chapter  1
9 Pages

Introduction

ByHisham M. Akhonbay, Marilyn Smith

This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book highlights the complexity of the cooperation council for the Arab states of the Gulf energy system, but also points to opportunities to make it more efficient through renewables integration and electricity trading. It analyzes the costs and benefits from the perspectives of households–installing rooftop solar photovoltaics (PV)–and utilities, deploying large-scale PV or concentrating solar power. The book investigates the possible policy instruments that could be implemented in order to make the intended plans operational. It addresses the need to enable a renewables market through pricing and subsidy reform across the electricity sector. The book describes how a cost utility function that accounts for six elements–oil and gas prices, oil and gas subsidies, the levelized cost of energy from gas and the introduction of a carbon tax–can inform policy decision-making.