The Arab State of Renewable Energy: Investigating Progress in Arab Electricity Markets

Renewable energy (RE) progress in the Middle East and North Africa has been varied, and is affected by multiple factors. This thesis investigates the current status of RE for 13 countries in the Arab region. An initial hypothesis proposes that price is not the only or main driver. Literature and interviews with participants from Arab government, regulators, funding partners, and industry inform to identify drivers and barriers to RE progress. A new index – designed to measure RE progress specifically for RCREEE member countries – provides structure for the research results. Five relevant areas are identified: market, policy, institutional, investment, and technology-specific to each renewable generation type. Historically closed and heavily subsidized Arab electricity markets are making RE investment unattractive. A new approach for assessing subsidies is proposed using Palestine’s electricity prices as a benchmark, due to its unique position without subsidization. Analysis of this implied subsidy highlights the case of Morocco, which stands out by reducing or eliminating electricity subsidies altogether. Secondary issues are identified in the failure to align policy with actions, impacts of changing oil export and demographic patterns, and creation of institutional conditions that promote RE. Governance emerges as a prevailing common theme. Cases showing positive results are presented, offering a view on where other Arab states might intervene to support their RE development