Coming clean

Lars Thyroff and Mehmet Ali Neyzi discuss the major challenges faced by the power sector and address the importance of renewable and sustainable energy sources.

What are some of the major challenges faced by the Middle East's power community, and how do your solutions help address some of these requirements?

Lars Thyroff. The Middle East region is one of the strongest growing regions in the last decade. But this industrial and economic growth brings with it the same problems that established industrial countries have to deal with today – environmental pollution, traffic problems, the need for a safe power supply, as well as the limitation of natural resources such as fresh water. All these major issues are related to the need for power. Oil and gas power plants are large contributors to CO₂ emission and air pollution as are gas powered vehicles. Although oil and gas are available in the Middle East, alternative energy projects must be started today to build the base for an environmentally friendly power supply of the future.

Mehmet Ali Neyzi. The Gulf region suffers scarcity of gas suitable for power generation. Much of the gas has been increasingly diverted for use in subsidised power generation instead of exporting the gas at a profit. Vestas, as the world leader in the wind energy market, can help address the energy security issue by supporting wind energy as a readily available free source of power and providing wind energy solutions to these countries.

Considering that oil and gas prices will most likely be on a volatile and upwards trend and as more resources are further diverted, wind power can provide a cost-effective energy solution. Above all, Vestas can assist developing the necessary regulatory framework to plan a smooth transition towards renewable energy and particularly towards wind power.

As the Middle East looks to become a world leader in sustainable development, new technologies – everything from renewable energy sources to smart grids – are being integrated into the region's megaproject developments in order to lower carbon footprints and increase energy efficiency. What opportunities are presented by implementing such cutting-edge technologies into the region's infrastructure developments?

LT. Healthy living, a clean environment and plenty of fresh water are important goals for a society. And new technologies are helping to achieve them. With green renewable energy technologies, CO₂ emissions will be reduced as well as the pollution of air, sea and ground water. With smart power grids and increasing efficiency in all areas of daily life, the increasing demand for power can be covered by renewable energy concepts. Renewable energy is fundamental to building new green public transport systems and individual vehicles such as electric streetcars and electric vehicles for passengers and transport. The cities of the future will offer green-powered and CO₂-free transportation infrastructure combining public transport systems as well as electric vehicle charging stations that makes use of electric vehicles feasible.

MAN. The approach in the Middle East has changed recently due to their commitment to the Kyoto Protocol. The opportunities are clear where there is a right mix of economic background, energy security concerns and coherent government focus. Turkey, Egypt, Morocco, Tunisia and Jordan are beginning to implement renewable energy strategies and private sector incentives. Also, Iran, Syria and Lebanon begin developing a framework for renewable energy investment.

There are also opportunities for renewable energy in the oil-rich countries, where governments, businesses and the general public start to consider the inevitability of raising climate change issues to the top of the list for social and economic development. Besides, some renewable investment seems to be the best solution in these countries, particularly in certain areas that are remote or isolated.

What appetite is there for concepts such as energy efficiency and renewable energy in the Middle East? How committed are the oil-rich states of the region to going green?

LT. We have seen in the last decade, especially in oil-rich states, growing recognition that it is very important for the future to invest in developing new concepts and approaches to all aspects of society, be it tourism, be it finance, be it worldwide cargo, and even air transportation infrastructure. Renewable energy and energy efficiency will be the next big step to safe growth in the region.

MAN. The UAE, which is hosting the future International Renewable Energy Agency (IRENA), has dedicated over US$10 billion for water and power projects since the Emirate of Abu Dhabi embarked on its privatisation in 1998. Abu Dhabi in particular has established an enormous investment platform, Masdar, committed to renewable and sustainable energy.

The Gulf seems to be more interested recently in green projects overseas. Saudi Arabia aims to turn into an exporter of renewable energy. The Saudi oil minister Ibrahim Al Naimi stated last year that the country was planning to turn solar energy into an important pillar of the national energy mix.

In the Levant countries, the need for sustainable and local supply is clear and governments are beginning take these issues as a part of their political agenda.

To what extent are you working with urban planners, developers and local authorities in the region to increase awareness and drive the adoption of such solutions?

LT. As the market leader in wireless machine-to-machine communication modules, we demonstrate the potential of this cutting-edge technology for many of these new projects. But Cinterion Wireless Modules is just one element in a total M2M solution. We see the need to increase co-operation not only with other suppliers of M2M solutions but also with urban planners, developers and the local authorities. By tightly working together toward our common goal of boosting adoption of M2M technology, for example for smart grid and electric vehicle charging infrastructure, we will make the overall solution successful.

MAN. One of our main tasks is to increase awareness of the finite resources, climate change responsibility and the rise of the energy demand. Most importantly, we will be working closely with private developers and public sector authorities to drive renewable energy focus and its viability in comparison to traditional fossil-fuel power generation. Vestas is open to a dialogue with the governments and the private sector as they play a key role in stimulating the development of the region's wind market.

Undoubtedly, the wind industry needs the appropriate governmental support in order to expand in new markets, because governments together with the industry players hold a crucial role in creating confidence and business case certainty for the investors.

In terms of the pioneering nature of its recent construction and engineering work, the Middle East ranks as one of the most innovative regions on the planet. Is there a similar desire for innovative solutions in the energy industry? And what does this mean for you from an R&D perspective?

LT. As previously mentioned, the region has recognised the significance of groundbreaking new trends and has developed these areas very strategically and systematically. The same will take place for renewable energy, energy efficiency and urban transport. The difference between industrialised countries and the Middle East is that we innovate technology and pilot new technology over several years, but it is hard for us to roll out the new technologies in a short period. When Middle East counties decide to introduce a new technology or a new concept, it is quickly realised and has a strong financial backing as a strategic goal for the nation. This means we have to be ready for these coming projects not to miss the race.

MAN. The Middle East has benefited recently from a can-do approach to technology. A benchmark of how technology will be developing in the region is Masdar City in Abu Dhabi. The US$22 billion project comprises a solar power plant, geothermal, wind energy and hydrogen power.

Vestas, as number one in modern energy, is ready to offer the most innovative and competitive energy solutions capable of withstanding hot desert climate and difficult terrain conditions. Based on 25 years of experience, Vestas has integrated technology R&D as an independent business unit loaded with innovation power. We have seven R&D centres worldwide with over 1400 employees. We also offer active knowledge sharing with innovative universities and key partners around the world. Thanks to these resources, we have the most advanced technology in the market to enhance wind power development at a local level.