The supply chain crunch threatens to derail achieving net zero emissions and the world needs about €50 trillion by 2050 to achieve this goal.

Mr. Khaled Sharbatly, CEO of desert technologies Investments, stated that the world needs about €50 trillion by 2050 to shift the global economy to net-zero emissions and the need to massively expand the use of renewable energies in order to carry out the energy transition successfully. While the share of renewables rose by 8% globally in 2021, a global supply crunch of some of the major components needed in the energy transition threatens to derail achieving net-zero.

This came during his participation in the virtual conference held from 27 to 29 June as part of the activities of Energy Week in the Middle East and Africa 2022, which brought together ministers, CEOs and industry leaders to examine key trends, challenges, and opportunities to solve one of the most pressing issues of our time, as the global supply shortages for some of the key components needed in the energy transition are a crisis that threatens to derail achieving net zero emissions.

Mr. Khaled participated in the Panel titled “The Supply Crunch and the Impact on the Energy Transition Narrative,” which was moderated by the Dubai Deputy Bureau Chief at Energy Intelligence, Ms. Amena Bakr and was attended by Mr. Khaled Sharbatly, Mr. Karim Amin Executive Board Member at Siemens Energy, and Mr. Paddy Padmanathan CEO at ACWA Power.

He confirmed that the supply chain crunch is across all industries, and not just in renewables. Energy is the foundation of the modern society, and if its prices increase, it causes a ripple effect to all industries. The world is currently seeing 2-3 folds the demand in renewables, and with the increase of Oil and Gas prices the demand for renewables is double its current supply.

Mr. Sharbatly continued saying: “The 2020s main themes are: Renewable Power, Digital Energy and Smart Mobility. Where Localization of manufacturing is the future of the renewables industry and the advances in this sector are similar to the advances from the phone to the smart phone in terms of growth and disruption.” He also called for an increased focus on investment in adaptation technologies on an equal footing with technologies for mitigating the effects of climate change.

Regarding the situation in Africa, Mr. Sharbatly said: “The continent is facing a huge challenge to transition to clean energy, as its countries are trying to narrow the gap in obtaining electric power through the use of various energy sources, with the aim of providing electric power to about eight hundred million Africans who lack it out of the continent’s population of 1.2 billion people.

He also pointed out that Energy Storage and batteries are the key towards a sustainable energy transition, saying: “The increase in global demand for solar energy storage solutions and technical improvements, cost reductions and increased interest in solar batteries, and the technology witnessed by the solar panel industry are elements that enhance opportunities for safe investment in this sector. As it is one of the best options for securing low-cost electricity and emissions and achieving the goals of the United Nations aimed to support developing countries in this field.”