A "gold-rush-like" buzz has spread across Germany in the last week over tentative plans to invest the staggering sum of 400 billion euros to harvest solar power in the Sahara for energy users across Europe and northern Africa. Even though European and Mediterranean Union leaders have been exploring and studying for several years the idea of using concentrated solar power (CSP), the Desertec proposition suddenly captivated the public's attention a week ago when German reinsurer Munich Re announced it had invited blue chip German companies such as Deutsche Bank, Siemens and several major utilities to a July 13 meeting on the project. The 20 companies aim to sign a memorandum of understanding to found the Desertec Industrial Initiative that could be supplying 15 percent of Europe's electricity in the decades ahead.

Germany's deputy foreign minister, Guenter Gloser, has been the government's point man for the project. I had the chance to talk to him about it.

Question: How did this project to turn the sun in the Sahara into electricity for Europe and north African countries get started?
Guenter Gloser: About 15 months ago Germany and France proposed including the solar plan into the list of projects for the Union for the Mediterranean. There were institutions that had already done research and we thought: 'Why don't we use this sun belt where there is such an abundance of sunshine as a source of renewable energy?' Together Germany, France and Egypt put forth this solar plan as one of the six projects for the Euro-Mediterranean Partnership and underscored the fact that it could benefit both sides. It was not an idea where just countries north of the Mediterranean will benefit but rather those countries south of it as well as across the EU would also benefit.

Question: What is the current status of the project?
Gloser: We agreed to move forward with the project and want to go forward step-by-step towards its implementation. But obviously neither the EU nor the Arab League will be the principal players but rather private investors. Our task for this project is to create the political framework -- for example with setting up of the feed-in tariffs, ensuring the infrastructure is built and ensuring that the renewable energy can be transported to Europe. The political framework can also make it possible to expedite the approvals process. But what is also very important is that the energy produced is also available for countries in the region. For example, Morocco can take advantage of its solar and wind conditions on the Atlantic coast to build solar power plants or wind energy parks to provide energy for its domestic market and to sell energy abroad as well. Even countries such as Algeria, which has fossil fuel reserves, could also use the sun belt for solar thermal power for some of their energy needs -- and prolong their fossil fuel reserves.

Question: Is there not risk involved in such large-scale investment in a region with a potential for political instability?
Gloser: It's a cooperation that will contribute towards diversifying energy sources, geographically and in terms of energy sources. It's a truly fascinating project because it's a win-win for everyone. And the third winner will be the people and institutions that finance this project. Neither the EU nor the countries in the south are capable of financing this on their own. So the question is: can third-parties bringing financing be involved. Energy security is an important issue everywhere. There are energy sources we have today that at times have been somewhat at risk. There's no contradiction in saying that it's important to diversify a country's energy source as well as diversifying the types of energy it receives. It's not that there is no risk whatsoever but it's important to keep in mind that there are also some risk factors for other sources of energy that we are now importing.

Question: What impact do you think a project like this could have in the Mediterranean Union?
Gloser: I think the partnership approach that we have taken could well have a positive influence of stability for the countries taking part as well as the neighbouring nations. The EU has been enlarged and come closer together in the past decades but there hasn't been as much of that among Arab countries. Perhaps it would be possible through certain projects, such as this solar energy project or water projects or transportation routes, to increase the cooperation among those countries.

Question: There have been fears expressed that Europe would be exploiting natural resources in Africa, raising fears of a new sort of 'colonisation'. What would you say to those fears?
Gloser: It is not in any way an issue of the north dominating the south. It is not only the north that is interested in acquiring renewable energy but rather other users are interested. And if that mutual need for energy leads to a project that satisfies all sides then that is in my view a good route to take. I don't think there's any justification for the notion of this being an 'energy colonisation' or anything like that at all. It's a mutually beneficial project."

Question: How high is the interest in other countries? Some cynics would say Germany's expertise in renewable energies gives it a big advantage.
Gloser: So far the countries in the south and north have been in agreement about the project. Now the task is to identify the next steps. There are countries in both the south and north that are more interested in the project than others -- because, for example, they already have had positive experiences with renewable energy. That is not only Germany but also Spain and other countries. And on the other side of the Mediterranean there are countries that will have more interest at first than others.

Question: Some might see this project somewhat cynically as a vehicle to help German companies that already have such a considerable head start in know-how with renewable energy. What would you say to them?
Gloser: Obviously there are some important players (in Germany). But they are not only in Germany. Certainly we have built up a renewable energy sector in Germany, thanks to the right political framework a decade ago, that has created an enormous number of jobs. But Spain has also had an enormous development in recent years and in Denmark the wind energy sector has reached a large dimension with considerable know-how. But beyond those countries there are many other countries with companies and suppliers for the industry.

Question: Are there problems on the horizon being overlooked?
Gloser: In my eyes the biggest problem right now is that the expectations have possibly been raised too high. I'm someone who's thought: that's a great idea and why don't we take advantage of all these things at hand: know-how, sun belt, political cooperation, development, stability, security, partnership. There are so many positive aspects that come together. Now it's time to come up with some realistic timetables and see how we can move forward step-by-step to make this project a reality.

PHOTO: Mirrors are seen channelling sunlight onto a tube filled with oil during the dedication of Acciona's Nevada Solar One power plant in Boulder City, southeast of Las Vegas February 22, 2008. The 400-acre, 64-megawatt, concentrating solar power (CSP) plant is the third largest in the world, according to Acciona. The plant produces energy to power about 14,000 homes. REUTERS/Las Vegas Sun/Steve Marcus

There were the predictable platitudes from Sepp Blatter in South Africa this week, expressing satisfaction with the pace of construction of the country’s top stadia ahead of its hosting if the 2010 World Cup finals.

But there was little Swiss diplomacy on display from the FIFA president when dealing with the issue of the country’s national team, Bafana Bafana, whose rapid decline over the last years is now a major source of concern.

For FIFA, the World Cup has become a massive revenue-generating property. Over 80 percent of their considerable income is from sponsors of the tournament. The event has become the world’ biggest party or, as Blatter insisted on his four-day trip to Johannesburg and Cape Town, “the only event that transcends people and politics”. 

Luckily, recent World Cup hosts have produced competitive teams, even when the event went to Asia for the first time in 2002. Then South Korea got to the semifinals and, in the process, created one of the largest street parties ever seen.

Germany in 2006 turned into a massive fiesta because of the momentum that came with the march of their team to the semifinals, a euphoria whipped up steadily over a month that culminated with some incredible scenes in Berlin. Germany’s position in the heart of Europe also allowed easy access for fans of England, France and Italy, who also contributed considerably to the party atmosphere.

To keep drawing in the sponsors, FIFA needs to recreate much of the atmosphere every four years but a lot is dependent on the local conditions.
With South Africa they haven taken a major risk. While Blatter’s dreams of a philanthropic legacy (and possible Nobel Peace Prize) are given great credence by his entrusting a first ever World Cup to Africa, this will be a much different tournament for two, possibly three, reasons: The weather, the distance and, maybe, the home team.

First, it will be a winter World Cup in South Africa, the first since Argentina 1978, with less opportunity for gay inner city abandon that marked the glorious summer days of Germany in 2006. While those in the northern hemisphere would regard a South African winter as mild, it is nevertheless not tepid enough to be conducive for mass outdoor celebrations.

Germany’s proximity to many of the qualified countries also meant an estimated total of almost 2-million visitors came across its borders to be part of the footballing fiesta, the vast majority without tickets but still able to party in city squares and at fan parks and be part of the ‘World Cup experience’.
As a long haul destination, South Africa estimates it will receive just 300 000 visitors. The cost of travel to the country is expensive (although once inside remarkably cheap by international standards). 

And, as Blatter noted, there are not enough hotel beds. FIFA says it needs some 50,000; local tallies are put at more than 35,000, a significant shortfall.
Plus as people tighten their purse strings in a time of economic turmoil, a more well heeled audience is expected rather than the raucous fans that are responsible for much of the World Cup merriment.

But both the weather and lack of visitors can be overcome if World Cup fever sweeps up the local population. For that you need a competitive home team.
But, as Blatter pointed out, South Africa’s side has been “disappointing”. Embarrassing, indeed, with their failure to get past the first phase of qualification for the 2010 African Nations Cup finals.
Blatter talked about the poor state of the side on all the days he was in the country, highlighting FIFA’s nervousness that their World Cup is in imminent danger of turning into the biggest flop since Guy Ritchie’s last film.
  “It is high noon for Bafana Bafana,” he dramatically claimed at one of his press conferences. “You have to move and move now,” he told local officials at another function.
Bafana Bafana have never been under this kind of pressure before and while they have well paid Brazilian coaches and a growing list of foreign-based players to pick from, they seem to be unable to show any signs of life.
Perhaps it is a temporary setback in much the same way Jurgen Klinsmann was vilified in Germany as pre-World Cup results for his side rarely satisfied the pundits.
But whatever the case, it was all too evident from Blatter this week that FIFA is deeply concerned. Unlike bricks and mortar, hotel beds or buses, it is not a problem with a ready solution.