Solar And Wind Power Become Increasingly Important To The Gulf Cooperation Council

Based on current renewables targets, the GCC could save 354 million barrels of oil equivalent (a 23% reduction), generate over 220,500 new jobs, cut carbon dioxide emissions by 22% in the power sector, and reduce water withdrawal by 17% by 2030, according to a report by the International Renewable Energy Agency (IRENA). For over 30 years, the GCCC has been implementing renewable energy initiatives, with a recent trend showing an increase in the scope of these endeavours. Renewable energy goals, cutting-edge R&D, and investments in the full value chain of the relevant industry are all in support of these. GCC has the following goals for renewable energy production: Oman 10 by 2020 (600 MW), Kuwait 15 by 2030 (11,000 MW), Saudi Arabia 30 by 2040 (5400 MW), United Arab Emirates 30 by 2030 (5000 MW), Kingdom of Saudi Arabia 30 by 2040 (5400 MW), and Qatar 20 by 2030 (20,000 MW) (1800 MW).

More and more studies are being conducted to determine the viability of using the vast amounts of land available in the GCC, especially in Saudi Arabia, for the production of renewable energy sources like solar and wind power. Using 69 years of daily data, researchers in the Kingdom of Saudi Arabia (KSA) used a Monte Carlo Simulation (MCS) and Brownian Motion (BM) approach to forecast the behaviour of solar and wind energy, as well as the long-term performance of temperatures. According to the findings, the northwestern part of the KSA is the best bet for deploying solar and wind energy applications due to the region's abundant solar and wind energy resources, low temperature, and clearer sky throughout the year. The southern region comes next, boasting strong solar and wind potential.

Additionally, similar efforts were made in Bahrain and Oman, and the King Abdullah City for Atomic and Renewable Energy (KACARE) has released a more in-depth Renewable Resource Atlas to provide a solar and wind energy resource-monitoring system for live data recorded from 41 stations across the country. This system is intended for use by researchers, developers, policy-makers, government institutions, and those working to mitigate risk. During 2018, it was stated that wind energy resources (wind speed and wind power density) were available over GCCC's water at heights of 10, 30, and 50 m, spanning 2300 grid points.

 Historical wind speed measurements and the examination of wind speed frequency distributions for several places in Saudi Arabia had shown that the wind resources in the KSA were greatest around the coastlines (Tabuk) and smallest in the Middle (Riyadh). Wind speeds were found to be highest in the country's western mountains and northern region, with favourable conditions in the south.

“Clean and sustainable tourism has the potential to transform the world by demonstrating to political and economic leaders as well as advocates for civil society that we are all part of the same global family. In addition, Saudi Arabia may take the lead in the area by becoming a solar and hydrogen power superpower,” stated Author Jeffery Sachs, Director of the Center for Sustainable Development at Columbia University.

Making a long-term investment in wind power

Using their 3500 km of coastline, GCC could install wind turbines with a total capacity of about 10 GW (annual wind electricity output) if each turbine had a rotor size of 167 metres and provided a specific power rating of 365 W/m2 at a hub height of 150 metres. One example of such a turbine is the Siemens Gamesa SG 8.0-167 DD, which has a cut-in speed of 3 metres per second, a rated wind speed of (14 GW). According to the Global Wind Report, the overall capacity for wind energy across the globe is currently over 651 GW, a growth of 10% from 2018. This represents a very big wind electricity yield, equivalent to nearly 23% of installed wind turbine globally in 2019 (60.4 GW). The amount of power produced by the GCCC has increased from 51 TWh in 1990 to over 536 TWh in 2015. Research indicates that by 2025, the GCC's electricity demand would have skyrocketed to 1093 TWh. When compared to the global average of 2728 kWh and the Middle Eastern average of 3378 kWh, the power use per capita in the GCC countries in 2010 ranges from 5340 kWh to 17,610 kWh, making it one of the highest rates of energy consumption per capita in the world.

The daily wind electricity production is around 86 TWh, and the required investment is US$70 bn if each wind turbine costs USD 40 m (including installation). In 2025, this quantity will supply 86% of the required electrical demand. If wind turbines are operational for 30 years, the cost per kilowatt hour is estimated to be roughly US$2.7.

 Saudi Arabia has committed to producing 54 GW of renewable energy by 2040, Kuwait and Oman aim to increase the share of RE in the energy mix to 15% and 30% respectively by 2030, the United Arab Emirates has increased its clean energy target from 24% to 27% by 2021 and from 44% by 2050, Bahrain has set 5% of capacity by RE by 2020, and Qatar plans 20% RE out of 1800 MW capacity by 2030.

 In the future, Saudi Arabia may be a world leader in solar energy production and exports thanks to the country's abundant solar resources.

According to Alharbi and Csala's findings, the northwestern part of KSA has greater daily total solar GHI and DNI (9.0 and 7.5 kWm2, respectively), which is supported by relatively low temperatures and clear skies. In addition, daily average wind speeds are predicted to be highest (between 5.8 and 8.5 ms1) in the northwestern region. Good daily total values of GHI and DNI (7.6 and 7.2 kWm2, respectively) were also revealed in the southern region, making it a second viable area. The daily average wind speed performance in the south was quite predictable (between 4.8 and 8.57 ms1), and the daily average wind speed distribution was sufficient for the long-term and low temperature values. This study found that Saudi Arabia has a lot of potential solar and wind energy resources, giving the country a lot of room to diversify its power grid. The northwestern region was found to have the highest potential for solar and wind energy applications after extensive evaluation and careful analysis of various aspects of solar and wind energy resources in the three studied regions. The southern region also exhibited strong solar and wind energy resources. In the GCC countries, annual average solar radiation is about 1.1 barrels of oil equivalent per square metre. In the months of June and July, the radiation is highest in Kuwait at 8200 kWhm2 and lowest in Oman at 6400 kWhm2. Radiation levels are low from January to December (4,200 kWhm2 in the UAE and 3,200 kWm2 in Bahrain).

Record low prices and a supportive policy climate make the GCC one of the most alluring places in the world for building massive solar and wind power plants. That renewable energy is the most cost-effective way to generate power in GCCC was just confirmed by the International Renewable Energy Agency (IRENA). Power from solar photovoltaic panels (PV) costs less than US$3 per kilowatt-hour (kWh) and dispatchable concentrated solar power (CSP) costs less than US$7.3 per kilowatt-hour (kWh), less than some utilities in the region pay for natural gas, thanks to abundant resources and strong enabling frameworks.

Additionally, meeting these targets by 2030 can have major economic benefits for the region, including the creation of over 220,000 new employment and the saving of over 354 million barrels of oil equivalent (MBOE) in regional power sectors. Unfortunately, due to the COVID 19 pandemic that began in GCCC in late January 2020 and is still predominating, these goals will not be met by late 2020. The targets could reduce CO2 emissions in the power sector by 136 million tonnes (22% reduction) and cut water withdrawals in the power sector by 11.5 trillion litres (17%).

As solar power becomes increasingly popular in GCC countries, what effects will this have on the energy sector?

Understanding the importance of using renewable energy, and solar energy in particular, is crucial for the Gulf Cooperation Council (GCC) countries. These include places that: a) are at risk from rising sea levels; b) have expanding industrial areas; c) have a high annual energy demand growth rate, which ranges from 7 to 10%; d) need natural gas to meet its future energy demand; e) have very high solar radiation levels; f) have a Renewable Energy target in their vision 2030; g) require the creation of green jobs; and h) facilitate the sharing of knowledge, technology, and cooperation. The following effects may result from such a rapid shift toward using solar energy, rather than the previous, more gradual approach:

Solar energy price cuts in the area are substantial

The 300 MW Sakaka project in Saudi Arabia had the lowest PV LCOE (2.34 US$ cents per kWh), according to the Renewable Energy Project Development Office (REPDO). In addition, Masdar and its French partner EDF submitted the project's lowest price at 1.79 US cents per kilowatt hour (kWh). PV panel costs have reduced from $76 per Watt to $0.3 per Watt. Reasons for the price drop include the proliferation of PV manufacturers, the availability of PV panels with warranties of over 30 years, and the gradual decline in the cost of individual solar system components. 

More investors in renewable energy business

There are many potential benefits for the Gulf Cooperation Council (GCC) countries if they increase their use of renewable energy, such as a reduction in water withdrawal of 11 trillion litres (16%), a savings of 400 billion barrels of oil in the power sector, the creation of 2000 direct jobs, and a reduction in the region's per capita carbon footprint of 8% by 2030. This quickening in implementing significant successful solar project with relatively low cost would entice investors to further employ solar energy. This could entice more renewable energy developers to enter the GCC market with competitive costs and amenities.

Elaborating on the similar thoughts, H.E. Yousif Ahmed Al Ali, Assistant Undersecretary for Water, Electricity and Future Energy Affairs, Ministry of Energy and Infrastructure, UAE, “Following strategies to unlock capital flows in support of clean energy transitions and guaranteeing affordability, the United Arab Emirates plans to drive clean electrification through solar and nuclear power over the next decade. Other goals include improving energy efficiency, lowering methane emissions, and commercialising hydrogen.”

China's share of international investment rose to a record 45% in 2017 from 35% in 2016. This was followed by Europe (15%) and the United States (14%). The Americas (except Brazil and the United States; 5%), India (4%), the Middle East and Africa (4%), and Brazil (2%); Asia and the Oceania (excluding China and India; 11%), and Europe (2%). With about 57% and 38% of the total investment going toward solar PV and wind power, respectively, in 2017. With new investments increasing 18% over 2016 levels to USD 161 billion, solar power was the only technology to see growth in 2017. In 2017, investment in the Middle East and Africa rose by 11%, to USD 10.1 billion; this growth was driven largely by increases in Egypt (USD 2.6 billion) and the United Arab Emirates (USD 2.2 billion).

Mohammed Al Taani, Secretary-General of the Arab Renewable Energy Commission, said, “Arab World will witness US$700 billion investment in renewable energy transition between 2020 and 2050 with a target to generate more than 70 Gigawatts of power from renewable energy by 2050. Hydrogen and EVs future up to 300 million vehicles by 2040 and more than 60 percent of the total active vehicles by 2050.”

Numerous solar technology companies that provide maintenance and repair services have recently emerged

Unfortunately, only the government of Bahrain has a net metering facility. It is expected that all GCC countries will implement such a facility as a result of this increased use of solar energy utility. The purpose of the metering and billing arrangement known as "net metering" is to provide compensation to the owners of distributed energy generation systems for any generation that is exported to the utility grid. It enables commercial and residential customers who produce their own electricity through solar power to sell any excess back to the utility company. Having a Feed-In-Tariff that allows homes to have a payback in less than 5 years makes a facility more appealing. While the United Arab Emirates (UAE) has implemented a programme named "Grants and subsidies," which is mandated under the Renewable Energy Deployment Strategy, no other GCC nations have announced the Feed-In-Tariff facility (2009, 2011, and last updated in 2015). Egypt and Tunisia are two of the Arab countries that have a feed-in tariff system in place.

Therefore, any downtime experienced by the PV system would result in financial loss and waste. Consequently, many repair or energy-conservation businesses will sprout up to meet the need (ESCo). More green jobs and a greener economy will result from this. Investors will be enticed by the solar industry's rapid expansion to launch new ventures in areas like photovoltaic (PV) panels, maximum power point tracking (MPPT) regulators, PV aluminium frames and structures, PV auto cleaning with nanotechnology, AC/Dc invertors, and solar energy marketing and media.

 Transitioning to a green economy is covered in depth elsewhere, as are the effects of various renewable energy routes on ecosystems and biodiversity.