Energy innovations to help decarbonise and develop Middle East: Schneider Electric report

As the Middle East region’s economy modernises it is also decarbonising, which is accelerating the decoupling between emissions and economic wealth and opening up opportunities for accelerated development, a recent Schneider Electric Sustainability Research Institute report states.

The report is titled ‘Climate Horizons: Opportunities for a greener world in the Middle East’ and was launched by Schneider Electric in coordination with the Clean Energy Business Council (CEBC). Schneider Electric is a partner of ADIPEC, the upcoming edition of which will explore some of the innovations driving energy progress across the Middle East and beyond as part of the event’s focus accelerating the transformation of the energy system towards a cleaner, more secure and sustainable future for all.

The report explores two scenarios for the decarbonisation of the Gulf countries to 2060 – Net Zero 2060 and New Future 2060. Net Zero 2060 takes stock of current decarbonisation commitments in the region to reach a net zero economy by mid-century, looking at how transformations on the “demand side” of the energy system can support those goals. The New Future Scenario assumes a more rapid development of new energy services than traditionally anticipated, stemming from both faster technology development and supportive policymaking, i.e., a more radical transformation of the region’s economy, and its impact on the energy system.

In Net Zero 2060, energy demand grew 65%, while it only increased by 35% in New Future. In the former scenario, the volume of fossil fuels remained stable till 2060 with new energy needs supplied mostly by electricity. The share of fossil fuels in final energy demand dropped from 80% to 50% by 2060. In the latter, the transition is more rapid and extensive, and the share of fossil fuels declined to 35% of final energy demand in 2060, with fossil fuels demand peaking in the decade to 2050 in Net Zero 2060, and a decade earlier in New Future 2060. In both scenarios, electricity represented 40-55% of final energy demand.

One uncertainty flagged by the Schneider Electric report is the fate of manufacturing and road mobility in the region. “These two sectors will play a significant role in mitigating the volume of compensation needed to reach a net zero economy by 2060. A more rapid transformation of these sectors could be synonymous with a more feasible, rapid, and less expensive transition,” the report notes.

Read the full report here