Middle East renewable energy ambitions face new challenges, says GlobalData
Jennifer Aguinaldo, Energy Editor at GlobalData, a leading data and analytics company offers her view:
“Led by Abu Dhabi, Dubai and Saudi Arabia, solar and wind energy capacity is ramping up in the Middle East as governments seek to deliver ambitious renewable energy targets. The completion of the first utility-scale renewable projects across the Gulf Corporation Council (GCC) has increased confidence among procurers, developers and project finance providers in the region, resulting in a significant reduction in the costs of financing and of engineering, procurement and construction (EPC) services, among others.
“As renewables enter the mainstream in the region, governments must overcome several structural, regulatory and technical obstacles. One important challenge for everyone pushing for rapid migration to renewables is regulation. Good regulation prevents chaotic disruption and ensures safety and security. It is, by design, conservative. But policy and regulatory reform cannot move as speedily as technological innovation, and it can be unpredictable.
“Merging renewable energy, primarily photovoltaic (PV) solar power, into the region’s power grids requires major adjustments in policies and new regulations. This includes having to ensure grid flexibility and stability, enabling the integration of new technologies ranging from battery-storage to electric vehicles and establishing new commercially-attractive business models.
“Proponents of renewables in the Middle East must push hard for regulatory and policy reforms that will support their goals, but they also must proceed in the knowledge that some things might just take a little longer to deliver than they would like.”
About GlobalData
4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.
Source : Global Data
