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Solar energy production costs 20 times more than electricity
By Saudi Gazette Staff
Published in The Saudi Gazette on 02 - 07 - 2009

Tourism experts in the UAE couldn't agree more that choosing the country to be the headquarters for the International Renewable Energy Agency (IRENA) is the result of giant strides that combine future insights for renewable energy with sound policies, as well as the country's efforts in restoring world security and peace.
Saeed Ahmed Mohammed bin Butti, chairman, Al Dhiafa Holding and Jinan Resorts and Hotels, said “the decision of choosing the UAE as the permanent headquarters for ‘IRENA' didn't come from sky. It is the result of the efforts made by the country in preserving natural resources and maintaining high noble standards that guarantees a healthy lifestyle in a clean environment where everybody is environmentally responsible; it is a huge national responsibility.”
Bin Butti, whose company, Jinan, is the first company in the Middle East to specialize in running environmentally-friendly hotels, added: “As fundamental parts of the tourism in the UAE, we are inspired by this decision to work harder to promote the country's tourism sector, which is based on sound insights, to have our say in world-wide issues concerning energy and clean environments, and to have Arab minds manage environment and energy issues”.
The UAE is well-known for its unique infrastructure and future plans in regards to renewable energy, as plans to increase the growth of renewable energy sector by 70 percent were announced early this year, not to mention the “Masdar” project, which is expected to host more than 5,000 renewable and alternative energy companies. The UAE also has what it takes to afford the costs of developing the infrastructure for the IRENA headquarters and the associated logistical support, which extends all across other countries, who suggested offering $70 million in cash and $2 million annually, as well as $50 million as loans from Abu Dhabi development fund to launch numerous renewable energy projects in third-world countries. Abu Dhabi also has plans to use solar energy to produce 40,000 kilowatt as part of the total energy consumption rate.
The last few years witnessed a GCC movement towards renewable energy, as the Kingdom of Saudi Arabia saw the establishment of a renewable energy development center in King Fahad Petroleum and Minerals University in Al Dhahran, which lies to the north of the country, with a total cost value of $7 million and the support of the Ministry of Higher Education to run research and studies related to solar and wind energy, while the Sultanate of Oman has given a permission to the Oman Green Energy Company to establish a plant to produce ethanol using a special bacteria inserted into the trunks of the widely spread palm trees in the Gulf region.
The development of a new energy source are considered to be quite costly compared to methods used to produce the hugely spread petroleum, and despite the fact that countries in the region have fairly long day periods, which is considered an advantage in using solar energy, the costs for producing such energy is 10-20 times higher than the costs of producing electricity using conventional methods.
GCC countries aim to develop 120 energy production projects with a combined total value of USD 200 million. Furthermore, the UAE has joined the list of countries with nuclear programs through a series of important agreements with the USA and France, who approved the UAE's demands to use nuclear energy for peaceful purposes due to the trust and confidence that the country has gained internationally. Experts expect that the nuclear program will play a major part in cutting down energy production costs by 0.08-12 fils per kilowatt instead of 14-22 fils per kilowatt for gas turbines and 9-18 fils for fiery charcoal, despite high initial costs of AED4,000-7,000 per kilowatt compared AED1.5-2000 per kilowatt for gas turbines and AED3.5-5,000 per kilowatt for fiery charcoal technique used in producing electricity. __


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