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Feature article: GCC Solar Energy: by Arthur D. Little
Turning plans into reality - How to renew the lost momentum?
The potential for solar energy in the Gulf Cooperation Council (GCC) is indisputable. Underpinned by the acute need to find alternative energy sources to reduce the opportunity cost of burning fossil fuels, as well as the requirements to drive economic development, employment and technology intensive industries, the "solar industry" is no longer a sector this region can afford to ignore and not develop. Acknowledging this, the region has announced ambitious plans to exploit the solar-energy opportunities in the last half-decade. However, these ambitions have not yet been realized into action.
Despite the announcements in the past to kick-start the sector, actual deployment is still at its nascent stage, and the share of the GCC's solar-energy capacity remains paltry (only < 0.5% of the installed generation capacity in the GCC in 2014). Saudi Arabia's conspicuous absence in this sector, despite the country's high potential, is particularly noteworthy.
In this article, we provide a report on the GCC's progress, identify root causes of the delayed deployment and suggest steps to turn the ambition into reality.
The lack of a clear policy framework is one of the main reasons for limited solar activity in the GCC. Most of the deployment to date in the GCC has been state sponsored. However, going forward, if the GCC is serious about developing a sustainable solar energy market that draws significant investment from the private sector, then a clear and transparent solar-energy policy needs to be communicated to build market confidence in the industry. Furthermore, there is an acute need for clarity regarding the role of the public sector power industry stakeholders to inspire private sector investor confidence. Other factors that should be immediately addressed, include a clear implementation of value chain development strategy, human capital development and innovative solutions through focused R&D on technical challenges such as harsh climatic conditions, water scarcity and power supply variability.
Above all, a renewed political push and communicating solar energy as a high-priority sector among internal and external stakeholders will certainly help put a new lease on life to the solar energy market in the GCC.
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SOLAR GCC ALLIANCE NEWS
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Publisher's Note:
Is the Age of Fossil Fuel Ending ?
Saudi oil minister taps out - "solar energy is an opportunity for everybody"
Renewable energy employs 7.7 mm worldwide
PV Hits Grid Parity in Jordan
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In total 177 GW of PV installations are producing more than 1% of the electricity demand in the world while the 2014 market reached at least 38,7GW.
According to energy consultant, Robin Mills, solar costs have halved in just three years and now beats all conventional generation apart from the very cheapest gas.
Saudi Arabia's oil minister Ali al-Naimi stated at the Climate Change Summit and OPEC meeting last week that the kingdom has plans to become a "global power" in solar and wind energy. He further stated, "in Saudi Arabia we recognize that eventually, one of these days, we're not to need fossil fuels."
While Saudi Arabia has the highest potential for solar energy, a recent DNV GL survey shows the Kingdom lagging significantly behind the UAE and Jordan in recent solar project and policy development. Hopefully Minister al-Naimi's recent statements will foreshadow the beginning of move to export giga-Watts of solar power in years to come. Elsewhere the "new black Gold" has arrived. By 2020, Germany will become the world's first fully renewable energy grid and "distributed power" system, giving it a competitive and strategic advantage.
Abu Dhabi based IRENA released a report indicating that more than 7.7 million people worldwide are now employed by the renewable energy industry. This is an 18 per cent increase from last year's figure of 6.5 million. With unemployment rates in some GCC / MENA countries between 22-40% and typically highest among the more educated in the region, growth of renewable energy jobs should be seen as a priority. Youth unemployment across the wealthy Middle East is one of the region's greatest challenges and liabilities, according to a report by the World Economic Forum (WEF). I hope the regions leadership understands that like the Internet, renewable energy appeals to the milllenials worldwide including those in the GCC /MENA region.
Last months, MENASOL conference in Dubai revealed PV prices have finally reached grid parity in Jordan and the UAE, and are approaching that level in Egypt and Morocco. The second tender round by Jordan's Ministry of Energy and Mineral Resources record low feed-in tariffs (FITS), with the four successful bids attracting tariffs 50% under those seen in the first tender. While the low bids are aggressive and set a new benchmark for the region, I believe the Acwa Power and First Solar bids are a safer indication of the market pricing. Hopefully these developments will only increase the penetration of PV in this region.
Unfortunately, active local leadership and support is limited in the GCC /Mena solar market. The region needs more "national solar champions" to help make solar energy a valuable and respected national (natural) resource.
Best regards,
Browning Rockwell
Executive Director, Solar GCC Alliance
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Solar GCC Alliance Jobs Portal
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Solar Careers in the MENA/GCC Region portal - over 2,000 CV's
The Solar GCC Alliance Jobs Portal is your source for opportunities in the GCC's growing solar industry. Click below to find jobs or qualified candidates.
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Solar GCC Alliance - featured BIPV - solar design
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The Art of Solar
We are solar architects |  |
Middle East representative :
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Solar GCC Alliance Partner News
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 Jordan-SIA launched :
This organization will seek to create new solar energy business and employment opportunities in Jordan and enable collaboration opportunities throughout the GCC region. For more information, contact: Website: www.jordan-sia.com
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Solar Trade Leads and Tenders Bulletin Board
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Upcoming Events
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Save the Date - Oct. 7-8, 2015
co-hosted by SASIA, Solar GCC Alliance and partners
Riyadh, Saudi Arabia
Annual Desert Solar in the Mena Region - 2015 Saudi Arabia
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REGIONAL & GLOBAL SOLAR NEWS
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Global - MENA - GCC countries:
PV Costs To Fall Another 25% In Three Years:
The big fall in solar PV costs over the last five years is helping redefine the future of energy generation across the world, with grid parity in the retail market achieved in dozens of countries, and even beating wholesale prices in markets such as Chile and the Middle East.
 And it seems that the cost falls will continue. Canadian Solar, one of the big three global solar PV manufacturers, this week delivered a detailed update of its outlook, including some interesting forecasts on the future of solar PV costs. In short, Canadian Solar says the cost of solar PV modules will likely fall 25 per cent in the next three years, from US47c/watt at the end of 2014, to US36c/watt at the end of 2017.
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"We Will Export Giga-Watts of Electric Power": Al-Naimi, Minister of Oil 
What Saudi Arabia is doing to combat climate change.
Minister Al-Naimi speaks at the Business and Climate Summit in Paris.
(Source: Bloomberg)
 At OPEC the Saudi Oil Minister Mainly Wants to Discuss Solar PowerWhat does it say about oil when Saudi Arabia embraces solar?
Could Middle East Switch From Oil To Renewable Superpower?
Saudi Minister Sees End to Fossil Fuels by Midcentury
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 Abu Dhabi opens Irena to world
 The UAE's response to the energy challenges of the future is to host an international organisation that promotes renewable energy. It's much more
than a symbolic venture for one of the world's largest oil producers.
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PV hits grid parity in Jordan, UAE as MENA capacity surges
PV prices have finally reached grid parity in Jordan and the UAE, and are approaching that level in Egypt and Morocco, experts revealed at MENASOL 2015.
Read article - click here
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Major solar power launched in southern Jordan - governorate of Ma'an with investments totaling $170 million and targeted electricity output of 52.5 megawatts. Shams Ma'an Power Generation PSC
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ACWA Power seals Noor 1 and 2 financing
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ACWA Power has achieved financial close of the Independent Power Projects of NOOR II (200MW) and NOOR III (150MW) concentrated solar power (CSP) projects in Morocco.
 The total value of both projects of about $2bn will be funded on 80/20 debt to equity basis with debt entirely financed by Masen with lending funds secured from the African Development Bank, the "Agence Française de Développement", the Clean Technology Fund, the European Commission, the European Investment Bank, Kreditanstalt für Wiederaufbau and the World Bank.
Read article - click here
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Oman's RAECO to build 90 MW of renewables by 2019
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Rural Areas Electricity Co (RAECO), 100%-owned by Oman's Ministry of Finance, plans to invest USD 200 million (EUR 146m) in some 90 MW of renewable power plants over five years,
Overall, the company is to pour OMR 391 million (USD 1bn/EUR 741m) into 336 MW of power generation capacity by 2019 and renewables will get about a quarter, RAECO's head Eng Hamed bin Salem al Maghderi said at the Oman Power and Water Efficiency and Conservation 2014, as cited by Times of Oman.
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Kuwait to build first solar power plant
Kuwait will soon be home to a rather large, 280MW solar thermal power plant - located in Abdaliya, just southwest of the farming region of Kabad.
 The solar power plant will be Kuwait's first. Current projections are that the project will end up costing somewhere around or $3.27billion-therefore representing quite a substantial investment into the country's energy infrastructure.
The contract for the concentrating solar power (CSP) plant-which will rely on and utilise a parabolic trough-was just recently signed, with project details being finalised only in the past couple of weeks.
According to a report from the Kuwait News Agency, the Ministry of Finance's Technical Office for Examining Development Projects and Initiatives signed a contract with HSBC, which offered consultancy for the Abdaliya project. The CSP plant is the first solar power facility in the fossil fuel-rich nation. The Technical Office for Examining Development Projects and Initiatives also announced that it would float the venture for public tender under the country's public private partnership programme (PPP).
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CONFERENCES & EXHIBITIONS
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Featured Event - Intersolar Europe - June 10 - 12, 2015 - Munich, Germany
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www.solargcc.com
Published by - Solar GCC Alliance
P.O. Box 16111 , RAK, U.A.E.
Email: info@solargcc.com
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