Why 2017 Could See A Renewable Energy Boom In The Middle East

Why 2017 Could See A Renewable Energy Boom In The Middle East

Enel has also launched a deal with Saudi Electricity Co. to aid in Saudi Arabia’s goal of creating 10 gigawatts of renewable capacity by 2023. Jordan recently announced a plan to auction off four solar projects and two wind projects by the end of the year, totaling 300 megawatts of power. Jordan hopes to achieve 20 percent dependence on renewables by 2020 or approximately 1,600 megawatts. These projects are becoming increasingly popular along the equator especially in the Middle East. Countries such as Saudi Arabia and the United Arab Emirates are traditionally known to be empires of crude but with costs for solar at an all time low oil companies may have to move aside.

    Enel formed a subsidiary in 2008 named Enel Green Power to facilitate all of their business in renewable energy. Enel reabsorbed their subsidiary at the beginning of April last year hinting at the parent company becoming more holistically focused on renewables. Enel’s stock has grown nearly 9 percent since the beginning of December. As the company accepts future projects, investors can expect its value to continue rising. Saudi Electric Co. is the main source of Saudi Arabia’s power making them a valuable partner to Enel. The two partner companies will likely profit in unison.
saudi-arabia The market for solar power is growing at an exceptional rate. Bloomberg forecasts that solar will be cheaper than coal on a global level by 2025. As solar prices continue to fall, however, these energy producers may start running into a problem comparable to that of oil majors. With shale oil production inundating supply, the price of crude has fallen drastically. This has lead to the shut down of oil fields all across the globe and now OPEC has to find a solution so companies and countries can resume earning profits. If solar costs drop to similar levels energy producers may struggle going forward. All of this comes against the backdrop of solar getting cheaper and cheaper. Solar costs have fallen so quickly that it is now competitive with coal in many parts of the world. Within a decade, solar could be decidedly less expensive than coal in regions ranging from the Middle East to Latin America. The clean energy field is shifting rapidly as a result of this sea change. Within a few decades, the Middle East may be known for exporting something other than oil. Likewise, if these energy producers continue switching their primary focus from crude to renewables demand and price of oil could fall significantly. Investors should contemplate shorting crude futures while buying stock in these Middle Eastern and European utility companies. oilprice 3By Michael McDonald of Oilprice.com oilandgasOil and Gas News Undiluted !!! “The squeaky wheel gets the oil” Follow us: @OilAndGasPress on Twitter | OilAndGasPress on Facebook ]]>

#FOLLOW US ON INSTAGRAM