Renewable energy has a mixed outlook in the Middle East and Africa (MEA) region, due to a reluctance to invest from some countries and an inability to afford renewables in others, according to GlobalData.
Several major MEA countries are actively supporting the growth of renewable energy through mechanisms such as renewable targets, renewable portfolio standards (RPS), feed in tariffs (FiTs) or auctions, net metering and tax exemptions or subsidies.
Anchal Agarwal, Power Analyst at GlobalData, says: “Most of the countries covered in MEA* have renewable energy targets, implying that these governments are actively supporting the growth of renewable energy in their respective countries. Some countries have capacity targets, while others have targets to achieve a fixed share of generation from renewable sources.”
Iran set a target in 2014 of 5 Gigawatts (GW) from wind and solar power, by 2020. In spite of this, renewable energy did not make much progress in the country. Hence, in January 2018, the government again declared a target of installing 1 GW of renewable energy projects every year from 2018 to 2022.
The availability of oil in the MEA region presents a major challenge to renewables. For example, in 2016, Saudi Arabia reduced its 2040 renewable goals from 50% to 10% of the country’s electricity supply. In April 2017, the country declared that it will develop 30 solar and wind projects over the next 10 years as part of the kingdom’s $50 billion program to boost power generation and cut its oil consumption.
Agarwal continues: “A noticeable observation in the MEA region is the growing popularity of the auction/tender mechanism to develop large-scale renewable projects. Countries such as Egypt, Iraq, Israel, Morocco, Qatar, Saudi Arabia, South Africa and UAE have auction mechanism for various renewable energy technologies. However, countries including Algeria, Iran, Kenya, Nigeria and Tanzania have already proposed the renewable auctions and they are expected to announce it within a year.”
FiTs and net metering are other major policy support mechanisms used by governments of Middle East & African countries to promote renewable energy. Six countries have FiT schemes for various renewable technologies, and Ghana and UAE are the only countries to have proposed a net-metering scheme.
* MEA countries covered = Algeria, Angola, Egypt, Ghana, Iran, Iraq, Israel, Morocco, Nigeria, Qatar, Saudi Arabia, South Africa, Syria and UAE.
Related Stories
Market Data | Nov 5, 2019
Construction and real estate industry deals in September 2019 total $21.7bn globally
In terms of number of deals, the sector saw a drop of 4.4% over the last 12-month average.
Market Data | Nov 4, 2019
Nonresidential construction spending rebounds slightly in September
Private nonresidential spending fell 0.3% on a monthly basis and is down 5.7% compared to the same time last year.
Market Data | Nov 1, 2019
GDP growth expands despite reduction in nonresident investment
The annual rate for nonresidential fixed investment in structures declined 15.3% in the third quarter.
Market Data | Oct 24, 2019
Architecture Billings Index downturn moderates as challenging conditions continue
The Architecture Billings Index (ABI) score in September is 49.7.
Market Data | Oct 23, 2019
ABC’s Construction Backlog Indicator rebounds in August
The primary issue for most contractors is not a lack of demand, but an ongoing and worsening shortage of skilled workers available to meet contractual requirements.
Multifamily Housing | Oct 16, 2019
A new study wonders how many retiring adults will be able to afford housing
Harvard’s Joint Center for Housing Studies focuses on growing income disparities among people 50 or older.
Market Data | Oct 9, 2019
Two ULI reports foresee a solid real estate market through 2021
Market watchers, though, caution about a “surfeit” of investment creating a bubble.
Market Data | Oct 4, 2019
Global construction output growth will decline to 2.7% in 2019
It will be the slowest pace of growth in a decade, according to GlobalData.
Market Data | Oct 2, 2019
Spending on nonresidential construction takes a step back in August
Office, healthcare, and public safety are among the fastest-growing sectors, according to the U.S. Census Bureau's latest report.
Market Data | Sep 27, 2019
The global hotel construction pipeline ascends to new record highs
With the exception of Latin America, all regions of the globe either continued to set record high pipeline counts or have already settled into topping-out formations amidst concerns of a worldwide economic slowdown.
