MARKET I OPINION
changing quickly and we have seen a noticeable shift in attitude as decision makers, funders and companies have grown accustomed to how renewable energy projects operate. They are also becoming familiar with the relevant risk mitigation strategies and the potential the sector has. What is currently occurring in Jordan and Morocco will likely have a much wider impact and should assist with the changing of this mind-set.
Connectivity
Another genuine concern is the ability of grid networks to cope with the intermittence of renewable energy output, which is more prevalent with wind than with solar technologies. Renewable energy programmes must take an integrated approach to generation - of which connectivity is an essential part – if they are to thrive.
Emphasising socio-economic benefits and market incentives
A comprehensive approach is required to overcome the difficulties discussed above. Firstly, it is important to emphasise the long-term socio-economic benefits of renewable energy in order to gain the necessary political support. Benefits include less pollution, job creation and a reliable electricity supply, especially for those households who do not currently benefit from the same.
Distributed energy and land ownership In countries which have energy security problems, distributed and wheeled energy presents a fantastic solution. However, the impact of regulatory restrictions on the sale of electricity have to be considered. Often the ability to sell electricity is limited to state owned or governed distribution, supply or utility companies. In order for distributed energy to become a viable solution, there is a need for independent producers to have the ability to sell power.
Additionally, land ownership has been problematic in certain jurisdictions (Saudi Arabia for instance). Nonetheless, companies are finding ways around this by, for example, doing projects with municipalities or large corporates with significant land ownership, or with real estate companies experienced in local land issues.
Increasing awareness
There is a general lack of knowledge of the benefits of renewable energy. This is especially prevalent in oil and gas rich countries where, justifiably, there is an uneasiness about moving towards what is seen by some as unsure and untested technologies, from secure conventional energy resources. This view is however
The genuine economic benefits of investing now in substantial renewable energy programmes must be reiterated; particularly in countries with vast conventional energy reserves, as well as the climate to sustain solar and wind technologies. The demand for energy in those nations is continually increasing and there will be a considerable negative impact upon revenues from oil and gas exports as reserves fall and consumption rises.
Investing in renewable energy projects now will help to meet present and future energy requirements and offset decreasing revenues. Dubai and Abu Dhabi are currently considering significant roof top solar programmes; the PR impact this could have should not be overlooked. Underlining market incentives that produce actual socio-economic benefits for all should help to develop a real desire for renewables.
Developing renewables programmes, policies and legal frameworks Governments must focus on putting in place the necessary policies and incentives to help mitigate the market distortion which is currently acting as a drag on renewable energy progress in the MENA region. Creating clear legal and regulatory frameworks, policies, procurement programmes and incentives
Land ownership has been problematic in certain jurisdictions
(Saudi Arabia for instance). Nonetheless, companies are finding ways around this by, for example, doing projects with municipalities or large corporates with significant land ownership, or with real estate companies experienced in local land issues
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www.solar-international.net I Issue V 2014
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