Renewable Energy Deployment to Stimulate Energy Transition in the Gulf Cooperation Council

Abstract

The Gulf Cooperation Council (GCC) region plays a vital role in shaping the global energy markets because of its substantial amount of hydrocarbons resources. Although the GCC has abundant hydrocarbon resources, countries in the region have also shown their commitment and intent to become the global leaders in alternate energy, especially, renewable energy through their “Visions and Laws”. Further, All the countries in the Middle East have also set targets for the deployment of renewable energy at the federal or local level. For several decades, there has been steady economic and population growth of the Middle East countries, with most of the region’s wealth and socio-economic development, tied to its substantial oil and gas resources. Renewable energy can provide an alternative to their energy landscape, which holds a vast potential to cut fuel costs, reduce GHG emissions. To promote renewable energy, in the last five years, renewable energy has gained a lot of interest in the Gulf Cooperation Council (GCC) countries. Low tariffs bids for renewable energy generation in the United Arab Emirates (UAE) and Saudi Arabia since 2016 have made renewable energy, especially solar power competitive with conventional energy (International Renewable Energy Agency. Renewable Energy Market Analysis-GCC 2019. s.l.: International Renewable Energy Agency, 2019). With the push from the decision-makers to reduce the risk of dependence fossil fuels, the renewable energy plans can be implemented in the GCC. Decision-makers in the GCC have recognized the need for a plan for the post-oil era. This chapter will explore the GCC long term policies and government’s role in shaping the renewable energy market. Further, the chapter will also explore the challenges & opportunities related to the renewable energy sector in GCC (International Renewable Energy Agency. Renewable Energy Market Analysis-GCC 2019. s.l.: International Renewable Energy Agency, 2019).