COP27 starts in Sharm el-Sheikh today, amid hopes by the Egyptian presidency of the conference to make the event instrumental in prodding advanced states to honour their climate pledges.
The Arab region is, meanwhile, deeply affected by the geopolitical changes and fuel crises happening around the world.
These challenges and crises raise questions about the future of renewable energy in the region which has its own challenges already.
The Egyptian Mail interviewed one man who can offer clear insights into the region’s energy transition and the challenges facing it.
This man is Jauad El Kharraz, head of the Regional Centre for Renewable Energy and Energy Efficiency (RCREEE), an intergovernmental organisation with diplomatic status that aims to enable and increase the adoption of renewable energy and energy efficiency practices in the Arab region.
RCREEE, El Kharraz said, would participate in COP27 with an eye on accelerating the energy transition.
”We have very ambitious targets in terms of increasing the share of renewable energy in the regional mix of energy,” he said. “So, we will talk about Egypt.”
He referred to Egypt’s plan to raise the contribution of renewable energy to electricity generation to 42% by 2035.
He described the Egyptian goal as an ‘aspiring’ one.
”We have similar targets in Morocco, Algeria and Jordan,” El Kharraz said. “So definitely, there is a momentum and we want to take advantage of it.”
He said this is about time Arab states moved to the implementation phase.
Implementation cannot, however, he said, be made without the right financing.
RCREEE launched a series of initiatives to address the issue of implementation, given the importance of this topic.
The centre was established in 2008 to support Arab energy transition efforts and policies. The centre also works to develop renewable energy and energy efficiency strategies.
It encourages the private sector to pour more investments into renewable energy and energy efficiency projects.
RCREEE works closely with the Arab League to support the energy transition in the region, especially when it comes to the centre’s 17 member states.
”We also contribute to national and regional projects,” El Kharraz said.
Over the years, the centre evolved into an important source of information on renewable energy and energy efficiency.
It assesses the progress Arab countries make in energy transition by releasing an annual index.
Called ‘Arab Future Energy Index (AFEX)’, the document keeps pace with Arab energy transition efforts. It also contains information about the improvement of energy efficiency in the industrial and transport sectors, along with other sectors of the economy.
RCREEE also appraises efforts made by Arab states to reduce carbon dioxide emissions.
El Kharraz underscored the importance of having a green and just energy transition.
”We need an energy transition that is just for everyone,” he said. “Some countries are really in need of support and investment in infrastructure and capacity-building.”
The same countries, he added, are badly in need of the right environment for the industry and for the economy.
”We need to develop a co-operative approach in the region,” he said. “If we look at the picture now, most companies are not ready for this new phase.”
He viewed the Sharm el-Sheikh climate summit as a ‘great opportunity’ for African countries to engage in the energy transition process.
He said in addition to the financial challenges related to green transition, the localization of technologies is another obstacle that requires collective efforts.
Arab countries, he said, have several options to deal with the problems they are facing.
For North African states, he said, seawater desalination is an option to deal with water scarcity.
Nevertheless, he added, the dissemination of water would need a lot of energy.
”Here comes the importance of localising technologies,” El Kharraz said.
He said countries have to create their own products according to their needs.
He noted that green hydrogen is gaining momentum.
”Nonetheless, the production of green hydrogen requires huge amounts of water,” El Kharraz added.
He noted that Arab states have to create the conditions that are suitable for their needs and prepare their engineers and technicians for developing the required technologies.
El Kharraz believes that Arab states have to hammer out win-win deals to make sure that they do not repeat what he described as the ‘mistakes of the past’.
He called for dealing with the renewable energy file in a comprehensive way that puts links between water; energy; food, and the ecosystem into consideration.
There is also a need, he said, to allocate funds for such nexus projects to show decision-makers everywhere that they work and can ensure energy security.
He said his centre collects data from all member states to produce a report about renewable energy and the ranking of Arab states in this regard.
”Some countries do well, while others need more support,” El Kharraz said.
He said some Arab states go through difficult political and economic conditions.
These conditions, he added, prevent these states from advancing as fast as others.
RCREEE’s newest report is expected to be released during COP27.
El Kharraz said Egypt, Morocco and Jordan have what he liked to term as ‘strong’ renewable energy and energy transition potentials.
He highlighted the importance of developing innovative financing mechanisms.
”There are many tools to attract more investments, including through startups,” El Kharraz said. “Some of them come up with very innovative and smart solutions.”
RCREEE’s missions include helping main international financial institutions and donors to see real needs in Arab states.
The centre knows these needs, which makes it of great value for these institutions and donors.
”This obviously helps financial institutions and corporate agencies to really go where they should,” El Kharraz said.
He added that his centre also works to help companies propose projects that can easily access funding.
RCREEE gives priority to energy efficiency. It works with the Moroccan Agency for Energy Efficiency to do this.
The centre signed a memorandum of understanding with the Tunisian Agency for Energy Efficiency recently.
El Kharraz expected impacts from current geopolitical changes on the energy sector to be short-lived.
He said European countries have realized that they have to take drastic measures and look for alternatives to Russian gas.
”I think they pin their hopes on Middle East and North African states, thanks to the potential they have,” El Kharraz said.
He praised the progress made by Egypt in the energy sector.
He said the magnitude of reforms initiated in Egypt is just admirable.
”This is definitely a regional success model,” El Kharraz said.
He added that Egypt has a strong potential to be an energy hub, thanks to the huge investments it has poured in solar and wind power.
It also, he said, launches a large number of renewable energy projects.
RCREEE organises technical visits to Egypt for professionals from member states, who want to borrow the book of Egyptian renewable energy expertise.
The centre had last received requests from Sudan, Libya and Mauritania for making visits to renewable energy projects in Egypt.
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