The Arabian Gulf countries are currently facing a number of sustainable development challenges, some of which are longstanding while others are new. Longstanding challenges which have persisted for many decades include pollution related to the oil and gas industry, water scarcity, food security, and desertification. New challenges include climate change, rapid urbanization, construction and demolition debris, and, perhaps most surprisingly, domestic energy security.
The fast-growing domestic energy demand in the Gulf Cooperation Council (GCC) countries poses a major challenge for energy security and, therefore, it is extremely important to rethink policies and investments to ensure that the region is heading in the right direction toward sustainability and the efficient use of renewable and non-renewable resources.
Most importantly, given the vast potential for solar energy, renewable energy can play a key role in the shift towards a greener economy in the GCC. Indeed, given the key role of energy in socioeconomic development, especially in the Gulf, it can be argued that a simultaneous shift in the energy sector is a precondition for any green transition. Since the energy sector affects all other sectors, a green energy sector is very likely to have a positive spillover effect on the other sectors too.
From the environmental point of view, renewable energies, in general, produce very little greenhouse gas emissions (GHG). In addition, renewables provide an answer with more environmental acceptance to the growing domestic energy demand. In addition, scaling up renewable energy and promoting energy efficiency can unlock technology innovations, job creation, and green economic growth.
Besides environmental issues like GHG and global warming, concerns about fluctuations in oil price and sustainability of hydrocarbon reserves are accelerating the shift towards renewables. As a result, solar energy technology is developing very fast while the operating unit cost is going down very sharply.
When looking at the market leaders for renewable energy technology, three Asian countries stand out for solar, thermal, and wind energy: Japan, China, and India. By cooperating with these three countries at the government, institutional, and industry levels the GCC can further its renewable energy ambitions.
In this regard, the GCC can be a net exporter of electricity generated from solar power in the future. It is worthwhile for the Gulf States to consider joint mega-solar projects such as DESERTEC to supply energy to India and other energy-hungry countries in Asia.
It is worth mentioning that the Saudi government has ambitious plans to cut its greenhouse gas emissions by building more solar power systems as well as the world’s biggest carbon capture and storage plant. In addition, it aims to use more natural gas as well as set new standards to make buildings and cars more energy efficient.
In Saudi Arabia, the two state-owned companies that control the energy sector—Saudi Aramco, the world’s biggest oil company, and the Saudi Electricity Company, the kingdom’s main power producer—are planning for as many as 10 solar projects across the country.
In addition, the King Abdulaziz City for Science and Technology (KACST), a national research and development agency based in Riyadh, is pushing hard for solar energy. The Saudi government sees investment in solar energy as a way to remain a global energy power especially as the country has all the required elements for success with vast expanses of open desert that are tailor-made for arrays of solar panels. Besides, labor is cheap, funds can be secured, and technology is being developed through entities like KACST.
Events in the GCC region like the World Future Energy Summit (WFES) and Abu Dhabi Sustainability Week (ADSW) in Abu Dhabi in January 2016 provide direct support to sustainability plans in the GCC countries. Such annual forums help attract investments and facilitate exchange of experiences between the GCC and the rest of the world.
Also, the WFES 2016 is the first global energy summit that will be held after the Paris climate change conference COP21 in December 2015. The Paris climate deal is the first legal binding agreement to support the Sustainable Development Goals (SDGs). The agreement is not just about climate change; It is about sustainable solutions to meet our energy needs currently and for future generations. Thus, WFES provides a unique chance to address COP21 outcomes and come up with practical steps for the way forward.
Today, more people are employed in the renewable energy industry globally than in the oil and gas sectors. In fact, worldwide, an estimated 5.7 million people were employed directly or indirectly in the global renewable energy industry in 2012, a figure that could triple by 2030.
According to a report issued by the Diplomatic Center for Strategic Studies in UAE, renewable energy will help the GCC countries in creating 116,000 jobs annually.
— Mohamed Abdel Raouf is Environment Research Fellow at Gulf Research Center.
Renewable energy in GCC
