The investments necessary for the energy sector in the future

Have Grown investments in the field of renewable energy at the level of developed large undeniable, however, the integration of major companies and markets remains the backbone of energy markets, the consensus that China, India and Brazil are the largest markets of renewable energy, but companies still focus its work and investments in Europe and America. That companies such as GE GE Energy Electric, Ormat Technologies, focused on the markets of many States, that some investors apcca some markets investments in areas such as wind power in central Europe reason because it was a huge market know well companies.

We cannot deny that alternative energy needs substantial investments – compared with the traditional power. At the present time, but we can say that it is now high-cost does will remain forever?, it was the price per kilo hours product in 1980 of wind power 40 cents dollars either the product from the solar cells was 100 cents dollars/kwh while it is now reached 5 cents dollars) kwh, about 15 cents dollars/kwh.

That pumping more investments in the research and development of alternative energy technologies will work on accelerating the integration of applications of alternative energy in society and find essential roles instead of waiting for the secondary roles or supplementary which could not be relied upon or reliable.

According to the study the status of Clean Edge Center for Investments in the field of renewable energy in 2006 and projections for the next 10 years the following:
— the world market of biofuels “Industrialization and sales ethanol and bio-diesel Bio-Diesel reached 20.5 billion dollars in 2006 and is expected to reach 80.9 billion dollars in 2016.
– The total value of the wind farms installed in 2006 about 17.9 billion dollars and is expected to reach 60.8 billion dollars by 2016.
– Solar Cells “included components of the system and model fixtures” will grow from 15.6 billion dollars in 2006 to 69.3 billion dollars in 2016.
– Expected growth market for fuel cells Fuel Cells and the distribution of hydrogen from 1.4 billion dollars “initially: contracts of research and experimental units test units” to 15.6 billion in 2016.

Any that the total investments in these four areas reached 55.4 billion dollars in 2006, and is expected to reach 226.5 billion dollars in 10 years.


The resettlement of energy technology


Shows the report prepared for the benefit of the ESCWA member countries about the possibilities of the local manufacturing of the components of the renewable energy in Egypt, the existence of the capabilities of ok to manufacture some components of the projects of the wind and solar energy, but what is confirmed by the study is that the transition from the stage of wishes to reality requires the processing of the theater of energy in general theater of renewable energy in particular, intended to re-processing: to overcome the obstacles that face the deployment of renewable energy use, and the implementation of a package of policies capable of attracting private investors.

Some examples of the obstacles that face the deployment of renewable energy, high capital cost compared with thermal stations, and the absence of cognitive side of developing States in the manufacture of components of renewable energy systems and low awareness of the importance of renewable sources in the face of environmental problems and the limitation of greenhouse gas emissions and to reduce the reliance on fossil fuels.

On the other hand, the political side of the desire of the local manufacturing of attracting private sector investment in renewable energy, can use financial incentives, fiscal, financial incentives in preference of suppliers of the largest proportion of local ingredients with the financial support of these components manufactured locally (wind turbines, photovoltaic cells,.. Etc.), the tax incentives consists in the reduction of the sales tax or tax on income from buyers or vendors of local components (wind turbines as an example), which could increase competition between companies as well as the proportion of local manufacturing.

The transfer of technology, including the transfer of the designs of the required components manufactured and thus intellectual property rights to the technology for producing local specifications, and the investment in research and development must be linked to local requirements for the development of renewable energy technologies. It therefore seems the establishment of centers of excellence is imperative, not only to meet local requirements but extending its activities to include the export of the outputs of the knowledge to States neighboring markets, especially in the presence of a variety of international universities in Egypt.

The resettlement of “technology” requires the need to stimulate the public-private partnership and close cooperation with research institutions, and the strengthening of local firms to accommodate the rehabilitation and development of technology and acclimate to suit the local environment and the importance of sustainable markets will provide continuity of research and development, and transfer and compatibility of technology and attract international companies to enter into partnerships with local actors, as well as the imperative of the research institutions and developmental role in support of technological progress and solving problems relating to intellectual property rights and reducing risks organizational, and to work to find knowledge networking between the political institutions of scientific and educational and industry, civil society institutions and the transfer of expertise and experiences and lessons learned whether technical or administrative or regulatory facilitate technology transfer and adaptation, and encourage investment.

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