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Renewable energy is energy obtained from resources that can be naturally replenished or replaced at various rates. It includes energy derived from solar, wind, hydro, tidal, and biomass sources. In Arab countries, renewable energy sources are not adequately developed because of both natural and political constraints.

The Arab region is characterized by a lack of significant vegetation cover i.e. forests, pastures and other semi-wooded lands, as well as, river systems that reduce the potential for producing biofuels from biomass and for generating hydroelectricity from river dams. While wind and sunshine are plentiful, energy policies have so far largely ignored the renewable energy production potential from these sources. Figure 1 clearly illustrates the marginal contribution of renewables as a source of energy. For all Arab countries, except for Sudan, electricity production from renewable sources does not exceed 10% while this share is negligible for half of the Arab countries.

Source: World Development Indicators, World Bank.

Accepting the physical limitations to using hydroelectric and biomass energy sources should not imply inaction regarding other sources of renewable energy. According to the OECD, the Arab region “has one of the highest solar and wind energy potentials in the world”.[1] However, Arab countries have so far ignored the potential contribution of such renewables to economic growth and development. One such potential relates to the role renewable energy can play to address energy poverty. In fact, solar and wind sources can alleviate the problem of poor access to electricity in rural or remote areas. Since solar and wind electricity generation can be done locally i.e. off the grid, expensive expansions of the electric power grid are unnecessary in many remote and rural areas. Moreover, costly transportation of fossil fuel to remote areas can be minimized when solar and wind sources are used to meet the energy needs in those areas. An additional benefit of developing renewable sources in rural areas is the creation of local jobs that increases labor force participation and thus tackle the twin problems of energy poverty and poverty.

Given that the Arab region is fossil fuel dependent, it cannot continue to ignore for long the potential of renewable energies. Moreover, environmental concerns, related to airborne pollution from fossil fuel usage, highlights the urgency for a policy shift towards a more diversified energy landscape. Renewable energies provide a real option for a region in need of diversification of its energy sources, as the scarcity of fossil fuel gradually becomes a binding constraint.