Regional cleantech investments to rise in next five years

Dubai: As many as 65 per cent of Mena executives expect an increase in regional cleantech investments over the next five years, a report has claimed.

The Ernst & Young survey was carried out at the 2011 World Future Energy Summit (WFES) in Abu Dhabi and provided insight into the outlook of active cleantech players in the Mena region.

"According to the respondents of the Mena survey, the region has been ranked one of the most attractive regions for cleantech investment after China and Europe, and there is a high degree of optimism within the region about its growing role and investments into its cleantech industry," said Nimer Abu Ali, Mena Head of Cleantech, Ernst & Young.

However, the results of the survey also revealed that many of the respondents felt that insufficient government support was the single most important barrier to the development of renewable energy in the region.

The report revealed that the key drivers of new cleantech investment in the region were government policy, responses to climate change, water scarcity and solar irradiation.

Leading role

"In the past couple of years, global awareness about the effects of climate change and the emission of greenhouse gases has led to many countries, including those in the Mena region, to invest in cleantech technologies, said Samuel Keehn, environmental and sustainability manager, Energy Management Services Int.

"The growth in the UAE population coupled with the scarcity of water in the region have also fuelled the need for both short-term and long-term investment in the renewable energy sector," Keehn added.

The results of the survey also revealed that most of the investment will be in solar thermal energy technologies and photovoltaics given the sunny climate of the region. Other sectors that will see heavy investment include water technologies, green building technologies, waste to energy and recycling technologies and wind technologies.

The Mena region is expected to be a leading region for developing water technologies to combat the problems stemming from overtaxed local water resources.

Governments and utilities are heavily investing in innovative and low cost desalination, filtration and efficiency technologies to ensure that residents continue to receive a safe water supply.

Respondents also felt that the Mena region will take a leading role in the Green Building technology sector.

The Masdar City project in Abu Dhabi is an example of the growing interest in renewable energy within the UAE and demonstrates how clean technologies can be integrated into newly constructed buildings, neighbourhoods and even entire cities.

The growing interest in renewable energy technologies comes as a welcome change for countries like the UAE, Qatar, Bahrain and Kuwait that were among a list of countries with the highest carbon emissions per capita. This however is set to change with projects such as the Desertec/Transgreen/Mediterranean Solar Plan.

Involving more than 40 countries around the Mediterranean, this initiative calls for the creation of a high-voltage supergrid to pipe solar power from the Sahara to the energy markets of Europe. When asked about the initiative, 89 per cent of the respondents at the WFES felt that the programme would be realised, either fully as planned or at a reduced scale.