The renewable energy market has witnessed substantial investments in the decade and renewable energy capacities continue multiplying in the Gulf Cooperation Council (GCC) region.
Among the majority of operating renewable energy assets in the region, the major share is with the United Arab Emirates and Saudi Arabia.
As the power industry is one of the largest sources of emissions globally, decarbonization in the power industry is a significant milestone to net zero. While the UAE continues to take first steps in embracing innovations and deploying cutting-edge technologies in the renewable energy space in the region, many giant renewable energy projects are in the pipeline.
Why is the renewable energy market growing exponentially?
The exponential growth can be attributed to several key factors, each contributing to the burgeoning potential of the renewable energy market in the GCC.
- Abundant solar irradiance
- Year-round sunlight hours
- Plentiful land availability for solar installations
- Long-term project financing opportunities
- Established independent power plant (IPP) model
- The fast-paced decision-making of end-user utilities
- Government support and commitment
The output from a solar PV plant in the UAE is almost double the output of a similar-sized solar PV plant in some regions in Europe. This is due to the abundant solar irradiance, and the year-round sunlight hours in the UAE.
Additionally, the ample land availability for solar installations, the established IPP model, long-term financing availability, the fast-paced decision-making of end-user utilities, and the government support are some of the other reasons, especially for the UAE to lead with giant renewable energy projects.
In conclusion, the favorable investment climate, and lucrative opportunities in the renewable energy industry have positioned GCC as a promising destination for capital deployment. With continued commitment and investment, the GCC is poised to emerge as a key player in the global renewable energy landscape.
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