Renewable Energy 31 (2006) 755–770 www.elsevier.com/locate/renene Renewable energy sources and rationale use of energy development in the countries of GCC: Myth or reality? Haris Doukas*, Konstantinos D. Patlitzianas, Argyris G. Kagiannas, John Psarras Decision Support Systems Lab (EPU-NTUA), School of Electrical and Computer Engineering, National Technical University of Athens, 9, Iroon Polytechniou street, 15773 Athens, Greece Received 17 February 2005; accepted 11 May 2005 Available online 20 July 2005 Abstract The large oil and natural gas resource base and the greater competitiveness of conventional energy supply technologies based on oil and gas is a key energy characteristic in the countries of the GCC. Until today, mostly pilot and research Renewable Energy Sources (RES) and Rational Use of Energy (RUE) activities were conducted. However, these countries seem to be ready to take a more active part in the development of environmental friendly energy technologies. RES are expected to play a greater role in the future based on the rich natural potential of the region. In addition, appropriate efforts to formulate strategic RUE policies are initiated for assuring buildings sustainability and providing guidelines for future architecture. In this context, GCC countries are realizing the inevitability of putting climate change issues on the top of the list of priorities in the process of economic and social development. This paper includes an analytical review of the current RES and RUE development status in the GCC region, giving special emphasis to the business opportunities that the region offers for regional and international companies involved in this market. q 2005 Elsevier Ltd. All rights reserved. Keywords: Renewable energy; Rationale use of energy; Gulf cooperation council countries * Corresponding author. Tel.: C30 210 7723583/2083; fax: C30 210 7723550. E-mail address: h_doukas@epu.ntua.gr (H. Doukas). 0960-1481/$ - see front matter q 2005 Elsevier Ltd. All rights reserved. doi:10.1016/j.renene.2005.05.010 756 H. Doukas et al. / Renewable Energy 31 (2006) 755–770 1. Introduction The development of Renewable Energy Sources (RES) and Rationale Use of Energy (RUE) was a central aim of the world energy policy in the last years. International studies raised crucial concerns about increasing the share of RES in the energy balance that could contribute to improve the security of energy supply by reducing dependence on imported energy sources during the last decade. Nowadays, limitations in the exploitation of conventional energy resources and the necessity of the reform energy policies have given new impulse in development of these environmental friendly energy technologies. In addition, new and innovative energy technologies are developing, such as RES systems at the supply side, fuel cell, carbon sequestration and other hydrogen vectors for future transport systems and improved energy end-use efficiency at the demand side. Moreover, these technologies are estimated to play a greater role in the future, in order to contribute to the abatement of the climate change’s effects. As concerns the above projections, and taking into consideration the fact that the Russia’s Cabinet approved the Kyoto Protocol on global warming, the Kyoto Protocol is entering into force. In addition, the decisions adopted at the COP 10 [1] and the adaptation of the linking directive, which connects the European Union (EU) Emissions Trading Scheme [2] with the implementation of RES and RUE projects through flexible mechanisms, made clear that great investment opportunities will emerge for non-Annex I Countries and new avenues for international cooperation will be opened. In this context, the Cooperation Council for the Arab States of the Gulf (GCC) countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates) signed and ratified into the United Nations Framework Convention on Climate Change (UNFCCC). In addition, almost all of them (except of Bahrain) have recently accessed the Kyoto Protocol [3]. However, since 1991, CO2 emissions have increased by more than approximately 50% and the contribution of RES and RUE in these countries is relatively low. More specifically, till now, only minor RES and RUE activities (pilot, research and real life projects) were conducted and as a result, some small and medium capacity projects were installed and tested. A pool of inhibits justifies this attitude, which includes [4,5]: † The large oil and natural gas resource base and the greater competitiveness of conventional energy supply technologies based on oil and gas; † The high initial cost of RES and RUE projects in relation with the long time period of depreciation of the investment; † The lack of available funds of the enterprises for the implementation of these projects; † The financial, technological and performance risks of these projects, which are often high for an enterprise related to the expected results; † The lack of awareness regarding the performance of modern and innovative technologies. On the other hand, GCC region is able to take a more active part in the development of new technologies for exploiting and utilizing RES and RUE, because of the following considerations: H. Doukas et al. / Renewable Energy 31 (2006) 755–770 757 † GCC has significant potential for exploiting RES and especially solar energy; † GCC has an area where many remote villages can benefit from RES applications; † A significant technological background exists based on research activities in the region. Applications of RES and RUE technologies (i.e. solar) have already been developed and can be assumed as matured. Nowadays, the increase of energy consumption in the GCC region is, to a certain extent, an inevitable outcome of social and economic development. In this context, GCC governments are fully aware that they cannot depend on oil for their income forever, especially in the prevailing situation of price fluctuations, the rapid population and consequently the increasing demand for electricity throughout the region. The GCC countries are currently stating a process of environmental awakening. The governments, the private sector and the general public are realizing the inevitability of putting climate changes issues on the top of the list of priorities in the process of economic and social development. As a result, the use and development of RES and RUE could make a significant contribution to improving environmental protection and to guarantying continuing oil supplies in conditions of stability and security in the region [6,7]. Special attention is currently given by the GCC countries for the adoption of passive solar technologies (e.g. solar cooling systems, solar water heaters) for reducing the energy cost in the final demand sectors. Therefore, efforts to formulate strategic policies for assuring buildings sustainability and guidelines for future sustainable architecture are initiated. To the best of our knowledge, RES and RUE available information in these countries is still rare in the international literature. Considering the above, the ultimate goal of this paper is to present in a coherent and integrated way a review of the current status regarding the RES and RUE development in the GCC region and to give emphasis to the business opportunities that the region offers for regional and international companies involved in the RES and RUE market. It is noted that the review presented is based on their recent publications and collected information from all the possible sources. The rest of the paper is structured along four (4) sections. The section that directly follows presents the energy outlook of the GCC countries, given emphasis to the energy indicators that especially have an impact on climate changes issues. The third section is devoted to the review of the implemented activities regarding RES and RUE development in each GCC country. Last, the fourth section is the conclusions, which summarizes the main points that have arisen in the current paper and focuses on the opportunities for market diffusion in the region, especially as concerns the solar, wind and hydrogen technologies. 2. Energy outlook The six GCC countries contain huge quantities of proved reserves of crude oil and natural gas, estimated in early 2004 at around 478 billion barrels of crude oil and 41.920 billion cubic metres of natural gas, representing about 42 percent and 24 percent of the world’s total, respectively, [8]. The GCC remains the EU’s 5th largest export market. GCC member states are major suppliers of oil and gas to EU and at the same time a market for 758 H. Doukas et al. / Renewable Energy 31 (2006) 755–770 European exports. In 2002, 11% of the EU’s oil imports came from the area and GCC is the EU’s principal trading partner in the Arab world [9]. Oil and gas will remain the major energy sources in the foreseeable future. Their use as primary fuels is expected to further expand, due to the accelerated developments in the respective technologies, which lead to more efficient processes in all aspects of exploration and development technologies. Oil demand is expected to grow somewhat faster in the future than over the past two decades. This is due, primarily, to the continuing increase in world demand and to the lack of commercially viable and easily storable alternative, nonfossil energy resources, compounded by the expected fast economic growth in the rest of the world, in spite of the recent economic recession in the far East [10]. On the other hand, world demand for natural gas is projected to increase rapidly to 2010, this being the fossil fuel with the fastest growing consumption [11]. Close to 60% of the increase in annual gas demand is accounted for by the power generation sector. In the recent past, technological improvements in the design, efficiency and operation of combined cycle gas turbines have moved the economics of power generation in favour of natural gas [12]. Consequently, contribution of RES is almost negligible till now and is estimated to be relatively low in the foreseeable future. As concerns the evolution of the CO2 emissions, since 1991 they have increased by more than 50% in GCC region [13,14]. The carbon emissions in the GCC region between 1992 and 2002, according to the most recent available data are presented in the Figs. 1 and 2. In addition, the indicators of Total Primary Energy Supply (TPES) per capita are very high in the GCC region. For example, the TPES in Bahrain was 9,84 Toe per capita, in Saudi Arabia 5,77 Toe per capita, in Qatar 19,93 Toe per capita, in Oman 4,27 Toe per capita and in Kuwait 9,53 Toe per capita in 2002, while the average of 25-EU countries was 2,42 Toe per capita and the average of OECD countries was 4,67 Toe per capita in 2002 [15]. Fig. 1. Carbon emission in the region per country. Source: Energy Information Administration, International Energy Annual 2002, 2004. H. Doukas et al. / Renewable Energy 31 (2006) 755–770 759 Fig. 2. Carbon emission in the countries of the GCC per fuel. Source: Energy Information Administration, International Energy Annual 2002, 2004. Moreover, CO2 emissions per capita, energy intensities and CO2 emissions per GDP in the GCC countries are higher than the average of 25-EU and the average of OECD countries [13]. Considering all the above, it is clear that energy efficiency could be improved in the region. Fig. 3 illustrates the above information. Moreover, the population of GCC countries is increasing lately and therefore electricity consumption for domestic use is rising accordingly. Thus, the use of passive solar systems (e.g. solar water heaters) to reduce the energy cost in the final demand sectors and generally the promotion of RUE is both important and urgent. Fig. 3. TPES/Capita and CO2/Capita in the countries of the GCC. Source: Energy Information Administration, International Energy Annual 2002, 2004. 760 H. Doukas et al. / Renewable Energy 31 (2006) 755–770 3. Review of RES and RUE development Till now, pilot, research and real life RES and RUE projects were conducted in the GCC region. As a result, several small and medium capacity projects were tested and were conducted by the institutions, scientific and research centres, companies and some relevant governmental and no-governmental bodies. More specifically: † Significant institutes and research centres have conducted research regarding RES and RUE, such as the King Abdulaziz City for Science and Technology (KACST) of Saudi Arabia, the Kuwait Institute for Scientific Research (KISR) and the Middle East Desalination Research Center (MEDRC); † Governments and their relevant ministries (Ministries of Electricity, Ministries of Water Resources, etc.) have implemented a number of actions; † Companies (mostly multinational) have implemented a number of RES projects, mostly consisting of solar applications in the GCC region, especially using photovoltaic solar systems; † A number of other enterprises specialize in alternative power solutions especially designed for Middle East, meeting the energy requirements of the region with solar, wind energy and power backup systems; † Universities in the GCC region have carried out demonstration small-scale RES and RUE projects as well as feasibility studies for the viability of such RES and RUE applications. More analytically, the main RES and RUE activities in each one of the GCC countries are presented in the following paragraphs. 3.1. Bahrain Bahrain developed some RES and RUE activities and performed some progress during the last decade. More specifically, adoption of solar technology is very advantageous in Bahrain and small capacity projects were conducted. However, the main drawback of using such technology is the decrease of the photovoltaic cells’ efficiency because of the high temperatures in Bahrain, which in turn reduces the efficiency. Of course, the high cost of the cells, energy storage and short operating lifetime are other disadvantages. Moreover, the mixture of dust and humidity in Bahrain plays an important role in limiting the efficiency of the solar cells [16]. According to the relevant estimations, the wind power density in Bahrain is not encouraging. Furthermore, noise from the wind turbine is another problem. If windmills are installed in the areas now considered to be isolated, in about 10 years time, they could become inhabited, thereby reducing the local wind’s kinetic energy because of the obstruction by buildings. Regarding tidal power this type of energy is possible in Bahrain, but it has the disadvantage that it is very cost-ineffective, because maximum tidal height does not exceed 3 m. Unless a location with a tidal height larger than 6 m is chosen, it is not recommended to invest money on such a project [16]. H. Doukas et al. / Renewable Energy 31 (2006) 755–770 761 According to the appropriate, adopting water technology can cause a disturbance for fishermen. This does not hold out a worthwhile promise as a practical source of energy for Bahrain. A very large number of turbines is estimated possible to be installed from this type of RES (i.e. nearly 10,000 turbines) in the near future [16,17]. According to the study of W.E. Alnaser, a good solution, that is under construction, is a mobile RES (hybrid) system consisting of wind generators and solar panels to produce 1. 5 kW of (alternating current) electricity for rural areas. This system utilizes solar power (which is abundant in Bahrain) and wind power and is suitable for many applications, such as mini mobile clinics, small schools, libraries and camping sites [18]. Furthermore, contribution to RUE is achieved by installing energy efficient motors instead of standard efficiency motors. This transition becomes a necessity as a direct result of limitation in energy sources and escalating energy prices. Although the unit energy price is low and motor costs are at least 100% more in Bahrain than in the EU, retrofitting energy efficient motors instead of standard efficient motors seem to be economic since pay back periods of about 3 years can be achieved. It is estimated that, with the same amount of energy consumption, motor’s output by w4% is increased by installing energy efficient motors, which can lead to a very significant saving over the life cycle of the motors [19]. A very consumable sector in Bahrain is the tertiary and especially the domestic buildings. The average energy use per area in domestic buildings is very high and most buildings show less sustainable measures in terms of energy features, energy performance, environmental features and privacy. A number of studies have been implemented regarding the role of RES in building energy conservation [20] and illustrating the electricity savings potentials in the residential sector of Bahrain [21]. 3.2. Kuwait Indeed, Kuwait is one of the world regions that receive a great portion of solar radiation per year but, has got some difficulties to move towards the development of these energy technologies. However, application of solar energy for power generation, desalination and air-conditioning, were the major areas of research during the mid-seventies at the Kuwait Institute for Scientific Research (KISR). More specifically, a number of solar cooling systems were successfully installed and tested in addition to a 100 kW solar power system and a solar thermal energy powered multi-stage-flash desalination unit. The research and development work in the area of solar cooling was mainly confined to the use of vapour absorption chillers fired by hot water at less than 100 8C using flat plate collectors. For Kuwait, it is an attractive proposition as the thermal energy collection subsystem has year-round utility for summer cooling, winter heating and hot water for services [22]. In addition, a large proportion of funds were allocated for research in solar cooling applications. By the year 1985, several small and medium capacity demonstration projects were installed and tested and more were anticipated for the future. These systems used flat plate collectors and small Vapour Absorption Refrigeration (VAR) system of 5–10 tons cooling capacity (TR). The first large installation in Kuwait was carried out in the early eighties for a school building. Immediately thereafter, an equally important installation comprising of 300 m2 of flat plate collector area and three 10 TR VAR chillers, was 762 H. Doukas et al. / Renewable Energy 31 (2006) 755–770 completed in 1983 for an office building of the Ministry of Defence. These two well instrumented installations were tested for more than one summer season [22]. Furthermore, grid connected PV systems are a promising technique to enhance the performance of the traditional grid utility system by reducing the total and peak electrical load demands for Kuwait. The performance of grid connected photovoltaic systems in the Kuwait climate has been evaluated and it was found that the peak load matches the maximum incident solar radiation. So, the role of using the PV station to minimize the electrical load demand and to cover peaks should be emphasized [23]. The potential of RUE in the country is great, taking into consideration that airconditioning (A/C) is the single largest consumer of electricity as it accounts for nearly 70% of the peak load demand and over 45% of the yearly electricity consumption. In this context, energy conservation measures have been in practice in Kuwait since 1983, through a well defined code of practice enforced by the Ministry of Electricity and Water. More specifically, Kuwait was the first country in the Arab Gulf to implement energy conservation measures in air-conditioned buildings through well defined codes requiring adequate institution of walls and roofing, and not permitting the cooling demand or power requirement per unit area to exceed a specific value, i.e. 65 W/m2 for residential buildings and 100 W/m2 for institutional buildings. Applications of some of the cost-effective energy conservation measures and use of cool storage for peak power savings have been carried out as a demonstration project in two-storey buildings in the Center for Speech and Audio Therapy (CSAT) [24]. Additional energy efficient products and techniques were developed thereafter, however, have not been introduced as the electricity is highly subsidized and the code has not been modified [25]. An interesting study for saving both energy and brackish groundwater supply water in Kuwait was carried out and recommended drainage by deep wells to lower and maintain the subsurface water at a desired level. As a result, a small Reverse Osmosis (RO) system was installed in the Kifan residential area and fed with water from a 50-m-deep well that already exists at this site [26]. Moreover, thermal energy collection subsystems are an attractive proposition due to the year-round utility for summer cooling, winter heating and hot water for services. As of today, the overall useful conversion of solar thermal energy to cooling is limited to 35%, whereas the thermal energy collection and the cooling conversion subsystems have capabilities of 50 and 70%, respectively. These subsystems also need electrical energy for the auxiliary motors and consume water in their cooling tower, the latter being an important factor in arid zone countries, where soft water is produced from seawater desalination. The overall realistic conversion of solar-to-cooling thus, gets reduced further [27]. 3.3. Oman Oman developed some pilot activities and a number of projects utilizing RES have been executed by local manufacturers and industries, in most cases with governmental support [28]. More specifically, a number of companies are specified in the supply, installation, testing and commissioning of solar power systems such as Petroleum Development Oman LLC, Oman Telecommunications, Oman Solar Systems Co. LLC etc. [29]. H. Doukas et al. / Renewable Energy 31 (2006) 755–770 763 In December 1996, the Ministry of Water Resources (MWR) successfully installed the first wind-powered, electric water-pumping system in a remote location some 900 km south of Muscat, the capital city of Oman. This activity clearly illustrated the fact that a carefully planned and highly efficient, modern irrigation system can aid a lot in the effective utilisation of the wind-powered water-abstraction system [30,31]. Furthermore, a weather-monitoring station comprising temperature, wind speed/direction, humidity and barometric pressure equipment was also installed to investigate the relationship between weather conditions and power output [32]. A model for necessity weather data had been developed and assessed the monthly average daily data of climatic conditions over the period 1987–1992. The estimated average wind speed was 3.7 m/s. This is the minimum speed, needed in general for effective wind turbines, but it is enough for water-pumping applications and Sur and Thumrait are the most promising locations [33]. According to another study, assessing the wind power potential using data from thirteen weather stations, are appreciably higher than the national average and hence, these stations have a great potential for wind power utilization [34]. Furthermore, a hybrid system combining wind/solar photovoltaic/diesel power generator elements could be used to power a water supply/treatment facility in remote locations of Oman. Harnessing the above RES can be particularly useful in remote rural areas, which do not have the social amenity infrastructure enjoyed by the large towns and cities [35]. Oman suffers a chronic shortage of water and over 80% of all fresh water consumed is used for agriculture. As fresh water resources are finite, there is an inexorable pressure to reduce agricultural use of water to meet the growing demand for domestic and industrial use. A variety of solar desalination devices were developed [36]. Nowadays, both efficiency and economics have been studied in order to be considered when choosing a solar desalination system in Oman. In the above framework, a very good application is the Seawater Greenhouse, a new development that can produce fresh water from seawater and cools and humidifies the growing environment, creating optimum conditions for the cultivation of temperate crops in Oman [37]. 3.4. Qatar Even though the adoption of RES technologies could be very advantageous for Qatar, based on relevant studies as well as small experiences from implemented projects, Qatar has some difficulties in the development of the RES and RUE technologies. More specifically, an assessment of the potential and economical feasibility of adopting off-shore/on-shore wind energy has been contacted. This economical assessment took into consideration the interest recovery factor, the lifetime of the wind energy conversion system, the investment rate and operation and maintenance costs. The results indicated that the cost of electricity generation from the wind in Qatar compares favourably to that from fossil fuel resources. An analysis is presented for the long term measured on-shore wind speed (1976–2000) at Doha International Airport. A similar analysis is presented for the measured off-shore wind speed at the Qatari Haloul Island. The establishment of wind farms on islands like 764 H. Doukas et al. / Renewable Energy 31 (2006) 755–770 Haloul with means to transfer generated electricity to the nearby on-shore areas is expected to be both technically feasible and economically viable [38]. A basic economic evaluation of electricity generation in Qatar suggested that PV technology is not far from being economically feasible. The advanced technology and wide market demand for PV systems should result in improved conversion efficiency and lower unit cost. However, PV systems are a clean source of energy and their positive impact on the environment in the Qatar should be taken into consideration [39]. In addition, some major district cooling service providers were developed and ongoing contracts were expanded regionally in Qatar. Qatar joined the consensus adoption of the United Nations Conference on Environment and Development (UNCED) along with the principles of Agenda 21. One of the principle calls for the commitment of the State to institutionalise environmental impact assessment for its new development projects. Within this context, a policy has been laid down for environmental impact assessment of new industries and major infrastructure projects [40]. In addition, Qatar plans to promote RES and RUE technologies in the future by establishing a link to international databases and encouraging local colleges and universities to conduct research and development projects, in relation to environmental issues specific to the nation’s industries and ecosystems [41]. 3.5. Saudi Arabia Since the mid-seventies, Saudi Arabia has been at the forefront of research and development into RES and especially solar energy. The major relevant activities are described as follows: † Two major international programs were funded, in cooperation with the USA and the Federal Republic of Germany, aimed at developing RES technology and demonstrating its applications by designing and installing several pilot projects [42]. † A solar thermal seawater desalination pilot plant was completed by SOLERAS in 1984 in Yanbu, but was closed down for economic reasons [43]. † A PV powered brackish water desalination plant was installed in 1994 at Sadous village in collaboration with the National Renewable Energy Laboratory (NREL-USA) [43]. † An initial joint program (solar thermal dish project) with Germany was carried out to produce a 100 kW with two thermal dishes [43]. † A 350 kW solar hydrogen production plant (HYSOLAR program) has been installed to demonstrate the safe and reliable production of hydrogen from solar energy in the technical scale [43]. † The R&D work on Phosphoric Aid Fuel Cells (PAFC) using hydrogen has successfully progressed in recent years. Valuable experience such as acid management techniques, and control of leakage of hydrogen gas and intermixing of hydrogen and air in the cells of the stack due to lack of electrolyte in the matrix, etc. led to an improved design and fabrication of the 1 kW PAFC stack. In another hydrogen utilization activity, locally available internal combustion engines and ceramic mantle gas lamps have been modified to use hydrogen as a fuel for small-scale demonstration purposes. Most of H. Doukas et al. / Renewable Energy 31 (2006) 755–770 † † † † † † † † 765 the required components used in these activities have been designed and fabricated locally at ERl, therefore, the staff of the ERl has gained professional experience in this field [43]. KACST has introduced individual units of a forced closed type solar water heating system for domestic water heating. More than 1,100 solar flat plate collectors have been installed on the rooftop of w380 residences in KACST’s campus in Riyadh in 1996 [44]. KACST has used the PV system to power highway devices in various remote locations within the Kingdom. The most significant projects are the lighting systems for two remote tunnels located in the southern mountains of Saudi Arabia [43]. A 3 kW photovoltaic power system was installed at the solar village site for evaluation of orientation, tracking, reliability, dust and temperature of PV modules on efficiency and energy output [43]. From 1993 to 2000, KACST and the NREL conducted a joint solar radiation resource assessment project to upgrade the solar resource assessment capability of the Kingdom of Saudi Arabia. KACST deployed a high quality 12-station network in Saudi Arabia for monitoring solar total horizontal, direct beam, and diffuse radiation [45]. The ERI, in cooperation with the Ministry of Agriculture and Water, conducted various research studies in order to develop the most efficient systems for drying dates using solar energy. A number of solar dryers have been designed, installed and experimentally tested at the Al-Hassa and Qatif Agricultural experimental sites [46]. Water-pumping and desalination, using energy produced by a PV generator, is expected to be reliable and cost-effective in remote rural areas of Saudi Arabia. A demonstration plant for the purpose of R and D and public awareness was designed and installed in Sadous village, near Riyadh [43]. The electricity utility in Saudi Arabia developed wind-diesel hybrid systems for remote villages away from the grid [47,48]. For the identification of high-potential areas for RES applications in Saudi Arabia, KACST is using 40-meter high mast to collect wind speed and direction data at 20, 30, and 40 m above ground level. KACST is also maintaining 14 new generation solar radiation data collection stations in different parts of the Kingdom. Another 40 or more stations were being maintained by the Ministry of Agriculture to collect global solar radiation and sunshine duration data [45]. Electrical energy conservation in Saudi Arabia can be achieved through the use of efficient electrical equipment, application of passive energy technology in buildings (such as insulation, evaporative cooling, ventilation and solar heating) and supportive tools (such as public awareness, energy codes, regulations, energy information and databases) [49]. Because of the population growth and rapid development in Saudi Arabia, the demand for electrical energy in recent years is approaching the power generated, mainly during the summer months. More specifically, the electrical energy consumption in the residential sector is at the highest levels compared to the industrial and agricultural sectors [50]. A relevant study estimated that a saving of about 2% of the electrical energy in the industrial sector in the Kingdom could be achieved by applying solar thermal systems. There are already two factories in the country producing flat plate collectors. Solar thermal 766 H. Doukas et al. / Renewable Energy 31 (2006) 755–770 absorption systems are ideal systems to be adopted and implemented for cooling and refrigeration [51]. Furthermore, the high temperature water (steam) could be used to generate electricity. The electrical energy could be used immediately or stored through the production of hydrogen via electrolysers [52]. Saudi Arabia is a leading oil producer but is keenly interested in taking an active part in the development of RES and RUE. Saudi Arabia has an area of more than 2 million km2 where many remote villages and settlements can benefit from RES applications and has enormous potential for exploiting solar energy. Saudi Arabia participated in many international conventions to protect the global environment and reduce GHG emissions. However, it is not yet clearly stated whether Saudi Arabia is willing to take off action especially as regards KP implementation. Saudi Arabia is afraid the possibility of the fact that KP might disproportionately put the burden on them [53]. For example, in the context of 10th anniversary UN Conference on Climate Change in Buenos Aires, Argentina, Saudi Arabia blocked progress regarding the provision of financial assistance to developing countries for addressing climate change impacts, since Saudi Arabia negotiators demanded compensation for loss of their oil revenues [54]. 3.6. UAE UAE has one of the most diversified economies of all the major oil-producing Arabian Gulf states and according to the population prediction for the next 100 years cannot fulfil its share in the world energy market after the year 2015 [55]. UAE have shown a significant effort regarding the development of RES and especially solar energy that could play a key role in bridging the gap between the supply of fossil fuels and the energy demand. There are some enterprises in UAE that specialize in alternative power solutions especially designed, meeting the energy requirements of the region with solar, wind energy and power backup systems. So, some installations in UAE were carried out and they are characteristic examples of how RES can help country’s daily activities in order to be in total harmony with the surrounding environment [56]. Most of these RES projects concern the design, manufacture, supply, installation and commissioning of solar power systems and solar photovoltaic systems projects such as [52]: † Stand alone solar power systems and passive cooled shelters for 33 GSM base stations. The installed total peak power is almost 600 kW; † Solar powered pay phones, with total peak power installed w29 kW; † Solar power systems for cell enhancers, with installed total peak power w9 kW; † 46 aviation obstruction warning lights, with installed total peak power 5 kW. In addition, a possible hydrogen energy system was studied in UAE. The only remedy to the above problem is to exploit solar energy and to produce hydrogen through an electrolysis process, in order to satisfy the gap between demand and fossil fuel productions. It is estimated that implementing solar hydrogen energy systems on the overall energy picture in the UAE would lead to additional income for the country, hence improving income per capita of the country [57]. H. Doukas et al. / Renewable Energy 31 (2006) 755–770 767 The increased level of the domestic electricity consumption is owed to a large degree to the air-conditioning, which is a major source of electrical energy consumption in UAE. Consequently, the relationship between climate conditions and electric energy consumption is considered as matter of crucial importance. In this context, an electricity demand model has been constructed using time series techniques [58]. The fitted model seems to represent these relationships rather well. Forecasts for electricity consumption using the estimated model indicate that a small reduction in cooling degrees requirement might induce a significant reduction in electric energy demand. Hence, a DSM program with policy actions to include, among others, is a very good solution to reduce cooling degrees requirement and therefore the level of the domestic electricity consumption. Another very consumable sector is the tertiary and especially the domestic buildings. The average energy use per area in domestic buildings is high and public buildings in UAE show less sustainable measures in terms of energy features, energy performance, environmental features and privacy. Issues considered in the assessment of buildings such as energy use per square metre and CO2 emission are alarming. Furthermore, traditional buildings in the UAE were found to be more sustainable than the contemporary buildings [59]. 4. Conclusions A significant technological background exists based on research activities in the region, since applications of RES and RUE technologies (i.e. solar) have already been developed and can be assumed as matured. The solar applications (especially PVs) are regarded as the best—and least expensive— means of providing the basic energy services that are lacking to every individual in the region. In the above framework, these countries are available to use solar applications for the following applications: † Solar home systems in order to provide power for domestic lighting and other DC appliances such as TVs, radios, sewing machines, etc. † PV modules for lighting especially for homes and community buildings as well as to telecom towers. † Solar cooling systems for commercial applications, such as supermarkets, theatres and cinemas, since air-conditioning is one of the largest electricity consumers in the region. † Solar water heaters to reduce electricity consumption in water heating sectors for many hot water domestic and industrial applications. † Large solar power plants supplying off-grid desert communities. In addition, the use of solar energy in thermal desalination processes is one of the most promising applications of RES to seawater desalination. A solar distillation system may consist of two separated devices (solar collector and distiller) or of one integrated system. The first case is an indirect solar desalination process, and the second one is a direct solar desalination. Many small-size systems of direct solar desalination and several pilot plants of indirect solar desalination have been designed and implemented. Nevertheless, in 1996 768 H. Doukas et al. / Renewable Energy 31 (2006) 755–770 solar desalination was only 0.02% of the desalted water production. Indirect solar desalination has interesting potential for development. The use of these cost-effective solar applications can play an important role in starting a renewable energy market. Using the RES technologies that have already proven to be competitive, companies can make a profit today, while creating a path for the future technological advantages or renewable energy in other applications. In some countries, these industrial applications have provided an economic base to allow sufficient volume and profitability to pursue wider markets. Moreover, energy management and conservation and therefore promotion of RUE will be a prerequisite for meeting the future energy demands. The efforts should be focused to: † Disseminate and diffuse activities for raising public awareness in energy efficient technologies. † Promote of mutually beneficial technological cooperation between organizations and professionals for innovative efficient technologies, addressed to the residential, tertiary and industrial sectors. Nowadays, the countries of GCC are keenly interested in taking a more active part in the development of RES and RUE technologies, because the region has significant potential (esp. solar). These countries have many remote villages and settlements that can benefit from the friendly environmental energy applications. In addition, the demand for electricity in the GCC countries is expanding as an inevitable outcome of social and economic development. Consequently, their major challenge for the near future needs to be the commercialisation and industrial use of large-scale RES and RUE applications. To sup up, these technologies are estimated to play a greater role in the future, in order to contribute to the abatement of the climate changes effects. In this framework, GCC governments are fully aware that they cannot depend on oil and gas for their income forever. For this reason, these countries have been accessing the Kyoto Protocol that is expected to enter into force in practice. All the above make clear that great investment opportunities will emerge for GCC Countries and new avenues for international cooperation will be opened. 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