Creating an enabling environment for renewable energy in resource-rich MENA countries
Investment in renewable energy sources is a no-regret strategy for hydrocarbon-exporting economies of the Middle East and North Africa. It is also in line with some of the pre-renewable energy-sector reforms in the region. Indeed, much of the ongoing energy-sector reforms—such as the removal of fossil fuel subsidies—complement the move to a strong renewables policy. But the region’s electricity markets, which are currently skewed in favour of hydrocarbons, will need to be carefully designed to support renewables. A holistic approach to energy policy—including establishing stable regulatory frameworks, robust independent institutions, and effective risk mitigation measures—will be critical to advancing renewables in the region.
Poudineh, R., Sen, A., and Fattouh, B. (2019). ‘Creating an enabling environment for renewable energy in resource-rich MENA countries’, The World Financial Review.