|By Emad Aysha
According to a recently published report, ‘Middle East and Africa Solar Panel Market, 2019-2027’, the Middle East region had witnessed an increase in the total primary energy production from 77.964 quadrillion Btu in the year 2013 to 87.839 quadrillion Btu in the year 2016.
The Middle East and Africa Solar Panel Market has grown as well but is ‘mixed’ since growth rates varied widely in different countries depending upon such key factors as the availability of natural resources and access to energy at affordable rates.
More generally the demand for power and energy in the region has also been growing, with some countries generating high demand for power and energy, pushed by economic growth rates. There is also the growing population, higher economic growth in some nations and better access to affordable energy in some parts of the region.
The power sector recorded a growth rate of 2.3% per annum for energy, the largest rate measured for all sectors in the region.
The Industrial sector’s energy consumption grew at 2.0% per annum. Put together, power and industry contributed about 69 % growth in incremental energy demand.
Energy demand in the Middle East had risen by 2.4% in 2018, but nearly half of the energy consumption in the region is from oil. Renewable energy on the other hand have contributed only 6% of the total installed power generation capacity in the Middle East region, with only 4 out of 22 Member States observing a commitment to non-hydrocarbon renewable energy growth.
To date only six percent of total installed power generation capacity was from renewable. Investment saw a nine fold increase however, reaching $11 billion, as compared to $1.2 billion in the year 2008 according to International Renewable Energy Agency (IRENA).
The third Arab Economic and Social Development Summit by the League of Arab States, in 2013, committed the Arab states to the promotion of renewable and clean energy, hoping to expand region’s installed renewable power generation capacity to 80 gigawatts (GW) in 2030 from 12 GW in 2013.
Saudi Arabia has created a world record in solar prices worth 17.8 USD/MWh for the Sakaka project in, as have Abu Dhabi and Dubai with 24.2 USD/MWh and 29.9 USD/MWh respectively.
The report finally concluded that huge investments in the Middle East & North Africa (MENA) region are expected to follow and could exceed $30 billion a year. This amount is anticipated to equal at least 3% of Gross Domestic Product (GDP) in the MENA region. This is to meet the rising demand of energy consumption and growing population.
The Middle East contributes about 36% of the global liquids production with 20 % of global production of natural gas. Middle East contributed about 15.52 % of the global energy production in the year 2016 as compared to 14.02% in 2013.
The report was compiled by marketing research and consulting solutions firm CRIFAX.
The CRIFAX report includes a database of market research collaterals consisting of overall market scenario to help project future growth prospects, in addition to recent trends, mergers and acquisitions, growth analysis and the listing of challenges affecting the growth of the market.