Cheap oil? Renewables still viable

Suhail bin Mohammed Faraj Al Mazroui and Frode Mauring, United Nations Development Programme Special Representative of the Administrator, during a function to release 'The UAE State of Energy Report 2016' in Abu Dhabi on Wednesday. - Photos by Ryan Lim

Suhail bin Mohammed Faraj Al Mazroui, UAE Minister of Energy, said renewable energy is still viable even though LNG prices are at the lowest levels of $6 to $7 mm British thermal units.
Speaking at the launch of 'The UAE State of Energy Report 2016', the minister said: "I am still hopeful and see the viability of renewable energy in the UAE and elsewhere." He believed gas prices could change in the future.
The minister saw a bigger role for solar power as it competes with natural gas to generate electric power.
"It's not about the cost of generation, but it is the availability of sources. We find it hard to bring the availability to 25 per cent," the minister said.
If technologies are developed to store solar energy, he said the countries of the Arabian Peninsula who have abundant sunshine could export electricity to Europe in the future.
He referred to Dewa's solar PV deal concluded last year to set up a 200MW project for 0.06 cents per kWh. "That deal has given a new dimension to renewable energy. It has become a viable solution," Al Mazroui said.
Earlier, he unveiled the report which highlighted the achievements of Abu Dhabi and Dubai and different public and private sector entities in the areas of energy and modernising the country's energy sector.
The minister said: "We are keen to enable new technologies and promote R&D in certain areas of the energy sector from generation to demand side management."
The UAE will continue to work on long-term energy policy, he said.
Dr Sultan bin Ahmed Sultan Al Jaber, Minister of State and chairman of Masdar, said energy conservation continues to be one of the most important discussion topics globally. "In the UAE, our diversification efforts have enabled us to withstand the fall in oil prices, while still pursuing a balanced energy mix."
Dr Rashid Ahmed bin Fahad, Minister of Environment and Water, said successful economic development reflects the UAE's ability to address vital environmental challenges, which have risen from the record pace of growth in population, energy and water demand and urban areas. In line with this, the country has decided to steer its course towards a green economy in order to achieve sustainable objectives and economic growth simultaneously by launching the UAE Green Growth Strategy, the minister said.
Dr Mattar Al Neyadi, undersecretary in the Ministry of Energy, said the UAE government has decided that diversification and energy security are important strategic goals.
Elaborating Dubai's achievements and plans in renewables, Saeed Mohammed Al Tayer, vice-chairman of the Dubai Supreme Council of Energy and CEO and MD of Dewa, said: "Our leadership's goal is to make the country one of the world's best in energy policy and diversify the energy mix, focusing on innovation."
- haseeb@khaleejtimes.com