Renewables Market in MENA

MENA region has an attractive market for renewables due to abundant availability of solar and wind resources. According to a recent IRENA report, the region is anticipating renewable energy investment of $35 billion per year by 2020. Recently, the MENA region has received some of the lowest renewable energy prices awarded globally for solar PV and wind energy.

mena-renewables

Regional Developments

Among MENA countries, Morocco has emerged as a role model for the entire region. The government’s target of 2GW of solar and 2GW of wind power by 2020 is progressing smoothly with the commissioning of Nour-1 Solar project. Jordan and Egypt are also making steady progress in renewable energy sector.

As far as GCC is concerned, the UAE has also shown serious commitment to develop solar energy. The 100MW Shams CSP plant has been operational since 2014 in Abu Dhabi while 13MW Phase I of Dubai’s solar park was completed in 2013. In Saudi Arabia, the newly launched Vision 2030 document has put forward a strong regulatory and investment framework to develop Saudi clean energy sector which should catalyse renewable energy development in the country.

Renewables – A boon for MENA

Renewable energy has multiple advantages for MENA in the form of energy security, improved air quality, reduced GHG emissions, employment opportunities, apart from augmenting water and food security.

The business case for renewable energy proliferation in MENA is strengthened by plentiful availability of natural energy resources and tumbling solar PV technology costs which are leading to record low renewable power generation costs. The recent auction for the Mohammed Bin Rashid Al Maktoum Solar Park 2 in Dubai yielded prices as low as 5.85 US cents per kWh which is one of the lowest worldwide.

Impact of Falling Costs

The falling costs will have a significant positive impact in the developing world where tens of millions of people still lack access to cheap and reliable supply of energy. Reducing costs will help MENA, especially GCC, to meet its target of steady transition towards renewable energy and thus reducing dependence on fossil fuels for power generation and seawater desalination.

The slump in renewable energy tariffs will also encourage utility companies in emerging markets to include more renewable energy in transmission and meet the targets set by respective countries. However, it should also be noted that there have been several instances where the actual renewable energy production failed to take place because of low bids.

Emerging Trends

Off-grid renewable energy technologies have tremendous potential to popularize clean energy among remote and marginalized communities across the world. Access to clean, reliable and relatively cheap energy from renewable resources, especially solar power, will usher in a new era in developing countries. Off-grid (or standalone) renewable power systems are already making a meaningful difference in the lives of millions of people across the developing world.

In recent years, Morocco has made remarkably swift progress in renewable energy sector.

In recent years, Morocco has made remarkably swift progress in renewable energy sector.

Advancements in battery energy storage have pushed this particular sector into media as well as public spotlight. With big industry names like Tesla and Nissan leading from the front, energy storage technologies are expected to make great contribution in transition to green grid powered by intermittent energy sources like solar PV, CSP, wind and biomass.

Concentrated solar power (CSP) has the potential to transform seawater desalination industry, one of the largest energy consumers in the Middle East. CSP offers an attractive option to power industrial-scale desalination plants that require both high temperature fluids and electricity.  CSP can provide stable energy supply for continuous operation of desalination plants, based on thermal or membrane processes. Leading CSP technology companies are already taking a keen interest in Middle East CSP market and rapid developments are expected in the coming years.

Key Hurdles to Overcome

Lack of strong regulatory framework, low renewable energy tariffs and weak off-take mechanisms are some of the issues confronting renewable energy projects in MENA. Regulatory framework in the GCC is in early stages and marred by heavy subsidy for oil and gas. The largest barrier to growth of solar sector in MENA has been the lack of renewable energy policy framework, legislations, institutional support, feed-in-tariffs and grid access.

The power sector in MENA is, by and large, dominated by state utilities which discourage entrepreneurs and Independent Power Producers (IPPs) to enter the local markets. Lack of open and transparent market conditions in MENA are acting as deterrent for investors, technology companies and project developers.

Among regional countries, Jordan and Morocco have the most advanced legal infrastructure in place to support renewable energy projects, followed by Saudi Arabia and the UAE.

Tips for New Entrants

MENA solar market is complex due to different electricity market structure and myriad challenges in each country. Different countries have different motivations for renewable energy. Solar companies who want to foray in MENA market must give special attention to land access, grid access, transparent licensing schemes, high-quality meteorological data, creditworthy customers, long-term off-take contracts, soiling of PV panels and related issues.

Solid Waste Management in Morocco

Solid waste management is one of the major environmental problems threatening the Kingdom of Morocco. More than 5 million tons of solid waste is generated across the country with annual waste generation growth rate touching 3 percent. The proper disposal of municipal solid waste in Morocco is exemplified by major deficiencies such as lack of proper infrastructure and suitable funding in areas outside of major cities.

solid_waste_morocco

According to the World Bank, it was reported that before a recent reform in 2008 “only 70 percent of urban wastes was collected and less than 10 percent of collected waste was being disposed of in an environmentally and socially acceptable manner. There were 300 uncontrolled dumpsites, and about 3,500 waste-pickers, of which 10 percent were children, were living on and around these open dumpsites.”

It is not uncommon to see trash burning as a means of solid waste disposal in Morocco.  Currently, the municipal waste stream is disposed of in a reckless and unsustainable manner which has major effects on public health and the environment.  The lack of waste management infrastructure leads to burning of trash as a form of inexpensive waste disposal.  Unfortunately, the major health effects of burning trash are either widely unknown or grossly under-estimated to the vast majority of the population in Morocco.

The good news about the future of Morocco’s MSW management is that the World Bank has allocated $271.3 million to the Moroccan government to develop a municipal waste management plan.  The plan’s details include restoring around 80 landfill sites, improving trash pickup services, and increasing recycling by 20%, all by the year 2020. While this reform is expected to do wonders for the urban population one can only hope the benefits of this reform trickle down to the 43% of the Moroccan population living in rural areas, like those who are living in my village.

Needless to say, even with Morocco’s movement toward a safer and more environmentally friendly MSW management system there is still an enormous population of people including children and the elderly who this reform will overlook.   Until more is done, including funding initiatives and an increase in education, these people will continue to be exposed to hazardous living conditions because of unsuitable funding, infrastructure and education.