The World Bank is kicking off 2011 with indications that it will helpfund a far-reaching expansion of renewable energy connections betweenthe oil-rich eastern Arab states and poorer North African countries.

North Africa is already the planned site of the 400 billion euro Desertec Industrial Initiative, which involves dozens of international companies in an effort to develop clean energy in the region.

Under Desertec, Morocco, Tunisia, Algeria, Egypt, and even Ethiopia are appraising their domestic potential to produceelectricity from solar, wind, geothermal, and other renewable energysources.

In 2050, it is hoped that Desertec will havedeveloped brand new resources to power a North African economicexpansion and simultaneously meet up to 20% of the European Union’selectricity needs.

Until now, the eastern side of theMediterranean had been largely left out of Desertec plans, sincecountries along the Persian Gulf have large endowments of oil andnatural gas. However, surging temperatures in recent years have drivenSaudi Arabia and Egypt to research a $1.5 billion plan to connect their grids. The benefit to each nation would be a buffer in supply whenpeak demand hits, because Egypt and Saudi Arabia experience their peakdemand levels of 3 to 4 GW at different times.

From Morocco in the West to Oman in the East, the Arab world spans five time zones.

If the World Bank decides to fund smart grid development from NorthAfrica to the Indian Ocean, oil-rich states like Saudi Arabia willbecome unlikely allies in the quest for energy options that is driving development and investment around the globe.