EXECUTIVE SUMMARY
The IPCC - International Panel on Climate Change, recently released its timely report on climate change and global warming, a bleak snapshot of the current situation and a gloomy outlook for the foreseeable future, including a reference to the Middle East region and possible implications for our future and our children's future. The impairment of the sun's ability to return sun's rays into space is primarily attributed to emissions of gases that damage the texture of the atmosphere.
The first report of "Intelligence Club" presents an ESG Research that comprehensively reviews the existing and future state of the renewable energy market in several European countries (Portugal, Germany, Iceland, Austria, Norway), a major African country (Sudan), and an important sultanate in the Middle East (Oman).
Alongside the reflection of the current state in each country, the countries are compared in different aspects, based on accepted models.
We found that all the countries we analyzed have a state plan for developing renewable energy-based infrastructure, aiming at 2050 or under.
Addressing renewable energy applications for the benefit of agriculture development, we found that most countries designate part of the energy supply toward agriculture. In Oman, we found that there is a dedicated plan for future development.
In analyzing the current situation, we found that most countries have identified and exploited renewable energy sources in their territory. However, bioenergy and geothermal energy are not the domain of all countries of comparison. Norway is an exporter of natural gas while Sudan does not know how to produce it efficiently. We found that in Oman, there is a process of developing wind energy, and in Sudan, there is a similar process aimed at geothermal energy. Germany should be named the World's No.2 after China in biogas-based energy production and utilization.
The data indicate that in the countries of comparison, geothermal energy and bioenergy are opportunities for domestic development and foreign companies and organizations.
In analyzing the current situation concerning the utilization of biodegradable energy sources, we realized that all countries use at one level or another Fossil fuels as well as coal. Some countries produce energy based on biomass, and Sudan still uses forest trees as a basic energy source.
Analysis of main uses for renewable energy - it is evident that the emphasis is on electricity generation as well as for heating and industrial purposes. Some countries produce energy for land and sea traffic as well as agriculture, with an emphasis on Sudan, which is its main industry. In addition, there is a significant difference between the rate of renewable energy utilization and electricity generation in the most developed countries in Europe (Norway for example), and Sudan and Oman.
The data indicate that in the field of the transformation of maritime and land and air transportation, there is still great potential for development, which constitutes opportunities for companies whose purpose is aimed at these areas.
Comparing the size of the country to its population density, we found that although Sudan is a very large country relative to the other countries, followed by Oman and Germany, Germany Portugal, and Austria are the most densely populated.
An examination of the cost of electricity to households and industry in the comparative countries shows that Germany, Portugal, and Austria are the most expensive for the household consumer. The comparison also indicates a clear difference between the price of electricity for households versus industrial use of electricity. In Oman, we found that electricity for the industry is more expensive than that of households. We understand from the data that electricity prices are high, in part due to the broad regulation of advanced countries regarding harmful emission quotas and the fact that Germany, where the price of electricity is highest, still uses a large scale of non-renewable energy sources.
And in the same context of the country's level of development and modernity, all countries are in the range above 0.5 on the Human Development Index, at the lower end lies Sudan,0.51, and at the top end is Norway 0.957
We found that all countries, both the weakest and most developed, are related to UN international activities, whether as contributors to knowledge and capabilities or as recipients of assistance and guidance. This is also true of financial assistance from UN institutions and regional finance organizations, such as significant funds that Sudan receives from such entities and banking institutes in Africa.
There is a clear difference between European countries, which are developed and cooperate with organizations such as the UN for the purposes of generating and passing knowledge and promoting projects, and African countries that are in a very disadvantaged position relative to Europe, which get a lot of attention from international aid organizations and large financing institutions. This represents an opportunity for Western companies interested in investing in renewable energy in cooperation with large organizations that can vouch for realistic ROI.
Compiling the goals of the countries in comparison to renewable energy development, we found that most state programs are looking at 20-30 years upfront, this is probably based on the feeling that the energy transformation takes several decades to create a real market that relies mainly on, and perhaps only, on renewable energy.
We found mutual key goals of reducing coal use, and emissions of toxic gases, along with many countries' reference to the energy effects on poverty, gender equality, costs for customers, and full electrification of all traffic. It should be noted that Sudan, which is on this axis of development, is a long way behind the rest, where we found that alongside the trend towards the development of renewable energy, a five-year plan based on coal and fuel was recently completed, with the clear aim of starting the country's industry (at all costs).
We conclude from the data that the two primary sources of renewable energy countries put first in development, focus on solar and wind energy, followed by the development of waterpower energy and all other sources with a lower priority. This finding represents an opportunity for companies interested in developing their market with solutions for this type of renewable energy. In the short term, we suggest focusing on solar, wind, or hydraulic energy solutions. In the longer term, the opportunities are with the other renewable sources.
FINDINGS AND INSIGHTS FROM THE COUNTRIES' COMPARISON BASED ON MICHAEL PORTER'S "DIAMOND" MODEL
As mentioned above, the main analysis model for comparing the countries is a "diamond" model consisting of 6 criteria for the country's level of competition (4 "corners" and to which 2 more areas of influence were added).
In the analysis of the countries, we "dismantled" the state reports according to the 6 criteria above. In addition, we extracted threats and opportunities the countries are facing. For each of the criteria, a ranking of the level of competition was given in the range of 1-7. In the last stage, the rankings of a particular country were summed over the criteria, and a rough estimate of the competitive state was given to all seven countries.
Demand Characteristics - Customer Sophistication Level - Sudan
Many customers are not connected to an electrical grid, and the consumption for heating and cooking is mainly from perishable sources with an emphasis on wood and biomass.
Gender disparities prevent the development of women and the home economy and perpetuate the use of basic renewable energy sources for everyday needs.
Sudan's population is mostly rural and scattered, not connected to a major power grid, therefore the goal is to produce local networks that will provide the basic energy for living conditions, agriculture, and local basic industry.
The west of the country is characterized by local power grids and independent power plants and is mostly not connected to the state electricity grid.
Most of the energy in Sudan comes from burning consumables (wood, biomass) for cooking and heating.
The country is experiencing a rapid increase in energy demand from all sectors
Demand Characteristics - Customer Sophistication Level - Oman
Oman's growth economy is characterized by the government's focus on non-oil sectors. In addition, its population growth (GTR 2018) mainly contributed to a steady increase in demand. According to Oman's 7-year statement from the procurement and water company (OPWP), the combined demand of MIS, DPS, and other small and isolated systems may increase from 6,668 MW in 2017 to 10,072 MW in 2024 under its projected case scenario for demand forecasts from 2018 to 2024.
Oman is fifth in production and at the peak of demand in the GCC region.
The MIS covers most of the northern parts of the sultanate, serves about one million electricity customers, and consists of about 90% of the total demand for Oman's peak electricity.
DPS covers the city of Salah and the surrounding areas of Dhafer Province, serving about 100,000 customers and contributing 10% of peak demand (OPWP 2018).
Demand Characteristics - Customer Sophistication Level - Iceland
Iceland's renewable energy sources are not only plentiful, relative to the size of the population, but they are also available at a relatively low price. For this reason, electricity prices in Iceland are much lower than in most other OECD countries.
The Icelandic electricity market allows all consumers - whether individuals, businesses, public organizations, or industries that are intense energy consumers - to choose their electricity supplier.
Transmission and distribution of electricity in Iceland remain under concessional arrangements and regulatory oversight of the National Energy Authority or ORKusto nun, under the Electricity Law and other relevant regulations. The NEA oversees aspects such as pricing (income ceilings and tariffs), quality, and supply security.
Under Icelandic law, one power company can function as a generator, distributor, and supplier, however, an accounting separation is required between concession (power transmission in a particular area) and competitive activity. While consumers must use a distributor holding a concession to their region, the distributor does not have to be the same company as the supplier.
Most of Iceland's electricity comes from less than a handful of manufacturing companies, but there are also several small power plants that feed electricity directly into a distribution system.
Demand Characteristics - Customer Sophistication Level - Germany4.
Total energy consumption per capita is 2.7 percent lower than the average 5 percent of the AA country average. Home and industrial heating consumes over 50% of Germany's total energy consumption and is generated from fossil fuels (25%) and is therefore responsible for about 40% of carbon emissions.
Buildings - In Germany, nearly 30 million structures are home to more than 80 million people. Birth rates are low and there is no great demand for new homes since the unification of the two countries, only nearly 20,000 homes a year. A significant portion of the energy consumption is not to produce electricity, but central heating energy intended for heating houses and buildings. Conversion to natural gas has helped reduce the emissions and pollutants that this industry emits. As for the loss of energy, only upgrading the structure can prevent it. Buildings are responsible for 40% of the emissions, because of architecture and improper construction. Part of the national energy building efficiency plan includes clogging nozzles and sealing walls and roofs.
Transportation - A very small part of renewable energy production is consumed by transportation. Germany has set itself a goal of becoming the leading market and provider of electric mobility by 2020 as part of its long-term vision for zero emissions in mobility. Although the electricity market for transportation solutions is still in its infancy from a global perspective, domestic demand for electric vehicles is on the rise, and with it the growing demand for suitable infrastructure for charging vehicles and innovative solutions in the field.
Demand Characteristics - Customer Sophistication Level - Portugal
In 2019, electricity covered 25% of the total demand for final energy, 56% of the demand for building energy, and 25% of the energy in the industry.
Household consumers pay higher taxes than industrial consumers.
Demand Characteristics - Level of sophistication of customers - Austria
Austria is stable in producing 1,425 petajoules, with energy demand at 1,362 petajoules in 2005 and 1,350 petajoules in 2016, and energy consumption at the edge stood at 1,101 petajoules in 2005 compared to 1,121 petajoules 2016.
Demand Characteristics - Level of Sophistication of Customers - Norway7.
Norway is considered a young country, separated from Sweden in 1905. Norway is a large country with a population of 64 in the world and is about 324,000 square kilometers. Its population is about 5.5 million people in total. GDP per capita is about $63,000 and the human development index is 0.957. This index classifies Norway as the first in the world.
Internal renewable energy customers concentrate on various uses, heating and cooking 16% of renewable energy, 36% for transportation, and 48% for the industry.
In July 2020, electricity prices dropped below zero for one hour because of low exports of electricity and the start of the summer holidays. Over the past 26 years, the population of Norway has increased by 22%, and the value of the Norwegian economy has doubled. However, the final energy consumption on the Norwegian continent increased by only 12% in the same period.
Ecosystem Characteristics and Supply Chains - Sudan.
Solar energy is the first in development. It has been in partnership with European companies since 2010.
Strong involvement of UN and African organizations to develop the solar field focusing on irrigation and local electricity supply.
The country has 6 central hydraulic dams that provide a very high amount of energy to several parts of the country.
In the field of geothermal energy, Sudan intends to learn from Kenya, the neighboring country, how energy should be generated from this source.
Sudan's energy industry is made up mainly of government companies and entities, but there is supportive regulation that encourages cooperation with the private sector and international bodies.
There are plans for capital projects on hydraulic and solar energy, but there are no suitable investors yet.
Ecosystem Characteristics and Supply Chains - Oman
The small DPC system serves areas in the south, which also have significant potential for wind energy.
The rest of the country is supplied by the AEC mainly through 395 megawatts of diesel-based manufacturing plants.
Natural gas is Oman's main fuel resource for electricity generation and related desalination facilities, provided by the Ministry of Oil and Gas in rural areas that mainly use diesel.
Nearly a quarter of Oman's gas production is used as fuel for desalination and water facilities, and the rest is consumed by the country's industrial and petrochemical industries or sold for export. Due to the growth of the economy in Oman, domestic demand is rising and therefore the government feels the need to diversify its energy resources and ease the pressure on natural gas resources that are already limited. To realize the government's vision of long-term energy sustainability, Oman adopted its National Energy Strategy 2040, which sets the following goals for the electricity sector:
renewable energy accounts for at least 10% of electricity output by 2025.
UP to 3,000 megawatts of coal production can develop by 2030.
Priority for improving the thermal efficiency of gas power plants.
Explored other sources of electricity generation.
The distribution and supply of MIS (The Central Energy Company in Oman) are carried out by three companies that own subsidiaries of AHC, namely MZEC and MJEC.
Dhofar Power (DPC) owns, operates, and maintains the distribution network in the Dhofar area of southern Oman. DPC is currently a distribution and supply business entity operating in the Dhofar region.
Ecosystem Characteristics and Supply Chains - Iceland
Iceland's most rich energy company: Landsvirkjun owned by the Icelandic state. Orkuveita Reykjavíkur / Orka náttúrunnar owned by municipalities. HS orca is owned by Canadian company Altera Power and a group of Icelandic pension funds.
Landsvirkjun: The state-owned
Landsvirkjun company is by far the largest energy company in Iceland, providing about 75% of all electricity produced in Iceland (12.6 GWh) a year from (16.8GWh). Landsvirkjun is responsible for more than 96% of all hydro production in Iceland, and its share of electricity generation by geothermal power is about 11% of the total.
Most of the electricity (80%) generated by Thesvirkjun is sold to high-energy industries through long-term contracts. the remaining 20% is purchased by public services and the operator of the Icelandic Gear System (TSO).
Founded by the Icelandic parliament in 1965, it is an independent legal entity and is 100% state-owned, the Icelandic government guarantees all the company's loans. The finance minister manages ownership of Thesvirkjun and appoints all five board members and five alternative members. It currently owns 11 water power plants and two geothermal power plants with a combined capacity of nearly 1,950 MW. Most of the capacity is in waterpower (nearly 1,900 megawatts), while geothermal stations have a capacity of 63 megawatts. Landsvirkjun is also the main owner of the Icelandic transmission system operator (TSO), with a 65% share.
The water power plants of Landsvirkjun produce about 95% of the company's total production, while geothermal power contributes about 5%. Landsvirkjun is accepting much of its revenues with foreign currency, because of widespread electricity sales to large foreign-owned aluminum nifts in Iceland. Therefore, the recent economic turmoil experienced by Iceland has not affected Landsvirkjun almost as much as most other Icelandic companies (the depreciation of the Icelandic currency did not have negative effects on Landsvirkjun's income). Landsvirkjun is one of Iceland's largest companies and now has more equity than any other Icelandic company.
Orkuveita Reykjavíkur / Orka náttúrunnar:
Orkuveita Reykjavíkur (OR), is a public service company that provides electricity and hot water for heating. It is the largest local electricity and heating provider for end users. The company's main service area is the Great Metropolitan Area of Reykjavíkur. ORs on power generation stations have a total capacity of nearly 450 megawatts. Most of the electricity from OR is generated in two geothermal factories that utilize high-pressure steam. Their capacity is 303 megawatts (Elliðaárstöð). In total OR generates nearly 3,000 GWh of electricity a year.
Besides, it operates an extensive sewage system for the Reykjavik area, as well as several nearby municipalities.
Each year OR produces and distributes about 85 million square meters of thermal hot water (for heating an entire district, swimming pools, and industries). The water from OR comes from low-temperature fields in the city and nearby, and the heat and power stations are integrated into the Stations of Nessjavellir and Hellisheiði. Coldwater is collected from reservoirs outside Reykjavik. Running geothermal heating companies starts in the 1940s. The city of Reykjavik is the largest owner with a 93.5% stake.
HS Orca: HSOrca is Iceland's third power generation company, and until 2007 it was a publicly owned Icelandic state-owned company and few municipalities in southwestern Iceland. HS Orka operates two geothermal power plants, the Svartsengi station, and the Reikines Station, with a total capacity of 175 MW and generates about 1,350 GWh a year. HS Orca is also a major hot water supplier and owns several subsidiaries, including a third of the well-known Blue Lagoon.
There are a few other small companies and services in Iceland such as HS Veitur, Norðurorka, Orkubú Vestfjarda, Orkuveita Húsavíkur, Rarik, and several other small companies.
Importers and fuel distributors:
Iceland currently imports all its hydrocarbon fuel, although there is a possibility of finding hydrocarbons on the Icelandic continental shelf soon. Several companies are specializing in importing and selling gasoline, diesel, and other oil products. The three main companies are Skeljungur, N1,, and Olíuverslun Íslands (OLÍS). Skejljungur uses the Schell brand, while N1 and OLÍS use their local brands. OLÍS and Skeljungur also operate self-service retail (under the Orkan brands).
Previously, all three companies listed above had franchise contracts with three of the world's largest oil companies: Shell, Esso (Exxon Mobil), and BP. Today, however, Skeljungur is the only fuel retailer in Iceland that is still involved in a franchise partnership (with Shell). Therefore, foreigners traveling around Iceland will not recognize many well-known international fuel brands.
Iceland has one common electrical transmission system operated by Iceland's transmission system operator (TSO).
Iceland's market for electricity and supply production is under European Economic Area (EEA) rules. The EEA is based on a legally binding multinational economic treaty between the European Union (EU) and Iceland, Norway, and Liechtenstein.
Just as in the European Union, the transmission, distribution, and sale of electricity in Iceland are subject to concession arrangements and specific regulatory oversight.
Ecosystem Characteristics and Supply Chains - Germany
Germany exports - more than 36% of Germany's electricity output comes from renewable energy sources - up from just 6% a decade ago.
Export technologies: Germany is helping Saudi Arabia move to use renewable energies and abandon its dependence on oil by funding the construction of an electrolysis plant in its territory, which will be used to generate electricity free of polluting fuels.
Supportive industries – Large energy aggregation systems will play a significant role in Germany's future energy infrastructure, even in the safe integration of large quantities of solar and wind energy in the existing network.
Supportive technologies – In terms of long-term energy storage solutions, Germany has recently increased interest in Power to Gas technologies, and these technologies convert excess electric energy into gaseous fuels such as hydrogen and are included in the German government's energy storage and fuel strategies and future mobility.
Ecosystem Characteristics and Supply Chains - Portugal
The Portuguese initiative includes professional exposure to the issue, conferences, and drafting a joint statement to move forward the issue with a regional joint commitment.
All oil, natural gas, and coal utilized for energy in Portugal are imported.
Funding, the EU's economic recovery gives Portugal a valuable opportunity to achieve its ambitious energy and climate goals for 2030. The main areas: are capital-intensive programs related to energy efficiency in buildings and industry, the deployment of renewable electricity generation and support for infrastructure, electrification of transportation, buildings, and industry, and the production of sustainable biofuels and hydrogen.
In August 2020, EIF and IFD launched PORTUGAL BLUE, a capital investment of EUR 50 million aimed at fostering the blue economy ecosystem in Portugal, providing financing to startups, SMEs, and Midcaps through venture capital and private equity funds.
Private operators of two coal-fired power plants have announced that these plants will be permanently closed in 2021.
In 2019, total public and private expenditure on energy research and development was 0.07% of GDP.
In 2018, the government established a working group to analyze Portugal's tax system and ensure its alignment with the transition to carbon neutrality.
Ecosystem Characteristics and Supply Chains - Austria
Austria invests in strong and dynamic renewable energy infrastructure and optimization for existing infrastructure.
Creating a safe environment for investment in renewable energy projects.
Ecosystem Characteristics and Supply Chains - Norway
Supply chains start in Norway and continue to Europe in a special pipeline built to transport oil and gas - these markets have risen and declined over time and have often experienced as much upheaval as in 2016 as oil prices fell.
Norway is part of the inter-Nordic system, which includes Sweden, Finland, and eastern Denmark.
Norway's transmission systems company, in collaboration with Dutch network company Tennet, completed Nordlanek in December 2020, which is an underwater cable of more than 500km,1,400 megawatts linking the Norwegian and German electricity markets directly for the first time.
The North Sea Link, which is about 720km with a capacity of 1,400 megawatts, will connect the Norwegian market and the UK. Completion of what will be the world's longest underwater link is expected later this year. Overall, the capacity of connections between the Nordic electricity system and other systems is expected to increase by more than 50% by 2025.
Market Strategy and Structure of Competition - Sudan
Sudan's energy market is largely centralized and under government supervision.
Since the state itself is not strong enough in knowledge and budgetary sources, most of the energy-themed competition is from external companies interested in investing in projects.
The market is growing, and its strategy consists of internal and international cooperation aimed at developing and promoting projects.
Market Strategy and Structure of Competition - Oman
The country's largest network is the connected central system (MIS), which contains 17 power generators.
The MIS is providing electricity to The Capital and six other provinces, mainly in the north of the country, and its water network covers Muscat, el Batina North, El Batina South, El Dahiliyah, and Boreimi, with plans to add El Dhara to this list.
OPWP has announced plans to phase out three new solar energy installations and two new wind energy projects, aimed at providing a total of about 2,500 megavolts of renewable-based capacity including a 50-megawatt wind power project. (And in the Helenian Islands) until 2024 (OPWP 2018).
The first independent power generation project (IPP), the 500MW Ibri II Solar IPP in Villayat Iberi in El Dheira province, is expected to run until 2021. The OPWP expects solar projects to contribute at least 30% of their installed peak. Possible locations for new wind energy projects include Deoper and Dokum.
Market Strategy and Structure of Competition - Iceland
Iceland is the world's largest producer of energy per capita and the largest electricity producer per capita, with about 55,000 kWh per person per year. By comparison, the EU average is less than 6,000 kWh.
A license granted by the National Energy Authority is required to build and operate an electric power plant. The National Energy Authority is responsible for monitoring and regulating the compliance of companies operating under issued licenses.
The government outlined a plan that examines the economic feasibility and environmental impact of each project before it is approved.
Market Strategy and Structure of Competition - Germany
Sophisticated energy market - starting in 1997, Germany's electricity market has officially opened to competition, following EU regulations.
Market structure: In Germany, there is a separation between electricity transmission and electricity supply for homes, which helps develop the renewable energy market.
Legislative reforms have funded energy sources and created competitiveness and competitive prices. In 1990, Germany passed a law to pay for the supply of electricity to the electricity grid from small producers who are also consumers. This is a transition from a centralized energy network - to the Internet of Energy, a decentralized power grid in which anyone can be a consumer and a manufacturer. Germany encourages the production of renewable energy not only through business players but through as many citizens as possible. It pledges to buy green electricity in long-term contracts at prices that guarantee a return on investment, in addition to a series of legislative actions and massive investments in the development of green technologies and the development of industry concerning renewable energy.
Energy production: The renewable energy market is developing rapidly. In 2020, the total renewable energy supply was 42.2 Toe and 227 Twh, which is 14.1% of the total initial energy supply (TPES) and 35.3% of the total electricity generation from renewable sources.
Renewable electricity generation, 70% of renewable electricity production is in private hands; manufacturers are farmers, communities, and cooperatives; only 6.7% of the renewable energy market is in the hands of the big four companies.
Strategy: The goal of the German Energy Agency's (Energiewende) program, is to streamline the German energy system, whose sources are mainly supplied from renewable energy, without nuclear power generation (17 stations), by 2022, and without the use of coal, which is the main source of energy, by 2038.
Taxation: German households pay $353 per megawatt for electricity, the third-highest rate among IAAF countries. Taxation accounts for 48% of the electricity price, and heavy industries pay less than households.
Goals: Germany sets ambitious goals for reducing energy consumption, including streamlining production and transmission by 50%, cutting CO2 emissions by 80%, and increasing the share of renewable energy to 60% of total energy consumption by 2050, which is conditional on the capacity of the electricity grid infrastructure.
Market Strategy and Structure of Competition – Portugal
In 2019, external energy sources dependence was 74%.
In November 2020, electricity and gas social tariffs were amended to cover all unemployment situations.
Market Strategy and Structure of Competition - Austria
Strategy - encouraging individuals, and companies in the private and public sectors to develop means of creating renewable energy, state programs, and state goals.
In 2016, renewable energy accounted for 33.5% of the country's total energy production.
Encouraging the production of solar and renewable energy in local households.
Market Competition Strategy and Structure - Norway
From a poor country compared to its neighbors, Norway in the 1960s slowly became an oil and gas powerhouse, with the discovery of oil and gas in the sea, north of the country. The largest oil field was discovered in 1969 at the time of the eruption of the energy crisis following the Arab embargo in the 1970s, and today 20% of Europe's oil and gas is supplied by Norway.
Norway is a very rich country, the energy market depends on the oil and gas deposits, Norway knows it needs to be ready for the day after the exhaustion of the reserves, it is a competitive and capable country that supplies electricity to Europe.
Norway has the lowest carbon emissions in Europe.
Norway has 1,681 water power plants, which in 2020 provided 88% of the electricity supply.
Norway has energy stockpiling technology, so it doesn't depend on climate change.
In the second half of 2020, Norway exported 14 TWh of electricity, making it the largest electricity exporter in Europe.
Norway has developed a prototype turbine, which served as the base for the Hywind wind powerplant off the coast of Scotland, the first to go into commercial production. construction of the 88-megawatt Hwind Tampen project began in October and is designed to provide 35% of the annual power needs of five platforms in the Gullfaks oil and gas fields. Norway's coastline is known for its stunning deep waters and fjords, but there are also possibilities for conventional wind energy utilization by building wind turbines.
Characteristics of the place and area of the industry: Sudan
North Sudan is Africa's third-largest country, the country is relatively young and has suffered for many years from internal tensions and brotherly war.
The country is rich in minerals where biodegradable and renewable energy can be produced, as well as solar and wind potential.
For the benefit of solar energy– the state is in the equatorial area, thus having many sunny days a year, and a very high level of radiation most of the year.
In Sudan, there is a high potential for water power to be used to produce much energy. The country designates this source for creating power grids in areas where the state grid does not reach.
Wind energy is highly used in the sea and mountains, and wind energy is favored for development, both to provide electricity to remote regions and as an engine to stimulate the country's entire renewable energy industry.
Regarding natural gas, there are very large deposits of gas, but the state doesn't know how to take advantage of it. Most of it is wasted during the process of mining fuels.
Characteristics of the Place and Area of the Industry: Oman
The maximum demand for the OETC transmission system is usually on summer weekdays.
Demand typically peaks from May to July, with the highest day temperatures and the most intense use of air conditioning units.
Seasonal demand is expected to decline with new large industrial loads coming to the grid.
Characteristics of the place and area of the industry: Iceland
Natural hydrothermal resources have made Iceland the world's largest green energy producer per capita.
Currently, hydrothermal resources supply almost 100% of Iceland's electricity consumption and about 85% of total initial energy consumption. Of all initial energy consumption, about 20% comes from waterpower and 65% from geothermal sources. This is the highest share in the world of renewable energy in any total national energy budget.
The untapped economic potential for water power and geothermal power will continue to be Iceland's main source of growth. The total ability to generate the potential of Icelandic hydro-geothermal resources is estimated at 50TWh a year.
Iceland has yet to realize its potential energy of wind, which could be important to the economy in the future.
The green-fuel sector is small but growing. It produces bio-methane and green methanol, but for the most part, Iceland still imports almost all the fuel needed for vehicles, shipments, and planes, which may change as the international oil and gas industry is now taking the first steps in the search for hydrocarbons on the Icelandic continental shelf.
Characteristics of the place and area of the industry: Germany
Total electricity generation in Germany is 644 Twh, the total energy source segment is: 37% coal, 12% nuclear, 13% natural gas, 1% oil, 17% wind, 9% bioenergy, 7% solar, 3% hydro, and 0.5% geothermal.
Wind source: Germany has more than enough renewable energy, but this is scattered over a wide area, and not concentrated in one place, most of the electricity from a wind source is produced in northern Germany and most of the demand for consumption is in cities and industrial centers in the south and west of the country.
About 1.6 million solar farms with a total capacity of 43GWp have been installed in the last 27 years in Germany.
The energy efficiency boom has created nearly a million jobs in Germany in the past 20 years, exporting the knowledge they have acquired and the products they have developed to meet energy efficiency standards such as developing systems for monitoring the loss of compressed air, and adaptations to existing electric motors.
Characteristics of the place and area of the industry– Portugal
Climate impacts pose a threat to waterpower generation in Portugal.
There is no domestic production of oil, coal, or natural gas. 100% of the fuel supply is imported.
The main program supporting industrial energy efficiency is SGCIE, which requires energy audits and strategies to reduce energy requirements from high-energy facilities.
70% of the country's total electricity is generated from more renewable and environmentally friendly energy, and in recent years the state has managed to reduce the use of coal by 29%.
The National Hydrogen Strategy (EN-H2) sets a target for hydrogen derived from renewable energy to cover 1.5-2.0% of Portugal's energy consumption by 2030, with industrial use, maritime and land transporting, and injecting into the natural gas grid.
Characteristics of the place and area of the industry: Austria
Austria also has the option of using hydro and water sources, solar energy, and power plants.
Characteristics of the place and area of the industry: Norway
Norway is the largest exporter of Solomon fish to the world, probably because it relies on the oil industry, Norway has not developed in other areas besides fish, oil, and wood products.
Government's Influence on Industry: Sudan
With the decision to develop the renewable energy market, responsibility was transferred to the Ministry of Water, Irrigation, and Electricity, which has historically been responsible by the Ministry of Agriculture and Forests.
The state enacted two basic energy laws that encourage investment and cooperation.
The state adopted a policy decision to support and subsidize the industry when it comes to developing new energy sources, with an emphasis on solar energy for agricultural purposes.
The state implemented a five-year plan for reducing poverty in 2015-2019 by making energy accessible to the population.
The updated energy development plan until 2031 is mainly about narrowing the gap between demand and supply in the country, with an emphasis on coal-based power plants alongside the maintenance of hydraulic power plants.
The state provides large subsidies and grants to companies interested in developing the energy market, and in the meantime, the price of electricity in the country is very low, and the state burdens itself with many costs, which creates concerns for overseas investors to produce capital-intensive projects that will not return themselves with a reasonable marker.
In addition, the state has formulated a roadmap for achieving three national energy targets, from which 69 direct actions are derived.
Government's Effects on Industry: Oman
The Sultanate is looking to manage its energy transition and inject capital into its fiscal balance sheet. privatization, sector restructuring, and renewable energy are key issues on Oman's services sector agenda. Reducing reliance on natural gas is a priority, with several large-scale solar-power projects, helping the country achieve its goal of 30% renewable energy on the grid, by 2030.
Due to the government's desire to expand reforms in the electricity market, Oman is expected to allow open access to its transmission network and generators.
Such developments may support the country's ongoing efforts to develop a well-functioning regional electricity market. Moreover, when peak electricity demand in Oman usually occurs in May and June, while peak demand in most neighboring countries in July and August, Oman will have an opportunity to trade electricity in the GCC region.
Government impacts on the industry: Iceland
Iceland is a member of the European Economic Area (EEA). Under Icelandic law and regulations, businesses and industries are generally open to foreign investment.
As an example, a Canadian company recently acquired a large stake in one of Iceland's largest energy companies through a legal entity owned by a Canadian company in Sweden.
In addition, the Icelandic Trade Minister has the right to grant legal entities (except those mentioned above) a license to operate in Iceland. This includes approval for investment in the energy sector. Canadian electricity investor Alter Power and Chinese chemicals company National Bluestar also own large business units in Iceland through their Scandinavian subsidiaries.
So far, most of these investments have been in high-power industrial production, particularly in focus on metals. however, there is a growing investment in medium-sized industries with foreign companies investing in data centers and dynamic tech companies.
The reasons behind such foreign investment can vary. The low cost of electricity is the most important factor for high-energy industries such as aluminum sprinkling. Skilled labor and highly qualified technical people in Iceland's educated society are also important factors. Moreover, Iceland has a modern and efficient infrastructure, and the Icelandic corporate tax rate of 20% is one of the lowest in the OECD. Some local authorities have flexible development strategies, and incentive programs, which can be an advantage for new investors. Government ministries in Iceland are usually very accessible, allowing businesses and individuals to deal with them directly.
Examples of well-known international companies with a strong presence in Iceland are aluminum producers Alcoa, Century Aluminum, and Rio Tinto Alcan, and Chinese chemicals company China National Bluestar (owner of Norwegianprosilicon makerElkem). Below is a brief description of some foreign Potential investors from outside the EU or EEA should get special permission from Icelandic authorities, which, for example, applies to a Canadian company that purchased shares in an Icelandic electricity company through a company registered in Sweden.
There are, of course, a few law firms in Iceland that specialize in helping foreign investors with legal matters, company establishment, and contractual formality.
Icelandic Parliament adopted a general law on incentives for an initial investment in Iceland (Law No. 99/2010) This new legislation has been approved by the EFTA Supervision Authority (ESA) as a legitimate state assistance program (this is important because Iceland's membership in the EEA Economic Area). Government authorities are entitled to give general and regional incentives for new investments in Iceland up to a set ceiling, In addition to certain tax and billing violations, incentives can also come in the form of direct cash grants, training assistance, and land leasing.
As a member of the European Economic Area (EEA), Iceland has access to EU research funds for research and development programs and joint ventures with companies from at least one country (including all countries within Europe).
Government Impacts on Industry: Germany
The main policy focuses on the deployment of renewable energy measures and includes specific support policies for electricity, heating, and transportation, as well as policies that support energy efficiency mainly in the construction sector and more generally on climate change.
Investment in infrastructure – The expectation is for a steady increase in the state's need to invest in offshore wind stations, photovoltaic energy, the expansion of networks and energy storage projects, and the implementation of a smart new energy infrastructure that will be able to balance the changing supply of renewable natural resources.
Germany added only 178 wind turbines with a capacity of 591 megawatts in the first half of 2020. The government decided that wind power should increase by about 1.7 gigawatts annually to help Germany reach the green power target of 65% by 2030.
Research and development – Germany invests heavily in the development and research of new technologies. Total expenditure on R&D is $1 billion a year, which is 0.03% of its GDP. The state should now focus on developing energy storage measures and finding suitable storage solutions that will reduce the dynamics that characterize the production of renewable energy and ensure a regular supply of electricity over time.
Emissions targets: The government has identified a need for reform in the areas of transportation and heating buildings to meet emissions targets.
Upgrading buildings: The German government is currently encouraging the upgrade of private buildings through green certificates and easing the renter law. By 2017, approximately 80,000 households and commercial companies have already invested in photovoltaic systems. Even the reinstallation of storage facilities is expected to be a major growth engine in improving energy dependence on private households and commercial companies. Only 3.7% of the solar panels installed on rooftops in Germany are currently equipped with a battery – a rate that by 2030 can reach over 80%.
Transport upgrade: The German government has decided to require the country's gas stations to provide charging for electric cars, and the government will invest $2.8 billion in developing electric battery production infrastructure and charging infrastructure.
Government impacts on the industry: Portugal
The government aimed at reducing the use of coal. Natural gas for electricity generation will last until at least 2040.
The Green Tax Act, passed in 2014, to better regulate the taxation of the energy sector with carbon targets - a key aspect of energy and climate policy.
The government has developed a national strategy for bicycles and active mobility to provide financial incentives for the purchase of electric bicycles (including bicycle chargers).
Portugal was among the first countries in the world to set a carbon neutrality target in 2050, mainly through widespread electrification of energy demand and rapid expansion of renewable electricity generation, along with increased energy efficiency.
The government is also working at the international level to increase power connections with Spain and the rest of Europe, which will help increase the security of the electricity supply.
Funding for support comes from the state budget and some national funds focused on energy and climate priorities.
Government's Effects on Industry: Austria
Many companies decide to invest and adopt new directions in favor of switching to renewable energy.
The state Invests to create a change in leading infrastructures to adapt the industry to them.
One of the most prominent renewable energy laws is called the Green Electricity Act, which regulates the promotion of the transition to green energy against multiple suppliers that promote renewable energy and receive a reward through any customer who uses the service.
Government impacts on the industry: Norway
In recent years, the government has begun taking steps to ensure the country's future, as its fuel and gas inventories are dwindling.
The government has plans for the electric vehicle sector. Starting next year, every vehicle purchased will be electric.
In the field of wind and waves, Norway has a five-year plan and a decade.
Norway is starting a process of increasing the use of renewable energy, entering energy storage technology, and developing the use of hydrogen by electrolysis or other technologies.
Oil and gas exports produce jobs, and the country needs to create replacement jobs for its citizens.
To care for its citizens, Norway has built a safety net from taxes and dividends.
Wide effects affecting competitiveness: Sudan
The country is in the very early stages of developing the energy market. Therefore, the starting point of the players in the energy industry is similar, which creates great competitiveness.
There is a great deal of involvement by international entities and large investment bodies to help the state develop the energy market.
Wide effects affecting competitiveness: Oman
In Oman, the regulatory structure of energy production entities is structured from the supervisory entities, the main ones being the Electricity Regulation Authority (AER), which is the independent regulator of the electricity segment. The Ministry of Oil and Gas (MOG), is the policymaker of the electricity segment, and the Public Water Authority (PAW), is the regulator, water policymaker, and water distribution company.
In October 2018, the sector began a restructuring process following recommendations from an energy laboratory organized by the National Economic Diversity Improvement Program, known as Tanpa.
(The AER) will remain as it is, given that Oman believes in the independence of regulators when the water regulation may also be transferred to the AER and becomes an authority for the regulation of electricity and water. The rebuilding movement is intended to streamline the government, as there has been an oversupply of public authorities with interests in the sector.
Wide effects affecting competitiveness: Iceland
Electricity prices in Europe and around the world will continue to rise, the Icelandic energy industry will continue to be even more competitive than it already is; it seems that this development is already underway and can be expected to gradually increase both profits in the Icelandic energy sector and It is important to remember that although Iceland has the potential to significantly increase renewable energy production, hydro-geothermal power sources are limited, so early investors will have the best choice in Iceland's low-priced green energy potential.
The Icelandic TSO (Landsnet) has a few large development projects already in the planning or planned stages for the coming years. The projects are designed to meet the customer's needs and ensure that the network has sufficient capacity to meet the minimum requirements, considering the cost efficiency and economic principles set out in Icelandic law.
The network plan describes all the development projects of the transmission system, whether at the proposal, planning, or construction stage. It also maps all major projects in development stages based on memorandums of understanding or the potential future development of a power trade market, even in the absence of a specific time requirement to strengthen the network.
Compared to other countries, whether in the EEA, EU, or OECD, electricity prices in Iceland are very low. This applies to both industries and households. Due to the increase in electricity prices in Europe, the price gap is increasing, making Icelandic electricity even more competitive than before. This development allows Iceland and Europe to be connected via an underwater cable. This option is currently being examined by the Icelandic National In some cases, this creates opportunities to simplify the current transmission network and stop the use of elevation lines along mountain roads where the weather conditions are severe.
Wide effects affecting competitiveness: Germany
Energy security: Germany has multiple oil supply sources, supply infrastructure, and emergency repositories that provide it with security. It also has confidence in the supply of natural gas from Russia. The transition from producing energy from coal and nuclear will require a lot of gas supplies in their place.
Wide effects affecting competitiveness: Portugal
All services sector and public buildings must be audited to obtain an energy certificate.
Multi-local regulation is the adoption of European regulation that on the one hand limits the use of renewable energy in the country and on the other encourages innovation and development of renewable energy sources.
Wide effects affecting competitiveness: Austria
Entrepreneurs and private companies encouraged by the government in all sectors and all areas place Austria with a competitive advantage over most ECD countries and outside it.
Wide effects affecting competitiveness: Norway
1. Norway is characterized by excess electricity generation and probably also imports nuclear energy.
RANKING THE COMPETITIVENESS OF THE COUNTRIES ACCORDING TO THE CRITERIA OF THE "DIAMOND MODEL" (PORTER)
(1 most competitive and up to 7 least competitive)
In the country's strategy and competition structure criterion, we found that Norway is the most competitive country.
In the criteria for place and area attributes, we found that Sudan is the most competitive country.
In the criteria of government's influence over the competition, we found that Germany is the most competitive country.
In the criterion of wide effects and phenomena that affect the competitiveness of the country, we found that Portugal is the most competitive.
COMPETITIVE RANKING RELATIVE TO THE COMPARED COUNTRIES
(The lowest rank in the table above, is the most competitive)
By simply weighing all the criteria (without any special weight for any criterion), we found that Iceland leads at its level of competitiveness relative to the other compared countries. That is, Iceland has the best conditions that allow it to conduct itself competitively and even profitably (currently), against the other countries of comparison.
MAJOR THREATS FACING THE COMPARISON COUNTRIES
We extracted, for each country, the main threats the country faces on its way to developing the renewable energy market.
Knowledge gaps: We identified a wide spectrum of knowledge gaps across the entire value chain of mining, extraction, and energy transmission. The spectrum refers to each country by its position on the chain.
With the lack of full energy connectivity to all parts of the country, some countries have not yet been able to connect all residents to a central electricity grid.
Sensitivity to climate impacts: Most comparable countries are in areas where climate change in the world is manifested or at risk of manifestation, especially in wind power and waterpower the situation is even more sensitive.
NOTABLE OPPORTUNITIES FOR THE RENEWABLE ENERGY MARKET IN THE COMPARED COUNTRIES
In most of countries, there is energy security for all citizens and industry, noting that Oman and Sudan are not there yet, but the plans are aimed at exactly that level.
Most countries are rife with renewable and Consumable energy sources and reservoirs which greatly enhances the country's potential supply curve; it is important to note that Portugal does not provide itself with all the energy it needs, with an emphasis on Consumable energy, while Germany and Sudan are heavily dependent on their economy for the exploitation of abundant consumable energy.
A few countries analyzed in the study, are world leaders in the areas of information and knowledge on conversion and transmission of renewable energy. This contrasts with other countries which consider this to be a gap. This may act as a trigger for cooperation between them.
We found that a few European countries analyzed in the study are exporters of renewable energy, which greatly enhances their competitive position in the international market.
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