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Unsteady progress of a potential MENA solar superpower

Unsteady progress of a potential MENA solar superpower

PV MAGAZINE dated August 17, 2019, proposed for The weekend read, this Unsteady progress of a potential MENA solar superpower article by Author
LeAnne Graves
is from pv magazine, July edition.

With a combination of scale, a growing population, outstanding irradiation, and available capital, solar PV should be a ‘no brainer’ for the Kingdom of Saudi Arabia. But early explorations of the technology have soured expectations, and progress has come in fits and starts.

Saudi Arabia’s Crown Prince and de facto ruler of the kingdom, Mohammed bin Salman. The ‘Vision 2030’ agenda launched in 2016 includes plans to have 9.5 GW of solar and wind power feeding electricity into the national grid by 2023.
Image: U.S. State Department

Saudi Arabia’s renewable energy sector over the years can be best described as a roller coaster. Just when momentum seemed to be building, the ride came to a halt. Then it began to move, but never really gave potential investors the confidence needed for serious acceleration. Progress started to take shape in 2016 and has continued, showing that this time is different.

Yet, to understand how the country got to where it is today, it’s important to know where Saudi Arabia has been, and that stems all the way back to 1977.

Memory lane

Much like the creation of the national oil company Saudi Aramco — formed between the United States and Saudi Arabia — solar power has been explored as part of a bilateral partnership between the two countries. Saudi Arabia’s National Center for Science and Technology (now known as the King Abdulaziz City for Science and Technology or KACST) and the United States Department of Energy (DOE) struck a deal four decades ago for the Saudi Solar Village Project. The five-year agreement included $50 million from both countries and was extended for three more years. What resulted was a 350 kW solar PV system located 50 kilometers from Riyadh, as well as an additional 350 kW solar hydrogen demonstration plant.

The system operated well for its time, but the technology was nowhere near where it is today, which resulted in panel degradation of 20%. Operating temperatures were much higher than originally specified, and the heat sink insufficient for cooling.

From there continued a list of projects, including solar-powered water desalination, solar hydrogen utilization, solar water heating, and other PV research projects.

In 1990, the Persian Gulf War erupted and once again, Saudi Arabia saw solar power come via the United States. Solar panels were used to power GPS satellites, but just like the problem seen in the solar village, modules again quickly deteriorated in the harsh desert conditions.

There is little doubt that these observations helped shape the kingdom’s solar PV sector — and industry in general — but it would still take many years before substantial movement could be seen.

Broken promises

In April 2010, the King Abdullah City for Atomic and Renewable Energy (K.A.CARE) was established to be the “driving force for making atomic and renewable energy an integral part of a national sustainable energy mix.”

K.A.CARE’s target was to have 41 GW of renewable energy by 2032, with 16 GW of solar PV. In 2011, a contract was signed to establish a polysilicon plant in Jubail, which would begin the production of solar cell materials. Polysilicon Technology, alongside Hyundai Engineering and KCC Engineering and Construction, announced that it would build a $380 million plant to produce 3,350 metric tons of solar-grade polysilicon, with future expansion plans. This was one of many announcements that failed to materialize, as developer Polysilicon Technology later went bankrupt, according to local sources.

K.A.CARE went a step further in February 2013, when it published a white paper that announced a new renewable energy target of 54 GW by 2032 (41 GW was to be solar). And in the first five years, it planned for 5.1 GW to be installed, with 23.9 GW by 2020. The white paper has since been removed from the organization’s website, and K.A.CARE’s renewable energy ambitions disappeared along with it, as it began to focus more on nuclear power.

The new crown prince

Volatility in oil prices began in 2014, and it forced the country to broadly rethink its economic policies.

As Saudi Arabia grappled with the new normal of low oil prices, then deputy crown prince, Mohammed bin Salman, released a new economic vision for the country. The National Transformation Plan, part of the wider Vision 2030 agenda, was launched in 2016. It included a target to have 9.5 GW of solar and wind power feeding electricity into the national grid by 2023. It was understandable that the plan was met with leeriness, considering previous attempts to jump-start a renewable energy market in the country, but this time was different. This was the first time that Saudi Arabia had a government mandate to incorporate renewable energy into its overall energy mix.

In 2017, the Renewable Energy Project Development Office (REPDO) was created, featuring members from K.A.CARE, Saudi Aramco, Saudi Electricity Company, and the Electricity and Cogeneration Regulatory Authority. The new unit fell under the energy ministry’s oversight, and immediately began accepting applications from companies that were looking to participate in the development of 700 MW of solar and wind capacity projects.

Local company ACWA Power came in with the winning bid for the first utility-scale solar PV plant, Sakaka, at $0.0234/kWh. “PV is a no-brainer in our part of the world [to supply] a significant source of load,” said ACWA chief executive officer Paddy Padmanathan.

Yet what was also significant was how REPDO announced the winning bids, which was done via live stream. This showed a level of transparency that isn’t seen anywhere else in the region’s renewable energy sector.

In November 2018, Saudi Arabia’s first utility-scale solar PV project began construction, with more than 1.18 million modules and 1,200 new jobs. The Sakaka solar power plant began a new era in the kingdom, heralding a “more to come” drive with at least seven projects to be tendered in this year alone. And people started to believe it. In fact, Padmanathan said that throughout the region, more companies are jumping into the market — and they’re looking at Saudi Arabia. He estimates that over the past five years, there has been growth of 20% of new market players trying to get into the Middle East’s solar sector.

“Within the next five years, there will be a real race to deploy as much PV as possible throughout the region,” Padmanathan added.

And Saudi Arabia is a market mover for any sector, given its size and population of almost 33 million. So much so that many companies separate Saudi Arabia from their regional reports so that its size doesn’t skew results. The potential for the kingdom’s solar industry, coupled with its goal of creating a manufacturing hub, is enough to once again entice investors.

“We’ve been pushing anyone we’ve worked with for many years saying, ‘If you want to work with us and want to capture meaningful volumes — industrialize inside the kingdom,’” said Padmanathan.

Earlier this year, a Saudi consortium made up of the National Industrial Clusters Development Program and petrochemical giant SABIC, signed a memorandum of understanding with Longi Group and OCI for the development of a fully integrated solar manufacturing facility in the country. And such decisions may create momentum for others to move, particularly considering a potentially more favorable policy framework.

Gus Schellekens, a partner at the clean energy division of the consultancy EY, said that Saudi Arabia today is very different than pre-Vision 2030.

“New businesses are being set up that are very different to the old world that delivered success for the past 40 years,” Schellekens explained. Yet Saudi Arabia is still finding its footing. The head of REPDO, Turki Al Shehri, recently left the organization to join France’s Engie as the chief executive of Saudi Arabia. There has so far been no announcement about a replacement and sources have said that the energy ministry is instead looking to create a more centralized system.

It’s never an easy road when introducing a new model or system on a large scale, especially if people continue to focus on previous mistakes. “In the long run, there remains huge potential for Saudi Arabia, but it’s important to acknowledge practical challenges, and build on a robust plan that is integrated with other initiatives,” Schellekens concluded.

List of solar energy projects executed by KACST
ProjectsLocationYearsApplications
350 kW PV systemSolar Village1981-87DC/AC electricity for remote village
350 kW PV hydrogen production plantSolar Village1987-93Demonstration plant for hydrogen production
Solar coolingSaudi Universities1981-87Development of solar cooling laboratory
1 kW solar hydrogen generatorSolar Village1983-93Hydrogen production, testing, measurement laboratory scale
2 kW solar hydrogen (50 kWh)KAU, Jeddah1986-91Testing electrode materials for solar hydrogen plant
3 kW PV test systemSolar Village1987-90Demonstration of climactic effects
4 kW PV systemSouth of Saudi Arabia1996DC/AC grid connected
6 kW PV systemSolar Village1996-97Grid connection
Water desalination with PV (0.6m3/hour)Sadous Village1994-96PV/RO interface
PV in agriculture (4 kWp)Muzahmia1996DC/AC grid connected
Long-term performance of PV (3 kW)Solar VillageSince 1990Performance evaluation
Fuel cell development (100 – 1000 W)Solar Village1993-95Hydrogen utilization
Internal combustion engine (ICE)Solar Village1993-95Hydrogen utilization
Solar radiation measurement12 stations1994-95Saudi Solar Atlas
Wind energy measurement5 stations1994-95Saudi Solar Atlas
Geothermal power assessmentVarious locations1995-96Establishment of accurate resource data
Solar dryersAl-Hassa, Latif1988-93Food dryers (dates / vegetables etc.)
Solar thermal dishes (2×50 kW)Solar Village1986-94Advanced solar Sterling Engine
Energy management in buildingsDammam1988-93Energy efficiency
Solar collector developmentSolar Village1993-97Domestic, industrial, 
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The Geopolitical Implications of Future Oil Demand

The Geopolitical Implications of Future Oil Demand

Chatham House Energy, Environment and Resources Department produced this research paper dated August 14, 2019, of Professor Paul Stevens, Distinguished Fellow, Energy, Environment and Resources. It is about The Geopolitical Implications of Future Oil Demand. The study’s Summary is reproduced below.

The Geopolitical Implications of Future Oil Demand

The global energy economy is undergoing a rapid transition from ‘hydrocarbon molecules to electrons’: in other words, from fossil fuels to renewables and low-carbon electricity. Leading energy industry players and analysts – the energy-forecasting ‘establishment’ – are seriously underestimating the speed and depth of this transition. This in part reflects the vested interests that dominate that establishment. By contrast, the financial sector – which has little or no vested interest in fossil fuels – understands what is going on and is taking the transition on board.

The history of past energy transitions – including the US’s shift from wood to coal in the late 19th and early 20th centuries, and the French adoption of nuclear power on a wide scale in the 1980s – provides useful context for analysis of this trend. Such transitions have been triggered by factors ranging from market upheaval to technological change, with the technological element typically reinforcing the transition.

A similar dynamic, involving triggers and reinforcing factors, is in evidence today. The current transition in the global energy system has been triggered, in the first instance, by concerns over climate change and recognition of the imperative of shifting to a lower-carbon economy. In some places, growing concerns over urban air quality have overtaken climate change as a driver of government policy in support of the transition. The reinforcing factors include the falling costs of renewables and the rapid market penetration of electric vehicles (EVs). To these factors can be added ongoing uncertainty over the possibility of another oil price shock; and rises in oil product prices that are independent of movements in crude oil prices – a phenomenon sometimes known as ‘OECD disease’.

If the transition to renewables and low-carbon electricity happens faster than the energy establishment anticipates, the implications for exporters of oil and for the geopolitics of oil will be very serious. For example, the failure of many oil-exporting countries to reduce their dependence on hydrocarbon revenues and diversify their economies will leave them extremely vulnerable to reduced oil and gas demand in their main markets. The countries of the Middle East and North Africa (MENA) region will be particularly exposed, with the possible consequences including an increase in the incidence of state failure in a region already suffering the fallout from having signally failed to address the causes of the Arab uprisings since 2011. Increased political and economic turbulence in the MENA region would also have the potential to create serious migration problems for Europe.

The geopolitics of oil over the past 120 years have played a central role in international relations. Indeed some would argue that geopolitical rivalry over access to, and control of, oil supplies has been the source of much of the conflict witnessed in the 20th century (Yergin, 1991). The rise of renewables implicit in the current energy transition could well change this status quo. Renewables are widely used and widely produced. Currently, their availability is constrained neither by the agendas of dominant fuel suppliers nor by the threat of physical disruption to the strategic transit routes along which traded resources are typically shipped. There are certainly supply constraints associated with some minerals required for renewable energy technologies, but these hardly compare with the conflicts around oil supply, and most such constraints, in any case, are easily managed. Thus, as this energy transition proceeds, oil geopolitics will begin to fade away as an issue of concern.

The paper (ISBN978 1 78413 325 2) DOWNLOAD PDF914 KB

A Fine Couple They Are (Wind and Solar Power)

A Fine Couple They Are (Wind and Solar Power)

The pairing of wind and solar is emerging as a smart strategy to implement renewable energy sources with better economic feasibility. A Fine Couple They Are (Wind and Solar Power) as suggested by Jim Romeo would definitely affect this Energy Transition era if only in terms of duration.

The pairing of wind and solar power is an advantageous complement; the two benefit each other. The synergistic combination is an emerging trend in renewable energy and power generation as costs drop. The pairing of sustainable sources is in early stages, however. And the configuration still has challenges regarding return on investment (ROI), ease of implementation, and storage.

In western Minnesota, a 2-MW wind turbine and 500-kW solar installation—wind-solar hybrid project—is an early entrant to the wind-solar market and one of the first of its kind in the U.S. It was introduced at a cost of about $5 million with high expectations and the goal that Lake Region Electric Cooperative in Pelican Rapids would acquire the power for its 27,000 members.

The pioneering project got a boost amid the lower costs of solar. The power generation from both renewable sources is calculated to provide dividends on its investment.

According to market researcher Global Market Insights, hybrid solar-wind projects are expected to grow by 4% in the U.S. over the next five years to join a $1.5 billion global market. Some attribute the growth to the 2015 United Nations Climate Change Conference objectives, combined with lower costs of development and materials, and a keen interest by many nations to rely more on renewable energy sources. Because wind turbine power and solar both have excess capacity, together they offer far greater possibilities.

Lucrative but Limited

Renewables especially make economic sense in non-urban areas, where costs per kWh are higher, said Mike Voll, principal and sector lead for Smart Technologies at Stantec. “So, rural communities and remote locations, where energy prices often reach $0.40 to $0.45 per kilowatt-hour, actually see an ROI from these projects. When it comes to combining both wind and solar with storage, however, the list of locations is even smaller still. In a perfect world, we’d have a place that has excellent radiance with enough wind and low cloud cover, but the reality is there are very few locations that meet the geographic requirements. So even as the price continues to drop, there will still be significant limitations to pairing solar and wind.”

Despite limitations, renewables can work well in locations where everything clicks. A storage option is an essential component. “Adding energy storage can reduce intermittency of output, reshape the generation profile to match to load, and enable dispatch of the renewable energy to maximize revenue generation through ISO market participation or utility programs,” said Todd Tolliver, senior manager at ICF, a global consulting and technology services company headquartered in Fairfax, Virginia.

Tolliver said the economic viability of these systems is constrained by equipment, costs of storage, and limited or irregular revenue streams. But he explained that the most common combination today is solar plus battery storage, thanks to investment tax credit and incentive programs in certain markets that provide clear lower costs and better revenue streams. Still, wind power energy storage has challenges.

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Arabia and Iran could make peace and bring stability to the Middle East

Arabia and Iran could make peace and bring stability to the Middle East

How Saudi Arabia and Iran could make peace and bring stability to the Middle East, if it were up to them only, would not be an impossibility as clearly demonstrated here by Samira Nasirzadeh, Lancaster University and Eyad Alrefai, Lancaster University. It would in our opinion, be made even more reachable if both countries manage to transition off their hydrocarbon-based economies and into more diversified ones.

Shutterstock

Saudi and Iran: how our two countries could make peace and bring stability to the Middle East

Relations between the Kingdom of Saudi Arabia and the Islamic Republic of Iran have rarely been worse, regarding the attacks on the oil tankers in the Gulf of Oman – for which both sides blame each other. Nevertheless, in the history of relations between the two countries, there have been regular shifts between tension and rapprochement – and things can change for the better once again.

As an Iranian and a Saudi, working as research fellows for peace studies, we believe it is time that our two countries seek to manage the conflict, improve their dialogue and begin the peacebuilding process. And we are hopeful that this could happen.

But how? Peace cannot be achieved overnight; it requires a range of factors to strengthen diplomatic ties and decrease the level of enmity between the two states. First, we suggest both states’ politicians soften the language in their speeches, altering the hostile rhetoric to a more moderate one. This would open new paths towards a direct and constructive dialogue, reducing the tensions that are affecting the two countries, the region and, potentially, the world.

Sabre-rattling

Direct dialogue between the two regional actors could launch negotiations that may lead to more stability in the region. The existing regional turmoil has had a detrimental impact on relations between Saudi Arabia and Iran over Syria, Iraq, Lebanon, Bahrain and Yemen. The [Yemen war], which has caused a [dramatic humanitarian crisis], remains one of the main areas of conflict between Saudi Arabia and Iran, but it also offers ground for talks between the two states.

Both Saudi Arabia and Iran agree that the conflicts in Yemen and Syria can only be ended through the implementation of political, rather than military, solutions. If Saudi Arabia and Iran can take steps toward political compromises in Syria and Yemen, this subsequently will reflect positively on the trust building process.

Finding a peaceful solution in the region requires Iran and Saudi to start talking positively. Shutterstock

While Saudi Arabia relies on its strategic Western allies and its ever-increasing military expenditure, Iran, which has been isolated by the US, prefers a more regional approach. Indeed, Saudi Arabia may have to ignore US protests to sit down at the negotiating table with Iran.

But the will for closer ties is, perhaps, there. Indeed, Iran’s foreign minister, Mohammad Javad Zarif, declared on March 13, 2018:

We believe that security of our neighbours is our security and stability within our neighbourhood is our stability. I hope they [Saudi Arabia] have the same feeling and I hope that they come to talks with us for resolving these problems. There is no reason for hostility between Iran and Saudi Arabia. However, we tell the Saudis that you cannot provide security from outside of the region.

Adel Al-Jubeir, the Saudi minister of state for foreign affairs, also recently stated in an interview that his country “does not want war with Iran, but will not tolerate what it considers hostile Iranian activity in the Middle East”.

Suspicions clearly remain, but such pronouncements could be viewed as a pause in hostilities, a turning point that could bring both sides closer together to resolve tensions.

There are also domestic reasons for a reduction in tensions, with both states building strategic plans for the future. Since 2015, Saudi Arabia has embarked on an ambitious socioeconomic plan to diversify the country’s economy by curbing its historic dependency on oil and challenging conservative social constructs and norms by unshackling society from some past constraints. In a state where most of the population is under the age of 30, Vision 2030 serves as a mega project that will lead the country to modernise economically and socially.

The same goes for Iran. The country has adopted a promising strategic plan called the 20-Year National Vision of the Islamic Republic of Iran which has social, economic, and political objectives. But to be successfully implemented, both countries’ strategies will need stable societies and vibrant economies which cannot be attained in a hostile neighbourhood. Integration and cooperation will be essential.

Diplomacy is the solution

It is evident that Saudi Arabia and Iran will benefit more from direct dialogue than hostile rhetoric. Through discussing and working together on domestic, regional and international issues, it is in the interests of both states – and the wider region – to reduce conflict and increase cooperation through diplomatic ties.

The gradual shift from hostile to inclusive rhetoric by politicians is a helpful first step, but it is also necessary for Saudi and Iran to take practical action in their bilateral relationship.

It is expected for states to compete in their sphere of influence, but pragmatism must prevail if both countries want to put an end to their conflicts in the region.

Samira Nasirzadeh, PhD Research Fellow, Lancaster University and Eyad Alrefai, PhD Research Fellow, Lancaster University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

How countries can learn from Jordan’s renewable energy pivot

How countries can learn from Jordan’s renewable energy pivot

By 2021 the country is aiming to have well over half of its power generated by wind or solar energy In the meantime, how countries can learn from Jordan’s renewable energy pivot is elaborated on by Robin Mills, CEO of Qamar Energy and published on The National of June 10, 2019.

How countries can learn from Jordan’s renewable energy pivot
Jordan is using the vast expanse of sunny and windy Wadi Rum to harness its renewable ambitions.

On the road from Wadi Rum to Petra in Jordan, where signs point to the Sheikh Zayed solar complex, wind turbines turn languidly in a steady breeze. At Petra, even Bedouin encampments have solar panels and many homes in Amman use solar tubes to heat water. The UAE made headlines with its world-record solar installations, but in all the Middle East, the impact of the renewable revolution is most visible in the Jordanian landscape.

By last year, the Hashemite kingdom had installed 285 megawatts of wind and 771MW of solar power, a significant chunk of its total generation of about 4 gigawatts. By 2021, it wants to have 2.7GW of renewable capacity. Over the next decade, Jordan’s efforts could really take off – providing half of all electricity output, in our analysis at Qamar Energy. It is only a small market, but it is an important trailblazer for the region’s aspirations in renewables.

Jordan’s success has been built on good resources, solid policy and the imperatives of an energy crisis. Like most Middle East countries, the kingdom has abundant sunny desert land and, similar to Egypt and northern Saudi Arabia, it’s also quite windy in places.

The country started early on encouraging renewables with the Tafila wind farm, a joint venture with Masdar, built in 2015. It offers investors a reasonable return and gives smaller users such as hospitals and universities the chance to build solar panels on vacant land and transmit the power through a grid.

The biggest impetus to alternative energy was the cut-off from Egyptian gas supplies following the 2011 revolution, because of repeated militant attacks on the Sinai pipeline. Jordan’s budget deficit widened because the country, which imports more than 90 per cent of its energy needs and has historically financed its deficits through grants and soft loans, had to burn expensive oil for electricity. Jordan, which already hosted thousands of Iraqi refugees, had to accommodate an increasing power demand due to an influx of 1.3 million Syrians escaping the conflict in their country.

In response, the kingdom opened a liquefied natural gas import terminal at Aqaba, and negotiated supplies from the American company Noble, which produces from offshore Israel. Jordan has large resources of oil shale, effectively an immature form of petroleum source rocks, which can be cooked into oil. A Chinese-led consortium is developing a power plant based on burning this dirty material.

Jordan’s success has been built on good resources, solid policy and the imperatives of an energy crisis.

Efforts to construct a nuclear power plant have been hampered by a lack of cooling water, public opposition and the high costs of financing. Instead, Amman may opt for smaller, modular nuclear reactors that could be fabricated off-site.

To cover the higher costs of fuel, energy subsidies had to be cut back, putting a heavy burden on citizens at a time of sharp economic slowdown. But this had the positive effect of making individual rooftop solar installations attractive for small businesses and householders.

Local Jordanian companies, such as Kawar Energy and Shamsuna Power, along with Dubai-based companies including Yellow Door Energy, have created viable businesses and high-skilled employment. By the early 2020s, Jordan will have the Middle East’s lowest carbon output electricity grid, despite the carbon-heavy oil shale facility.

Success will soon bring its own challenges. Renewable output will exceed total demand at times, while the country still needs to provide for high-consumption and night-time periods. Hydropower, which could be used to store excess renewables, is minimal in the desert country.

The Red-Dead Sea project is intended to bring water to the Dead Sea, which is fast drying up due to climate change and the overuse of the Jordan River. On the way, the water would generate power for desalination. But the expensive venture faces environmental concerns and political hurdles in co-operating with Israel.

Philadelphia Solar, a local company, has announced plans for a solar plant with battery storage. Concentrated solar thermal plants (CSP), like the one under construction in Dubai, can save the Sun’s heat to generate power overnight. These do not seem to be part of Jordan’s plans yet, but the country has excellent conditions for CSP.

Electricity interconnections with Egypt, Saudi Arabia, Iraq and the West Bank are also underway, which could boost the resilience and renewable share of the whole area’s power grid. It could also send power to help rebuild war-torn Syria.

Jordan’s consumers will have to consider the benefits from the country’s renewable expansion, particularly industries which have complained of high electricity prices. Prices are high during peak demand hours, but this scheme will have to become more flexible to lower prices when there is an excess of solar.

Jordan’s small market and head start in renewable energy means it will reach these hurdles to solar deployment probably before any other country in the region. Its success in devising policies to continue attracting capital, boosting its renewable generation, local employment and electricity exports, while reducing consumer bills, will be an important signal for its neighbours.

This is particularly true for countries in the Arabian Gulf – whose utility companies are thinking about how to overcome similar barriers to their bold renewable plans. Such complementary resources and opportunities open the space for co-operation between these two regional allies.

Robin Mills is CEO of Qamar Energy and author of The Myth of the Oil Crisis.

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Iran undertaking measures to boost its green energy

Iran undertaking measures to boost its green energy

International Institute for Non – Aligned Studies came up with the following article that was published on May 27, 2019, by The New Delhi Times. It is all about Iran undertaking measures to boost its green energy programme with obviously the aim to maximise its chances in these days of maximum US administration pressure.

Non-Aligned Movement has called upon the Member States to develop renewable energy and thereby boost green energy. Green energy may be defined as any such energy which comes from natural sources such as sunlight, wind, rain, tides, plants, algae and geothermal heat.

Iran undertakes measures to boost green energy

These energy resources are renewable, meaning they are naturally replenished and also have a much smaller impact on environment than those caused by fossil fuels.

NAM has thus stressed on the need to accelerate the development, dissemination and deployment of affordable and cleaner energy efficiency and energy conservation technologies, new and renewable energy technologies.

Iran has undertaken a number of measures to boost green energy. Policy makers in Iran have realised that long-term investment in the renewables sector would lead to greater self-sufficiency and address the challenges of climate change. According to the 2015 Paris Climate Change Agreement, Iran has pledged to reduce greenhouse emissions by 4% in 2030. The Government has identified promoting a low-carbon economy as one of its priorities in its 6th Five-Year National Development Plan.

Data on the Iranian energy sector show that 42 percent of the country’s renewable energy comes from solar energy, 41 percent from wind power plants, 13 percent from HPPs, two percent from heat recovery and two percent from biomass.

Iran has produced more than 2.83 billion kWh of electricity from renewable sources since an attempt was made in mid-2009 to shift the focus from fossil fuels to more environmentally friendly types of energy.

This amount of clean energy was produced from July 2009 to the end of February 2019, which reduced the consumption of 804 million cubic meters of fossil fuels. It also saved 623 million litres of water. In addition, the use of clean energy has helped the country reduce emissions of 1.95 million tons of greenhouse gases over the past nine years.

According to a recent comparative study published by Iran’s Renewal Efficiency and Energy Efficiency Organisation (SATBA) and the University of Tehran, there are 19 wind power plants with the capacity of 282.6 MW installed in Iran and about 100 MW are being installed. The report also mentions that employment rate of wind power plants in Iran was higher than the global average. As per the report, employment during the value chain of a-50 MW wind power plant resulted in the creation of 668 direct jobs and 1670 indirect jobs at the installation stage and also 48 direct jobs and 120 indirect jobs were created at the time of operation, repairs and maintenance respectively.

Iran has also embarked upon an ambitious project of setting up solar power plants. In April 2019, Iran launched a 10 megawatt (MW) solar power plant in Abadeh in the southern Fars province. Accord to SATBA, Abadeh solar power plant is one of the largest power plants in the south of Iran.

It is constructed with 100% Iranian design and localized technology for the first time. It should be noted that the construction of the power plant is done by the private sector with an investment volume of over 500 billion Rials and the employment of 64 people at the time of construction and operation. Large swathes of Iran’s Fars province are suitable for producing renewables, particularly for setting up solar farms. Last year, the first major photovoltaic power station in the province, with the capacity of 10 MW, came on stream.

Iran has also begun development of their first geothermal power plant in Meshkinshahr. This pilot project is expected to have an initial 50MW capacity with a further potential of 250MW. A further 14 sites of potential for geothermal power have been identified and agreements are reportedly being signed with international energy companies to accelerate their development.

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