Renewable energies represent the future, with wind, solar and hydropower becoming increasingly important in percentage of global energy consumption. Population growth, economic development and climate change have created a fundamental shift away from fossil fuels, creating a lack of supply in alternative energy sources to meet growing demand.
The move to renewable energy has already enabled “grid-parity” in many developed countries and is driving the need for nations rich in natural resources to both diversify and take advantage of their assets and successfully exploit this “perfect storm.”
In 2016, Algeria launched an ambitious energy program targeting renewable resources to represent 30 percent of energy production by 2030. This goal includes 13.5 GW in Ground Mounted Solar PV. Algeria also has planned major investments to extend its high-tension power transmission networks in the next decade; Tell estimates nearly three GW will grid-connected within the next three to four years.
In Iran, the minister of energy recently announced the guaranteed purchase of electricity at fixed rates from renewable and clean power plants. The country hopes that this will promote the widespread adoption of renewable energy sources, as well as enhance private sector participation.
In the UAE, the lowest-ever bid in terms of kilowatt-hour recently was recorded for a solar park project, indicating a clear path towards development of this sector in the GCC countries.
Solid resource plant infrastructure is critical in meeting tomorrow’s energy needs. With declining costs of technology and improvement in performance, it has become increasingly attractive to invest in this domain.