Clean energy and sustainability have gone beyond just being buzzwords for the Gulf Cooperation Council (GCC) nations. The governments in the region have laid down energy plans and huge investments are being made to meet set targets.
This pursuit becomes even more relevant for the region due to the abundance of both renewable resources, such as solar and wind powers, as well as hydrocarbons. Highlighting the innovation and digitalization trends that are helping to refurbish the global energy mix, the World Future Energy Summit 2018 (WFES), held in Abu Dhabi last month, showcased the strengths of the region in this ever-evolving energy sector and also evaluated the respective sustainability plans.
The UAE Energy Strategy 2050 and Saudi Arabia’s plans for renewables and nuclear energy remained the highlights of the annual event which was held as a part of the Abu Dhabi Sustainability Week, last month. Leading figures and major players in the sector gathered during the event to discuss the next steps in meeting the region’s ambitious renewable energy targets. The wealth of natural energy resources, combined with future-focused governments, is clearly accelerating the region’s movement toward set sustainability goals and this was evident at WFES. On their way toward a sustainable future, GCC countries are making wise use of their clean energy resources.
The goals
UAE has one of the most well-planned roadmaps in the region as far as its energy future is concerned. Last year, the UAE Energy Plan 2050 was announced by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. The move made it clear to the world that the Gulf nation is fully equipped to move in the direction of a sustainable and smart future with full zeal.
The plan aims to slash carbon-dioxide emissions by 70 percent, increase clean energy use by 50 percent and improve energy efficiency by 40 percent. This is expected to result in savings worth AED700 billion. The policy targets the source of energy for local consumption at 44 percent from renewable energy, 38 percent from gas, 12 percent from clean fossil fuels and six percent from nuclear energy, to be achieved by the middle of the century. Currently, close to 90 percent of UAE’s energy needs are met by natural gas.
“Ensuring the sustainability of energy resources means ensuring the sustainability of the country’s growth. The government has made an accomplishment in drafting the first unified energy strategy for the UAE, covering production and consumption. Those who don’t think about energy aren’t thinking about the future,” said Sheikh Mohammed during the launch of this policy.
Dubai, specifically, is targeting the percentage of renewable energy in its energy mix at seven percent by 2020 and 15 percent by 2030, under the Dubai Integrated Energy Strategy 2030.
Saudi Arabia, meanwhile, has plans to attract $109 billion in investment to create a solar industry by 2032. Jordan, Turkey and Egypt have also announced new solar initiatives.
If the GCC’s renewable energy targets are achieved, it will result in a 22 percent reduction in water consumption for power generation and associated fuel extraction, according to a report by the International Renewable Energy Agency (IRENA).
Investment plans
It is a fact that, despite trillions of dollars of capital being available for investment globally, comparatively little gets used to finance green goals. HSBC, in a recent estimate, puts the amount of capital required for proper infrastructure for sustainability at $100 trillion over the next decade.
Meanwhile, a new report from Middle East Electricity (MEE) states that the GCC requires a combined $131 billion worth of investment in electricity generation, transmission and distribution alone over the next five years. This is needed if the region wants to cater to the needs of growing populations, expanding economies and climate changes, the report reads.
The recently-released report, titled GCC Power Market, reveals that despite the GCC’s current power-generating capacity of 157 Gigawatts (GW) — 43 percent of the total Middle East and North Africa (MENA) capacity — its six states will still require $81 billion in investments for another 62 GW of increased capacity and $50 billion for additional transmission and distribution.
Much of the required investment is likely to come from public-private partnerships (PPP) if a regulatory framework is introduced to incentivize independent power producers (IPP), states the report.
WFES, however, saw a total of $15 billion worth of projects and funding in a number of local, regional and international agreements for the advancement of renewable energy and clean technology.
During WFES, Saudi Arabia announced its intention to launch up to $7 billion worth of renewable energy projects in 2018, as part of the country’s plan to have 9.5 GW of solar and wind capacity installed by 2023.
Job generator
The green-energy sector creates more jobs than the traditional energy sector if seen from the point of view of units of energy produced and amount of capital invested.
According to the Abu Dhabi-headquartered IRENA, beyond energy, water and emission savings, achieving set the renewable targets in the region would create nearly 210,000 direct jobs in the power sector by 2030. Employment in the solar power segment alone could account for 85 percent of global renewable industry workforce by 2030.
Most of these jobs will be created in solar photovoltaics, with the UAE and Saudi Arabia representing the biggest employers. Adnan Z Amin, director-general of IRENA, recently stated that renewable energy is becoming a significant job producer, with as many as 26 million people expected to be working in the sector by 2050.
“IRENA’s annual renewable energy job reviews for 2017 show the renewable energy sector supported 9.8 million jobs globally. Solar PV is the largest employer with 3.1 million jobs worldwide, a 12 percent increase from the 2016 job review. As the transformation of the current energy system into renewables is gaining pace, falling costs and rapid innovation have spurred investments, transforming renewable energy from niche to an economically and technically preferred solution,” stated Amin.
Transport transformation
WFES also saw a keen focus on electric vehicles as a tool to lessen the dependence on fuel and create environmentally friendly smart communities. Experts from various automobile companies gathered during the event to evaluate various stages in the production and sale of electric vehicles. One of the highlights was a nine-day trip of electric cars that started from the venue of WFES.
Titled the 2018 Electric Vehicle Road Trip (EVRT), the trip was completed without using a single drop of petrol. The organizers said that the trip was part of their mission to accelerate the adoption of electric vehicles for the creation of smart and sustainable societies. Eighteen charging stations were installed for the trip in the UAE and Oman.
Giving due importance to the role of transport in a sustainable future, the Mobility Conference was also organized alongside the 11th edition of WFES. Experts discussed the challenges and opportunities for mass low emission vehicle adoption in the UAE during this conference.
In one of the sessions, Ismail Sethi, Regional Product Marketing Manager for SUV, Crossovers and Electric Vehicles at Nissan, said: “Electrification is not only the future, it is the present. As the world’s leading EV manufacturer, we have sold more than 280,000 Nissan LEAFs globally, making it the world’s best-selling electric vehicle. LEAF customers have driven more than 3.5 billion zero-emission kilometers combined. As global leaders in electric vehicles, we are committed to contributing to the success of electric vehicles in the UAE, and believe the ambitious plans set out by the government will be met.”
Bright future
The much-needed shift from oil and gas toward green and clean energy promises huge financial savings for GCC countries, apart from other advantages, such as a substantial reduction in carbon emissions and the creation of thousands of jobs for the youth in the region.
Thus, efforts to achieve the expansion of the renewables sector will gear up to compete for the most attractive prospects in the region in the coming months. The local players who have been early adopters of renewable energy will drive this movement and help the region chase its dream of a sustainable future.