The National Bank of Abu Dhabi has released an 80 page report on the world-changing reality of renewable energies. Why would the National Bank of Abu Dhabi do such a thing? They see exciting investment opportunities for the bank of course! In their preamble:
“the changing nature of the global energy system over the next decade, highlighting the growing demand for sustainable energy in the Gulf region; the technologies that are most likely to close the supply-demand gap; and the scale of the financing required. Arguments are prepared for why banks might choose to develop and support these opportunities, and how they can work with policy makers to positively enable
this to occur.”
See, Financing the future of energy. Here are some of the reports key conclusions:
- “Cost is no longer a reason not to proceed with renewables.” Solar is on track to achieve grid parity in 80% of countries within the next 2 years. Even at $10/barrel for oil, and $5/mmbtu for gas, solar is still a cheaper option.
- Intermittency is no longer an obstacle with solar and wind. Developments in storage technologies are progressing rapidly, and in the next few years utility scale solutions will be deployed that further minimize concern around what was until recently seen as a major inhibitor to the uptake of renewable generation.
- In the oil-rich Gulf, energy demand is rising so quickly it risks overwhelming domestic production, turning states such as Kuwait and UAE into importers of energy rather than exporters. Hence the need for them to push into solar and wind for domestic needs, so that the Gulf states can continue to sell their gas and oil for export.
- Financing the future of sustainable energy offers excellent opportunities for the banking sector.
Last month, Saudi Arabia acknowledged that the end of the oil era was on the horizon.
This is happening. It is very exciting for those who like the human species to evolve to smarter, cleaner, exponentially more-efficient systems. Those who oppose or deny this evolution are destined to go the way of the dodo bird.