Development of new energy resources need of the hour

Why would you dig a well near a river? The question was raised by a participant in the Energy Conference organised by the Emirates Centre for Strategic Studies and Research in Abu Dhabi last month.

This was discussed while the GCC countries are considering setting up nuclear energy plants and programmes to develop solar energy.

However, the truth lies elsewhere. The river mentioned by the foreign expert can dry up, and the oil is expected to run out in forty years, according to British Petroleum. This point of view lacks farsightedness and strategic aspect, which takes into consideration the current major changes in the world energy balance.

There are many arguments against this opinion, first of which is that most world countries have begun setting their energy strategies for the coming decades, such as the US, Europe, Japan, Russia, China and India, which have a joint project to set up the first electronuclear plant by 2030, despite all contradictions and conflict of interests among these countries.

Arab countries, which suffer from water scarcity and will be affected more than others by climatic changes, must build their own energy strategy, which should be based on more than one source.

There is also an important economic factor to be considered, which is the cost of generating energy. Currently, nuclear energy is the cheapest means to generate electricity.

For instance, atomic generators supply France with more than 80 per cent of its requirements of electric energy and there are many safe means to avoid leaks or defects in these generators. In addition to the possibility of oil and gas depletion, the issues of environment and pollution are placed high on future energy agendas of all countries, since hydrocarbon sources of energy are the worst pollutants compared to other sources of energy.

Arab countries possess the indepletable and clean solar energy, which is gaining increasing significance. Solar energy is expected to constitute 30 per cent of the total energy consumption in the world by 2040.

According to a news report issued by the Observer last week, European Union countries allocated 7.5 billion euros to set up giant plants to produce solar energy in Northern Africa, to supply Europe with a third of its energy requirements through undersea cables through the Mediterranean. This indicates that GCC countries should not shy away from using alternative sources of energy under the pretext of having oil.

This does not mean ignoring the oil wealth and putting it on the backburner, simply because oil and gas resources will provide all the necessary raw materials for producing a lot of indispensable modern commodities and fertilisers which will be used in many areas in future.

The energy strategy of GCC countries should be based on developing cheap and renewed resources of energy, provided that a gradual replacement process be adopted up to 2030 while benefiting from oil and gas as a main source of energy and an important primary source for producing many commodities, including petrochemicals.

Such a strategy would help GCC countries cope with any changes in the global energy market and benefit from its hydrocarbon resources in case of development of alternative resources in future.

Finally, it is very important for the GCC countries to play a role in the solar energy development process with reference to the wise decision by the Abu Dhabi government to set up the Abu Dhabi Future Energy Company (ADFEC).

This is the first step in the right direction as this company can be turned into a regional centre to develop renewed and clean energy resources.

The writer is a UAE economic expert.

Arab countries possess the indepletable and clean solar energy, which is gaining increasing significance.