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DIFC to build clean energy finance business cluster
posted on 16/11/2011: 22 views
The Dubai International Financial Centre (DIFC) aims to set-up and build a clean energy finance business cluster in Dubai.
This was revealed at the economics workshop hosted by the DIFC on Monday. The event, held in partnership with the Clean Energy Business Council (CEBC) and the International Project Finance Association (IPFA), and with the support of Bloomberg new Energy Finance (BNEF).
It brought together important players and industry professionals as well as government officials in the clean energy sector.
The speakers discussed issues of financing and de-risking for clean energy and clean tech finance, recent industry developments as well as the necessary regulatory and legal frameworks for clean energy (CE) in the region. They also discussed the growing role of the private sector in building this new industry.
Dr Nasser Saidi, chief economist at DIFC and chairman of CEBC said: "DIFC has critical mass of industry and financial players, with supportive legal, regulatory and market infrastructure. Developing a Clean Energy Finance, or CEF cluster within DIFC will help provide end to end solutions including project management, financing and providing financial infrastructure.”
He said the DIFC is committed to the development of this strategic sector, which is evidenced by working closely in collaboration with CEBC and its members to deliver this event.
CEBC is an association of leading local and international organisations participating in MENA's emerging low carbon energy sector and clean technology.
After a welcome address by Dr Nasser Saidi, the event commenced with three presentations titled ‘Meeting MENA Power Demand with Clean Energy' by Sami Kamel, general manager marketing, GE Power and Mohammed Nawaf Al-Ta'ani, general manager, Arab Renewable Energy Commission; ‘Sizing the Market Opportunity — Masdar's Market Survey' by Frank Wouters, Director of Power, Masdar. Mr Wouters spoke about the major work being conducted by Masdar on sizing the potential market across the region.
The focus of the discussion then moved to policy and regulation with ‘Legal and Policy Frameworks for Clean Energy in the Region' by Karim Dahou, senior policy analyst at the Directorate for Financial Affairs, OECD and John Cunneen, executive director, Authority for Electricity Regulation-Oman.
The regulatory presentations were followed by three sessions that discussed opportunities of financing and developing the clean energy sector in the region.
Dr Saidi then discussed the initiatives of different countries: "It is an exciting time for the clean energy sector in the region. MENA needs to wean itself away from its near total dependence on fossil fuels. There are several renewable energy projects in the region. The UAE has a renewable energy target of seven per cent by 2020. The country has also established Masdar, a renewable energy agency, which is responsible for encouraging and developing projects within the country as well as overseeing investments in clean energy.”
He said Dubai in particular aims to generate five per cent of total power supply from alternative energy sources by 2030.
"Saudi Arabia, on the other hand, has not yet established a renewable energy target although a target of 10 per cent of electricity consumption by 2020 has been provisionally mentioned by officials from Saudi Aramco,” he said. The government established the King Abdullah City for Atomic and Renewable Energy in 2010 to oversee all clean energy development in the country.
As per North Africa, Morocco has a renewable energy target of 42 per cent of total electricity capacity by 2020, while Tunisia's strategy is outlined in the Tunisian Solar Plan. Finally, Egypt has a renewable energy target of 20 per cent of electricity consumption to be developed from clean energy sources by 2020.
Renewables tend to be a more labour-intensive energy source than the still-dominant fossil fuels, which rely heavily on expensive pieces of production equipment. A transition toward renewables thus promises job gains.
Future perspective was also discussed during the workshop. MENA and the GCC will increasingly focus investments in Renewable Energy and technology leading to greater job creation as well.
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