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Why Solar Power is Booming in the Middle East and Will Continue to Do so in 2017
The market for solar power is growing at an exceptional rate. And it is in emerging markets – such as the Middle East – some of the most impressive growth is taking place.
Saudi Arabia announced that it plans investing up to 50 bUSD in renewables within the next six years. The United Arab Emirates want to spend about three times as much by 2050. This of course, is attracting attention from foreign firms, and especially the Chinese’ interest seems to have been captured.
Chinese capacity and capability as well as financing capability can add a significant amount of value to renewable energy projects in the Middle East. And there are already some extraordinary examples of collaborations, such as Saudi’s ACWA Power working with Chinese Harbin Electric on build part of a clean coal power plant located in Dubai.
Chinese solar panel manufacturers are targeting the Middle East, North Africa, and South Asia markets, with large-scale investment in renewable energy expected to drive a rapid increase in demand for imported technology.
The Chinese suppliers’ established reputation for value, combined with their increasing reputation for quality and innovation, make them highly competitive.
China seems determined to take the global lead on renewable energy. It was recently announced that China plans on spending about 360 bUSD on investments in renewable energy projects by 2020.
As low oil prices have shocked gulf economies in recent years and enforced the need to move towards other sources of energy. As the cost of producing clean energy continues to fall, there is a growing case that investing in renewable energy is not only the right thing to do, but the economic one too.
Likewise, if Middle Eastern energy producers continue shifting their primary focus from crude to renewables the demand as well as the price of oil could fall significantly. Investors should contemplate shorting crude futures while buying stock in these Middle Eastern and European utility companies.
Interested in energy investment opportunities in the Middle East? Check out what the market hast to offer at portal.e-nable.eu!