Islamic finance boosts cleantech project development

Author: IFLR Correspondent | Published: 19 Sep 2016

The Middle East and North Africa (MENA) region has recently seen a surge of interest in developing renewable energy, in particular solar energy projects. Waste-to-energy projects are also expected to be developed further in the region.

Led by Morocco and Jordan which have successfully implemented numerous projects, the region is looking to considerably increase the proportion of electricity generated from solar. This includes the ambitious 9.5 GW of renewable energy Saudi Arabia hopes to install as part of its Vision 2030 programme, the further development in Dubai following the success of the Sheikh Makhtoum Solar Park which, when complete, will have a total capacity of 1GW. In Egypt, the government hopes to procure 2GW of solar energy through its feed-in-tariff programme and hopes to confirm a second round of the programme.

In almost all cases, the projects are procured on an independent power project (IPP) model. Under this model,...