Renewable Energy Development in OAPEC Countries: History, Current Status, and Outlook

Abstract

The renewable energy industry has grown its contribution to the global energy mix, particularly in terms of electricity generation. This study investigates the implications of an increasing renewable energy share on OAPEC countries and proposes a comprehensible policy strategy for the region. Four main topics are discussed: scientific and engineering principles of renewable energy utilization, current strategies for electricity generation in each OAPEC member country, economic and environmental implications of the energy transition under two future scenarios, as well as political interactions between oil-consuming and oil-producing countries. Based on this study, realistic and cost-effective strategies are proposed for OAPEC countries to better leverage their significant renewable energy resources while stabilizing fossil fuel supplies and strengthening their position in the global energy market. To mitigate the negative impacts of the energy transition, OAPEC countries are encouraged to take the following steps: 1) Developing renewable energy in conjunction with fossil fuel resources to reduce local demand for fossil fuel and increase the supply for exportation; 2) Reviewing economic policies, environmental regulations, and carbon taxes imposed by oil-consuming countries; 3) Increasing investment in renewable energy infrastructure; 4) Cooperating to achieve a balance between economic development and environmental protection.