Renewable energy projects are the fastest growing segment in project financing in the Middle East and North Africa (MENA).
From wind farms in Turkey to solar plants in Morocco, countries in the region are rushing to jump on the renewable bandwagon. Debtwire CEEMEA has compiled a list of renewable energy initiatives being undertaken by the MENA countries in order to stay ahead of the game.
1)In 2017, the UAE launched its energy strategy for the next three decades, aiming to increase the contribution of clean energy in the total energy mix to 50 percent by 2050. Solar power features heavily in its plans and is expected to account for 25 percent of the generation mix, once a 5GW solar park is fully commissioned in 2030.
In the UAE, Dubai is targeting the 75 percent mark by 2050, according to its 2015 Clean Energy Strategy, which will entail the creation of an AED 100 billion fund.
2) Under its National Energy Plan, Bahrain aims to source five percent of its electricity consumption from renewable resources by 2025. This figure is set to rise to ten percent by 2035. Accordingly, a tender was floated towards the end of last year for the country’s first solar plant with a 100MW capacity.
3)Lebanon is focusing on alleviating its energy bill by exploring its own conventional resources, soliciting bids for its offshore gas blocks, with estimated reserves of 100 trillion cubic feet. In early-February 2018, its utility Electricite du Liban signed the first ever power purchase agreement (PPA) for a 200MW wind power project, and is tendering the 300MW second phase of the project.
4)Egypt is working on generating 1,365MW across 30 solar plants from its Ben Ban project, under round two of its Feed in Tariff (FiT) programme, while tendering the West Nile IPP, a 600MW wind energy project.
5) Primed to become MENA’s wind powerhouse, Morocco wants to add 1.5GW of renewable capacity annually from solar and wind sources, to meet its goal of powering 42 percent of its energy mix from non-fossil resources by 2020. The country hopes to become a solar exporter and overhaul its economy with projects such as the Noor Complex, expected to be the world’s largest concentrated solar power (CSP) plant.
6)Jordan, which spent 20 percent of its GDP in 2015 on importing energy, has been very active in recent years in promoting solar energy. The kingdom recently closed financing for a Masdar-led 200MW solar PV project, Baynouna.