Public partnership models for projects such as power and alternate energy are successful only when Political commitment prevails.UK had been quite successful in the public private partnership through Private finance Initiative (PFI).UK and Australia also have well defined PPP units and have successful track on projects..”
A review of power project trends in Qatar indicate that since 2001, Qatar General Electricity and Water Corporation (Kahramaa) has awarded private projects such as the Ras Laffan B independent water and power projects (IWPP), the Mesaieed IWPP and the Ras Laffan C IWPP. IP-GDF Suez was one of the largest foreign developers in the power sector in Qatar with equity capacity of 956MW. Qatar’s IWPP expansion strategy is expected to deliver increase in desalinated water, with production due to rise from 290 million cubic metres a year (cm/y) in 2011 to 340 million cm/y by 2015.
Japanese and Korean contractors currently lead the way in providing contracting services to the power industry and they bring associated finance from their export credit agencies (ECAs). ECAs usually function as a public institution that helps the export activities of local companies by providing direct funding and participating in project financing as a guarantor for commercial banks. The financing of the Ras Girtas IWPP project was led by Qatar Petroleum and funding was obtained from Japan Bank for International Cooperation and a consortium of major commercial banks. The Mesaieed IWPP project has been financed with strong support from Japan Bank for International Corporation and several other reputed banks.
A review of the alternate energy trends in Qatar indicates that in March 2011 Chevron launches energy efficiency center at Qatar Science and Technology Park to support Qatar's strategy for sustainable developmentIn April 2011 the U.S. Department of Energy (DOE) and the Qatar Science & Technology Park (QSTP) have signed a MOU for clean energy technologies. In May 2012 Qatar Solar Technologies (QSTec) has signed agreement with the Qatar Electricity & Water Company (QEWC) to explore the possibilities of developing power generation using solar energy in Qatar. In May 2012 the Qatar Solar Technologies (QSTec) has joined hands with the Qatar Electricity & Water Company (QEWC) to explore the possibilities of developing power generation using solar energy. Qatar Solar Technologies (QSTec) has secured $1.1billion from Masraf Al Rayan for the polysilicon manufacturing plant.
The region faces challenges of building more power capacity for growing populations while supporting increased infrastructure development. There is lack of clarity surrounding government policies on green initiatives. In the EU and the US, for example, the private sector works closely and openly with government stakeholders which creates efficiency and stability and encourages long-term private sector investment. The Gulf region should work to introduce a feed in tariff (FIT), investment tax credits (ITC), or renewable portfolio standards which are all effective subsidies to facilitate the development of renewable energy projects.