Renewable energy has a mixed market outlook in the Middle East and Africa (MEA) region like the economies in the region themselves. While some countries are reluctant to develop renewable energy due to the abundance of conventional resources and some countries just cannot afford to support the development of renewable energy; some countries are proactively doing the same to reduce GHG emissions and appease international corridors. Yet, no country in the region is on the list of top renewable energy markets.

All 16 MEA countries covered in the report have set renewable targets in different forms. While some countries have capacity targets, some have generation share targets. Six of the countries have functioning FiT schemes for various renewable technologies, and Ghana and UAE are the only countries to have proposed a net-metering scheme.

What are the renewable energy market dynamics in the Middle East & Africa?

The introduction of FiTs has played a major role in creating and growing the renewable energy market in the MEA region. Every country that had introduced FiTs has seen positive effects of the move in the same or subsequent years. Establishing a dedicated agency to coordinate the promotion of one or more renewable technologies has also gone a long way in supporting market growth as seen in the case of Morocco. There was a sharp increase in solar capacity in 2010 after the formation of the Moroccan Agency for Solar Energy (MASEN).

Political turmoil has been one of the destabilizing factors in arresting the spread of renewable energy in the Middle East, and African region. Countries such as Iraq and the Syrian Arab Republic in the Middle East, and Angola in Africa which has been torn by local strife, have seen little development of dedicated policies to promote renewable energy.

What are the key insights of the Middle East & Africa renewable energy policies?

Egypt: The Ministry of Electricity and Renewable Energy (MOERE) oversees the management of the Egyptian electricity sector through its subsidiary company the Egyptian Electricity Holding Company (EEHC) and in coordination with the Egyptian Electric Utility and Consumer Protection Regulatory Agency (EgyptERA), New and Renewable Energy Authority (NREA), Hydro Power Plants Executive Authority, Nuclear Power Plant Authority and Atomic Power Plants Authority. The Supreme Energy Council (SEC) headed by the prime minister, and other concerned ministers are responsible for all policy-related matters involving the electricity sector.

Ghana: Ghana launched its renewable power program in 2011 with the passing of the Renewable Energy Act, which provides for grid access for renewable power producers in Ghana and Feed-in Tariffs (FiTs). The main target growth areas are wind, solar, and biomass. In 2018, the African Development Bank has approved a $1.5 million grant from its Sustainable Energy Fund for Africa (SEFA), to assist Ghana’s renewable energy investment drive. The grant supports the Ghana Government’s efforts to overcome technical, financial, regulatory, and institutional barriers to scaling-up renewable energy investments in the country.

Israel: The government has set a target to generate 13% of electricity from renewable sources by 2025, and 17% by 2030. Ministry of Energy and Water Resources is promoting the generation of electricity from renewable energy sources, particularly solar, wind, and biomass (such as solid waste fermentation, gas from landfills, and fermentation of sludge in wastewater treatment), in collaboration with the Ministry of Finance and the Public Utility Authority (PUA).

Nigeria: With a view to ensuring the transition toward a fully privatized power market, the EPSRA also paved the way to establish the Nigerian Bulk Electricity Trader (NBET), which was formed in July 2010, responsible for purchasing electricity from generation companies and selling it to distribution companies. To narrow down the gap between rural and urban electrification, the EPSRA also created the Rural Electrification Agency (REA), responsible for stimulating rural electrification through various instruments, including subsidization.

Saudi Arabia: Saudi Arabia’s electricity market is regulated by three major government entities, the Electricity and Co-Generation Regulatory Agency (ECRA), the King Abdullah City for Atomic and Renewable Energy, and the Ministry of Water and Electricity (MOWE). Saudi Arabia aims to achieve a sustainable energy mix, with solar and nuclear power potentially accounting for more than half of its power supply by 2040. Initially, the country announced that it aims to add 54 Gigawatts (GW) of renewable energy capacity by 2032 under its renewable energy roadmap of which 41 GW was earmarked for solar installations by 2030. However, in 2016, the kingdom rolled back its plans for renewable energy development and reduced the renewable energy targets.

South Africa: The Department of Energy (DoE) is responsible for the development and management of South Africa’s energy sources. Prior to the formation of the DoE, the Department of Minerals and Energy (DME) was responsible for overseeing the power sector. In 2009, the DME was split into the DoE and the Department of Mineral Resources. The Hydrocarbons and Energy planning branch of the DoE is responsible for coal, gas, liquid fuels, renewable energy, energy efficiency, and energy planning.

UAE: Electricity sectors in all Emirates, except for Abu Dhabi, are dominated by state agencies. In Abu Dhabi, independent power producers (IPPs) and independent water and power producers (IWPPs) are joint ventures between the Abu Dhabi Water and Electricity Authority (ADWEA) holding companies and private investors, which hold 60% and 40%, respectively. All IWPPs sell water and electricity to a single state-owned buyer, Abu Dhabi Water & Electricity Company (ADWEC).

The Middle East & Africa renewable energy policies, by key countries

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Market report scope

 Scope

• The report covers policy measures and incentives used by countries in the Middle East and Africa region to promote renewable energy.
• The report details promotional measures in the Middle East and Africa region both for the overall renewable energy market and for specific renewable energy technologies that have potential in the region.
• The report covers 16 major countries in the Middle East and Africa region – Algeria, Angola, Egypt, Ghana, Iran, Israel, Kenya, Kuwait, Morocco, Mozambique, Nigeria, Qatar, Saudi Arabia, South Africa, Tanzania, and the United Arab Emirates.

Reasons to Buy

• The report will enhance your decision-making capability in a more rapid and time-sensitive manner. It will allow you to:
• Develop business strategies with the help of specific insights about policy decisions being taken for different renewable energy sources.
• Identify opportunities and challenges in exploiting various renewable technologies.
• Compare the level of support provided to different renewable energy technologies in different countries in the region.
• Be ahead of the competition by keeping yourself abreast of all the latest policy changes.