“Solar Energy Has Many Untapped Opportunities Yet To Be Explored”: Nawar Hamarneh

Slow energy demand growth and a lack of clarity about the region's economic future could discourage investment. Large solar power plants have already been erected in Saudi Arabia, Qatar, the United Arab Emirates, Oman, Kuwait, and Jordan due to the region's nearly optimal conditions for solar power generation. Many more are in the planning stages, expanding the scope of potential employment for those in the renewable energy sector. The solar photovoltaic (PV) industry in the Middle East is expected to expand at a CAGR of over 8% between 2020 and 2025. The market is predicted to be greatly driven by the advent of large-scale solar power facilities that are currently under construction throughout the forecast period. 

Approximately the 2020–25 projection period, the market for battery energy storage systems in the Middle East and Africa is anticipated to expand at a CAGR of over 5.2%. The proliferation of renewable energy sources in the Middle East and Africa has stoked a boom in the region's battery energy storage business. There has been a rise in the Middle Eastern market for batteries as a preferred energy storage solution, largely as a result of technological advancements that have decreased battery costs. Rising renewable energy penetration, the need for a steady stream of electricity, and the grid's advanced age are all pushing the market forward. Market expansion is anticipated to be hampered, however, by the large initial investment needed to construct the battery energy storage system.

Speaking about this new transformation and some challenges, Nawar Hamarneh, Renewable Energy Business developer, Collectsun For Solar Energy and Trade stated, “I think there must be something brand new for the energy storage system right now, and it might have something to do with the size of the panels or some other purely technical issue. Because the government in Jordan is constantly inquiring about network capacity, this is where our efforts are concentrated. The issue we have in Jordan is that there isn't enough demand for the electricity generated by solar PV systems during the day, and the electrical grid isn't equipped to handle the surges in current that result. The storage system, I believe, will eliminate this issue.”

“It's crucial to find a solution to the energy storage challenge because the requisite technology is currently prohibitively expensive. It's not practical or affordable anywhere in the world. Not only have I never heard of it being possible, but it is also a major problem around the globe,” she added further.

Solar Energy In The Middle East May Be Propelled By Green Financing

There is no room for a thriving green finance sector thanks to the oil-rich countries of the Gulf Cooperation Council (GCC) that are making the transition to sustainability. Similar to the rest of the globe, the GCC has promised to wean itself off its reliance on fossil fuels and diversify its economy. The GCC is primarily concerned with lowering its reliance on oil because it leaves its economy vulnerable to declining oil prices. Also, it hopes to satisfy the growing number of policymakers and multinational organisations that are demanding that something be done about climate change by encouraging funding to meet the nationally defined contributions required by the Paris Agreement.

Because of this, the GCC has hosted an active and expanding renewables industry in recent years, especially solar electricity thanks to investments made by the United Arab Emirates. Nearly seven gigawatts (GW) of additional renewable power generation capacity is projected to come online by the early 2020s, according to the International Renewable Energy Agency's (IRENA) 2019 report. Green finance might be used to finance all of these deals.

Despite significant expansion over the previous five years, the GCC green bond market is still in its infancy. The region's hydrocarbon industries have been the dominant driver of GDP growth since the 1930s, and they have received the lion's share of attention up to this point. Only recently, in March of 2017, did the National Bank of Abu Dhabi (now First Abu Dhabi Bank after merging with First Gulf Bank) issue the region's first and only green bond, for a total of US$587 million. Only in September 2018 did Abu Dhabi's Masdar enter the market for green loans, raising US$75 million in a revolving credit facility (RCF) to finance sustainability initiatives. So far, no GCC issuers have issued environmentally friendly Sukuk. Loans or concessional loans from banks, governments, and multilateral, and climate institutions like the Green Climate Fund are currently funding a handful of big climate change initiatives in the region.

Commenting further on this development, Hamarneh said, “Truth be said, the challenge persists. To access the money, we must first obtain a permit from the relevant regulatory body. Now, however, we can obtain these permits; as I mentioned before, our networks simply can't handle the amount of electricity produced by PV systems. Therefore, we have a donor or funding organisation that is prepared to provide you with financial support.”

When one begins planning and acquiring the finances, it may take one year to locate land and pinpoint a space that is okay to inject a PV system on and get the required permit from the authorities because it’s one of the major requirements to get the fund; however, by the time one has obtained the necessary licenses and fulfilled all clinical requirements, the network shares at that location is blocked and not capable or open any more Such issues are inevitable. And they always say the region's electricity infrastructure is inadequate.

“These issues have rendered useless a large number of projects whose success depends on the network as a whole or in large part. You can't inject more than one mega because in 2019 the maximum allowable project size is 999 Kwp, as the authority keeps repeating, the network's capacity is the problem. There was a time when authorities would dismiss any plan as a wheeling concept, and keep the net metering project that most of it is not feasible for clients due to the space issue. A few months ago, they came again with open the wheeling project with three authorities permit required” she opined. 

“Earlier solar projects required you to buy transformers from the government’s Electricity department. But today you can buy your electrical transformer to install in your space, or you will not be able to connect to the grid. However, BOT (Build Operate and Transfer) systems are worth it,” said Nawar.

Voicing further on system upgradation, Nawar alluded, “Authorities were hard at work for improving the networks, and we paid a hefty sum for each project as compensation. They haven't upgraded, though, as of right now. Furthermore, I think politics may have a hand in this as well. However, I believe that if we make it simple, it will play a significant role in the energy sector in Jordan and the Middle East. They may be able to start new businesses, and any investment they make may be worth more than they initially anticipated. They must have a way to transport all the power they're generating, despite their claims that our current infrastructure can't handle it.”

Nawar has a background in chemical engineering and has been focusing her career on environmental concerns. In 2014, she started working at a firm where she conducted interviews with prospective engineers. She first worked as a Process Manager there, overseeing communication between many technical and financial agencies.

Speaking about her plans, Nawar commented, “Currently, I am an engineer specialising in alternative energy sources. This area, I'm sure, contains a wealth of untapped technological potential. Hydrogen production is a current focus in the area. I'm excited to watch how the government and corporate sector's strong support for hydrogen development in this area translates into new economic possibilities for the area. Despite having worked in this industry for many years, I have no plans to switch gears.”