The political uncertainty that has resulted from the Arab Spring would appear to thwart investors from the region, but Areva Solar thinks of that the movement could have positive repercussions for renewable energy. Jayesh Goyal, Areva Solar’s VP of global sales, told Alternative Energy Africa that in one sense, the Arab Spring has actually helped the sector. He said that there has been a heightened “recognition to provide policies for the youth” and if not, governments acknowledge continued social unrest. “It’s spurring the governments to provide policies and promote local jobs which encourages the renewable energy industry,” he added.
In the case of Tunisia – the country that sparked the Arab Spring – a young fruit vendor set himself ablaze in protests over unemployment. Despite the ousting of the longtime regimes in Tunisia and Egypt, the countries continue to see an economic downturn. Tunisia saw its GDP decrease from 3% to 0% and Egypt’s decline went from 5% to 1%, according to the International Monetary Fund. And while revolutions were initially started in protest of unemployment rates, Egypt has seen an uptick in unemployment from 10% to 15% with the youth unemployment rate increasing to a projected 25%.
However, Goyal believes in the case of Tunisia, the unemployment rate – particularly with youths – is a temporary situation. Goyal said, “We are waiting to see how things develop in the region. From the perspective from political stability, market uncertainty is of course important.” He said it was important that opportunities were created for people in the region, and expanding renewable energy goals will provide jobs for these individuals. “It’s important that opportunities are created for them.” He continued, “There are certainly other countries that we’ve seen where the political situation has stabilized and we intend to stay focused on the region from that perspective. In other countries, it’s a ‘wait and see.’”
Areva Solar is looking to expand its CSP presence in the MENA region considering that it will have 35 GW to 40 GW of capacity over the next 20 years. While the company has set up offices throughout the region, headquartered in Saudi Arabia, Goyal said the issue in North Africa remains reliant upon market certainty and long-term commitment for renewable energy. He said, “Very often nations announce plans and then there are delays [making it] hard to attract foreign direct investment.”
Areva Solar just installed a CSP plant in India, but the executive said that the solar resource in North Africa is even greater than in India. If the region could gain political stability and establish a long-term commitment toward a sustainable energy policy, renewable energy could create jobs with FDI following which would ultimately have a positive effect on countries’ economies.
For further reading of Alternative Energy Africa’s interview with Areva Solar’s Jayesh Goyal which includes the company’s latest technological release and future plans for the MENA region, make sure to subscribe to receive the print or online version of our upcoming July/August issue.
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