Arab Petroleum Investments Corporation (APICORP) established its headquarters in 1975 in Al-Khobar/Dammam, in the Eastern Province of Saudi Arabia following an agreement signed by the ten Member States of the Organization of Arab Petroleum Exporting Countries (OAPEC) in September 1974.
It recently released a report that anticipates Saudi Arabia very likely not to meet its scheduled renewable energy targets, and that the UAE’s, Jordan’s, and Morocco’s efforts to migrate from traditional energy sources to renewable options very commendable. It acknowledges that in these countries, it is the presence of strong legal frameworks do support this transition.
Also it recognised that it is large oil or gas reserves and cheap extraction costs that are making hydrocarbons to continue to meet rising demand in countries like Saudi Arabia where “Policy uncertainty and the lack of an efficient regulatory framework” are mainly responsible for slow progress. The report cites the example of the King Abdullah City for Atomic and Renewable Energy (KA CARE) that contrary to their 2012 announcement of investing $109bn to produce 41GW of solar power by 2032, have made little progress so far.
The report elaborating, adds : “Given the large amount of investment required to reach this ambitious target, it is highly unlikely that the government will meet its renewable targets for now.” And that all countries of the GCC projects of renewable energy are generally being delayed.
The report acknowledged Qatar, Oman, Bahrain’s respective plans but dealt specifically with Kuwait’s declaration to employ 15% renewable energy by the year 2020, with however some late start on its 50MW Al Shagaya CSP Plant project.
Renewables in the Arab world: a new phase by APICORP Energy Research Bureau
10-02-2016, 10:00 AM – See more at: OIL & GAS REVIEW
APICORP Energy Research reveals that renewable energy is seeing mixed fortunes in the Arab world. It states that energy-importing countries and the UAE will continue to accelerate the development of their renewable-energy sectors. They will continue to rely on supporting policies to press ahead, while energy-exporting countries lag behind. The region has received some of the lowest renewable-energy prices awarded globally for both photovoltaic (PV) and wind power; and with some of the best resources in the world, renewables have great potential in the Arab world. APICORP this needs governments to rise to the challenge and improve the regulatory environment to attract investment in one of the fastest-growing energy markets.
Over the past decade, several Arab countries have announced ambitious renewable-energy targets. With power demand across the region expected to grow at 9.9 per cent a year until 2020, governments are keen to increase the share of renewables in the power mix. A shortage of gas and, in some countries, increasing reliance on liquid fuels, a key product for export, have also added to the urgency of energy diversification while environmental concerns increase.
But progress has been mixed, as net energy importers and net energy exporters face different realities. To support their renewable sectors, countries such as Jordan and Egypt introduced feed-in tariffs (FiTs), tax exemptions, and power-purchase agreements (PPAs). On the other hand, energy-exporting countries have done little to incorporate renewables, as they continue to rely on cheap-to-extract conventional sources to meet rising electricity demand. Falling technology prices have given some countries an opportunity to move towards increasingly cost-competitive renewable energy, while government support, like in other parts of the world, will be instrumental in driving the growth of renewables in the region.
Read more of the article on the original website at http://www.ogronline.com/Article/newsmid/135/newsid/559/feature/Renewables_in_the_Arab_world_a_new_phase_by_APICORP_Energy_Research