The GCC is likely to speed up its solar energy conversion movement in the wake of lessons learnt from the depressed oil prices of the past few years, according to an industry leader.
Turkish solar power structure supplier, Tekom-Puk, maintains the super-energised solar drive will ensure the Gulf region reaches its 2030 target of a collective 4.6 GW PV in power generation to emerge as a global renewables leader.
Speaking ahead of Tekom-Puk’s participation at Middle East Electricity 2019, the region’s power industry show, which runs at Dubai World Trade Centre (DWTC) from March 5-7 next year, Murad Saygın, the company’s General Manager said the GCC’s solar sector is now widely viewed as “highly promising” and likely to scale up further.
“For the last several years, GCC countries have been fashioning a critical role for themselves in the global shift to renewable energy. Seeing the big picture from the global scale, the GCC market would likely reach its energy goals at the end of the next decade, which would make it the market driver,” said Saygın.
Tekom-Puk’s forecast is backed up by the latest MENA Power Industry Outlook prepared by Ventures Onsite, for Middle East Electricity. The in-depth report says renewable energy is expected to play a vital role in the GCC’s economic diversification plans.
“It forms a lucrative option for electricity generation capacity in the GCC, which has reached $2.1bn in 2018 and is expected to be worth $25bn in 2022,” states the report, citing increasing renewable deployment among the region’s policymakers, regulators and operators. The report adds that the GCC’s cumulative deployment and investment in renewables could reach $16bn in 2020.
With all GCC countries now prioritising renewables, the UAE currently leads the way courtesy of mega projects such as the Mohammed Bin Rashid Al Maktoum Solar Park in Dubai, which is worth an estimated $968mn, and the 1.2GW Sweihan plant in Abu Dhabi.
As part of its ‘Energy Strategy 2050’, the UAE aims to generate 44% of its electricity from renewables by the middle of the century.
“The UAE’s ministry of energy is considering tendering 1,000 MW of renewable-based mega-projects each year over the next few years to meet its energy targets. The expected increase in electricity consumption in the coming years, coupled with the integration of a large share of renewables, clean coal, nuclear and waste-to-energy in its energy mix is expected to project the UAE as a hotspot for power sector development in the Gulf region,” says MENA Power Industry Outlook report.