Arab Nations Want a Piece of the Green Energy Pie, Too

Europe, North America and Asia have been the primary drivers of the green tech industry thus far, especially in the realm of wind and solar power. Meanwhile, Arab countries have maintained their dominance over oil and gas exports, controlling 45 percent of oil and roughly one quarter of all gas reserves globally. But now, either to claim their stake in a burgeoning industry or to prepare for life after oil and gas, several Arab states are making aggressive moves to develop their own domestic renewable energy industry.

And why not? Most Arab nations are extremely rich in resources. All hydrocarbons aside, leading energy exporting nations like Saudi Arabia, Iraq, Kuwait, Egypt and other Mediterranean states enjoy a wealth of wind and sunshine, a wealth that many of these nations appear ready to exploit.

A wonderfully detailed article published recently by Emirates Business 24/7 outlines renewable energy developments in the Arab world. Among them are a variety of incentive and investment plans, many of which are unprecedented even at the global level. Here are some highlights:

• United Arab Emirates (UAE). Abu Dhabi, largest of the seven member states in the UAE, has unfolded one of the most aggressive clean energy programs in the world. More than $30 billion will be invested to build Masdar City, a 100% renewable-powered (primarily solar), sustainable, zero-waste city just southeast of the main city of Abu Dhabi. Masdar City will be planned and built by state-owned Abu Dhabi Future Energy Company, whose first 10-megawatt solar PV plant went online last spring and is just the first of many solar projects in development.
• Saudi Arabia. The world’s leading oil exporter is looking to diversify its energy portfolio with some preliminary investments in solar power. Saudi Aramco, the largest oil company in the world (and state-owned), partnered with a Japanese firm last year to build a pilot 10-MW solar power plant set to turn on next year. A 20-MW plant is set for construction at King Abdullah University of Science and Technology.
• Egypt is planning to develop enough renewable power to provide 20 percent of its total power generation by 2020.
• Morocco announced a $9 billion program to install 2 gigawatts of renewable power by 2020, equaling 14 percent of the North African country’s energy capacity.
• Tunisia will soon put into action the Tunisian Solar Plan, which will see 40 solar projects built by 2016 through public and private investments. The plan calls for more than $2 billion in funding for the projects, which, once finished, will account for 22 percent of Tunisia’s total energy consumption.
• The Mediterranean Solar Plan (MSP) was launched in 2008 by member states in the Union for the Mediterranean. The plan aggressively incentivizes solar power projects with the goal of installing a whopping 20 GW of solar power by 2020, some of which will be consumed domestically and the rest exported to Europe by way of undersea cables. Member states estimated a total capital investment between 38 and 36 billion euros.
• The World Bank is also getting in on the action among Middle East and North Africa (MENA) states. The Bank recently announced plans to back $5.5 billion worth of solar projects in Tunisia, Algeria, Egypt, Morocco and Jordan. 11 projects are subject to funding under the plan, which would add approximately 1 gigawatt of solar power to global renewable energy capacity.

These projects and plans come with hefty goals. That additional 1 gigawatt of concentrated solar power (CSP) expected under the World Bank plan would triple global CSP capacity. If successful, these plans by Arab nations to “go solar” will send these sunny nations skyrocketing into leadership in solar power generation, not to mention the incredible wind power potential for many of these coastal and desert nations.

For more information about the renewable energy plans of these and other Arab nations, read the full article by Emirates Business 24/7.

Photo Credit: Bare Naked Islam

Posted on February 15th in Solar Politics by Dan.