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Outlook of Renewable Energy in the Middle East region

With the improvement of green building codes in the Qatar, Lebanon, United Arab Emirates (UAE), and the Middle East region has strived to become more environmental responsive, with recent developments. The area presently has four unshakable green building codes: the Lebanese Green Building Council’s ARZ, Dubai Municipality’s Green Building Regulations; the Abu Dhabi Urban Planning Council’s Estidama; and GORD’s GSAS: Global Sustainability Assessment System, in Qatar. Green building codes in the region demonstrate the efforts and investments of governments and organizations in streamlining sustainability in the construction industry. Whether it is for existing buildings or new construction projects, green building codes set a holistic framework that guides design teams toward reducing renewable resource consumption, i.e., energy, water, and additional natural wealth, all while alleviating subsequent ecological contamination.

Seeds of Change in Middle East Energy Sector

Increasing ecological concerns have resulted in worldwide shift to renewables. Though this transfer away from fossil fuels threatens to weaken oil-dependent states, it has certain rise to a new venture: renewable energy in the Middle East. The following points highlight the rise of renewable energy in the region.

  • Expansion of Renewables: Backed by prominent industry leaders, governments across the Middle East are providing financial support for the development of renewables. In 2018, 11 of the 17 economies in the area set targets for renewable energy development.
  • Contribution by Local Ngo’s: Several local companies and NGOs are accelerating the move to renewable energy in the Middle East. More considerably, the International Renewable Energy Agency (IRENA) joined hands with Arab states to commence the Pan-Arab Clean Energy Initiative, a determined commitment to add to its members’ fresh energy output by 68 GW by 2030.
  • Investment from American Companies: Even American companies have accepted the Middle East’s enormous renewable prospective. In 2017, Tesla’s Elon Musk commenced a deal and service center in Dubai, along with 28 charging stations all through the United Arab Emirates (UAE). This shows the electric vehicle giant’s Mideast introduction and undoubtedly indicates the region’s position as a promising renewables market.

Glimpse Into Division of Various Index and Renewables

The table below shows the division of various renewable both in terms of environmental health and ecosystem vitality which have a far-reaching impact on the environment. It also depicts the various gases and its share for the entire Middle Eastern region.

Renewable Energy Aspiration in the MENA Region

The Middle Eastern region’s challenges are further compounded by the fact that does not have suitable demand side policies in place to stimulate the private sector, such as tax benefits or feed-in tariffs for renewable energy electricity generation. Considering the improvements, the following developments and opportunities can be analyzed in the long term.

  • Removal of Subsidies: Gradual removal of oil input subsidies in favor of a free market mechanism. Any legislative move that pessimistically affects oil subsidies would be probable to bear a likely communal backlash. A thump on force of a decline in oil input subsidies may be in the outline of elevated electricity expenses for customers, which UAE residents may already have experienced as they have witnessed electricity charges increase twofold over a three-year phase.
  • Introduction of Tariffs: The beginning of feed-in tariffs to offer a definite stream of proceeds for electricity generated by the private segment would serve to encourage the sector in taking into consideration renewable energy implementation. While there have been no public announcements to this effect, we expect consideration of feed-in tariffs to be one way in which governments look to finance their renewable energy plans.
  • Adapting to Technological Changes: There are innumerous opportunities for companies adapting technological changes to better suit the desert environment. By enhancing technology that is capable to endure the sand, high temperatures, dust, wind, and low water levels that differentiate the desert region in the Middle East, enterprises may realize a first mover’s advantage to collective adoption.

Outlook for Future

Renewable energy has a clear future in the Middle East, and many have the same opinion that a worldwide change to clean power is both forthcoming and unavoidable. But renewable energy is more than just a financial asset. It is a driver of development. There is progress in the region’s stride to achieve the Sustainable Development Goals, as evidenced by the ambitious national targets of Morocco, Egypt, and Algeria in transitioning to renewable. New water-related technologies also have a key role to play in the renewable resource’s development of the MENA region, as demonstrated by the pioneering achievements of Israel in water desalination, recycling and reuse. According to experts, the re-organization broadly needed to achieve integrated environmental management in the MENA countries would require institutional and regulatory reforms, long-term investment, efficient governance, regional cooperation for concerted efforts and the involvement of all stakeholders.

Author: Tinku Rai

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