Saudi Arabia and the UAE are the new entrants from the MENA region to Ernst & Young's Renewable Energy Country Attractiveness Indices, which scores 40 countries across the globe on the attractiveness of their renewable energy markets, energy infrastructure and the suitability for individual technologies.
Saudi Arabia and the UAE are forecasted to lead MENA's generation of renewable energy.
As new entrants to the index, they exemplify the growing clean energy potential of the MENA region, with policy makers in the two countries already announcing ambitious renewable energy targets.
Energy consumption in the Middle East has grown rapidly in the last five years. Between 2007 and 2011, the region's energy consumption grew 22%. In the next five years, energy usage is not expected to slowdown, with double-digit growth rates forecast for the Middle East.
Mr Nimer AbuAli, MENA Head of Cleantech, Ernst & Young, said that "Emerging markets, endowed with resources and high levels of government support, are already learning from their predecessors' experiences, with many opting for capacity tenders in favor of financial incentives. Increasing energy demand in these regions has strengthened government investment in clean energy. Saudi Arabia and the UAE are supported by strong government initiatives, a proven track record in energy infrastructure, and robust financial markets."
Unlike many other GCC countries, Saudi Arabia has good wind energy potential, with some 4.9 hours of full load wind per day on average, one of the highest in the MENA region. The strikingly high solar radiation of around 2,550KWH/m2/year and the availability of large stretches of empty desert that can host solar arrays, in addition to the vast deposits of clear sand that can be used in the manufacture of silicon PV cells, makes Saudi Arabia an ideal location for both CSP and PV power generation.
Saudi Arabia has quickly made it onto the list of focus markets for investors and technology providers, with the Government announcing its ambitious USD 109 billion plan to install 41GW of solar and 9 GW of wind capacity by 2032. Other strong signals to the market include the King Abdullah City for Atomic and Renewable Energy, the Government's alternative energy arm, announcing its plans to launch a major renewable energy auction.
Mr Nimer said that "Saudi Arabia hopes that in addition to using renewable energy to help meet rising electricity demand, it will also reduce its domestic use of crude oil and hence release additional oil capacity for exports."