Insights on energy transition in MENA

Ghada Rahal, Mentee, Regen's Women in Renewable Energy Mentoring programme | Senior engineer - Sustainability, Enova by Veolia

Today, we are facing, in addition to the Covid-19 pandemic, a severe threat posed by climate change which is in large part driven by fossil fuel combustion and accompanied with a rise in global consumption due to increase in demand as population is growing especially in the MENA region. Therefore, it is “crystal” clear now that governments need a planned transition in how they produce and consume energy to avoid a disastrous increase in global temperatures.

Well, enriched with half of the world's known oil and gas reserves, the MENA region is what we call a “keystone in the global energy transition architecture”. However, climate models forecast that MENA region is classified as one of the most vulnerable regions in the world to the consequences of climate change, and it will be heavily impacted by the rising temperatures, and this will add to the already existing water shortages issues in the region and a lot more. This is no joke! The impact of climate change will be critical in the MENA.

For now, we can assure that oil, coal, and gas will be of course part of the energy mix in the foreseen future especially in developing countries. Knowing this, many people argue about the energy transition speed whether it will be gradual or rapid. This is directly related to renewable energy technology growth policies, and the emerging markets. To nourish the energy transition in the region and increase its pace, plans
must set to action especially that the region is blessed with high levels of solar irradiations for both PV and CSP plants, as well as wind resources. It starts with the need to diversify the economy. Oil and gas producers in the MENA are aware of climate change impacts and the accompanied risks in depending only on oil and gas revenues especially after the covid19 pandemic. Combining the volatility in oil market, uncertainty in the speed of energy transition, pressing needs to meet Paris Agreement and the sustainability goals and the urge to create jobs for a huge youthful population in the MENA region, we are seeing several governments, especially producer economies, seeking the diversification in energy production, and setting energy transition strategies on their future agendas towards decarbonisation.

Despite the encouraging progress witnessed, to maintain momentum, governments must set mandatory renewable energy targets with strict agendas in addition to strengthening the private sector through increased foreign investments and tracking the innovation and digitalization in all sectors. Finally, it is more than important to create laws that encourage women to work and increase female participation in energy sector narrowing the present gender gap.

References:
- The impact of the global energy transition on MENA oil and gas producers.
- The MENA region in the global energy markets.
- Global energy transformation: A road map to 2050