6 L.-C. SIM AND R. MILLS
(GCC), and Libya, have small populations and large resources 9 ; others
like Iraq, Iran, Algeria, Yemen, Syria, and Egypt have significant resources
but also relatively large populations. And then there are Lebanon, Jordan,
the State of Palestine, Morocco, Turkey, and Tunisia, that have very little
or no hydrocarbon production. Yet, even the oil and gas importers of
the region are linked to their hydrocarbon-exporting neighbors by flows
of labor, trade, remittances, foreign aid, and investment. 10 For example,
just over 50 and 80% of banking assets in Lebanon and Jordan, respectively, are held by GCC-based banks and around half of all greenfield
foreign direct investment in Egypt and Jordan originate from the GCC. 11
Hochberg and Moore highlight, within this volume, that companies and
sovereign wealth funds based in the Gulf states participate actively in
renewable energy projects in Egypt and Morocco. In Jordan, Dubai-based
Yellow Door has designed, developed, and operated photovoltaic solar
plants that supply electricity to supermarkets, malls, hospitals, and apparel
manufacturers.
Low Carbon Energy in MENA
Countries in MENA remain almost entirely dependent on hydrocarbons
for electricity, with low carbon sources accounting for only 11.1% of
electricity generation, the lowest share among all regions in the world
(Fig. 1.1). Demand-side explanations include the pre-existing fossil fuelbased infrastructure and stakeholder networks and corporate, cultural,
political, and urban idiosyncrasies that favor hydrocarbon consumption.
The supply-side of the equation includes relative resource endowments;
concerns about the grid such as higher than average distribution losses
and scale of power theft and non-payment issues; business and regulatory environment; and limited returns from investments due to subsidized
electricity rates. 12
Reflecting on this, Al-Sulayman in his chapter here posits a link
between large hydrocarbon rents and the relatively belated uptake of
renewable energy in the GCC states, compared to other countries in
MENA. Furthermore, the type of fossil fuel on which rents are based
is relevant: Qatar has not prioritized the development of renewables or
of climate mitigation policies partly because of its abundant low-cost
gas, which is the least polluting of all fossil fuels. 13 The variation in
commissioning and installing low carbon energy facilities across MENA
(GCC), and Libya, have small populations and large resources 9 ; others
like Iraq, Iran, Algeria, Yemen, Syria, and Egypt have significant resources
but also relatively large populations. And then there are Lebanon, Jordan,
the State of Palestine, Morocco, Turkey, and Tunisia, that have very little
or no hydrocarbon production. Yet, even the oil and gas importers of
the region are linked to their hydrocarbon-exporting neighbors by flows
of labor, trade, remittances, foreign aid, and investment. 10 For example,
just over 50 and 80% of banking assets in Lebanon and Jordan, respectively, are held by GCC-based banks and around half of all greenfield
foreign direct investment in Egypt and Jordan originate from the GCC. 11
Hochberg and Moore highlight, within this volume, that companies and
sovereign wealth funds based in the Gulf states participate actively in
renewable energy projects in Egypt and Morocco. In Jordan, Dubai-based
Yellow Door has designed, developed, and operated photovoltaic solar
plants that supply electricity to supermarkets, malls, hospitals, and apparel
manufacturers.
Low Carbon Energy in MENA
Countries in MENA remain almost entirely dependent on hydrocarbons
for electricity, with low carbon sources accounting for only 11.1% of
electricity generation, the lowest share among all regions in the world
(Fig. 1.1). Demand-side explanations include the pre-existing fossil fuelbased infrastructure and stakeholder networks and corporate, cultural,
political, and urban idiosyncrasies that favor hydrocarbon consumption.
The supply-side of the equation includes relative resource endowments;
concerns about the grid such as higher than average distribution losses
and scale of power theft and non-payment issues; business and regulatory environment; and limited returns from investments due to subsidized
electricity rates. 12
Reflecting on this, Al-Sulayman in his chapter here posits a link
between large hydrocarbon rents and the relatively belated uptake of
renewable energy in the GCC states, compared to other countries in
MENA. Furthermore, the type of fossil fuel on which rents are based
is relevant: Qatar has not prioritized the development of renewables or
of climate mitigation policies partly because of its abundant low-cost
gas, which is the least polluting of all fossil fuels. 13 The variation in
commissioning and installing low carbon energy facilities across MENA