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National Bank of Abu Dhabi (NBAD) hopes to capitalise on the US$48 trillion energy investments in the Gulf over the next 20 years by developing innovative financial models to promote clean energy projects
The National Bank of Abu Dhabi (NBAD) has released a report, which states that an investment of US$48 trillion is needed over the next 20 years for enhanced power generation capacity and increased energy efficiency in the Gulf.
The report titled Financing the Future of Energy Report was commissioned by NBAD from the University of Cambridge, Pricewaterhouse Coopers (PwC) and Masdar. It said that the energy demand in the Gulf is set to triple in the next 15 years, outstripping the current supply.
Sustainable energy development claims more than half of the investments being made in electricity generation projects worldwide, added the report.
Alex Thursby, CEO of NBAD, said, “We should not underestimate the scale of the task that is facing us all. To meet the significant demand for energy globally – in particular across the West-East Corridor, the rapidly growing super-region that stretches from Africa through the Middle East to Asia – we need to develop innovative approaches to financing energy projects.”
According to Thursby, the anticipated gap in energy demand and supply presents a good opportunity for the banking sector. NBAD is attempting to understand the real drivers of the energy demand in the region, to be able to respond to the needs effectively. The report provides the evidence from which the financial services sector can develop financing structures and products that would support the growth of a low carbon economy. It also provides insights into how the financial community can engage with public and private sector stakeholders to create a more integrated energy mix for the future.
NBAD has set up a dedicated team, under senior leadership, to evaluate and create new financing products that will support the development of renewable energy. The team will embark on an engagement programme with key regulators, policy makers and industry players to capture up-to-date market trends and promote continued partnership and shared learning between the renewables and finance industries.