São Paulo – This Wednesday (20th), the Organization for Economic Cooperation and Development (OECD) released the report Renewable Energies in the Middle East and North Africa: Policies to Support Private Investment, which addresses the sector’s development in the region, growth opportunities, positive impacts on the economy and job creation, and government strategies to attract investors.
To the OECD, which comprises some of the world’s leading economies, the sector’s development may boost Arab economic growth by attracting investment, increased energy availability, and technology transfers.
According to the organization, energy consumption in the region grows at an annual average of 5% due to a steady-growing population. Although a significant share of Arab countries produce and export oil, gas and their products, the organization notes that the domestic markets are based around subsidized fossil fuel supplies, which is inadequate when it comes to meeting the growing demand for energy and supporting job creation and growth."
The organization points out that the region’s solar and wind power generation potential is among the highest in the world, still renewable sources account for but 4% of the local energy matrix. According to the report, however, solar plants could well generate the equivalent of 100 times the consumption needs of Middle East, North Africa and Europe, so there are export opportunities involved.
Some projects along these lines already exist in North Africa, such as in Morocco, and Tunisia is also willing to tap into solar power export opportunities to Europe. In the Gulf, there are some pioneering initiatives, such as the UAE’s Masdar, which invests in ventures such as the Shams 1 plant, inaugurated last weekend, and the development of a sustainable city in Abu Dhabi.
Regarding labour, the OECD reports that the renewable energy industry is requires a larger workforce, and uses a more diverse range of professionals than does traditional power generation. A solar plant, the report claims, requires seven times more workers than a coal-fired thermal plant, for instance.
Other advantages, according to the survey, include technology transfer, expansion of the system into rural and underdeveloped areas, and increased social inclusion.
The organization concludes by stating that in order to attract investment into the industry, governments must set clear-cut policies, such as a solid, transparent regulatory framework, facilitate renewable energy producers’ integration into the existing grid, setting a nationwide target strategy, and correctly allocating incentives.
*Translated by Gabriel Pomerancblum
