There are many reasons why major oil and gas producing economies of the Middle East and North Africa (MENA) need to keep pace with the rest of the world and invest in renewable energy. Among these are rapidly growing domestic energy demand, growing uncertainty over long-term demand for hydrocarbon resources, the ensuing need for economic diversification, the importance of maintaining fiscal stability and tightening constraints from global environmental policies. Rising electricity demand driven by economic growth, high rates of urbanisation, expanding populations, and low electricity prices have meant that increasing amounts of liquid fuels (crude oil, fuel oil and even diesel) and natural gas (imported in a number of countries) are diverted to the power sector, often at prices below international levels.
Bassam Fattouh, Director, Rahmatallah Poudineh, Senior Research Fellow Anupama Sen, Senior Research Fellow, Oxford Institute for Energy Studies
Read more: Advancing Renewable Energy in Resource-Rich Economies of the MENA