Abu Dhabi: Renewable sources of energy are a necessity as conventional energy sources are not sufficient to fuel the rapid growth of the global economy, Mohammad Bin Dha'en Al Hameli, UAE Minister of Energy, said on Tuesday during the World Future Energy Summit 2010.
Al Hameli made this observation during the energy ministers' roundtable conference when asked whether renewable energy is a necessity or a luxury.
"Fossil fuels are not enough to meet global economic growth. There is room for fossil fuels, nuclear energy and renewables," he said. "All sources of energy complement each other."
Speaking about the UAE's recent nuclear deal with South Korea, Al Hameli said it's part of the country's strategy to diversify its sources of energy.
"It's important as the UAE doesn't have enough natural gas to fuel its economy. Fossil fuels, nuclear energy and renewables bring a good balance to the UAE's energy security for sustainable economic growth," he said.
Al Hameli said the world energy markets are currently oversupplied with around 59 days of forward cover.
"I am not comfortable with the volatility in [oil] prices," he said.
Speaking on the sidelines of the energy forum, Qatar's Energy Minister Abdullah Bin Hamad Al Attiyah said the Organisation of Petroleum Exporting Countries (Opec) is unlikely to cut oil supply at its next meeting in March.
"The price of oil at $70-$80 per barrel is reasonable for both consumers and producers. We hope it will enable the world economy to recover," Al Attiyah told Gulf News.
Oil prices are presently about $78 after slumping below $33 in December 2008 at the peak of the global financial crisis.
A fragile global economic recovery has helped oil prices to more than double from their 2008 lows. However, the prices are nowhere close to their lifetime high of $147 per barrel witnessed during July 2008.