Barriers, Risks and Policies for Renewables in the Gulf States
The countries of the Gulf Cooperation Council (GCC) have both large fossil fuel resources and vast renewable energy potentials. Here, we investigate in a literature meta-analysis and a survey, whether there is a need for renewables in the GCC, what barriers and risks presently deter investments, an...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2015-08-01
|
| Series: | Energies |
| Subjects: | |
| Online Access: | http://www.mdpi.com/1996-1073/8/8/8263 |
| _version_ | 1828284577005699072 |
|---|---|
| author | Johan Lilliestam Anthony Patt |
| author_facet | Johan Lilliestam Anthony Patt |
| author_sort | Johan Lilliestam |
| collection | DOAJ |
| description | The countries of the Gulf Cooperation Council (GCC) have both large fossil fuel resources and vast renewable energy potentials. Here, we investigate in a literature meta-analysis and a survey, whether there is a need for renewables in the GCC, what barriers and risks presently deter investments, and what possible policy-solutions could be. We find that there is a long-term need for renewables, to diversify the economy and prepare for a post-fossil fuel era. In the short term, two main obstacles deter investments: inefficient bureaucracy, and the combination of fossil fuel/electricity subsidies and the absence of renewable energy support. Removing fossil fuel and consumption subsidies or introducing a support scheme could make investments in renewables profitable. Eliminating energy subsidies appears particularly beneficial to the economic outlook but this seems particularly difficult to implement, due to the political economy of rentier states. Increased bureaucratic transparency and efficiency is needed, so that potentially attractive investments can rapidly and predictably obtain the necessary permissions. Hence, the administrative and economic environment for renewable energy investments in the GCC is not right today, and no breakthrough is on the horizon, but there is a range of policy solutions to enable investments in the future. |
| first_indexed | 2024-04-13T09:02:56Z |
| format | Article |
| id | doaj.art-115e7f80b073420ba1a36593ee1d2db7 |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-04-13T09:02:56Z |
| publishDate | 2015-08-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-115e7f80b073420ba1a36593ee1d2db72022-12-22T02:53:03ZengMDPI AGEnergies1996-10732015-08-01888263828510.3390/en8088263en8088263Barriers, Risks and Policies for Renewables in the Gulf StatesJohan Lilliestam0Anthony Patt1Institute for Environmental Decisions, Climate Policy Group, ETH Zürich, Universitätstrasse 22, 8092 Zürich, SwitzerlandInstitute for Environmental Decisions, Climate Policy Group, ETH Zürich, Universitätstrasse 22, 8092 Zürich, SwitzerlandThe countries of the Gulf Cooperation Council (GCC) have both large fossil fuel resources and vast renewable energy potentials. Here, we investigate in a literature meta-analysis and a survey, whether there is a need for renewables in the GCC, what barriers and risks presently deter investments, and what possible policy-solutions could be. We find that there is a long-term need for renewables, to diversify the economy and prepare for a post-fossil fuel era. In the short term, two main obstacles deter investments: inefficient bureaucracy, and the combination of fossil fuel/electricity subsidies and the absence of renewable energy support. Removing fossil fuel and consumption subsidies or introducing a support scheme could make investments in renewables profitable. Eliminating energy subsidies appears particularly beneficial to the economic outlook but this seems particularly difficult to implement, due to the political economy of rentier states. Increased bureaucratic transparency and efficiency is needed, so that potentially attractive investments can rapidly and predictably obtain the necessary permissions. Hence, the administrative and economic environment for renewable energy investments in the GCC is not right today, and no breakthrough is on the horizon, but there is a range of policy solutions to enable investments in the future.http://www.mdpi.com/1996-1073/8/8/8263renewable energyrenewable energy investmentsGulf Cooperation Council (GCC)renewable energy policy |
| spellingShingle | Johan Lilliestam Anthony Patt Barriers, Risks and Policies for Renewables in the Gulf States Energies renewable energy renewable energy investments Gulf Cooperation Council (GCC) renewable energy policy |
| title | Barriers, Risks and Policies for Renewables in the Gulf States |
| title_full | Barriers, Risks and Policies for Renewables in the Gulf States |
| title_fullStr | Barriers, Risks and Policies for Renewables in the Gulf States |
| title_full_unstemmed | Barriers, Risks and Policies for Renewables in the Gulf States |
| title_short | Barriers, Risks and Policies for Renewables in the Gulf States |
| title_sort | barriers risks and policies for renewables in the gulf states |
| topic | renewable energy renewable energy investments Gulf Cooperation Council (GCC) renewable energy policy |
| url | http://www.mdpi.com/1996-1073/8/8/8263 |
| work_keys_str_mv | AT johanlilliestam barriersrisksandpoliciesforrenewablesinthegulfstates AT anthonypatt barriersrisksandpoliciesforrenewablesinthegulfstates |