• 4 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 7 minutes Countries with the most oil and where they're selling it
  • 10 minutes Stack gas analyzers
  • 13 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 15 hours US Military Spends at least $81 Billion Protecting OPEC Persian Gulf Oil Shipping Lanes (16% DoD Budget)
  • 1 day China To Promote Using Wind Energy To Power Heating
  • 5 hours How many drilling sites are left in the Permian?
  • 15 hours "Undeniable" Shale Slowdown?
  • 1 day Climate Change Protests
  • 1 day Gas Flaring
  • 18 hours Overheating the Earth: High Temperatures Shortened Alaska’s Winter Weather
  • 16 hours Mueller Report Brings Into Focus Trump's Attempts to Interfere in the Special Counsel Investigation
  • 6 hours U.S. Refiners Planning Major Plant Overhauls In Second Quarter
  • 2 days Oil at $40
  • 7 hours Trudeau Faces a New Foe as Conservatives Retake Power in Alberta
  • 14 hours Everything Is Possible: Germany’s Coal Plants May Be Converted to Giant Batteries
  • 2 days Negative Gas Prices in the Permian
  • 2 days Japan’s Deflation Mindset Could Be Contagious

Breaking News:

Guaido Takes Strides To Topple Maduro

Alt Text

EV Superchargers Are Already Here… But There’s A Catch

Super capable electric vehicle chargers…

Alt Text

The Next Frontier In Energy Storage

Battery recycling is the next…

Darrell Delamaide

Darrell Delamaide

Darrell Delamaide is a writer, editor and journalist with more than 30 years' experience. He is the author of three books and has written for…

More Info

Trending Discussions

Renewables Poised For Massive Growth In The Middle East

Growing scale in renewable energy projects has sharply reduced the price of sustainable energy to near parity with fossil fuels, creating new opportunities for energy companies but also for investors.

This is the thrust of a report published this month by the National Bank of Abu Dhabi entitled "Financing The Future Of Energy," prepared by the University of Cambridge and PricewaterhouseCoopers.

The report focuses on renewable energy prospects in the wider Gulf region – the ‘West-East corridor’ stretching from Africa into Central Asia – in the context of global energy development.

According the report, US$48 trillion will need to be invested in energy infrastructure worldwide over the next 20 years, with the bulk of that investment in non-OECD countries such as those in the Gulf.

Related: Middle East Oil Addiction Could Spell Disaster

Energy demand in MENA (Middle East-North Africa) is expected to grow at three times the global average in 2013-2019, at 8.3% a year.

‘The vibrancy of these economies is driven by the rise of new megacities, rapid industrialization and increasing middle class wealth and expectations,’ NBAD chief executive Alex Thursby says in a foreword to the report.

Prices for new sustainable energy have fallen so dramatically in the past few years that perceptions have failed to keep up, the report says. The price for solar PV has fallen by 80% in six years, and onshore wind by 40%.

A new global benchmark for utility scale solar PV was set at the end of 2014, the report says, as the 200 MW Dubai Electricity and Water Authority (DEWA) bid in Dubai showed that photovoltaic technologies are competitive with oil at US$10 per barrel and gas at US$5 per MMBtu.

Related: The U.S. Will Spend $5 Billion On Energy Research In 2015 – Where Is It Going?

For the last few years, the report says, more than half of the total investment in new electricity generation worldwide has been in renewable technologies. In 2014 alone, US$150 billion was invested in solar and US$100 billion in wind globally.

This kind of scale means that renewable energy projects can now draw on the full panoply of financing used for large infrastructure projects.

Recent wind and solar projects have used new financing approaches, such as securitization, aggregation and green bonds. These projects can also lend themselves to Special Purpose Vehicle financing, with the advantages this brings for limiting liability but also for channeling government input.

Government policies have an important role to play, not only in setting energy and environmental goals, but in providing guarantees in the form of power purchase agreements or procurement frameworks.

Related: Nicaragua On Course To Become Renewable Powerhouse

Banks – including regional institutions like NBAD – will have a role to play in financing, but other financial service groups as well. As new restrictions from Basel III put limits on infrastructure loans from banks, it creates opportunities for insurance companies, pension funds and other long-term investors.

In the Middle East, the growing Sukuk market is poised to play a role in financing renewable energy projects. Sukuks are tradable Islamic finance instruments, often compared to bonds but containing some equity elements. Already the first ‘Green Sukuks,’ similar to green bonds, are appearing, offering an investment opportunity for non-Islamic investors who might not otherwise invest in this asset class.

As for the recent plunge in oil prices – not to worry, says the report. Oil accounts for only 5% of electricity generation worldwide, so investment in renewable power generation is little affected by the price of oil. The Middle East produces a much higher portion of electricity from oil but regional governments are making it a priority to shift away from this use.

By Darrell Delamaide for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment
  • Lee James on March 20 2015 said:
    In all the world, oil is an amazing energy source and industrial feedstock. Thank you, Middle East, for starting to set the example on how to use oilresponsibly. I'm glad that you have so much solar access in your region!

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News