The potential of solar energy in the Middle East and North Africa
Concerns about energy are well documented. Growing populations, eroding resources and environmental angst is ever-present in global discourse. While these factors are global, the solutions are regional. The most optimistic developments in renewable energy incorporate a geographical element into the solution. The global distribution of hydro, solar and wind energy often reflects regional, geographical and climatic circumstances. In the case of the Middle East and North Africa (MENA) region, solar energy leads the way.
Climate change has naturally had an impact on a global and regional level. Multilateral initiatives in both realms have encouraged nations to be more green-minded. Perhaps less investigated are concerns about MENA’s economic model. Recent tremors felt from the outbreak of COVID-19 are another episode in a sporadic downward trend in oil since the financial crash in 2008. Many nations in the region are heavily reliant on a resource infamous for volatility and depletion. Clean energy and in particular solar, can further contribute to plans to make countries’ economies more diversified and resilient. Despite this, oil remains deep-rooted in the region’s socio-economic structure meaning that renewable energy is still proposed from a transitional point of view.
Nonetheless, people acknowledge the potential of solar and bold steps have been taken. As of 2019 4.22GW of solar projects are currently under construction with up to $20billion worth of projects expected by 2024. Policymakers can take some credit for this success. Nations in the region have created energy laws that utilize tariffs and quotas to encourage long term investment in renewables. Perhaps, more importantly, there has been a drastic fall in the cost of solar in the last decade. According to the International Renewable Energy Agency (IRENA), since 2010 the cost of photovoltaic solar and concentrated solar power has dropped by 82% and 47% respectively. These encouraging developments have increased the participation of the private sector. Many projects are variants of Private-Public Partnerships (PPP) which aim to harness the expertise and resources of the private sector to increase project feasibility.
Despite the encouraging surge, technical challenges sit firmly in the way of solar energy supremacy. The earth receives a staggering amount of sunlight of which the region is a huge beneficiary. However, current grid and battery technology fail to capture and store energy to an optimal standard. As a result, solar energy is yet to reach grid parity as it is still very expensive relative to its efficiency. These technical issues have also negatively impacted reliability. Solar’s inability to retain and store energy on a large scale is a vital consideration for any nation. Other forms of energy have proven themselves to be more consistent and adept at matching the fluctuations in a nation’s energy demand. Right now solar fails to stand on its own being propped up by other sources such as oil and hydro.
The failure to adequately address technical obstacles affecting efficiency and reliability may reinforce solar energy as transitional rather than transformative. This could perpetuate the current status quo with key actors around the region allocating the bulk of their resources elsewhere. Regional policy has done well to create opportunities but could do more to help consolidate solar into the energy framework. Policies that support research and development in the field could be crucial in improving technical performance. Furthermore, increasing activity in established innovations such as building integrated photovoltaics could increase solar’s reach by making it more relevant for commercial and residential purposes. In general, shifting government subsidies away from traditional forms of energy and into solar may be a great way of capitalizing on recent momentum in the industry.
With this in mind, the energy solutions of the future may be unique to geography rather than another one size fits all situation as fossil fuels have been. MENA on average receives double the kilowatts of energy the UK does in the height of summer; this affinity for the sun could negate some of these challenges. In general, it will be hard to ignore an energy source with a resource range of 4 billion years meaning that the influence of solar should naturally increase long term.
The work currently being done in solar energy represents a greater attempt to supplement the prospects of the region. Recent years have shown what can be accomplished but more must be done. If nations can combine reduced cost, policy evolution and geographical advantage they could overcome key technical issues and create a broad range of opportunities on a regional and even global scale.
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