Regional investment topped US$2.9 billion in 2012, up 40% from 2011 and 650% from 2004. With over 100 projects under development, the region could see a 450% increase in non-hydro renewable energy generating capacity in the next few years. Further to this, MENA governments have announced additional non-hydro renewable energy capacity of 50GW by 2020 and 107 GW by 2030, which compares with some 1.7GW in 2011.
“The MENA Renewables Status Report provides unparalleled insights into the MENA region, an emerging renewable energy champion. In just the last two years, renewable energy has transformed from a niche interest to a regional phenomenon reaching almost USD 3 billion investment in 2012 alone,” stated Arthouros Zervos, Chair of REN21.
In the last few years, CSP plants have been commissioned in Algeria, Egypt, Iran, Morocco and the UAE. While it is notable that most of these are a smaller CSP component attached to a larger natural gas plant, there are some exceptions, like the 100 MW Shams 1 CSP plant in Abu Dhabi, the largest in the world.
Also, a consortium led by ACWA Power recently began construction on a 160 MW CSP plant at the Ouarzazate site in Morocco. The report notes that solar electric capacities are increasing faster than other renewable energy sources, and expects this to continue to increase in the region.
The report provides a status overview of renewable energy markets, industry, policy and investment trends in the region, drawing on the most recent data available, provided by a community of over 50 contributors and researchers in the region.
The report notably tracks a sea-change in the renewable energy plans of net oil-exporting countries, which now account for over 80% of the region’s announced 107 GW capacity additions.
“This report demonstrates that the MENA region is rapidly taking a prominent role in accelerating the adoption of renewable energy,” said HE Dr. Sultan Ahmed Al Jaber, UAE Minister of State and CEO of Masdar. “The UAE is committed to investing in renewable energy and has a goal of diversifying its energy sources while capitalizing on the economic and social opportunities those investments present. Masdar’s recent inauguration of the 100 MW Shams 1 concentrating solar plant in Abu Dhabi is a major milestone in achieving this goal as well as a significant step for renewable energy in the region. With our experience domestically and internationally, we look forward to contributing to the renewable energy sector’s growth in the MENA region.”
Policy deployment and target-setting are a widespread phenomenon across the region. All 21 MENA countries now have policy targets, up from 5 in 2007, with at least 19 countries having technology specific targets. To achieve these targets and attract investment, 18 MENA countries had enacted at least one renewable energy enabling policy by early 2013, such as feed-in tariffs (FITs), net metering, fiscal incentives, and public financing.
“From IRENA's headquarters in Abu Dhabi, we have been uniquely placed to witness renewable energy become a multi-billion dollar industry within the MENA region. Since 2008, modern renewable energy production has grown at a much faster rate than fossil fuels and, with 106 renewable energy projects currently in the pipeline, this trend is likely to continue. By implementing ambitious targets, and enabling strong regulatory and institutional frameworks, governments across the region are driving the growth of renewable energy, and showing growing recognition of its broad macro-economic benefits," said Mr. Adnan Amin, Director General of IRENA. "MENA's commitment to renewable energy is inspiring and further strengthens IRENA’s own regional work programme to better support and accelerate the regions' uptake of renewable energy."
However, several challenges need to be addressed to reduce reliance on public and soft financing, and to foster greater private investment. These include regulations and market-based policies, energy pricing, public awareness, financial uncertainty, and policy risk.
In the last few years, CSP plants have been commissioned in Algeria, Egypt, Iran, Morocco and the UAE. While it is notable that most of these are a smaller CSP component attached to a larger natural gas plant, there are some exceptions, like the 100 MW Shams 1 CSP plant in Abu Dhabi, the largest in the world.
Also, a consortium led by ACWA Power recently began construction on a 160 MW CSP plant at the Ouarzazate site in Morocco. The report notes that solar electric capacities are increasing faster than other renewable energy sources, and expects this to continue to increase in the region.
The report provides a status overview of renewable energy markets, industry, policy and investment trends in the region, drawing on the most recent data available, provided by a community of over 50 contributors and researchers in the region.
The report notably tracks a sea-change in the renewable energy plans of net oil-exporting countries, which now account for over 80% of the region’s announced 107 GW capacity additions.
“This report demonstrates that the MENA region is rapidly taking a prominent role in accelerating the adoption of renewable energy,” said HE Dr. Sultan Ahmed Al Jaber, UAE Minister of State and CEO of Masdar. “The UAE is committed to investing in renewable energy and has a goal of diversifying its energy sources while capitalizing on the economic and social opportunities those investments present. Masdar’s recent inauguration of the 100 MW Shams 1 concentrating solar plant in Abu Dhabi is a major milestone in achieving this goal as well as a significant step for renewable energy in the region. With our experience domestically and internationally, we look forward to contributing to the renewable energy sector’s growth in the MENA region.”
Policy deployment and target-setting are a widespread phenomenon across the region. All 21 MENA countries now have policy targets, up from 5 in 2007, with at least 19 countries having technology specific targets. To achieve these targets and attract investment, 18 MENA countries had enacted at least one renewable energy enabling policy by early 2013, such as feed-in tariffs (FITs), net metering, fiscal incentives, and public financing.
“From IRENA's headquarters in Abu Dhabi, we have been uniquely placed to witness renewable energy become a multi-billion dollar industry within the MENA region. Since 2008, modern renewable energy production has grown at a much faster rate than fossil fuels and, with 106 renewable energy projects currently in the pipeline, this trend is likely to continue. By implementing ambitious targets, and enabling strong regulatory and institutional frameworks, governments across the region are driving the growth of renewable energy, and showing growing recognition of its broad macro-economic benefits," said Mr. Adnan Amin, Director General of IRENA. "MENA's commitment to renewable energy is inspiring and further strengthens IRENA’s own regional work programme to better support and accelerate the regions' uptake of renewable energy."
However, several challenges need to be addressed to reduce reliance on public and soft financing, and to foster greater private investment. These include regulations and market-based policies, energy pricing, public awareness, financial uncertainty, and policy risk.
The International Renewable Energy Agency (IRENA) is mandated as the global hub for renewable energy cooperation and information exchange by over 160 countries, including 111 Members, and 49 countries in the process of accession. Formally established in 2011, IRENA is the first global intergovernmental organisation to be headquartered in the Middle East.
www.irena.org
http://www.ren21.net/Portals/0/documents/activities/Regional%20Reports/MENA_2013_lowres.pdf
http://www.ren21.net/Portals/0/documents/activities/Regional%20Reports/MENA_2013_lowres.pdf