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and Trade Investments in technological adaptation of mature technologies to local environmental conditions also offer entry points for MENA countries to acquire and enhance innovation and entrepreneurial capabilities. As such, renewable energy deployment projects offer vast possibilities for technology transfer and upgrading and for the integration of domestic companies in the supply chain of solar and wind energy technologies. In addition, harnessing renewable energy potential can largely contribute to CO2 emissions reductions in those MENA countries that are, currently, heavily reliant on fossil fuel combustion. Partnerships across different actors within and across the MENA and EU region are critical for realising the identified benefits from clean energy trade. Inter-regional cooperation can address many crucial aspects, from finance and knowledge development to policy harmonisation and regulation in order to foster green energy exports. Source: Dr Georgeta Vidican (Senior Researcher German Development Institute, Bonn; Assistant Professor Masdar Institute of Science and Technology, Abu Dhabi) 240 Geothermal energy Another source that may be exploited for export opportunities is geothermal energy. Although development is still in an early stage, Kenya is hoping to become the first African country to export geothermal energy (UNEP 2010b). In the Caribbean, West Indies Power Holdings is developing a geothermal site in Nevis and is negotiating with the World Bank regarding the Caribbean Interconnect Project, which would supply other islands with geothermal power via submarine cables (Cleantech 2009). The European Investment Bank is also backing a Caribbean geothermal energy scheme. This includes a EUR 1.1 million grant to enhance detailed planning and to study the feasibility of exporting electricity generated by geothermal energy from Dominica to its neighbours, Martinique and Guadeloupe. This scheme has the potential to develop a 20 MW geothermal power generation plant for local use and a subsequent plant of up to 120 MW for electricity export (EU 2012). 6.4.3 Biofuels Notwithstanding the potential negative impacts of biofuels on land-use patterns and food security (see section 6.2.2), several green trade opportunities exist for countries producing biofuels, particularly when biofuels adhere to ‘second-generation’ criteria. Many developing countries are well placed to seize trade opportunities in the biofuel sector due to more advantageous climate conditions and lower labour costs. Biofuel production costs are relatively low in many developing countries, where tropical conditions prevail. Biofuels, unlike most forms of renewable energy, can be produced and then traded on a large scale, as they require relatively minor technological know-how. Given the expanding demands for transport fuels of a growing and increasingly wealthy world population, demand for sustainable biofuels is likewise expected to grow and create export opportunities for some developing countries (UNCTAD 2009). In 2007, more than seven billion litres of bioethanol were traded internationally, up from 1 billion litres in 2000 (Oosterveer and Mol 2010). Until now, however, the contribution of many developing countries to the global biofuels trade has remained fairly small. This is partly due to the technological and institutional challenges in producing these goods but also because of import requirements and tariffs in developed countries limiting market access of many developing countries (Steenblik 2007, FAO 2008, Coelho 2005). Second generation fuels technology uses agricultural and forestry residues, rather than food products or produce from agricultural land, for fuel production and could therefore avoid many of the adverse consequences of first generation biofuels. This will require that second generation fuels use only moderate amounts of agricultural residues, or are based on crops such as halophytes that do not compete for arable land. A recent survey by the Bloomberg New Energy Finance (BNEF 2013b) estimates cellulosic ethanol, a specific variant of second generation biofuels, to reach cost parity with conventional biofuels by 2016. This could substantially relieve the current shortage in arable land for food production.PDF Image | Renewable Energy
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