Interview: Anas Meerza
In what ways can renewable energies be utilised in the oil and gas sector?
ANSA MEERZA: The oil and gas sector has plenty of remote locations for exploration, which are currently running on diesel generators or grid-connected electricity, all of which can definitely be replaced by renewable energy. A good example of this is the Oman Oil Company, which uses renewable energy on its oil rigs successfully. Today the hydrocarbons sector is a large consumer of electricity, so even in locations that are connected to the grid, renewable energy can be grid assist, meaning we do not use 100% renewable energy, but rather during peak hours. At this time, when energy consumption is at its highest, renewable energy can be used to operate facilities and to assist in evening out demand. Today, a few companies in Kuwait are working on this, including the Kuwait Oil Company, which is using renewable energy in several areas of its business. Overall, renewable energy can be used anywhere, and it does not necessarily need to be used as a primary energy source, but rather as a grid assist.
Can you explain the importance of properly establishing solar energy legislation in Kuwait?
MEERZA: This is a very important step that the government needs to take into consideration. For the public sector, being the only player that is producing and selling electricity, there is pressure to introduce these changes. For the government to be able to boost renewable energy usage it must put the right legislation in place in order to support the private sector and encourage international companies to start building renewable energy projects. Today, renewable energy projects that are being tendered do not have a legal framework for how the Ministry of Electricity and Water (MEW) is going to buy electricity. Power purchase agreements (PPAs) are not currently available in Kuwait, but these would allow private companies to run the energy sector and sell the electricity back to the public sector – generally sold at a cheaper rate, saving the government money. At the moment, sellers, producers and the regulator are combined, and we need to separate and provide clear tasks for each one. Unless Kuwait can design a PPA framework, the MEW will have to continue overseeing all of these projects on its own, and private firms will never be able to come and build them.
What role can private companies play in creating the first phase of the solar power energy project?
MEERZA: The only way solar power energy projects will happen is if the private sector and international companies come and build them. The government needs to stop thinking about doing everything on its own and transfer the responsibility to both local and global players. Today, all international firms in solar and renewable energy are eager to do these projects, but unless we have the correct legal framework in place, these potential investors cannot come. If Kuwait wants to promote foreign direct investment, this is the best way to do so, because everyone is willing to invest in renewable energy on a build-operate-transfer basis. Kuwait has a large amount of unused desert space, which is exactly what investors would like.
With Kuwait having one of the highest per capita energy consumption rates in the world, how can people be encouraged to conserve energy?
MEERZA: The subsidised costs are too low, so that people are not incentivised to lower consumption. This will not change as long as the cost for end-users remains as low as it is. The cost must rise so that people realise that if they leave their light and air conditioning on they will pay a much higher bill. Another option is to promote the concept of saving energy. We do not see this nearly enough, and we need to build the thought process into the community, explaining that although electricity is very cheap, it is costing the government a lot of money, which could instead be used for schools, hospitals and entertainment parks. People are taking cheap electricity for granted and not thinking about the future.
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