Photovoltaic (PV) developments in the Middle East and North Africa (Mena) region will mainly depend on the number of large-scale projects, such as the Desertec and MedGrid project, the 2013 PV and Solar Market Intelligence Report by Ispy Publishing has found.
The report also revealed that the Mena region could become home to a new industry with great potential in a region with considerable solar energy resources. If the concentrated solar power (CSP) market increases rapidly in the next few years, the region could benefit from significant job and wealth creation, as well as from enough power supply to satisfy the growing demand. The world‘s renewable energy sector, the report found, would also benefit from increased competition and lower costs in CSP equipment manufacturing.
Research carried out by Standard Chartered Bank’s Renewable Energy and Environmental Finance team, a PV project in the GCC would generate a real Internal Rate of Return (IRR) of 9.4 per cent if oil prices rise to $163/bbl (in real 2010 terms) by 2030. Even in the case of flat real oil prices to 2030, the project would still generate a rate of return of 4.6 per cent.
According to the Mena Renewables Status Report 2013, issued by Meed Insight, more than 100 renewable energy projects including solar, wind and biomass are currently under development in the region.
Renewable energy investment in the region grew by 40 per cent in 2012 compared with 2011, whereas worldwide investment in the sector reduced by 12 per cent. The report noted that regional investment topped $2.9 billion (Dh10.6 billion), indicating that the sector is undergoing a transformation from niche market to regional phenomenon.
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