The renewable energy revolution is under way

31 October 2016

Governments are finally realising clean energy offers more benefits than just reducing carbon emissions

After years of discussion and stalled plans, the Middle East’s renewable energy revolution is well and truly under way.

The impressive progress that Dubai has made with its solar energy ambitions in the past three years illustrates the potential that renewable energy has for the Middle East and North Africa region. It is no longer simply about reducing carbon emissions; developing renewables can save governments money and shore up energy security.

Since Dubai Electricity & Water Authority (Dewa) commissioned its first 13MW solar plant in 2013, its progress with its renewable energy programme has been spectacular. After awarding contracts for the 200MW photovoltaic (PV) independent power project (IPP) second phase in 2015, double the capacity of the originally planned 100MW, the utility recently selected the preferred bidder for the 800MW third phase, with a world-record low tariff. Not only is the selected tariff a record for solar energy, it is also lower than costs for many conventional gas and oil fired generation facilities.

In addition to the increasing cost benefits of renewable energy, another key attraction is the energy security it can provide for its users. With regional and global political and economic events creating growing volatility in hydrocarbons markets, renewable energy can offer governments the opportunity to produce increasing amounts of power without having to import gas.

While prices of oil and gas have both fallen significantly in recent months, past cycles have shown prices can rise as quickly as they have fallen. Moving ahead with renewable energy schemes can limit exposure to volatile international markets and provide a stable supply of electricity.

The next challenge for the burgeoning renewables market is developing solar energy with storage capabilities to produce electricity during the night. While it will be some time before these technologies are widely used, Dubai and Morocco have already started planning for integrating storage capabilities into their renewable energy programmes.

With developers gearing up for Saudi Arabia’s first major standalone solar projects, the Middle East is finally emerging as a focal point for the some of the world’s most exciting renewable energy initiatives.

 

The region requires solutions for energy diversification, efficiency and funding.

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