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ALKESH SHARMA
Emirates Business
Public-Private Partnership (PPP) model could be a key when it comes to ensure the success of eco-friendly projects in the Emirates and globally alike. Besides guaranteeing easy capital, this innovative business model will also enhance knowledge sharing and expertise between private and government entities.
“It is very important to cultivate an understanding of why all economies need private investment in the areas of energy efficiency and renewable energy. UAE has taken some exemplary steps in the last few years and has intelligently amalgamated public and private sectors’ green initiatives,†Naseer Abdullah, who is working with a seed capital fund, which has made investments in two different green energy projects in Dubai, told
Emirates Business.
“In the first stage, governments are introducing plans required for the development of renewable energy projects and thereafter private sector can pitch-in with long-term solutions that would be part of the plan’s overall growth cycle. There is an innovative model of Independent Power Producer (IPP) system that could effectively fuel PPPs and build new capacity in energy efficiency sector†he added.
Opening the new avenues for private players in Dubai’s renewable energy sector, Dubai Electricity and Water Authority (DEWA) had earlier this year announced that it would tender renewable energy projects worth over AED27 billion. These projects will be based upon IPP model.
A campaign, aimed at PPPinitiatives to boost corporate sourcing of renewables, is launched this week at the seventh Clean Energy Ministerial (CEM) meeting in San Francisco. Abu Dhabi-headquartered International Renewable Energy Agency (IRENA) is one of the main stakeholders of this campaign, which is aimed at governments and private sector corporations that will collaborate to scale up renewable energy in support of the Paris Agreement.
“The private sector accounts for roughly 50 percent of the world’s electricity consumption and so must play a key role in the ongoing global energy transition. Switching this demand to renewables will decrease emissions, generate jobs, and deliver a host of other environmental, social, and economic benefits across the globe. IRENA looks forward to collaborating with initiative partners to reach this aim,†pointed out said Adnan Z. Amin, Director-General of the IRENA, while reacting on this initiative.
The Corporate Sourcing of Renewables Campaign will build partnerships to increase the number of companies committed to sourcing renewable energy for their operations.
Over the years, profits of discovering alternatives to fossil fuels have led to a rapid rise in the number of projects involving renewable energy.
Even the World Bank Group is also actively involved in various sustainable energy projects, which call on governments, businesses and civil society to realise various green aims by 2030.