Electric cars ready to build on Middle East lead in renewables
Electric vehicles are poised to be the next big thing in the Middle East, as the trend to renewables spreads and eco-friendly vehicles become cheaper.
“EVs will create an economic change in the Middle East, and we want to play a role,” said Sebastien Arbola, regional chief executive for Engie. “We don’t see it today but we will see it tomorrow.”
One of the biggest obstacles to the adoption of electric vehicles is the cost, with the price of batteries a major cause.
That is due to change by 2026 as the price for lithium ion battery packs, the power behind Tesla’s EV models, falls to about US$100 (Dh367.3) per kilowatt hour, according to Bloomberg New Energy Finance.
Mr Arbola said that the industry was at the tipping point as more variety and scale would soon hit the markets.
“Not everyone can afford a Tesla,” he said.
“In the next couple of years we will see more than 50 different types of electric cars, all in the range of 400 kilometres.”
Several car makers have dedicated a sizeable amount of their future fleet to electric cars, while infrastructure such as charging stations will need to become more widespread.
Engie, one of Europe’s largest utilities, began delving further into the market by taking an interest in electric charging stations.
Last year it acquired EVBox, the company behind 50 per cent of all electric vehicle charging points worldwide.
“You need a variety of cars to signal an adoption rate, but you also need infrastructure,” Mr Arbola said. EVBox chief executive, Peter van Praet, said that the availability of models combined with their increased range was leading the movement towards electric vehicles.
“When we look at the car makers, by 2020 there are 100plus EV or hybrids that will be announced,” Mr van Praet said.
The GCC is a priority for EVBox and Engie.
Adnan Amin, director general of the International Renewable Energy Agency, said the region’s forward-thinking initiatives that were increasing the green economy, encouraging businesses and consumers.
Renewable energy, such as solar and wind, has taken off in the region in less than a decade since the agency chose Abu Dhabi as its base.
“Bold commitments from countries such as UAE and Saudi Arabia are positioning them to build on their conventional energy leadership, to become leaders in sustainable energy,” Mr Amin said.
“One of the most significant things we have witnessed in the global energy transition in the past 18 months is the speed and degree to which renewable energy cost competitiveness has strengthened.
“Much of that progress has been in the UAE and Saudi through competitive procurement processes, resulting in record-low costs.
“Renewable energy will not only help to improve health by raising air quality and reducing carbon emissions, which can save us from the most perilous consequences of climate change, but it does – and will continue to – create skilled jobs, offer secure energy access and support national prosperity across the region.”