Posted: June 5th, 2015

This chapter explores literature on RE in the GCC countries

This chapter explores literature on RE in the GCC countries, which is the main focus of this thesis. The current state of RE applications (both commercial and research) and the barriers that hinder the efficient use of RE technology in the GCC countries is extensively reviewed. This chapter also reviews electricity generation by traditional means in Kuwait, which establishes the major case study of this thesis. Moreover, literature is reviewed concerning attitudes and knowledge in the GCC with regard to renewable energy.

3.1 Renewable Energy in the GCC

The concept of alternative energy in the GCC can be traced to October 1973, when Saudi Arabia, a key member of OPEC, declared an oil embargo due to the US decision to support and supply the Israeli military. Although this crisis passed with minimal effect, this was a precedent for developing countries searching for other ‘new’ RES to secure the energy supplies necessary for their continued economic development.

3.2 GCC Countries’ Environmental Policies and the Kyoto Protocol

[90] observed that the GCC countries face serious physical challenges, such as desertification, biodiversity loss, pollution of marine and coastal areas, air pollution, and water scarcity and quality deterioration. The UNIPCC’s report claims that climate change is the scientific cause of the rising average global temperature, and if this rise exceeds 2-3^oC it will cause the world to face destructive outcomes such as a persistent rise in sea levels which affects the GCC countries directly, as the natural and artificial islands in the Arabian Gulf will disappear, Bahrain would potentially lose up to 15 km of its coastline, all coastlines and marine life would be negatively affected, and desalination plants could be rendered unable to provide water. In her research on coral reefs in Abu Dhabi, [91] claims that the local marine ecosystem in the Arabian Gulf is substantially affected by climate change and must be placed among the ‘most stressed reef environments on Earth’.

Most developing countries have embedded climate change in their national security strategies, as the climate change issue has become an important topic in the UN, whose General Assembly passed a Resolution requesting ‘the relevant department of the UN to intensify their effort in considering and addressing climate change’[92]. The first world conference related to the environment and climate change was held on 1997 in Kyoto, Japan. In the late 1980s, the UN set up the IPCC, followed by the release of the first assessment report in 1990 at Rio de Janeiro. 145 countries signed a UN Framework on Climate Change (UNFCC), followed by a series of meetings aimed at achieving an agreement to reduce greenhouse gas emissions. On December 11, 1997, top officials from 160 nations reached agreement on the Kyoto Protocol to the UNFCC. The commitment was extended internationally by signing the Kyoto Protocol treaty [93]. According to [9], the GCC countries ‘do not have any obligations at a national level to reduce emissions pursuant to the Kyoto Protocol’, although these agreements indicate the feasibilities of adopting the policy of using RE locally to reduce their carbon footprint.

[94] assessed the overall energy consumption and its environmental consequences in the UAE. He found that although the UAE government deploys an action plan to reduce energy consumption and greenhouse gas emissions, as well as to enforce environmental regulations on industrial, transport, residential and commercial sectors, energy consumption and environmental pollution are still not under complete control. He suggested that the UAE should invest in enhancing public awareness, reducing population growth rate, increasing economic growth, and utilizing renewable energy resources, appropriate technology and energy management.

Towards a new paradigm in environmental policy development, [44] combined ecological modernization, institutionalism, and policy evaluation to provide a unique methodological approach to their analysis of environmental policy development in Abu Dhabi (UAE). They used case study methodology and postal questionnaire with follow-up telephone calls, semi-structured interviews with key informants from both public and private sectors, and analysis of the operation and behaviour of the Federal Environment Agency (FEA). The results show that the Abu Dhabi government has failed to develop an infrastructure for environmental protection; despite the fact that there is an existing policy, most participants were unaware of its contents. Therefore, they suggested that Abu Dhabi should allow the growth and participation of civil society in environmental decision-making and public policy development.

3.3 GCC Countries’ Approach to Environmental Sustainability

In 1981 the GCC countries aimed to increase their cooperation on the international and regional levels in all fields. Therefore, the Supreme Council declared the importance of ‘joint environmental laws and legislating national and regional capacities, training of labour force, raising environmental awareness among citizens and conservation of natural resources’ [95]. Five years later in 1985, the Environmental Coordination Unit was granted the GCC Award for Best Environmental Work.

GCC countries are the major oil and natural gas producing countries in the Middle East and the world, distinguished by significant growth and development of infrastructure. In parallel, the electricity and water desalination sectors, which depend on oil and gas, have been facing remarkable growth. According to [73], the consumption of electricity in those countries has increased at a fast rate, by 12.4% from 2005 to 2009 (average 3.15% annually), from an average Watt per person in the GCC of 1149 in 2005, which was already almost three times the world average (297 W per person). The increase in the use of electricity is greater than the population increase, indicating more use per person (Figure ‎3.1). The rapid use and abuse of fossil fuels locally to generate electricity and sea water desalinization will decrease resource reserves and increase the emissions of harmful gases that could affect human health and harm the environment.

Figure ‎3.1: IRENA basic energy trends in the GCC [96]

The general attitude in the international community is that the GCC countries are among the leading impediments to progress in reducing the human carbon footprint. Furthermore, all six GCC countries are among the top 25 biggest emitters of carbon dioxide per capita, with UAE and Kuwait leading the others [97],[5]. A comparison of 57 countries responsible for more than 90% of global energy-related CO₂ emissions found that Saudi Arabia ranked last in the Climate Change Performing Index (CCPI) for 2009 [98], and that while only 0.6% of the world population lives in the GCC, the region contributes 2.4% of greenhouse gas emissions per capita worldwide [99]. The Arab Forum for Environmental Development (AFED) [100] conducted a survey in 2009 covering 19 Arab countries to measure people’s attitudes towards climate change. The survey shows that 98% of those participants believed that the climate is changing, 89% of them believed that the change is generated by human activities, 51% of participants demanded that governments address the problem, 94% believed that their countries would benefit from participating in global action dealing with climate change, and more importantly 93% pledged to personally participate and take action to reduce their contribution to the problem.

Undoubtedly the carbon footprint of the GCC countries with respect to their population is significantly high [101], despite those countries falling in the high vulnerability category for the effects of climate change [99]. The serious impacts of the emissions generated by the consumption of fossil fuels on human health as well as on the environment have induced a number of initiatives undertaken by the GCC countries to improve environmental protection. The first initiative to develop strategies for future environmental activities within the GCC was in 1983 during the 6th session of the Supreme Council held in Muscat, whereby an environmental coordination unit was created and an economic agreement established the framework and roadmap to develop oil polices to be integrated in conjunction with other members of the world community. Furthermore, articles 9 and 11 in the first GCC economic agreement (of December 31, 2001) [102] concern the improvement of environmental quality:

Article 9: ‘For the purpose of achieving integration between member countries in the field of petroleum and mineral industry and other natural resources, and in order to enhance the competitive position of member countries, the member countries shall adopt integrated policies in all facets of oil, gas and mineral industry to achieve optimal gains of, while at the same time taking into account environmental considerations and the interests of future generations’. [102]

Article 11: ‘Member countries shall adopt the policies and mechanisms necessary to protect the environment according to all relevant legislation and resolutions adopted within the GCC framework, as representing the minimum level for national rules and legislation’. [102]

Over time, the GCC countries’ top government officials have taken steps to move their attention to clean sources of energy, as outlined below:

• In 1985 during the 6th session of the Supreme Council (convened in Muscat) the first initiative to develop strategies for future environmental activities within the GCC was established.
• In December 1993, the final Declarations of the Supreme Council stressed the importance of the joint environmental action for converging policies, unifying environmental and legislations, enhancing nations and regional capacities, training of a labour force, raising environmental awareness among citizens, and conservation of natural resources.
• In 2001, the Economic Agreement established the framework and road map for the oil production policies that can be integrated in conjunction with other members of the world community.
• In December 2004, the final Declarations of the Manama Summit reiterated the point that conservation of the environment, renewing natural resources, and the protection of wildlife are essential factors for achieving sustainable development which aims at improving the condition and welfare of citizens in GCC countries.
• In December 2007, the Supreme Council (28th session, Doha) approved the green environment initiatives encompassed by the GCC Environmental Action Act. Moreover, in the same year GCC countries agreed to contribute $750 million (US) to a fund for climate change research during the OPEC ministerial meeting.

In order to abide by their commitments, the GCC governments started to consider using alternative sources of energy locally that are renewable, clean, friendly to the environment, and harm-free to human health.

3.4 RE Establishments and Projects in the GCC

[103] claimed that RES in the Arab countries are not a priority for their governments; however, they added that since the late 1970s almost all Arab countries have included RE in their higher education curriculums, and have established research centres with relevant ministries, such as ministries of energy, electricity, water and environment. Table ‎3.1 shows RES in the Arab countries. Countries with low oil and gas reserves are notably advanced in the formulation of policies and plans for RE development (e.g., Egypt, Jordan, Syria, Morocco and Tunisia).

Table ‎3.1: RE resources in the Arab Countries [103]

As stated previously, the GCC is largely dependent on revenues generated from oil and natural gas production. The GCC is still widely regarded as ‘one of the main actors impeding international climate change negotiations’ and ‘one of the top contributors to pollution in the world’ [104]. However, the GCC countries are starting a process of ‘environmental awakening’ by signing the Kyoto Protocol treaty, under the UNFCCC (2004) [105]. These agreements indicate the feasibility of aligning with the GCC policy of using RE locally in order to limit CO₂ emissions and the negative effects of climate change. Therefore, the GCC governments, the private sector, and the general public developed awareness for the important of making climate change a priority in the process of economic and social development [3]. Because oil is becoming more scarce and expensive to extract, other sources of energy, including renewable ones, are eventually going to become priorities [106]. Consequently, GCC countries could transfer from being oil producers to being RE producers, and could ‘benefit from such projects financially, technologically, and ecologically’ [99].

RE has the capability and the potential to play an important role in providing energy efficiency, and maintaining the sustainability of global resources. [107] stressed that GCC countries have favourable geographical conditions for RES. For wind power, Saudi Arabia and the UAE have limited potential (2.5–4.5 m/s), but Bahrain, Kuwait, Oman and Qatar have at least moderate opportunities (5–7 m/s). However, according to [108], the conditions for solar energy potential in the GCC are among the most favourable in the world. He argues that if GCC countries decrease their local use of fossil fuels and depend on solar energy for their local electricity (allocating more oil and natural gas for export), the GCC will be among the best-prepared regions for the post-oil era. Moreover, reducing the use of fossil fuels will positively affect climate change, which in turn will improve the reputation of the GCC countries within the world community.

[101] coherently analysed the specific constraints and efforts hampering the development of RETs in the Arab countries of the Gulf. Collecting data from international organizations, publications and expert contributions, the results of the implemented events in the region, twenty multiple-choice questionnaires were distributed to workshop employees and electronically-interviewed local operators. The study assessed the constraints preventing the development of RE opportunities in the GCC. Three constraints were identified: market technology (lack of commercial skill, scientific knowledge and experience, and awareness); policy legislation (i.e. the absence thereof, and the existing strategy not being well organized); and cost (existing governmental subsidies for oil and electricity are not complemented by similar support for RE, which is exacerbated by the high initial capital cost and unfavourable power pricing assessment of RE). Similarly, [9] stated that ‘there is no instruction or framework at a GCC level government renewable policy or its implementation, both environmentally and socially common to all GCC countries, which in some instances, enhance but in others inhibit the potential RE’.

Although an absence of well-organized policies and strategies for promoting RE has been identified in the GCC [107], [109] stated that the GCC is ready to develop environmentally-friendly energy technologies due to the following reasons:

1. The GCC has significant potential for utilizing RES, especially solar energy;
2. GCC population distribution means that many remote villages can benefit from RES applications;
3. A significant technological background exists based on research activities in the region. Applications of RES and the rational use of energy technologies (e.g. solar) have already been developed.

According to [107] [109], although GCC countries are facing rapid economic and social development, oil and gas will remain the major energy sources due to increasing demand and the lack of non-fossil energy resources. However, there are existing RES and Rational Use of Energy (RUE) activities. For example, King Abdul-Aziz City for Science and Technology (KACST) in Saudi Arabia conducts special research on solar energy, funds projects for Renewable Energy Sources Technologies (REST), and liaises with similar initiatives in the US, Germany, the Kuwait Institute for Scientific Research (KISR), and the Middle East Desalination Research Centre (MEDRC), as a result of which a number of solar cooling systems were successfully installed. Omani manufacturers and industries utilize RE sources with Omani governmental support; Qatar joined the United Nations Conference on Environment and Development (UNCED) and established a link on RES and RUE technologies through an international database and encourages Qatari colleges and universities to conduct RE research.

[107, 108] studied the energy policies of GCC countries and their capacities to switch RE toward an ecological modernization. He claimed the GCC countries were found to be lacking a policy framework for renewable energies and energy efficiency, but there are policies that developed on an individual project level. The GCC governments of UAE and Qatar have already been developing promising projects for setting up carbon exchanges. The UAE is seriously working toward reducing CO₂ emissions by 7% by 2020. This pledge is represented in a remarkable project called Masdar City in Abu Dhabi, which is scheduled for completion in 2016, which serves as the foundation for more efficient medium-and long-term activities in the field of RE. The City will be powered with zero-carbon and will depend completely on RE. The objectives of the City are:

‘To become home to a population of 90,000 made up of 40,000 residents and 50,000 daily commuters. The city hopes to attract more than 1500 companies in the field of sustainable energy technologies to have offices and research centres within its city walls. By the fall of 2009 the first students will start to study at the Masdar Institute of Science and Technology. The institution’s curriculum includes courses in the areas of information technology, water and environment, engineering systems and management, materials science and engineering, mechanical engineering as well as its research activities. Masdar City will also host the secretary of the International Renewable Energy Agency (IRENA)’. [104]

Moreover, according to [106], technology and education are predicted to be the major gainers of Masdar City; the well-stated ‘green’ standards and regulations and low oil prices have a ne6gative effect on it. Doha and Dubai have an interest in setting up carbon exchanges; Dubai is establishing green-building practices based on the United States Green Building Council’s leadership in Energy and Environmental Design rating system. The Energy City in Qatar will be the headquarters of natural gas and oil companies for the purpose of creating a sustainable blueprint for future development and incorporating the latest green technology and solar energy.