Oil sheikhs and green power experts: an unlikely, but logical, meeting of minds

Renewables industry looks set to power ahead despite economic conditions after the energy summit in Abu Dhabi

Terry Macalister
guardian.co.uk, Wednesday 21 January 2009 10.58 GMT


A camel trainer with his camels at the Mazayin Dhafra Camel Festival, organised to promote cultural events in Abu Dhabi. It is said to be the biggest camel festival in the Arab Gulf region Photograph: Ali Haider/EPA
I came to the Middle East – centre of the world's oil and industry – wanting to "smell the coffee" on renewable energy.
Abu Dhabi did not seem the obvious place for the world's green entrepreneurs and funders to have a Davos-style World Future Energy Summit.
But after three days in a massive steel and glass hangar on the edge of this bustling city-state, I can see the logic of meeting here. I also have a better sense of the health of a sector being buffeted by the chill winds of banking crises and global slowdown.
Abu Dhabi, with 8% of the world's proven oil reserves, is hosting this summit because its crown prince likes renewables.
This week he announced the first firm commitments from an Opec member to produce 7% of its energy from renewables.
A PR stunt to help boost tourism and steel a march on its flashier and westernised neighbour Dubai? Or a genuine attempt to look ahead and position itself as an energy powerhouse, even when the hydrocarbons run out?
A bit of both undoubtedly, but with $15bn (£11bn) earmarked for developing its Masdar low carbon city initiative and the establishment of a solar power joint venture, there is little doubt that it is serious.
And if anyone is going to be able to keep funding levels high when western banks are pulling in their horns, then it's the beneficiaries of a four-year boom in oil prices.
Abu Dhabi's new-found enthusiasm for sustainability is that it is encouraging others to follow suit. Was I the only one to spot the Saudi oil minister, Ali bin Ibrahim Al-Naimi, at the summit's opening ceremony?
As to the wider position of renewables, they seem to be in fighting form, despite everything. Goldman Sachs issued a warning about the tough conditions facing wind and solar in a world of lower energy demand and more difficult lending conditions.
Ditlev Engels, the chief executive of the world's biggest wind turbine maker, Vestas, told me his recent ramp-up of manufacturing capacity was not now justified – at least in the short term.
And even if solar leaders such as Econcern of Holland insist the costs of sun power will drop by half within five years and all is rosy, they know they are in for a rough financial ride.
Much depends on the politicians. They must hold their nerve and deliver more positive action to counter climate change, even in a downturn.
The renewable sector is rightly excited about Barack Obama's White House and the Chinese both going swiftly green.
Clean power companies accept the pace of developments will slow under the impact of recession but there is a very definite feeling that the sceptics have been driven away and the future belongs to them.
So back to that coffee? It smells sweet and strong.