Huge prospects for renewable energy in Mideast

(MENAFN- The Peninsula)

DOHA: The Middle East is in a prime position to grow its renewable energy sector. The past year has seen a number of factors converging to promote renewable energy and financial institutions have an important role to play in promoting the growth of this sector through engagement with public and private sector stakeholders to create a more energy efficient economy.

The second edition of the National Bank of Abu Dhabi (NBAD) report on ‘Financing the Future of Energy’ stated that low oil prices and the cost competitiveness of renewables is encouraging governments to turn to it as a hedge against fossil fuel price volatility.

This combined with governments’ long-term ambitions for greater energy independence by decarbonising their economies will be the key drivers for the transition to a clean energy world.

The report reasserted that even in the current economic climate global energy demand is outstripping today’s supply. NBAD’s research in 2015 found that closing this gap would require $48 trillion of investment over the next 20 years with renewables playing a critical role in the energy mix of the future.

Alex Thursby (pictured) NBAD’s Group CEO said: “Today the question on everyone’s mind is: Will the low oil price environment stall the growth of renewables? We don’t believe so. The underlying drivers for renewables are long term and strong particularly across the West-East Corridor.

“Consumer demand is shifting to a preference for clean energy governments are pushing hard for policy change to decarbonise their economies subsidies for fossil fuels are coming off and renewables have become cost competitive against hydrocarbons with new technologies such as battery storage of clean energy potentially adding to this advantage.

“In this new normal environment there is a huge role for the financial community to play in fostering the growth of this sector. As the leading bank in the Middle East we remain committed to being a positive force in the sector and accelerating the transition to a much needed new world of energy.”

Mark Yassin Head of Global Banking and Co-Head of Wholesale Banking at NBAD said: “Demand for renewable energy continues to grow across the Globe and our research has identified that there is approximately $640bn of investment required for renewable energy projects across Assia and this part of the world.

“For the first time 2015 saw the developing world attract greater capital flows into clean energy than the 30 OECD member countries and we think that the Middle East has timed its entry into this market well. The involvement of the financial community in the region will act as a catalyst for the growth of renewables and we want to play our part by using finance to transform business practices and the energy industry.

“Earlier this year we committed $10bn for environmentally sustainable activities over the next 10 years and are also working on a green bond proposition putting us in the forefront of environmental financing across the West-East corridor.”

The report which was launched on Thursday at the Global Financial Markets Forum in Abu Dhabi was produced by NBAD with contributions from the University of Cambridge and PwC Abu Dhabi’s Sustainability and Renewables team. The Peninsula