+44 01483 457477 farolaz@hotmail.co.uk

A Key Scenario for the Energy Transition in the MENA Region written by Roberto Vigotti could be a time-saver for all countries producing and nonproducing alike of hydrocarbon resources. Or as proposed by the IEA, it is a matter of Supporting the Middle East and North Africa countries to help them diversify their economies towards clean and low-carbon energy

The operations of the COP26 were closed just a couple of weeks ago, and it is now time to reflect upon relevant takeaways and how to translate them into action. Despite not being the theatre of the bold breakthrough we wished to see, Glasgow reiterated the importance of some key recommendations that, to this day, are our sharpest weapon in the fight against climate change: limiting the growth of the average temperature of the Earth below 1,5 °C, cutting by 45% the CO2 emissions before 2030, and pushing for a quick and worldwide deployment of renewable energy sources, acknowledging the importance of developing countries.

One of the clue scenarios of the recommended transformations is and will be the MENA region, for some self-explanatory reasons: MENA countries are endowed with an enormous renewable energy potential and a steady growth in their internal energy demand, making them illustrious candidates to lead the so yearned global energy transformation. This belief is reinforced by a positive trend of growth of some renewable energy sources in the Mediterranean countries: in the last decade, solar and wind power grew from less than 6% to 35% in the total amount of deployed renewables.

Nonetheless, the MENA’s contribution to the energy transition is still negligible: its share of renewable energy sources amounts to just 1% of the REs installed globally in the last 10 years with the lion’s share in the national energy mixes still being owned by fossil fuels. The data speak loud and clear: the majority of locally generated energy is based on gas and oil, which respectively amount to 72% and 20% of the total. In addition to the obvious environmental repercussions, the economy and internal welfare of many MENA countries is still tightly bound to fossil fuels, which provide more than a half of the national fiscal revenues in many countries (peaking In Kuwait, with approximately 90%), and are still largely financed by public institutions. Finally, the situation is worsened by the vulnerability to climate change: the local environmental features are a natural pre-condition for extreme weather phenomena, such as droughts, temperature raise, etc.

Hence, many trends of the MENA region appear to be in stark contrast with the recommendations outlined in the COP26, despite some isolated encouraging changes. It is urgent and overriding for local decision-makers to drastically re-shape the local approach to generation, transmission and distribution of energy, as well as related policy frameworks and market segments.

In this direction goes the last report produced by RES4Africa Foundation (“Connecting the Dots, 10 Years of Renewable Energy in MENA: What Has (not) Happened?”). In addition to portraying the current energy status quo of the MENA region, the analysis advocates for a fact-based shift towards renewable energy. The starting point would be the formulation and implementation of far-sighted energy policies, characterised by an adequate degree of boldness without losing touch with the reality: bright examples are Morocco, Jordan and Egypt. The regulatory framework should also be welcoming for private investments in REs, which are crucial to expand the energy access while simultaneously pushing for innovation, exchange of best practices, and a stimulation towards digitalisation and efficiency in MENA energy infrastructures. Complementary to these reforms should be safeguarding the transparency of local markets, thanks to new independent energy institutions and clear tender procedures.

The final step of such a virtuous process will be a progressive reduction of subsidies dedicated to fossil fuels: it is an ambitious and tricky target, especially considering the fact that a consistent part of oil and gas sources In MENA countries is still unexploited. However, we are confident that the renewable sector, if properly boosted and reformed, will provide incommensurably higher benefits, creating fertile soil for the energy transition and its related social and economic improvements.

This goal can be achieved just with a constant and structure cooperation with the MENA countries: let’s roll up our sleeves and work together for a sustainable tomorrow.

Roberto Vigotti is the Secretary General of RES4Africa Foundation, which gathers more than 30 stakeholders to accelerate the renewable energy transformation in Africa, with Africa and for Africa. In his 30+ year-long career he has covered various positions at Enel, University of Pisa, IEA and IRENA. When it was still considered an unlikely option, he was already convinced that deploying renewable energy in Africa would result in a positive socioeconomic impact for its population. In 2012, he therefore embarked on the RES4Africa adventure, to support a wider participation of private players in delivering investments in Africa. He also coordinates renewAfrica, an industry-backed Initiative that advocates the creation of a European comprehensive Programme for RE investments in Africa, to be promoted and owned by EU institutions