NEW ENERGY IN THE MID EAST

Investment bankers on a brief tour of Mid East nations (Egypt, Abu Dhabi and Dubai) discovered what NewEnergyNews has been reporting for months (see, for example, SOLAR DEVELOPMENT IN JORDAN): Big petro dollar investments are going into sun and wind.

Installed capacity remains unimpressive by Western standards, but forward thinking leaders are starting to realize the natural gas reserves their countries have depended on for the last half-century are inadequate to their growing populations’ rising demand.

The choice: Build New Energy or buy natural gas from suppliers around the region.

Ironically, it is an emerging natural gas cartel similar to the Organization of Petroleum Exporting Countries (OPEC) that is driving Mid East nations to choose New Energy. They don’t want to find themselves dependent on an energy source controlled by an insidious group of petro-nationalists (Iran, Russia, Qatar) determined to keep prices high. Sound familiar?

As the kids in the neighborhood say, “Takes one to know one.”

The vision and ambition of leaders in Mid East New Energy development are impressive. From Jordan (Ma’an) to the United Arab Emirates (Masdar), governments have linked community projects with learning institutions and manufacturing capability to design energy-independent, quality environments to be powered by New Energy.

Whether the vision and ambition can be realized, especially in this financially challenged moment, remains to be seen.

Abu Dhabi’s ambitious Masdar City. From masdarvideo via YouTube.

The Middle East Ventures Into Solar, Wind Energy
Ucilla Wang, October 29, 2008 (Greentech Media via TheStreet.com)

WHO
Piper Jaffray analysts (Jesse Pichel); U.S. Departments of Energy and Commerce;
El-Sewedy Cables/ Sewedy Wind Energy Group (Ahmed El-Sewedy, CEO); Solar Technologies FZE; Applied Materials; Abu Dhabi Future Energy Company

WHAT
As a rising population’s demand outstrips the Mid East’s natural gas supplies, there is growing Middle East investment in New Energy.

Wind energy in Pakistan. The real installations are more humble than the ambitions. From undpwep via YouTube.

WHEN
- Egypt is a Kyoto Protocol signatory and intends to obtain 20% of its power from New Energy sources by 2020.
- A Solar Technologies FZE thin-film solar factory is scheduled to be producing by the end of 2010.
- Masdar launched in 2006 and will come to life in stages beginning in 2009.

WHERE
- Piper Jaffray investment bank analysts were part of a Mid East trade mission with the U.S. Departments of Energy and Commerce.
- The trade mission met with government officials and companies in Egypt, Abu Dhabi and Dubai.
- The Abu Dhabi Future Energy Company that is building Masdar City is based in Abu Dhabi of the United Arab Emirates (UAE).
- Wind-energy equipment maker M. Torres Olvega is based in Spain and was purchased by Egypt-based Sewedy Wind Energy Group.
- Solar Technologies FZE is based in Dubai of the UAE.
- Applied Materials is based in California.

Natural solar assets look more appealing. (click to enlarge)

WHY
- New policies could make the sun-rich Mid East a big solar energy market.
Government and private spending on New Energy in the Mid East is growing fast.
- The investment bankers discovered Mid East electricity demand "far exceeds" the capacity of its natural-gas plants.
- Egyptian cable company El-Sewedy Cables created Sewedy Wind Energy Group, a wind-energy subsidiary, and spent €40 million ($51.06 million) for 30% of M. Torres Olvega.
- A Pakistan government official recently said his country intends to produce 1 gigawatt of wind power in the next few years.
- Solar Technologies FZE is developing a thin-film solar factory in Dubai. It will have the capacity to make up to 130 megawatts of amorphous-silicon thin-film panels using Applied Materials’ equipment.
- Masdar has invested big in New Energy projects: (1) A UAE-funded $15 billion solar, wind, carbon-emissions-reduction and hydrogen technologies program; (2) A $230 million amorphous-silicon thin-film solar panel factory in Germany; (3) The multi-billion dollar Masdar City in Abu Dhabi, a showcase emissions-neutral, car-free community w/another a 140-megawatt, amorphous-silicon solar panel factory and many other New Energy features; and (4) A Chinese will construct a 10-megawatt amorphous-silicon thin-film solar project in the UAE.

QUOTES
Piper Jaffray analysts (Jesse Pichel): "We believe renewable energy sources, especially wind and solar, will be needed to satisfy this growing demand…"