Indeed, it is no exaggeration to suggest that the world
is progressively undergoing transition from a hydrocarbon-based economy to one
based on sustainable forms of energy. It is notable, however, that there has
been comparatively limited interest in examining the prospect of renewable
energy in major oil-producing countries, especially in those characterized by
heavily oil-dependent economies.
Consequently, there has been a corresponding dearth of
research. These countries need to consider such sustainable energy means to
further secure their energy and economic futures. The key role that these
countries could play in achieving a healthier future for generations to come
should not be overlooked.
Saudi Arabia, a major oil producer, with at least a
quarter of the world's proven oil reserves, is also an increasingly urbanized
and industrialized nation that is blessed with abundant solar energy and a
reasonable wind resource.
Developing technologies that contribute to sustainable
economic development is at the heart of collaborative research work in progress
at King Abdullah University of Science and Technology (KAUST) in Thuwal, north
of Jeddah. KAUST is one such marvel that will serve as a growing symbol of a
country exploring new horizons and reinventing itself for the future.
KAUST sprang from an idea Custodian of the Two Holy
Mosques King Abdullah had to establish a world-class university. In King
Abdullah's words: "It will support industries and the private sector and
help set up new knowledge-based industries. It will also help in converting
innovative ideas and inventions into economic projects benefiting the country
and citizens."
Saudi Arabia hopes to approve a regulatory framework for
investment in renewable energy in 2011, according to a Reuters report published
recently.
The framework should set out the conditions of government
funding and incentives for the sector, said Adullah Al-Shehri, governor of the
Saudi Electricity and Co-generation Authority (ECRA). Without them, the
renewables sector would not progress in the Kingdom, he said.
"We developed the policy and we were ready as
regulators to submit to our board for approval and then take it to the council
of ministers," Al-Shehri said.
ECRA is regulator of the water and desalination sector.
"If they (the government) don't provide the funds
nothing will move forward, this is our proposal...to get the government
committed and (its) support," he said.
The government also needed to clarify which body would be
regulating renewables contracts going forward, he said. "Anybody who wants
to invest (renewables) in Saudi Arabia will find it difficult to know who to
talk to," Al-Shehri said.
The Kingdom announced in April it would set up a
scientific center called King Abdullah City for Atomic and Renewable Energy.
The center would be in charge of promoting research and sealing future deals.
The future role of ECRA will be to issue project
licenses, he said.
Al-Shehri said peak power demand in Saudi reached 41,000
megawatts in 2009 while power generation capacity is 46,000 MW.
The Solar Energy Coordination and Communication Workshop,
held at KAUST recently, has resulted in a committee being formed to focus on
the acceptance and use of the renewable energy source.
Khaled Al-Sulaiman, vice-president for Renewable Energy
at the King Abdullah City of Atomic and Renewable Energy (KACARE), told the
gathering about recent mandates received from the government declaring that
nuclear and renewables would be among the energy options adopted by the
Kingdom.
"KACARE has been given responsibility to guide
renewable energy efforts," he said. "We are charged with technology
development and investigating nuclear and renewable energy resources. We can do
it -- I mean all of us, all stakeholders in Saudi Arabia, in cooperation with
others globally. There will be no turf fighting or the marking of
territories."
Amin Al-Shibani, KAUST's vice-president of economic
development, said: "The introduction of a new industry, any industry in
any nation, is faced with a lot of obstacles and challenges. With determination
and leadership the key stakeholders will overcome these obstacles."
Professor Ghassan Jabbour, director of KAUST's Solar and
Alternative Energy Engineering Research Center, said his center's mission was
to make solar energy low-cost and therefore commercially viable. "Our main
wealth is knowledge," he added. "We must encourage the process or we
won't move an inch forward. Our center is investing in the human mind."
Unfortunately, not everyone was equally supportive of
transitioning to a renewable energy economy. In a speech to the Cambridge
Energy Research Associates (CERA) annual conference in Houston, Texas, last
year, Minister of Petroleum and Mineral Resources Ali Al-Naimi warned that promoting
the rapid growth of renewable energy without continuing to invest in oil would
create a "nightmare scenario." "We must be mindful that efforts
to rapidly promote alternatives could have a 'chilling effect' on investment in
the oil sector," he said. "A nightmare scenario would be created if
alternative energy supplies fail to meet overly optimistic expectations, while
traditional energy suppliers scale back investment."
Although Al-Naimi, an influential voice in the
Organization of Petroleum Exporting Countries (OPEC), acknowledged that the
world is moving away from fossil fuels, he indicated renewable energy
technologies may be unable to grow to the same scale as crude oil.
He called the current energy infrastructure "highly
efficient and economical," and said the costs of replacing it with
alternatives would be "prohibitive" in the short term. "A
prudent approach demands we recognize that the massive scale of the global
energy system makes rapid change costly and impractical," he said.