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Tuesday 15 November 2011

Kuwait sets ambitious $112 billion renewable energy goal

The desert nation Kuwait and OPEC’s fifth-biggest oil producer has set an ambition goal to generate 10 percent of its electricity from renewables by 2020.

Kuwait has currently no solar-power plants and will try and use the oil available for export and hopes to expand its generation capacity to support improved home building, manufacturing and tourism in a $112 billion development program.

Kuwait’s aspiring goal exceeds Abu Dhabi in the United Arab Emirates’ 7 percent goal to meet its clean energy target.

Eyad Ali al-Falah, assistant undersecretary for technical services at the Ministry of Electricity and Water said, “Renewable energy is a new subject for Kuwait, that's why there's a lack of information regarding the suitability of renewables for our weather.”  Al-Falah, who coordinates alternative energy for the ministry was speaking in an interview at its headquarters outside Kuwait City. 

According to the BP Statistical Review of World Energy for 2011, Kuwait consumed an average of 413,000 barrels of oil a day, about 16 percent of production, during 2010.   This is a 66 percent increase of usage from 2000 and 14 percent production increase.

“Gulf oil producers need to generate more electricity to meet demand that's growing an average of 10% a year,” according to Jarmo Kotilaine, chief economist at national commercial Bank in Jeddah, Saudi Arabia.

“We definitely see solar potential in Kuwait.  While Kuwait hasn’t kick-started renewable energy projects, there’s a lot of peak demand when solar resources are at their best.  Kuwait could then export more fuel and generate higher revenue instead of pumping it into electricity plants,” said Rajit Nanda, chief financial officer for ACWA Power International, a Saudi Arabiabased company that develops electricity and water projects.

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