MARKET I OPINION


energy market. It has high levels of solar irradiation making solar projects especially attractive; it also has the necessary wind conditions to make wind technology a feasible option.


According to the International Renewables Energy Agency, in 2012, across the MENA region investment in renewables rose by 40% to $2.9bn. In addition, it is estimated that up to 2025, the value of the projects due to be rewarded is estimated to be in the region of $162bn.


The implementation of a renewable energy programme can also create jobs. This is an additional motivating factor and is especially significant in nations with mounting unemployment and anxiety about the instability this can cause. Nevertheless, the progress of renewable energy projects has not developed as swiftly as hoped. Aside from the continuing political volatility


affecting certain MENA nations, if renewable energy is to become a real alternative to fossil fuels in the region, there are numerous obstacles which must be overcome. Recent activity has helped to consolidate our understanding of what these challangges are and the best way to face them.


Obstacles facing renewable energy development


Domestic energy price distortion The means by which energy is priced domestically is a real issue. The huge supplies of oil and gas in many parts of MENA has meant domestic energy prices are distorted. Current renewable energy pricing methods together with the policy of supplying low cost energy has meant it is not straightforward demonstrating the actual economic benefits of renewables.


Issue V 2014 I www.solar-international.net 55


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