	way we shall 
strengthen energy security, diversification. I am convinced that 
the
	policy 
initiative will have to support renewable energy as a powerful alternative 
to
	 
	carbonised fuel. 
Therefore, we shall already look at the specific financial 
possibilities
	 
	for crossing the 
Mediterranean through super grids to be built mostly after 2020
	.
	 
	When all framework conditions are in place, Concentrated Solar Power in 
the
	 
	Southern 
Mediterranean will, due to the sun radiation intensity, likely be 
produced
	 
	for a kilowatt 
hour price significant below the price of a similar output produced in 
a
	 
	Northern 
European plant. In much of Northern Europe including Germany there is 
a
	 
	price margin, 
which may cater for the transportation expenditure.
	This 
requires feed-in tariffs in place, as a means to bolster the EU medium 
term
	 
	energy 
competitiveness and independence. Today, each member state decide on
	 
	issues such as feed-in tariffs for renewables, but there is an 
overriding European
	 
	perspective and 
I would be interested to listen to your reflexions as regards 
possible
	 
	support schemes 
at European level. I consider a more harmonised system of
	 
	national support schemes in Europe to be a good tool in the long run, if 
it is
	 
	conceived well. 
I see this as an important element for the Desertec project to gain
	 
	momentum. To put it in place, there is still some way to go. I wish to 
open the
	 
	debate on this 
question.
	Desertec
	 will 
undoubtedly benefit from a combination of more bilateral initiatives 
and
	 
	industry efforts 
to decrease the cost difference between Concentrated Solar Power,
	 
	Photovoltaic and Wind Energy. Or, let me slightly reformulate it: 
making
	 
	Concentrated 
Solar Power gradually, to put
	 
	it 
o
	n 
a par with oil prices and wind
	 
	energy. Being an 
important issue, the EU can assist the process through continued
	 
	emphasis on framework conditions; but the transformation itself is one 
that you will
	 
	have to 
spearhead!
	Important possibilities for commercial transactions do exist, whereby 
the Southern
	 
	countries can 
build "joint projects" and "joint support schemes" with EU partners 
and
	 
	which obviously 
strengthens security of supply by opening-up sustainable import of
	 
	renewables from neighbouring countries. It is my belief that the 
Northern European
	 
	countries, which 
support Desertec, should more clearly announce their interest 
in
	importing green energy over the long term, including solar 
energy.
	The 
Commission strategy to "decarbonise" the energy sector by 2050 
mentioned
	 
	earlier will 
provide the overall policy framework for this.
	Ladies 
and Gentlemen,
	 
	Let me conclude 
by repeating that the European Commission shares the objectives
	 
	of the Desertec Initiative as it was presented to the European 
Parliament in 2007.
	 
	We highly 
welcome the support and the enthusiasm of the private companies from
	 
	the EU, Middle East and North Africa in creating dynamism and furthering 
progress
	 
	in implementing 
sustainable energy. We should make use of every natural resource
	 
	that has been given to us - to reach the sustainable energy supply 
objective: solar,
	 
	wind, hydro, 
even wave power in the future.
	 
	The 
Desertec Industrial Initiative is a
	 
	forward-looking 
initiative, and private sector financing is definitely key for
	 
	transformation to a low-carbon future, both in Europe and in 
North-Africa.
	We know 
that not all the elements required for developing large solar plants in 
the
	 
	Southern 
Mediterranean are at hand today. But we also see very promising 
pilot
	 
	projects – 
notably the Ouarzazate project, from which we will all learn – and 
we
	 
	know that the 
list of issues to be addressed is limited. In fact, we have started 
to
	 
	address them and 
the European Union will support the work through its assistance
	 
	and research programmes. I am optimistic that our joint efforts will be 
fruitful. We
	 
	have to start 
concrete efforts now so that Desertec will work in the next 20 
years.
	It is 
important to stress again that the Project has to be developed in 
cooperation
	 
	with countries 
of the region on an equal footing; it can not be imposed from the
	 
	outside.
	Action 
of the regulator and the policymakers at national, European and global 
level
	 
	has to go hand 
in hand with this initiative.
	 
	We have the 
ambitious task that Desertec is accepted and promoted not only from
	 
	the business world but also from the political actors. This is a joint 
project and
	 
	without the 
political will to make it work both in the EU and in Northern Africa, 
the
	 
	project cannot 
fly. I am committed to work towards it together with my partners in
	 
	Northern Africa, the countries which constitute the extension to the 
South of the EU
	 
	next to Spain 
and Turkey. I will be happy to invite them to Brussels to pursue 
this
	 
	dialogue in the 
next six months. To pursue the same overall goals and have a
	 
	coordinated approach is vital to permit that both Europe and Northern 
Africa
	 
	mutually benefit 
from each other.
	I wish 
you a successful conference.