Cairo – Decypha: While the GCC countries have been undertaking several multiple projects over the past few years in renewable energy, these projects have grown ambitious in line with the 2030 economic vision. This vision has made it rather compelling for these countries to significantly diversify their economies and steer away from an oil-based economy to a more diversified,globally competitive, shaped by the government and driven by a pioneering private sector.
Over the years, the GCC countries have increased their economic diversification. A wider diversification would lead to limitation of fluctuation caused by uncertain oil market. Also, it will help create jobs in the private sector, increase productivity and sustainable growth. It will establish a non-oil economy needed to combat the future of low oil prices, according to a report released by the International Monetary Fund (IMF).
As a part of their economic diversification, the GCC countries are set to increase their use of solar resources for power generation and water desalination as they are planning on reducing their per capita carbon footprint by 8% in 2030, the report continued.
By 2030, it is thought that about 210,000 people will be employed in the field of renewable energy. The report continued that it is assumed that solar photovoltaic (PV) and concentrating solar power would account for 85% of the offered jobs in the region.
The forecasted reduction in the carbon footprint will come in line with the countries’ Intended Nationally Determined Contributions (INDC) submission to Paris Climate Conference.
Qatar is planning on getting 20% of its energy in 2030 from renewable sources. Kuwait is intending to increase its renewable energy to 15% by 2030. The UAE will generate 25% of its power from renewable resources and Saudi Arabia will reduce its emissions by about 130 million tons per year by 2030. As for Bahrain, its renewable energy share is set to increase by 5% by 2020, as per the data compiled by the International Renewable Energy Agency.
The GCC countries realized that they may be isolated from talks that are taking place globally on climate changes. Hence, they decided to be actively involved along with the international community in the fight against climate change, Dr Mohamed Abdel Raouf, Sustainability Research Program Manager at the Gulf Research Center, told Earth Journalism Network.
In support of his point, Dr Abdel Raouf said that Saudi Arabia participated in COP22 as a country in the state of transformation with a firm intent to diversify its economy away from oil.
Each of the GCC countries has a set of its own projects in regard to solar power. They are, as well, at different levels of progress and challenges.
UAE
Beginning with the region’s leader, the UAE signed multiple projects in regard to solar energy. The country stated its intention to pour $163 billion of investments to generate half of the country’s power needs from renewable energy, according to climate action programme, a website by UN Environment.
In March 2017, the country signed an agreement with an Asian consortium or the electricity produced by solar power, according to the National. Abu Dhabi is set to build the world’s largest solar plant facility. The Abu Dhabi Water and Electricity Company (Adwec), along with the Abu Dhabi Water and Electricity Authority (Adwea) signed a 25-year agreement with the Japanese firm of Marubeni and the Chinese firm of Jinko Solar for power purchase for 1.17 GW, according to a statement issued by Marubeni.
This solar plant will have the capacity to generate energy for about 200,000 housing units.
Abu Dhabi also has Masdar, a company for alternative energy that finances renewable energy projects.
Dubai is also strongly surfacing in the UAE’s solar energy market with several projects, including Mohamed Bin Rashed Al-Maktoum solar park which is set to produce 3,000 MW by 2030. Also, it has the Hassyan clean power plan that is expected to generate 2,400 MW by 2030.
As for the challenges that may hinder the growth of the solar energy in the UAE, the dust and sand effects that may cover the solar panels, hence lowering their efficiency, according to the National. However, and with a new set of technologies and more investments, it will be ensured that the solar-generated power remain powerful and efficient in the future.
Another challenge in the UAE is that the solar energy sector has to be cost-effective, due to low oil prices that may remain persistent over the next period.
Oman
In collaboration with Middle East Best Select (MEBS), Terra Nex announced its major plans to pour $2 billion in solar power resources in Oman, according to Terrasola. The projects aim to generate about 400 MW.
Oman’s Authority for Electiricty Regulation announced as well, that homes in the Sultunate may soon operate with solar cells. The new renewable energy initiative will be installed in 180,000 home units to test the long-term benefits of solar energy, Times of Oman reported.
Moreover, the Oman investment Fund (OIF) signed a deal with Ningxia Zhongke Jiaye New Energy and Technology Management Co in order to build solar plant that are set to produce 1000 MW.
Prof David Rooney, Director of Sustainable energy research at the School of Chemistry and chemical engineering said during an event on renewable energy that Oman has a tremendous potential to be a leading exporter of energy generated by renewable resources. He went on to say that simple calculations show that Oman would have solar sufficient energy for its needs and for all the UK as well, according to Muscat Daily.
Regarding the challenges, the government in Oman heavily subsidies electricity derived from burning fossil fuel. Hence, there is an impediment in the development and implementation of solar power electricity options
Saudi Arabia
Saudi Arabia has so far developed a $50 billion program to encourage the generation of renewable energy and reduce its consumption of oil, as per the UN environment data.
Sami Khoreibi, Founder and the Chief Executive Officer of Enviromena Power Systems, a solar developer based in Abu Dhabi told the Independent they are expecting Saudi Arabia to be the largest market in the region in terms of renewable energies as its power demand growth in the region is one of the largest in the region.
The oil-rich country commissioned multiple projects, including the King Abdullah Petroleum Studies and Research Center solar park in Riyadh to be the largest solar power plant in the kingdom, it will also be ground-mounted.
Saudi Arabia is not limiting its projects to mere outsourcing to foreign countries, but Saudi investors have already started investing in photovoltaic cell production and started to associate technologies themselves.
The Saudi Royal Commision signed an agreement with Al-Afandi Group, whereby they will build the Middle East’s largest solar panel factory. The target is to produce one GW to compete with countries like China in the manufacturing and exporting of solar panels.
Saudi Arabia is facing a number of challenges, including the lack of qualified scientists, engineers and managers forces it to import the needed work force to support its development, according to Solar Industry.
Qatar
Qatar has already taken steps in the solar technology. In 2010, Qatar Solar Technologies, a Doha-based company was founded by Qatar Foundation. The Qatar Solar Technologies company has become a leader with partners from all across the globe.
Media reports have suggested the construction of a 200 MW solar power project will begin in June and is forecast to operate in 2020. It is expected to provide 500 MW.
Qatar also announced plans to set up a 1,800 MW of solar power by 2018, this is expected to contribute to 16% of total power generation. In the long-term, it is planning to set up 10 GW by 2030.
Qatar has been encouraging the usage of solar technology in the urban environment, according to Oxford business group. It has been undertaking multiple large-scale projects, including rooftop solar installations to enhance their energy infrastructure.
Kuwait
Kuwait began the operation of its first solar power plant on at the Umm Gudair oil field in October 2016, Reuters reported.
The project that is worth $99 million titled Sidrah 500 produces 10 MW of electricity. Half of the electricity generation will be provided to the public electricity network.
Moreover, the Kuwait Institute for scientific research signed an an agreement in 2015 with Spain’s TSK in order to found Kuwait’s first solar thermal energy plant. It is set to produce 50 MW.
Kuwaiti companies were invited to submit Letter of interest to develop a solar power plant that will generate 2,500 GW of energy per year. These letters were announced by the Kuwait National Petroleum Company (KNPC)
Bahrain
The Ministry of Electricity and Water Affairs in Bahrain announced that there is a current review of the developments on preparations before applying the Net Metering policy for distributed solar energy projects and renewable energy. This review is undertaken by the National Energy Efficiency Plan (NEEAP) and the National Renewable Energy Plan (NREAP).
Bahrain inaugurated in January “Solar One”, a factory that manufactures Solar Panels in Bahrain, according to TradeArabia.
Bahrain’s Minister of Oil Shaikh Mohamed told Trade Arabia in an interview that Bahrain is still in an early stage regarding the development of renewable energy. However, it proved its commitment to include renewable energy through a pilot project of 5 MW solar energy, installed at the Bahrain Petroleum company.
Leading countries in the Gulf in Solar Energy
As many industries, the UAE and Saudi Arabia are leading the GCC region in terms of solar development, IRENA report.
The UAE and Saudi Arabia have invested $163 billion and $50 billion respectively for a greener energy by 2050 and 2023.
The world’s two leading oil producers are currently leading the solar power. However, the Middle East, and the GCC specifically have access to one of the world’s most abundant solar resources. All the six nations have either started or committed to investments in solar projects, according to Gulf Research Centre’s report.
Nonetheless, they are facing multiple challenges. The reasons of the lag of GCC countries is that they have insufficient awareness among people and decision makers, and the high investments and money poured into the alternative energy sector. Also, the fear of change from the usual and secure energy resources to uncertain renewable and clean sources. Lack of regulations, incentives, industrial motivation and expertise are also challenges for GCC countries, according to a report released by the Gulf Research Center.
By Toqa Ezzeldin
