Abu Dhabi: The Gulf Cooperation Council (GCC) countries are likely to spend up to $25 billion (Dh91.80 billion) over the next decade to install new power generation capacity to meet their burgeoning electricity demand, Adnan Ameen, director-general of the International Renewable Energy Agency (Irena) said here Tuesday.
"As a result of high economic and population growth rates, regional energy demand and electricity consumption are increasing rapidly. Just to meet this demand, the GCC will require 100 GW (gigawatts) of additional power-generating capacity over the next ten years. This translates to an investment of $25 billion," Ameen told delegates at a conference on global energy organised by the Emirates Centre for Strategic Studies and Research (ECSSR).
Ameen said the rapid increase in electricity consumption is having a substantial effect on the region's oil and gas industries.
Shortage
"It is boosting demand for natural gas, which is creating a gas supply shortage in the region. It is also boosting demand for the region's heavily subsidised hydrocarbons which, in turn, is reducing the volumes exported and the revenues received," he added.
Ameen said the UAE has taken bold strides towards diversifying its energy sources and creating a more sustainable future for its population. It has launched the Masdar initiative, investing billions of dollars in developing renewable energy projects, including Masdar City, the world's first zero-carbon zero-waste city; and the Masdar Institute, which is focused on research into alternative energy technologies and sustainable development issues.
He said other GCC countries are investing in renewable energy projects as well.
"Bahrain is planning a large offshore wind farm; Kuwait aims to install considerable solar generation capacity; Oman is planning six renewable energy pilot projects; Qatar is considering investments in seven solar plants and Saudi Arabia has plans for $133 million in renewable energy projects."
Ameen said Irena foresees that by the middle of this century, renewable energy has the potential to become a leading economic sector in GCC countries.
"With its endowment of natural resources, the GCC can not only meet its domestic energy demand, but could also become a major exporter of energy derived from renewable resources," he added.
Ameen said renewable energy is one of the few hopes for tackling perhaps the greatest challenge of the 21st century: ensuring continuing energy security, and providing energy access to millions of those still deprived of it, while preventing catastrophic climate change.
Utilisation
He said although growth in the global utilisation of renewable energy is encouraging, there is still a long way to go.
"The GCC is already on its way to fulfilling the energy promise of this historic and strategic region, and with commitment and vision, could one day also be recognised as global leaders in the field of renewable energy," said Ameen.
