Converting good words into renewables action

Of the 14 main states across the Middle East and North Africa (Mena) region, only Egypt, Morocco and Tunisia have more than 50MW of installed renewable energy (solar and wind) capacity, while in the GCC, the UAE was alone in having any meaningful capacity.

It is clear that renewable energy has not been a priority in the region for some time. While Europe and Eurasia have stormed ahead with their renewable energy programmes, as the graph below and attached shows, the Middle East has not participated. To find the line representing the Middle East, take a look at the x-axis.

In Europe, renewable energy new-build overtook traditional power capacity building a couple of years ago on an installed MW basis. But considering the oil wealth held in some Mena countries, it is not surprising the Mena region has not matched this.

In recent years, governments in the region have attempted to turn this around. Many speeches have been made and if words were action, the Middle East would be leading the world in green power. Many renewable energy projects have been announced. It is too soon to say whether these projects will reach fruition, but there would be many raised eyebrows if all of the planned projects are built.

Of course, introducing a feed-in tariff or similar renewable energy incentive mechanism would almost certainly provide a shot in the arm for the sector. One need only look at the effect it has had in Spain and Italy to see the impacts of an attractive feed-in tariff.

However, governments remain wary of stepping into the unknown. Once a tariff is set, governments have an obligation to pay for power at that level for the agreed duration, which could prove pricey – again, lessons from Spain and Italy should be heeded.

If governments must retain a tight grip on the renewable energy sector and spending, then they will need to press ahead with negotiated agreements through attractive opportunities for international developers for renewable energy to make any kind of impact.