HigH Hopes for tHe Clean energy Business CounCil

With the threat of climate change increasing, organizations like the Clean Energy Business Council (CEBC), are striving to bring environmental change now more than ever. We caught up with Claudio Palmieri, CEBC’s CEO, who shared his thoughts on energy consumption, Dubai’s integrated energy

strategy, clean energy financing, and the future of clean energy in the MENA region.

– Claudio PalmieriCEO, CEBC

““The Clean Energy Business Council believes that Dubai’s target to reduce primary energy consumption by 30 percent by 2030 is possible through private sector’s support to the government’s vision.

Clean energy vs. fossil fuels

palmieri’s perspeCtive

In a recent Emirates News TV Special Feature, CEBC’s previous CEO Alice Cowman was invited to speak about the status of clean energy in the UAE. The feature followed a recent United Nations report, stating that in urban areas, climate change will increase the risk of storms, flooding, and drought, which would lead to major economic shocks, and increase the risk of violent conflicts.

What does this mean for the UAE? The UN has urged governments to act now, particularly when it comes to the economic side of things. The good news, according to Cowman, is that the problem has not much to do with economics anymore, but more about where money is being spent.

“In energy right now, I think they’ve estimated $600 billion worth of subsidies for fossil fuels, against $90 billion of subsidies for clean energy,” said Cowman. “We need to change that balance if we’re going to move to a low-carbon future.”

Cowman further mentioned that approximately $1.6 trillion is currently spent in the energy sector as a whole, and more than half of it is used for fossil fuels. “We need to change that balance,” she said. Cowman expressed the need to redirect financing so that clean energy has a fair chance to compete against fossil fuels.

To add fuel to this discussion of clean energy, we spoke to Claudio Palmieri, who has brought more than 20 years’ experience in the power and renewable energy sectors and has worked in commissioning, engineering project management, service, sales, project development, and business development for power, renewable energy, oil and gas. Registered as a non-profit organization in Masdar City in Abu Dhabi, CEBC represents the private sector involved in the clean energy across the MENA region.

According to Palmieri, CEBC supports the green energy sector by providing the industry with a forum that brings together all stake holders such as developers, investors, technology providers, regulators, off-takers, utilities, and the relevant government entities to discuss all matters related to the successful implementation of “renewable energy, energy efficiency, smart grid, energy storage, and environmental projects.” The organization also actively supports green energy initiatives, projects, and research in the MENA region.

Dubai in particular, has set a target to reduce energy consumption by 30 percent by 2030. How likely is this goal, and how does CEBC encourage the private sector to become more involved? Palmieri believes that Dubai’s target to reduce primary energy consumption by 2013 is possible, provided that the private sector is supporting the government’s vision sufficiently.

“To achieve this target, the financial sector has to develop financial instruments that enable the private sector to finance the implementation

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of technology that improves energy efficiency and generates clean energy from renewables,” said Palmieri. “Ultimately, it requires close cooperation between all stake holders.”

In the lead up to Expo 2020 to be held in Dubai (with a sustainability theme), Palmieri believes that it was a wise step by DEWA to diversify fuel resources and to reduce dependence on gas imports by introducing alternative energy solutions. However, Dubai’s integrated energy strategy clearly goes beyond Expo 2020 and contains a vision that works towards a more sustainable energy mix.

“Dubai is unique in the sense that it has started, through Shams Dubai, to mobilize the private sector to participate in the implementation of its integrated Energy Strategy,” said Palmieri. “This is only possible because Dubai has been developing the required infrastructure and the legal and commercial framework over the last decade. Based on the current retail energy prices in most of the neighboring countries, such an approach is commercially just not feasible – yet.”

Palmieri believes that the successful development of the clean energy sector in the UAE is dependent on the financial sector to provide suitable financial solutions such as green bonds and green sukuks. Initiatives such as Shams Dubai, for example, require suitable finance assistance to make the implementation of solar roof systems affordable to home owners.

“The successful development of green bonds to make them more mainstream requires the development of a suitable legal framework, and policies supporting it,” Palmieri explained. “This is a process that develops over time and requires a fair level of interaction between all parties involved. It is part of our mission to support this process by providing a forum where such topics can be discussed.”

Bloomberg New Energy Finance has been a great supporter of CEBC in

terms of financing renewable energy. They are a current Board Member and have contributed greatly to CEBC’s events and initiatives. In return, CEBC looks forward to supporting Bloomberg New Energy Finance regarding their FiRe program (Finance for Resilience), which recognizes powerful ideas and actionable interventions for clean energy, climate, sustainability, and green growth.

In addition to seeking new ways of increasing investment in renewable energy, CEBC values events such as Solar Middle East, which promotes awareness and investment in clean energy. According to Palmieri, as a matter of principle, CEBC supports all events and initiatives in the MENA region that promote development and investment in clean energy.

“We consider these events crucial as they create a vital forum where all stake- holders come together to exchange information and ideas, where the industry can engage with the public sector, regulators, and present studies and best practices.”

But awareness isn’t the only way that clean energy can spread as a norm throughout the MENA region. Breakthrough technologies in clean energy are essential for it to move forward and progress. Over the last 25 years, renewable energy technologies

such as solar and wind power have matured to a point that innovation no longer comes with big breakthroughs, but rather constant small improvements in, “efficiency, performance, and more cost effective designs,” says Palmieri. “The areas where we can expect breakthrough innovations are related to energy storage, fuel cell, and smart grid related technologies.”

Unfortunately, many parts of the MENA region have been slow to adopt solar and wind energy as part of their energy mix. But Palmieri is confident that with many encouraging initiatives currently underway, like Shams Dubai, it marks the beginning of a “clean energy evolution,” at least in some areas.

“Clean Energy Business Council is here to actively support the development of a strong, clean energy sector,” said Palmieri. “The region has great potential to create its own clean energy industry that covers the entire value chain including R&D, manufacturing, project development, and implementation.”

Palmieri is positive that clean energy marks unprecedented opportunities for the MENA to transform into an efficient, sustainable region, that in the future, will no longer have to rely on destructive resources for energy consumption.

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