Letter From the Desert: The Rise of Solar in the United Arab Emirates

in MESIA in the News

Demand for electrical power across the Middle East and North Africa (MENA) region is growing due to rising population, increased urbanization, and economic growth driven by industrialization.

Demand for electricity is further driven by the fact that most MENA countries subsidize electricity prices to consumers — so price signals do not exist to encourage energy-efficient behavior.

The practical implication of these factors is that the need for new regional electricity capacity is outpacing regional economic growth. In fact, under business-as-usual conditions, the region may require more than 120 gigawatts of new MENA power generation capacity by 2017, with an associated cost of as much as $250 billion when transmission and distribution are included.

 

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