Low oil prices present an opportunity for some parts of the Middle East energy sector.
I run Enviromena; we build solar power plants throughout the region and we expect an over 1,000-percent rise in solar deployment in 2016.
A sharp fall in the price of hydrocarbons is assumed to have a negative effect on the global deployment of solar energy, as conventional energy becomes more affordable compared to the falling cost of installing and maintaining solar plants. On the contrary, falling oil revenues incentivise GCC governments to supply low-cost solar energy to the grid, as it is an efficient way to reduce their tightened budget spending on energy subsidies. A significant percentage of GCC GDP is spent on subsidising traditional forms of energy production (6 percent and 10 percent of GDP in the UAE and KSA respectively).