France's Engie is looking to strengthen its presence in the GCC renewable energy sector and capitalize on opportunities. Renewable energy is at the top of the agenda and we want to grow this business in the region and are following up on some recently announced deals.

The UAE and Saudi Arabia, the two largest economies in the Arab world, are ramping up investment in renewable energy to meet net-zero emissions targets in the coming decades. The UAE, OPEC's third-largest oil producer, plans to invest $163.37 billion worth of clean and renewable energy over the next three decades.

Saudi Arabia aims to increase the share of natural gas and renewables in its power mix to 50% by 2030. In 2022, it launched five new renewable energy projects to sustainably produce electricity, and as the world's largest oil exporter, Saudi Arabia is pursuing a goal of net-zero emissions by 2060.

Mr Claux said Engie was reviewing its bids for new wind projects in Saudi Arabia, as well as options for the 1.5 GW Al Ajban solar plant in Abu Dhabi. The company is also involved in a smaller 30 MW solar project in Saudi Arabia, in partnership with the National Agricultural Development Corporation in Saudi Arabia. It aims to finance projects through a combination of debt and equity, he said. The International Energy Agency said last month that global electricity generation from renewable sources is expected to nearly double over the next five years, overtaking coal as the largest source of electricity generation.

Renewable energy capacity is expected to grow by 2,400 gigawatts by 2027, equivalent to the current power capacity of China, the world's second-largest economy, the IEA said. Paris-listed Engie is bullish on growth in the GCC as its economy recovers from the coronavirus pandemic on the back of higher oil prices and new government initiatives. The region is booming because of the high levels of mobility and willingness to invest in new decarbonized business solutions, not only in energy businesses but also in energy-intensive industries such as cement plants and steel mills, said Mr Claux, who is also Engie's Asia , General Manager, Heat and Supply, Middle East and Africa.

In 2022, the UAE Ministry of Energy and Infrastructure signed a preliminary agreement with Engie's subsidiary, Engie Solutions, to develop clean energy projects and support the country's decarbonization goals. The GCC region currently accounts for 15% of the company's total annual revenue. This share is expected to grow in the coming years as Engie bids for new projects and expands its operations.

We hope to win some projects and increase our presence in the region, Mr Croux said, without disclosing expected revenue growth in the region. The main countries are the UAE and Saudi Arabia, and to some extent Qatar.

Engie reported an 85% rise in revenue for the first nine months of 2022 to 69.3 billion euros. The company added 2.5 GW of renewable energy capacity during the period, according to its financial statements. It is accelerating the development of renewable energy internationally, with plans to add an average of 4 GW of capacity per year by 2025.

The company wants to increase its renewable energy capacity from the current 35 GW to 80 GW by 2030. Looking ahead, as part of its expansion plan, Engie plans to invest in the $500 billion Neom project in Saudi Arabia, involving renewable energy, desalination, district cooling, engineering services and data centres.Editor/XingWentao