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Feature: Gulf energy subsidies worth $160 bn a year
 With all of the necessary ingredients to make solar a powerhouse for electricity generation in the region, MENA has struggled in recent years to make its solar dreams come true. This may soon change.
Nov. 2014 - "Gulf countries are paying more in energy subsidies than the total amount of revenue they stand to lose annually if the oil price remains as low as $80 a barrel, figures show."
A top World Bank official has stated that Arab states in the Gulf, which pump a fifth of the world's crude oil, spend more than $160 billion on energy subsidies annually. "Gulf states spend around 10 percent of their gross domestic product every year on energy subsidies including fuel and electricity. That amounts to $160 billion," says Shantayanan Devarajan, the bank's chief economist for Middle East and North Africa.
The six countries of the Gulf Cooperation Council -- Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates -- had a combined GDP of $1.64 trillion at the end of 2013, according to the International Monetary Fund. Saudi Arabia, the world's top oil exporter, accounts for almost half of the GCC subsidies. The Middle East and North Africa region, which is home to 5.5 percent of the world's population and boasts 3.3 percent of its GDP, accounts for 48 percent of global energy subsidies.
IRENA director general Adnan Amin believes the Middle East and North African power sectors could enjoy a net benefit of $750 billion if countries in the region are able to hit their 2030 renewable energy targets.
Read more from Irena: click here
Catching the Sun - "A must-see film. An eye-opening look at workers and entrepreneurs on the forefront of the clean energy movement that will transform, and enliven the way you see the future. What is clear is the wonderful opportunity the transition to clean energy represents."
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SOLAR GCC ALLIANCE NEWS
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Publisher's Note: There will be losers
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The 2011 Chatham House report titled
"Burning Oil to Keep Cool - The Hidden Energy Crisis in Saudi Arabia", stated that "Saudi Arabia's place in the world oil market is threatened by unrestrained domestic fuel consumption. In an economy dominated by fossil fuels and dependent on the export of oil, current patterns of energy demand are not only wasting valuable resources and causing excessive pollution, but also rendering the country vulnerable to economic and social crises." The report foreshadowed the inevitable economic and social challenges we see unfolding today in Saudi Arabia.
The Bloomberg follow-up story to their interview with the Saudi Arabia Crown Prince last week highlights that "changes to subsidies and new taxes and fees may be good for government coffers, but they also mean that Saudis, foreign residents and companies will need to cough up more money in a country where the population has grown accustomed to government largesse". While this may be painful in the short term we may finally see the launch of meaningful solar energy policies and program in Saudi Arabia and the region. For the last decade Saudi Arabia has been the regional "elephant in the room" solar powerhouse that never materialized.
As outlined in the 2011 Chatham House Report ,Saudi Arabia and the region face specific challenges including "reversing a history of low energy prices and vested interests in low prices; managing the transition to higher prices, especially for low-income groups; making energy conservation policy coherent and effective, given the vertical structure of
government and lack of channels for societal feedback; and
convincing the public that such measures are necessary when oil and gas reserves are so abundant."
Jeremy Leggets recent op-ed in Saudi Arabia's national finance daily, Al_Eqtissadaih, discusses how the opportunity for solar energy in Saudi Arabia has now become inevitable. Recent solar program announcements from Oman, Kuwait, and the UAE signal the potential beginning of Solar 2.0 in the GCC and Mena region. Solar energy accounted for 227 GW of the global renewable renewable energy capacity with the Middle East representing 1% of the global share. IRENA recently reported that renewable power generation capacity grew 8.3% in 2015, the highest rate ever recorded. The Middle East grew 7.8% with almost all of the growth in 2015 coming from increases in solar photovoltaic capacity. In the end there will be more "winners" than "losers" from the growth of solar energy utilization in the region. I hope that regional governments will have the political will to curtail domestic energy subsidies and allow real market conditions to drive solar energy development.
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 DIY Solar Kits
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Solar GCC Alliance Partner News -
OSIA Country Manager appointed
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Haider Al-Zaabi Country Manager PO Box 620 Postal Code 115, Maf Muscat, Oman Tel: +968 99763456 Email: haider@oman-sia.com Website: www.oman-sia.com
The Oman Solar Industry Association seeks to create new solar energy business and employment opportunities in Oman and enable collaboration opportunities throughout the GCC region. Solar GCC Alliance now has 8 regional office representatives in the GCC and MENA region. Visit Solar GCC Alliance for local contact details.
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REGIONAL & GLOBAL SOLAR NEWS
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Global - MENA - GCC countries:
Why Power Markets Tilt Toward Renewables Even With Cheap Oil
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More than half of new power came from renewables
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For the first time in 2015, more investment went into renewables than fossil fuels, and most of the money went to emerging markets. BNEF is hosted a conference in New York on April 4 to bring together executives and bankers attempting to generate value from the boom.
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Saudi Arabia can take a page out of Dubai's renewables book

Saudi Arabia will need to follow Dubai's lead and hike electricity prices by more than 50 per cent to support the expected growth of its renewable energy sector after the government's new diversification drive, experts said.
The country is looking to drum up US$100 billion a year in new revenue by 2020 through slashing subsidies and increasing levies, according to Deputy Crown Prince Mohammed bin Salman in an interview with Bloomberg.
"It's a large package of programmes that aims to restructure some revenue-generating sectors," the prince said, highlighting solar as a key industry for the kingdom's future.
Decreasing electricity subsidies and pushing up power bills to match those in Dubai will trigger a demand for renewables, particularly rooftop solar in the residential and commercial sectors, according to Apricum, a consultancy specialising in renewable energy. Read more: click here
Saudi Arabia Solar Industry Association (SASIA) Contact: Abdulmohsin Al Shoaibi - Chairman Email: shoaibi@saudi-sia.com
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Dubai gets one of largest 1.5MW roof-top solar panels in Mena
Unveiled at Jebel Ali Jebel Ali Power Station and connected to Dewa grid
Saeed Mohammed Al Tayer, MD and CEO of Dubai Electricity and Water Authority (Dewa) inaugurated one of the largest single-rooftop arrays in the Middle East and North Africa, a 1.5 megawatt direct current (MWdc) photovoltaic generation project at Jebel Ali Power Station (JAPS), and successfully connected it to Dewa's grid.
Dewa installed 5,240 photovoltaic panels on the 23,000 square-meters of the roof of the water reservoir at M-Station, which is the newest and largest power production and desalination plant in the UAE. The modules will produce 1.5 MW by converting solar energy into electricity, which will be used to meet the station's energy needs, and will generate 2,666 MW/h of clean electricity annually.
Emirates Solar Industry Association (ESIA)
Contact: Mohamed Elimam - Marketing & Events Manager
Email: mohamed@emirates-sia.com
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Oman to encourage household generation of solar power
Oman will encourage households to generate electricity with solar panels and feed it into the national grid, Qais al-Zakwani, said executive director of the Authority for Electricity Regulation.
The policy could put Oman in the forefront of Middle East nations promoting widespread use of solar power. Its finances severely damaged by low oil prices, the Omani government is seeking ways to save money, including a cut in electricity subsidies for commercial and industrial users.
Oman Solar Industry Association (OSIA) Contact: Haider Al-Zaabi - Country Manager Email: haider@oman-sia.com Website: www.oman-sia.com
New OSIA & Solar GCC Alliance member: SunCnim - CSP manufacturer Innovative and cost effective process for Concentrating Solar Energy (CSP): Oil and Gas Application with Renewable Thermal Enhanced Oil Recovery (EOR)
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New 50 MW university PV project to be built in Jordan
Al-Hussein Bin Talal University signed a memorandum of understanding (MoU) on 25 February with Jordan's FB Group to build two solar PV projects. The first project is a 50 MW solar PV farm to be built on university land and the second project is a 3 MW net-metering system also on university premises. The Al-Hussein Bin Talal University is located 9 Km from the southern city of Ma'an and 210 Km from the capital city Amman. The FB Group is headquartered in Amman and is active in various business sectors including the energy industry, medical devices and systems, and control and automation solutions, among others. Read more: click here
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Jordan Solar Industry Association (JSIA)
Contact: Laith S'ad Basha - Country Manager Email: laith@jordan-sia.com
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Kuwait plans steep rise in electricity charges
Kuwait's government has submitted a draft law that could see bills for heavy consumers of electricity rise by as much as seven and a half times.
The Kuwait Times reported that the law had been submitted to the parliament's Financial and Economic Affairs Committee after being approved by the country's cabinet on Monday. The current cost of electricity in Kuwait is 2 fils per kilowatt-hour (7 US cents). The draft bill proposes raising prices from between 5 fils and 15 fils, for both villas and apartments, depending on the level of consumption. Read article - click here
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Kuwait Solar Industry Association (KSIA)
Contact: Stanley John - Executive Director Email: stanley@kuwait-sia.com
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Qatar: first reverse osmosis water desalination project powered by renewable energy
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Monsson has announced the first reverse osmosis water desalination project powered by renewable energy.
This will be the first automated and remotely controlled plant in the world and is located on a farm in Qatar, owned by Ali Hussain Ali Al-Sada.The plant is low energy consumption and functions without operating personnel.
The new desalination plant comes in the light of Qatar's goal to secure its water supply as the population increases. It is seen as the answer to the rising energy demands, coupled with diminishing fossil fuel reserves. Read more: click here:
Qatar Solar Industry Association (QSIA) Contact: Nadia Hussain - Marketing & Events Coodinator Email: nadia@qatar-sia.com Website: www.qatar-sia.com
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Meba Bahrain to open country's first solar panel plant
Metals of Bahrain (Meba), whose core business is engineered castings, says it is diversifying with the new venture, which will utilize technology and production machinery from a European company that designs and develops manufacturing lines and equipment for photovoltaic panels.
"The project is named Solar-1, signifying it is the first solar panels manufacturing enterprise in Bahrain," said Meba development manager Faisal Khalifeh who is the son of the owner and founder of the company Rami Khalifeh. "The plant will have an initial investment of BD1 million ($2.65 million) and annual capacity to produce 60,000 solar panels that can generate around 15 MW of electricity per year, adequate to power around 200 homes," Khalifeh told Gulf Industry magazine.
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Palestine turns energy focus to renewables with solar tenders imminent
Palestine is turning to renewables to counter unreliable energy imports and save millions of dollars as it implements a new renewable energy law.
Omar Kittaneh, Palestine's minister of energy and natural resources, said at a Clean Energy Business Council event in Dubai that several initiatives were being released this year to bring on 30 megawatts of solar power, which will include the launch of solar power tenders next week.
These tenders will include 10 megawatt solar projects for each of its 11 governorates totalling 110 megawatts, to be added to the grid over the next four years.There will also be about 35MW of solar capacity added to the grid under a net metering system, which is similar to the type of system deployed in Dubai's Shams initiative.
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Palestine Solar Industry Association (PSIA)
Contact: Eng. Fadi Bkirat - Country Manager
Email: fadi@palestine-sia.com
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Renewable energy developers edged out in Egypt's Kom Ombo solar project
Renewable energy developers are being squeezed out of the Egyptian market in the wake of the government's strategy shift.Egypt had originally announced that it would tender 10 projects totaling 20 megawatts each for the Kom Ombo solar photovoltaic (PV) scheme in Upper Egypt. It has now opted to consolidate those into one utility-scale project totalling 200MW, the government-owned Egyptian Electricity Transmission Company. This change, which only allows one winner, is hurting the country's renewable energy market, according to Italy's Building Energy. "This changes a lot in the market in the region in general," said Matteo Brambilla, the managing director of Africa and the Middle East for Building Energy. "The real market is struggling to happen."
Building Energy was pursuing two of the 20MW solar offers but, now that the total has changed to one lump sum, the company and its consortium partners are re-evaluating. This could pose problems for companies that signed bilateral agreements with the Egyptian government last year, meaning that a standard tendering process was avoided by striking a direct deal with the authorities.
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Egypt Solar Industry Association (Egypt-SIA)
Contact: Alan Nagi Elyousfi - Executive Director
Email: alan@egypt-sia.com
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Renewable Energy and Middle East Economic Renewal
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The global oil-price bust has devastated economies across the Middle East and North Africa. Having seen severe price declines in the past, many leaders in the region may be tempted to wait for prices to rise again. But this collapse is different, and governments need new energy and development strategies. Morocco's drive to become a regional renewable-energy powerhouse offers a real option for economic development in other Arab countries.
Morocco has been investing in large-scale renewable-energy projects for some time; but only now are these investments coming online. Perhaps the most impressive is the gigantic Noor-1 solar-energy compound, located in the Moroccan desert near Ouarzazate. Opened on February 4, Noor-1 uses highly advanced technology to store energy for use at night and on cloudy days.
Considered the largest solar power plant in the world, Noor-1 is expected to produce enough energy for more than a million people, with extra power eventually to be exported to Europe and Africa, according to the World Bank. Given that Morocco imports around 97% of its energy supply, and possesses no oil or natural gas deposits of its own, the government has viewed developing renewable energy as the only way to ensure the country's continuing economic development. This is an insight others in the region should heed.
Read article - click hereThe Abu Dhabi renewable energy firm said it had completed the installation of 9,000 out of a total of 17,670 solar home systems, as part of a partnership signed last March with Morocco's Office National de l'Electricité et de l'Eau Potable.
Morocco Solar Industry Association (MSIA)
Email: info@solargcc.com Website: www.morocco-sia.com
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CONFERENCES & EXHIBITIONS
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Featured Event -
Intersolar Middle East takes place 19 - 21 September 2016 at the Dubai World Trade Centre, United Arab Emirates. It is in conjunction with GulfSol, the key event in the Middle East dedicated to the solar industry.
The event's exhibition and conference both focus on the areas of photovoltaics, PV production technologies, energy storage systems and solar thermal technologies.
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