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 bySamira 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.
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.
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.
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.
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.
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.
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.
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.
According to the International Renewable Energy Agency, or IRENA, 171GW of renewable energy was added to the global system in 2018. That made up two-thirds of the overall new power generation capacity added for the year and one-third of the world’s capacity in whole.
Wind and solar energy contributed 84% of the renewable sources, with solar seeing the largest growth for the year at an increase of 94GW in capacity. Most of these solar facilities were installed in Asia, which also hosted over 40% of new wind energy.
Wind accounted for 564GW in total, joining 1,172GW of energy from hydropower and 480GW of solar to register 2,351GW of renewable energy for the year.
The Price is Right
In part, such innovation can be attributed to record-breaking efficiency in production cost. For the first time, the industry saw renewables running a lower price tag in production than fossil fuels.
According to analysis and data culled from Bloomberg, The Frankfurt School, IRENA, and UN Environment by Kaiserwetter Energy Asset Management, fossil fuels generated energy costs ranging from $49 to $174 per MWh in 2017, while renewables logged rates from $35 to $54 per MWh over a comparable period of time.
Renewable energy programs have been growing for the past five years, bolstered by technological innovations that make wind and solar energy easy to access for both commercial and residential users.
In U.S. cities alone, the Environment America Research and Policy Center reports doubled solar energy capacity in the last six years; Honolulu ranks as the top per-person producer at 646 watts per resident, and Los Angeles took top honors for overall installed capacity.
45 of the country’s 57 largest cities logged substantial numbers, with one-third tallying photovoltaic capacity at quadrupled rates.
Regional leaders for solar capacity per capita include Burlington, Vermont in the Northeast; Washington, D.C. in the South Atlantic; San Antonio, Texas in the South Central region; Indianapolis for North Central; and Las Vegas for the Mountain region.
Honolulu led the Pacific, leading the charge for Hawaii’s goal to transition completely to renewable energy sources by 2045.
In addition to advances in technology, effective public policy and passionate advocacy are credited for the earth-friendly energy surge.
This article was originally published on II Thomas.
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.