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The Middle East and North Africa

Windrad. Urheberrecht: BPA, Faßbender

Renewable energies and energy efficiency

Experts reckon that economic and population growth in the Middle East and North Africa will result in a fivefold increase in demand for energy over the next few decades. The rising demand must be met as reserves of fossil fuels dwindle. Energy shortages will brake economic development in many countries. Prices on the energy markets do not, however, yet reflect this shortfall. In many states, power generated from fossil fuels is subsidised, and in some places large-scale consumers even qualify for lower prices. As a result there is no motivation to use energy economically.

Fossil fuels are still the main source of revenue for some countries in the region. In the long term, though, some of the foreign exchange earnings from exporting oil and gas will be lost. This will have to be offset by earnings in other sectors of the economy.

To date renewable energies still account for a very small percentage of the primary energy supply in the region. In some countries wind power already plays an important role and offers a huge potential. The preconditions are also excellent for solar power. Potentially, significantly more power could be generated from renewable sources than the region itself can use. In the long term the surplus power could be exported.

German development cooperation aims to promote the efficient use of energy and the widespread use of renewable energy sources, also within the framework of a possible Arab-European cooperation arrangement in the energy sector.

German efforts focus on
  • Improving the energy policy framework and fostering regional integration

  • Introducing technologies in demand on the market

  • Promoting energy efficiency.

Improving the energy policy framework and fostering regional integration

Sustainable energy policy must be coordinated with other policy fields, in particular economic, financial and social policy. Germany advises its partner countries on how to design overarching energy strategies, framework plans, legislation and systems of subsidies.

The expertise needed to develop viable forward-looking energy policy must be developed in the region. Alongside private sector promotion and training, support is provided for Arab-German technological cooperation arrangements.

Germany is also fostering cooperation between the MENA region and the European Union in the energy sector.

Introducing technologies in demand on the market

So far technologies involved in the use of renewables have not yet become established on the market. There is still a lack of incentives for businesses. Instead fossil fuels are still subsidised.

Germany is helping partner countries to put in place an enabling environment for the dissemination of sustainable energy technologies. This involves building capacities for technology transfer, marketing and the development of services within the energy sector.

The promotion of vocational education in the energy sector too is an important focus of cooperation. The energy sector will need specialists such as energy economists, energy engineers and energy technicians in future, if it is to develop in future.

Promoting energy efficiency

To ensure that more economical use is made of energy, it must become more attractive to save energy. Incentives can take the form of legislation, appropriate tariff systems, taxes and subsidies. Education and information can be provided to energy consumers to raise their awareness.

Germany is also promoting measures to increase the efficiency of existing thermal power stations and power distribution networks. Energy-efficient construction and building technology too could help save energy in future.

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