The Mena region is making much headway in solar energy with the governments and private players realising its potential. There are currently over $2.7 billion worth in solar projects across the region.

As solar innovation and research continues, panel prices reduce and fossil fuel prices increase, solar energy will become more cost- competitive, says Muhammed Kazi, the project manager of GulfSol event, in an interveiw with TradeArabia.

Continuous development, innovation and research are an integral part in unravelling solar technology to become more viable, he says.

GulfSol 2015, the region’s leading solar technology event, opens today (September 14) at the Dubai World Trade Centre and it will run till September 16. Global Solar Leaders’ Summit will also takes place during the event today.

Excerpts from the interview:

1. How do you see the growth in solar energy use in the region? Do you think enough investments are being made?
Solar potential in the Mena region is vast, the GCC countries are blessed not only with an abundance of sunshine, but they also have access to copious amounts of revenue from oil, trade and tourism, putting them at an advantage to many other countries.

With some of the highest solar irradiation levels in the world, massive stretches of uninhabited desert land on which to build capacity, the region, from a technical stand-point can easily sustain its own energy needs and also cater to the rest of the world’s power needs through solar energy.

With large projects currently in the pipeline, the desire to move towards solar energy seems to be increasing in the region. There are currently over $2.7 billion worth in solar projects across the Mena region, including a new $75-million solar plant in Egypt, $6.9 million worth of contracts across Jordan, and several more across the GCC, demonstrating the region’s ability to become a hub for solar development and innovation.

2. Where do you see the sector heading with oil prices where they are at the moment?
As solar innovation and research continues, panel prices reduce and fossil fuel prices increase, solar energy will become more cost- competitive. Continuous development, innovation and research are of course an integral part in unravelling solar technology to become more viable. Combined with positive backing from governments and policy makers, making favourable and sustainable solar policies will help increase the viability of solar technologies.

An example of the reduction of cost is the recent Dubai Electricity & Water Authority (Dewa) tender for a 100 MW solar PV power plant. Dewa was able to secure a 25-year electricity tariff of approximately $0.06/ kWh. This tariff is broadly in line with the price of generating power from natural gas, the staple fuel for much of the region’s power generation infrastructure. In parallel, solar prices are reducing as the cost of generating electricity from natural gas is increasing.

Here in the UAE, the government has historically been able to produce or import natural gas for less than $2.00/MMBtu, resulting in natural gas-based electricity generation at very low cost. Today, however, much of the new domestic natural gas production could cost up to $8.00/MMBtu to deliver to the market due to high concentrations of hydrogen sulphide (H2S) or carbon dioxide (CO2), which are toxic and corrosive. LNG imports – which started in 2010 in Dubai and may begin on a larger scale in Abu Dhabi as early as 2016 – cost more than $12.00/MMBtu. By comparison, the cost of solar today is equivalent to burning natural gas at approximately $4.00/MMBtu.

Apart from the government initiatives, do you see a major role for the private sector in the field of solar power?
We are seeing an increase in interest in solar energy in the region as policy makers, governments and private companies collaborate to welcome renewable energy sources. To achieve genuine adoption of solar power, it is fundamental that GCC countries evaluate generation technologies on the basis of the overall opportunity cost and of the actual cost of conventional sources.

The two go hand-in-hand in the sense that the government initiatives are fuelled by stakeholders in the private sectors, and private sectors businesses are thriving because of government initiatives.  

Do you think rules that will make harnessing solar energy mandatory in the housing sector will be helpful?
Earlier this year, Dewa launched the start of its first smart initiative, the Shams Dubai, to regulate the generation of solar energy for houses and buildings across Dubai. The project supports the Green Economy for Sustainable Development economic initiative, which was launched by His Highness Sheikh Mohammed Bin Rashid Al Maktoum. Council Resolution Number 46 of 2014, issued by Sheikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council, allows customers to install photovoltaic panels to generate electricity from solar power in buildings.

What does GulfSol offer to the region's consumers and the industry? What are its main features?
The exhibition will provide a platform for industry professionals to meet with the top global suppliers of solar products and services including raw materials, components and cutting-edge technology.

Visitors can take advantage of the workshops and register as delegates in Global Solar Leaders Summit, a high-level summit, which brings together senior government officials and private sector stakeholders from across MENA to discuss the region’s solar future.

GulfSol 2015 aims to assist the UAE’s sustainability vision 2021 to transform the energy-rich nation into a clean energy regional center.

The Global Leaders Summit (GSLS) will be an incubator for innovation, ideas and developments for solar technology and will provide a platform for key stakeholders across the region to connect under one roof. The objective of GSLS is to create a summit that focuses on how to action the strategies and achieve the vision of a sustainable future.
The event will bring together over 200 global influencers, senior government representatives, academia, private sector CEOs and global institutions to discuss the opportunities and challenges ahead for regional governments and the wider solar energy market as it works towards achieving diversified and sustainable energy portfolios through ambitious renewable energy targets.

Creating awareness is the key for further growth in the sector. What steps are needed in this direction and how is GulfSol helping?
As a region we are making headway. The investment in solar energy has increased and governments are now realising its potential. Solar Impulse 2 is a great example of how innovative the region has become. The takeoff drew attention to the UAE, demonstrating the UAE’s commitment to implementing the use of solar energy.

GulfSol and the Global Solar Leaders’ Summit will address the role solar energy plays in the regional vision to become more sustainable nations. The summit will see a number of thought-provoking discussions take place, whilst the exhibition will enable industry professionals to explore and nurture new partnerships and opportunities arising between businesses in Mena region. – TradeArabia News Service