Making strategic shift to renewables, diversification

Bahrain and fellow GCC nations are embracing renewable energy, hydrogen, and technological innovation to transition beyond oil reliance by 2050, Pablo Avogadri, Partner and Director, Energy, at BCG, tells OGN

- ABDULAZIZ KHATTAK

BAHRAIN finds itself at a pivotal crossroads in the region's ongoing transition to a more sustainable energy future.

Historically dependent on oil and gas revenues, the Kingdom, like its GCC neighbours, faces both the challenge and opportunity to diversify its economy while maintaining its crucial role in the global energy landscape.

Overall, the GCC as a whole is making bold strides to align with global energy transition trends, focusing on expanding renewable energy sources and pioneering new technologies.

With abundant solar potential and strategic investments in large-scale projects, countries like Saudi Arabia, the UAE, and Oman are positioning themselves to lead in the clean energy space, Pablo Avogadri, Partner and Director, Energy, at BCG, told OGN energy magazine.

Below are excerpts from the interview:

Given the region's historic reliance on fossil fuels for economic and energy stability, what transformative changes or strategies do you foresee emerging in the Arabian Gulf to align with global energy transition trends, and how might these redefine the region's role in the global energy landscape?

The Gulf region, historically reliant on fossil fuels for economic and energy stability, is undergoing a significant transformation to align with global energy transition trends.

Several transformative changes and strategies are emerging, likely to redefine the region's role in the global energy landscape.

The Gulf countries are significantly increasing their investments in renewable energy, particularly solar and wind power, as part of a broader strategy to diversify their energy mix.

In solar energy, they have set an ambitious target of installing over 90 GW of capacity by 2030, reflecting a more than 100 per cent year-on-year growth compared to 2023.