MENA region offers ideal conditions for development of solar energy, A.T. Kearney reports

"However, the solution is right above our heads," said a report by A.T. Kearney, one of the world's leading management consulting firms.

While the sun largely drives the need for the region's energy consumption - some 80% of energy is used for air-conditioning - the power of the blazing sun could be harnessed to provide solar energy in the Middle East and North Africa (MENA) region, the firm's report, Tapping the Sun: Embracing Solar Energy, said.

Robert Ziegler, Vice President, A.T. Kearney Middle East and author of the report, said:

"Sunshine is almost guaranteed for more than 300 days per year in most MENA locations. This, coupled with the vast deserts available for putting solar panels which require a lot of space, makes the region ideal for the development of solar energy."

MENA countries differ in terms of their natural resource endowments with some countries having abundant oil reserves, others expected to shortly run out and some without any oil reserves. Regardless, most economies in the region are aggressively diversifying their economies away from financial dependence on oil. This development has in turn drawn more people to the region and further increased regional energy demands.

"Worried about a shortage, some governments such as Egypt and Jordan have opened their power industries to foreign investors," Ziegler said. "In the long to medium term the MENA region must secure its energy supplies, for example, by looking at alternative energy to support regional growth as well as global energy demand."

Using alternative energy, such as solar power, would not only prove to be an efficient way to cope with the region's increasing demand, it would also allow for the export of excess capacities.

For example, the report highlights that in the UAE, drinking water is derived from a costly and energy-intensive desalination process that relies heavily on gas-powered turbines. If the country were to pursue a renewable energy source to produce its water, it could better meet its projected demand, with limited pressure on electricity production and an added environmental benefit. In addition the country can then export the gas saved and use the proceeds to finance the investments required in solar energy and other infrastructure projects.

"The environmental impact of this domestic dependence on oil is vast and growing," Ziegler said. "While tapping the sun's power will alleviate the regions increasing energy demands it will also have less impact on the environment helping to cut greenhouse gas emissions."

Just as the region has been blessed with an abundant supply of oil, its year round sunshine and vast desert space available could make it as rich in solar energy tomorrow as it is in fossil fuels today.