The push from governments in the Middle East and North Africa to diversify fuel sources for power production is well underway.

Utilities are seeking to reduce dependence on oil and gas resources through developing renewables, coal and nuclear power, amongst others, to preserve oil for exports and reduce exposure to a tightening gas supply market. While renewable energy projects, particularly solar, are starting to achieve the lowest tariffs in the region for electricity generation, coal and nuclear schemes are being developed due to their ability to provide baseload electricity and secure large generation capacity for 24-hour power production.

As we move towards the end of the first quarter of 2018, a number of major alternative energy projects are moving forward, many of these finally progressing after a slow start. In February, Saudi Arabia awarded the contract for the first project under its ambitious 9.5GW renewable energy programme, and has since stated its intention to tender up to 4GW of additional solar and wind projects before the end of the year. Moreover, the kingdom is also currently reviewing expressions of interest from international nuclear energy providers before it pushes ahead with the largest planned atomic energy programme in the region.

In late February, Egypt received proposals for a planned 6.6GW coal facility in the Al-Hamrien area, just two months after it signed the final agreements for its maiden nuclear energy scheme. The North African state is also pushing ahead with one of the largest renewable energy programmes, with a number of solar projects under its feed-in-tariff (FIT) scheme already under construction.

In January, Dubai awarded a build-operate and transfer (BOT) contract for its first waste-to-energy project, while also inviting consultancy proposals for the second phase of its Hassyan clean-coal development. Selected developers are working on the final agreements for the emirate’s first concentrated solar power (CSP) project, which will further boost the emirate’s renewables capacity whilst providing energy storage to provide night-time dispatch of power.

Oman is also beginning its journey towards implementing solar energy on a large scale, with 28 groups submitting prequalification entries for a planned 500MW photovoltaic (PV) scheme in late February.

While many of these projects had been in the planning stage for some time, the launch of tenders and award of contracts will ensure that the region becomes a focal point for international providers and financiers of alternative energy schemes in 2018 and beyond.