Middle East is shifting focus from its most prized asset, hydrocarbons. Oil and gas, though, still dominates the trade in and out of the Middle East but it is looking to develop its renewable sources of energy as well.
Those are the findings of a recent research report “Middle Renewable Energy Sector Analysis” published by KuicK Research, all the countries in Middle East region have started to take the renewable energy way, contrary to their most important possession, non renewable (Hydrocarbons).
The growing economy with growing population has affected a growth in the urbanisation in these nations which has resulted in an increase in consumption of oil and gas. The growing population demands more electricity, power plants based majorly on non renewable sources. The Middle East is one region in the world that requires energy even for drinking water which is produced by desalination of sea water. Growing population means more demand of water requiring more energy. The increasing in house consumption of energy sources has the Middle East worried over the increasing share it has to divert domestically, leaving comparatively lesser for export.
The economy of the Middle East region almost entirely depends on the export of oil and gas to the major markets in the world, Asia Pacific and Europe. With an increase in domestic consumption, as is being predicted, the quantity available for export will keep on reducing leading to a decrease in revenue, jolting the whole economy on the countries. The signs of decrease in the oil and gas exports have already begun to show reflecting in the decreased petro-dollars from the commodities and the governments increasingly trying to diversify their industries. The nations have started realising that they can’t depend on oil and gas forever to produce electricity and water and have, thus, now started looking towards renewable sources of energy for power generation.
The financial capability of the Middle East countries to support the advent of renewable energy in their power system is beyond a doubt. However, renewable energy initiatives still take a back seat in the energy agenda of these countries mainly because of it being the comparatively more expensive source of power than the subsidised fossil fuel power generation and distribution. But the ample solar power availability and wind power in some regions are factors which when seen together with the need and the opportunities obtainable are big enough to attract attention of the industry majors.