Solar Powering development at a competitive price in the Gulf States Region
Dr Mohammad Al Assoumi, Special to Gulf News
Source: Gulf News / 29 march 2007
http://www.gulfnews.com/business/Comment_and_Analysis/10114313.html
Scientific developments in the field of solar energy emerged more than twenty years ago, leading to many questions about the future of the oil era and the emergence of a solar energy era. Views concerning oil exporting countries benefiting from the new solar energy and its relation to hydrocarbon energy varied. The answer came from Abu Dhabi, where oil was used to build up alternate energy sources, especially solar power.
The government of Abu Dhabi decided to construct a huge electricity generating station utilising solar power costing Dh350 million. This station will be the first of its kind in the world’s largest oil exporting region. In principal, the station is expected to start operation in 2009, to produce 500 megawatts, and power 10,000 residential units in the UAE capital.
This step is considered a highly important strategic transformation, with big economic and environmental implications. Up to date, GCC countries have produced electricity using natural gas and diesel. The cost of producing one kilowatt/hour has been eight cents for diesel and seven cents for natural gas. This cost is considered very high in comparison to the cost of generating electricity utilising coal, which costs 2.21 cents, or nuclear energy which costs 1.72 cents.
Although the cost of using solar energy for generating electricity is considered high and varies according to the size and techniques used in a station, the resulting electricity is nominated to be one of the comparatively cheaper power sources of the future. Abu Dhabi’s decision to establish this type of station is right. It will bring this advanced technology to the UAE, and prepare the manpower needed to work with it, which will lead to using solar power for different areas.
The importance of this new decision is also the result of high demand on electricity in GCC countries, increasing by an average of 10 per cent every year, which is one of the highest rates in the world. It reflects the rapid rate of economic and demographic growth in those countries. Apart from electricity, solar energy may be used in water desalination, the primary water resource in GCC countries. Demand on desalinated water is increasing almost as rapid as the demand on electricity.
Hence, there are economic and environmental benefits resulting from this new trend lead by the UAE, and Abu Dhabi in particular. Solar energy resources are available in the Arabian Gulf region, as plenty as oil and natural gas resources, putting the UAE and GCC countries in a good position to turn into an international centre for producing and exporting environmentally-friendly alternate energy sources.
The issue is not the ability to acquire solar energy which might be in abundance in other locations around the world, but the availability of investments necessary to develop energy resources, which consequently need huge funds and advanced technology.
A new and pioneering direction in the area, led by the UAE, represented in the Abu Dhabi programme for solar energy, which may turn into a big and integrated GCC programme, as there is an electricity sharing link between these countries. We will not be surprised in the future to see Abu Dhabi’s sun illuminating many other cities, public areas and economic establishments, in the same way as the oil wealth made up the primary source of energy in the post second world war era. It was on the basis of this wealth that Europe was rebuilt, and great technology and civilisation leaps were achieved in different countries around the world.
The writer is a UAE economic expert.