Qatar’s renewable energy power generation to touch 18% by 2030

Qatar’s renewable energy power generation to touch 18% by 2030

QLNews
By QLNews

Qatar is looking to increase its rate of renewable energy production from the current 5% (of total energy mix) to 18% by 2030, said Qatar General Electricity and Water Corporation’s (Kahramaa) Director of Production, Planning, and Business Development Eng Abdul Rahman Ibrahim Al Baker on Friday.

Al Baker emphasized the importance of renewable energy for the country to achieve its goals outlined in the National Development Strategy 2024-2030.

The Qatar National Renewable Energy Strategy aims to develop a sustainable and cost-effective energy system, leveraging the country’s abundant natural gas reserves and renewable energy potential.

Al Baker said the strategy aimed to reach 4 gigawatts from centralized renewable energy projects and 200 megawatts from distributed projects by 2030. It focuses on three main goals — reducing carbon dioxide emissions through sustainable policies, increasing the share of renewable energy while maintaining grid reliability, and maximizing social and economic benefits of renewable energy programs.

On economic benefits, Al Baker noted the competitive costs of renewable technologies, making its adoption in Qatar and the region more attractive due to decreased cost of electricity production.

The cost of photovoltaic solar energy has dropped significantly — from around 4 cents per kilowatt-hour in 2017 to about 1.5 cents in 2023 — with expectations for further decrease to around 1 cent per kilowatt-hour by 2030.

Similarly, the cost of wind energy has decreased from about 5 cents per kilowatt-hour in 2017 to approximately 4.5 cents in 2023 and is projected to reach about 4 cents per kilowatt-hour by 2030.

The recommended energy mix is expected to reduce the average cost of electricity generation by 15% in 2030. Al Baker also mentioned that the strategy will enhance energy security by diversifying energy sources, ensuring the energy sector’s stability.

Qatar's high potential for increasing renewable energy usage is due to the high quality of its solar energy resources, with a global horizontal irradiance among the world’s highest, averaging over 2,000 kilowatt-hours per square meter annually.

The strategy focuses on photovoltaic solar technology due to the country’s high solar irradiance levels, mature technology, and numerous specialized companies in this field.

Qatar’s current renewable energy production is distributed between the Siraj 1 PV solar plant in Al Kharsaah, with a capacity of 800MW, and over 9MW from distributed solar projects.

Overall, Qatar’s energy needs rely on thermal generation, with total thermal power capacity exceeding 12GW, accounting for over 90% of the country’s total power generation capacity.

The operation of Siraj 1 and future solar projects by QatarEnergy (with a production capacity of 875MW) reflect the state’s commitment to effectively utilizing centralized renewable energy projects.

Regarding anticipated challenges, Al Baker highlighted the private sector's limited capabilities in contributing effectively to large projects due to its small market size and lack of expertise among companies. This poses a challenge in achieving the strategy’s goals, especially in distributed generation, along with the need for significant investments estimated at $7.6bn by 2030.

The strategy proposes launching a net billing mechanism to encourage investments in distributed solar projects, coordinating with financial institutions like Qatar Development Bank to offer attractive financing programs for clean energy projects, and streamlining the application process for distributed renewable energy projects through effective coordination with the Ministry of Municipality.

Additionally, the strategy suggests establishing clear technical standards and regulations to ensure quality, helping companies develop projects efficiently, coordinating with relevant entities to offer affordable vocational training programs for employees of development, engineering, procurement, construction, and operation and maintenance companies, and activating a supportive strategy for renewable energy tenders to foster the development of local actors.

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