REGIONAL I MENA


Renewable energy in the Middle East


The UK is maturing and companies are seeking success further a field. One area that is receiving attention is the MENA region. Michelle T. Davies, Head of Clean Energy at global law firm Eversheds uses a number of Middle Eastern countries as examples, she explains why it is the right time for investment in this region and why renewables is becoming a key topic.


In the Middle East where countries are stereotypically rich in natural resources what impetus is there for such countries to invest in renewable energy? The key drivers for renewable energy programmes differ across MENA, however the extremes are import and export reliance. Each provides its own quandaries, but more often than not, countries within the MENA region face problems arising from both.


Import reliance


Countries who are heavily reliant upon fuel imports, for instance those who cannot meet domestic demand from domestic production, have a realistic and viable solution in renewable energy. Problems of increasing consumption and rising production costs only serve to provide further motivation for change. Developing a domestic renewable energy industry will help to turn the tables and create a skilled domestic workforce in this area, which could itself be a valuable export in its own right.


26 www.solar-uk.net I Issue III 2013


Export reliance


Export reliant countries may have an abundance of fossil resources, however any significant increase in domestic energy demand would decrease export capacity, and drive up prices. Where domestic energy and hence oil consumption increases, there are concerns that key exporters may not be able to continue exporting oil at the same rates.


These extremes are examples of the situations faced by many countries in the Middle East. The combination of drivers provides a motivation for change in almost all jurisdictions.


Saudi Arabia


Saudi Arabia, being perhaps the most export-reliant jurisdiction in the Middle East, has such a motivation to invest in renewable energy. In comparing development costs for renewable energy projects against potential losses of export revenue, the solution is very plain to see. In the short


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