Following on the ever-increasing ease of accessibility of all renewables-hardware, the costs of technologies reshaping energy-related investment per The International Energy Agency’s World Energy Investment 2019 report have mainly affected and/or facilitated the surging demand for even more power. In effect, it is in the developing world, including, the MENA region where the market seems to be the highest, that this is happening before our very eyes. Hence this article of the World Economic Forum.
The world invested $1.8 trillion in energy last year, with spending on renewables stalling, while oil, gas and coal projects increased.
The International Energy Agency’s World Energy Investment 2019 report shows overall global investment in energy stabilised in 2018 after a recent decline, with the power sector continuing to make up the biggest proportion of this spending. Much of that investment has been fueled by the world’s rapidly increasing demand for electricity.
Investment in coal increased for the first time since 2012, despite reduced Chinese spending to focus on power generation.
When it comes to cleaner fuels, there was little movement in the overall investment in renewables and no net addition to capacity, driven in part by the falling costs of some technologies. But production of biofuels, which has fallen behind the IEA’s sustainable development targets, saw a rise in investment last year.
The agency’s report also showed minimal increases in energy efficiency investments, with spending on transport efficiency remaining constant even though sales of electric vehicles are motoring upwards.
Indeed, the IEA warns there is a “growing mismatch between current trends and the paths to meeting” the world’s climate goals laid out in the 2016 Paris Agreement and “other sustainable development goals.”
The changing landscape
The costs of technologies are reshaping energy-related investment, as the chart below demonstrates.
Some of the most marked changes have been seen in the power sector, where there have been dramatic falls in the costs of solar, onshore wind and battery storage.
Prices for some efficient goods such as light-emitting diodes (LED) and electric vehicles have continued to fall, too. But investment in efficiency innovations is still being held back by governmental policy and financing challenges.
On the other hand, there has been little change in the costs of nuclear power projects and carbon capture and storage – a technology that aims to trap greenhouse gases before they enter the atmosphere.
Who invests the most?
China remained the biggest market for energy investment last year, even as the US is rapidly catching up, the IEA report said.
Increases in oil and gas — particularly in the shale sector — have driven the bulk US investment. By contrast, China is putting much of its money into low-carbon projects, with big investments in nuclear power and renewables.
India is the most rapidly growing market for investment. Elsewhere, investment in energy generally has fallen in recent years in Europe, the Middle East, Southeast Asia and sub-Saharan Africa, according to the agency.
CAIRO (Reuters) – Egypt expects the 1.6-gigawatt solar park it is building in the south of the country to be operating at full capacity in 2019, the investment ministry said in a statement on Sunday.
The $2 billion project, set to be the world’s largest solar installation, has been partly funded by the World Bank, which invested $653 million through the International Finance Corporation.
Some parts of the park are already operating on a small scale, while other areas are still undergoing testing.
Egypt aims to meet 20 per cent of its energy needs from renewable sources by 2022 and up to 40 per cent by 2035. Renewable energy currently covers only about 3 per cent of the country’s needs.
“Egypt’s energy sector reforms have opened a wider door for private sector investments,” World Bank President David Malpass said during his visit to the site alongside Egypt’s Investment Minister Sahar Nasr.
Egypt is on a drive to lure back investors who fled following the 2011 uprising with a slew of economic reforms and incentives the government hopes will draw fresh capital and kickstart growth.
Most of the foreign direct investment Egypt attracts goes toward its energy sector.
Reporting by Ehab Farouk; Writing by Nadine Awadalla; Editing by Yousef Saba and Jan Harvey.
Whenever I visit the Sahara I am struck by how sunny and hot it is and how clear the sky can be. Aside from a few oases there is little vegetation, and most of the world’s largest desert is covered with rocks, sand and sand dunes. The Saharan sun is powerful enough to provide Earth with significant solar energy.
The statistics are mind-boggling. If the desert were a country, it would be fifth biggest in the world – it’s larger than Brazil and slightly smaller than China and the US. Each square metre receives, on average, between 2,000 and 3,000 kilowatt hours of solar energy per year, according to NASA estimates. Given the Sahara covers about 9m km², that means the total energy available – that is, if every inch of the desert soaked up every drop of the sun’s energy – is more than 22 billion gigawatt hours (GWh) a year.
This is again a big number that requires some context: it means that a hypothetical solar farm that covered the entire desert would produce 2,000 times more energy than even the largest power stations in the world, which generate barely 100,000 GWh a year. In fact, its output would be equivalent to more than 36 billion barrels of oil per day – that’s around five barrels per person per day. In this scenario, the Sahara could potentially produce more than seven times the electricity requirements of Europe, with almost no carbon emissions.
What’s more, the Sahara also has the advantage of being very close to Europe. The shortest distance between North Africa and Europe is just 15km at the Strait of Gibraltar. But even much further distances, across the main width of the Mediterranean, are perfectly practical – after all, the world’s longest underwater power cable runs for nearly 600km between Norway and the Netherlands.
Over the past decade or so, scientists (including me and my colleagues) have looked at how desert solar could meet increasing local energy demand and eventually power Europe too – and how this might work in practice. And these academic insights have been translated in serious plans. The highest profile attempt was Desertec, a project announced in 2009 that quickly acquired lots of funding from various banks and energy firms before largely collapsing when most investors pulled out five years later, citing high costs. Such projects are held back by a variety of political, commercial and social factors, including a lack of rapid development in the region.
More recent proposals include the TuNur project in Tunisia, which aims to power more than 2m European homes, or the Noor Complex Solar Power Plant in Morocco which also aims to export energy to Europe.
There are two practical technologies at the moment to generate solar electricity within this context: concentrated solar power (CSP) and regular photovoltaic solar panels. Each has its pros and cons.
Concentrated solar power uses lenses or mirrors to focus the sun’s energy in one spot, which becomes incredibly hot. This heat then generates electricity through conventional steam turbines. Some systems use molten salt to store energy, allowing electricity to also be produced at night.
CSP seems to be more suitable to the Sahara due to the direct sun, lack of clouds and high temperatures which makes it more efficient. However the lenses and mirrors could be covered by sand storms, while the turbine and steam heating systems remain complex technologies. But the most important drawback of the technology is its use of scarce water resources.
Photovoltaic solar panels instead convert the sun’s energy to electricity directly using semiconductors. It is the most common type of solar power as it can be either connected to the grid or distributed for small-scale use on individual buildings. Also, it provides reasonable output in cloudy weather.
But one of the drawbacks is that when the panels get too hot their efficiency drops. This isn’t ideal in a part of the world where summer temperatures can easily exceed 45℃ in the shade, and given that demand for energy for air conditioning is strongest during the hottest parts of the day. Another problem is that sand storms could cover the panels, further reducing their efficiency.
Just a small portion of the Sahara could produce as much energy as the entire continent of Africa does at present. As solar technology improves, things will only get cheaper and more efficient. The Sahara may be inhospitable for most plants and animals, but it could bring sustainable energy to life across North Africa – and beyond.
Renewable energy could become the dominant source of energy across the world, provide up to 86% of global power demand under a scenario in which deeper electrification means that electricity’s share of final energy consumption jumps from its current levels of 20% to 50% by 2050.
A new report published by the International Renewable Energy Agency (IRENA), this week at the Berlin Energy Transition Dialogue and entitled Global Energy Transformation: A Roadmap to 2050, charts a pathway to accelerating the transformation of the global energy mix to meet climate objectives, create jobs and foster economic growth.
IRENA says stepping away from reliance on fossil fuels like coal, oil, and gas is key to this transformation, and electrification delivers the best pathway. This includes the move to more electric vehicles and to using electricity for heating and cooling, which can be supplied by wind and solar.
IRENA says that under this scenario, energy-related CO2 emissions would decline 70% below today’s levels – of which, 75% can be achieved through renewable energy and electrification technologies.
Renewable energy sources would provide the bulk of global power demand, under such a scenario, with as much as 86% of demand, driven by as many as 1 billion electric vehicles and electrified heating & cooling, as well as the emergence of renewable hydrogen.
Under such a plan, then, renewable energy could supply two-thirds of final energy consumption.
“The race to secure a climate safe future has entered a decisive phase,” said newly-installed IRENA Director-General Francesco La Camera. “Renewable energy is the most effective and readily-available solution for reversing the trend of rising CO2 emissions. A combination of renewable energy with a deeper electrification can achieve 75 per cent of the energy-related emissions reduction needed.”
The pathway laid out by IRENA would also have significant economic benefits, saving the global economy between $65 trillion and $160 trillion – or, put another way, between $3 and $7 per each $1 spent on the energy transition – helping the economy to grow by 2.5% in 2050.
“The shift towards renewables makes economic sense,” La Camera continued. “By mid-century, the global economy would be larger, and jobs created in the energy sector would boost global employment by 0.2 per cent.
“Policies to promote a just, fair and inclusive transition could maximise the benefits for different countries, regions and communities. This would also accelerate the achievement of affordable and universal energy access. The global energy transformation goes beyond a transformation of the energy sector. It is a transformation of our economies and societies.”
Unfortunately, at the same time as it lays out a pathway forward, the IRENA report also warns that current action is lagging well behind what is necessary.
The authors write that, “Despite clear evidence of human-caused climate change, support for the Paris Agreement on climate change, and the prevalence of clean, economical and sustainable energy options, energy-related carbon dioxide (CO2) emissions have increased 1.3% annually, on average, over the last five years.”
Their conclusion? “The gap between observed emissions and the reductions that are needed to meet internationally agreed climate objectives is widening.”
“The energy transformation is gaining momentum, but it must accelerate even faster,” concluded La Camera. “The UN’s 2030 Sustainable Development Agenda and the review of national climate pledges under the Paris Agreement are milestones for raising the level of ambition.
“Urgent action on the ground at all levels is vital, in particular unlocking the investments needed to further strengthen the momentum of this energy transformation. Speed and forward-looking leadership will be critical – the world in 2050 depends on the energy decisions we take today.”
The authors of the report urge national policymakers to focus on zero-carbon long-term strategies as well as boosting and harnessing systemic innovation such as fostering smarter energy systems through digitalisation and coupling end-use sectors – particularly the transport and heating & cooling sectors – with greater electrification.
The report also found that, while additional investments needed is $15 trillion by 2050, this is nevertheless 40% down compared to IRENA’s previous analysis “due in large part to rapidly falling renewable energy costs as well as opportunities to electrify transport and other end uses.”
The UAE will invest Dh600 billion ($163 billion) until 2050 to meet the growing energy demand and ensure the sustainable growth of the economy, said the Dubai Electricity and Water Authority (Dewa) in a new report.
The UAE has taken early steps to bid farewell to the last barrel of oil, and achieve a balance between development and maintaining a clean, healthy, and safe environment. The UAE Energy Strategy 2050 aims to achieve an energy mix that combines renewable and clean energy sources to balance economic requirements and environmental goals.
The Dubai Clean Energy Strategy 2050
Dubai has become an international pioneer in developing the clean and renewable energy sector. It has developed a number of techniques and practices to enhance the efficiency of the energy sector while rationalising consumption and finding alternative solutions to conventional energy. This supports the sustainable development of the Emirate.
The Dubai Clean Energy Strategy 2050, which was launched by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, aims to provide seven per cent of Dubai’s total power output from clean energy by 2020. This target will increase to 25 per cent by 2030 and 75 per cent by 2050. Dubai is the only city in the region to have launched such a promising strategy, with set goals and timelines that map the future of energy until 2050. The strategy consists of five main pillars: infrastructure, legislation, funding, building capacities and skills, and having an environment-friendly energy mix. The infrastructure pillar includes initiatives such as the Mohammad bin Rashid Al Maktoum Solar Park, which is the largest single-site solar energy project in the world, with a planned total production capacity of 5,000 megawatts (MW) by 2030, and a total investment of Dh50 billion.
Dubai to be the city with the lowest carbon footprint in the world by 2050
“We are working to achieve the ambitious vision of our wise leadership within the framework of federal and local strategies, including the UAE Vision 2021, the UAE Centennial 2071, and Dubai Plan 2021. Our strategies and business plans are inspired by the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Rule of Dubai, for the Emirate to be the city with the lowest carbon footprint in the world by 2050,”said Saeed Mohammed Al Tayer MD & CEO of Dewa.
The Mohammed bin Rashid Al Maktoum Solar Park is one of the key projects to achieve this vision. Since its launch, the solar park’s projects see considerable interest from international developers, reflecting the confidence of international investors in the projects that are supported by Dubai Government,” he added. “We are proud that the solar park, which bears the name of an exceptional personality who is leading the sustainable development of Dubai, was recognised as one of the UAE Pioneers, an achievement that the late Sheikh Zayed bin Zayed Al Nahyan would have been proud of. “Naming the solar park as one of the UAE pioneers drives us to continue our efforts to achieve the vision and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, which guides us in all our projects and initiatives and achieve the objectives of the Dubai Clean Energy Strategy 2050, which aims to produce 75 per cent of Dubai’s total power output from clean energy by 2050,” Al Tayer concluded.
The renewable energy sector is in nascent stages in Kuwait, however
there has been heightened activity in recent years mainly on account of the
need for diversification of energy resources, climate change concerns
and greater public awareness. The oil-rich State of Kuwait has embarked on a
highly ambitious journey to meet 15 per cent of its energy requirements
(approximately 2000 MW) from renewable resources by 2030.
One of the most promising developments is the kick-starting of the
initial phase of 2GW Shagaya Renewable Energy Park in December last year. As
per conservative estimates, more than $8 billion investment will have to be
made to achieve renewable energy targets in Kuwait.
KUWAIT CITY, Feb. 20 (Xinhua) — The Kuwait Institute for Scientific
Research (KISR) on Wednesday announced the full operation of the first phase of
the Shagaya Renewable Energy Park in the northwestern governorate of Jahra.
The announcement was made by Samira Omar, director general of KISR, at
the opening ceremony of the energy park which “has a capacity of 70
megawatts and is connected to the national electricity grid.”
The complex is composed of a solar thermal power station, a wind power
station and a photovoltaic station, Omar said.
It is designed as a world-class facility with a mix of renewable energy
technologies to maximize the efficiency of electricity production per square
meter in the Kuwaiti desert, she added.
According to the Kuwaiti official, the complex can help reduce the
carbon dioxide emissions by 5 million tons per year.
Meanwhile, Khaled al-Fadhel, Kuwaiti oil minister, described the Shagaya
project as a “pioneer” in the country’s ambition to provide 15
percent of its power needs from renewable sources by 2030.