Renewable energy efforts show the region is gradually shifting to sustainable alternatives.
FREMONT, CA: Middle East oil and gas deposits have generated income for decades. Government incentives for alternate energy consumption have made fossil fuels the cheapest option for many, which explains the delay in renewable energy adoption. Increasing support for renewables has demonstrated that regional governments are steadily adopting sustainable alternatives in recent years.
Thermal power dominated the power mix in 2021, accounting for more than 90 percent of total energy consumption, according to GlobalData on Energy Transition in the Middle East. Natural gas served as the primary fuel source, and external circumstances have hampered rising efforts to gradually reduce reliance on fossil fuels. Middle Eastern natural gas production is expected to increase due to the sanctions against Russia, the world's second-largest natural gas supplier after North America. Around 30 percent of oil-fired power capacity will be lost by 2030. Growing demand for low-carbon fuels favors natural gas over oil and coal, resulting in this gap.
Policies and alliances for green technologies
Despite the absence of renewable energy policies in the United Arab Emirates (UAE), sophisticated emirates such as Abu Dhabi and Dubai have taken significant measures to implement policies in their respective domains. The regulatory policy for electric vehicle (EV) charging infrastructure published by the Abu Dhabi Department of Energy in May 2022 is one example; it aims to build a clear framework for EV ownership and administration. In the past year, the successful rollout of government-mandated Covid-19 vaccines demonstrated that the efficacy of innovative technology and concepts is ultimately dependent on appropriate legislation. The Qatari commitment to electrifying its public transportation is a praiseworthy one made possible by the Qatar Free Zones Authority's active efforts to establish e-bus companies.
Middle Eastern nations can spearhead hydrogen projects and export hydrogen thanks to natural gas deposits. The UAE-Germany Hydrogen Partnership, Saudi Arabia-Germany Hydrogen Agreement, and UAE-Japan Agreement are well-established collaborations among hydrogen-importing countries. Local authorities and foreign interests are contributing to the spread of hydrogen-based initiatives, including proposals for an ammonia plant in Neom. The Gulf States, however, dominate efforts.
