Renewable energy is the most competitive form of power generation in the Gulf Cooperation Council (GCC) countries, according to a new report published on January 15 by the International Renewable Energy Agency (IRENA).
Abundant resources, together with strong enabling frameworks have led to solar PV prices of below 3 cents per kilowatt-hour and dispatchable concentrated solar power (CSP) of 7.3 cents per kilowatt-hour, which is less than some utilities in the region pay for natural gas.
IRENA’s new ‘Renewable Energy Market Analysis: GCC 2019’ launched during Abu Dhabi Sustainabilty Week, says achieving stated 2030 targets can bring significant economic benefits to the region including the creation of more than 220 000 new jobs whilst saving over 354 million barrels of oil equivalent (MBOE) in regional power sectors. The targets could reduce the power sector’s carbon dioxide emissions by 136 million tonnes while cutting water withdrawals in the power sector by 11.5 trillion litres in 2020.
The findings come as GCC economies seek to diversify their economies against the backdrop of fast-growing domestic energy demand and a desire to safeguard hydrocarbon export revenues for the future.
“The GCC is among the most attractive regions in the world to develop large-scale solar and wind energy projects as a result of resource abundance and a favorable policy environment, a fact that is backed up by record low prices,” said IRENA Director-General, Adnan Z. Amin. “As a fossil-fuel exporting region, the GCC’s decisive move towards a renewable energy future is a signal to global investors and to the energy community that we are experiencing a step-change in global energy dynamics and a true energy transformation.”
With renewable energy targets now in place across the region, the GCC is poised for a significant acceleration in renewables deployment as countries pursue national goals. Under current plans, the region will install a total of almost 7 gigawatts (GW) new power generation capacity from renewable sources by the early 2020s.
Read and download the report: Renewable Energy Market Analysis: GCC 2019
Original source: IRENA
Published on 15 January 2019
