Review ofthe energy supply statusforsustainable developm ent

in the Organization ofIslam ic Conference

M oham ed Gabbasa
a,b
,Kam aruzzam an Sopian
a
,Zahira Yaakob
b
,M .Reza FarajiZonooz
a
,
Ahm ad Fudholi
a
,NilofarAsim
a,n
a
SolarEnergy Research Institute,UniversitiKebangsaan M alaysia (UKM ),43600 Bangi,Selangor,M alaysia
b
Departm entofChem icaland ProcessEngineering,Faculty ofEngineering,UniversitiKebangsaan M alaysia (UKM ),43600 Bangi,Selangor,M alaysia
a r t ic l e in f o
Article history:
Received 30 Septem ber2011
Received in revised form
26 M arch 2013
Accepted 21 July 2013
Keyw ords:
Energy
Energy supply
Sustainable developm ent
Organization ofIslam ic Conference
Grossdom estic product
a b s t r a c t
This review describes the situation and the varying potential of energy supply utilization of countries
in theOrganization ofIslam icConference(OIC).Thisexerciserevealsthattheincreasein energyconsum ption is
associated w ith econom ic grow th and population expansion.The interconnectivity betw een energy use and
nationallevel,asw ellastheconnection betw een energyutilization and grossdom esticproduct(GDP),w hich is
an indicatorofeconom ic developm ent,m ustbe explained to determ ine the signi cance ofnationalenergy
utility in these countries.Therefore,alternative energy source utilization isnecessary forthe provision ofan
appreciable constituentofim m inentenergy requirem ents in sectors thatutilize energy.Alternative energy
source utilization is a crucialfactor in ensuring the totalcapacity of energy sources in various grow ing
econom iesofthew orld w here clean energy isunavailable.Furtherm ore,som e ofthese countriesalso possess
alternative energy sources such as hydropow er,solar,w ind,geotherm al,and biom ass.This paper provides
detailson sustainableenergy supply developm entsin OIC countries.Thesecountriesm ustsustainably develop
energy despite their suf cient w ealth in crude oiland naturalgas.The m ain purpose ofthis study is to
determ ineeconom icgrow th in relation to energysupply to facilitatesustainabledevelopm ent.In addition,this
papersuggestsnecessary requirem entsto sustain the energy developm entprocessesin OIC countriesand as
w ellassom e stagesthatm ustbe adopted to enhance developm entata sustainable rate.
& 2013 ElsevierLtd.Allrightsreserved.
Contents
1. Introduction.........................................................................................................19
1.1. OIC:selection ofcountriesand population .......................................................................... 19
1.2. Energy asbasisforsustainable developm ent.........................................................................20
1.3. Conceptofsustainable energy developm ent......................................................................... 21
1.4. Increasing energy consum ption and the shiftto com m ercialform s ofenergy............................................... 21
2. Energy supply in OIC countries..........................................................................................22
2.1. Energy supply related w ith GDP (percapita).........................................................................22
2.2. Econom ic grow th...............................................................................................22
2.3. Effectsofenergy supply on GDP...................................................................................22
2.4. Im portation and exportation in OIC countries........................................................................23
3. Role ofalternative energy sourcesin supporting fossilfuels w orldw ide .........................................................23
4. Energy consum ption and production in OIC countries .......................................................................24
4.1. Conceptofenergy consum ption and energy production................................................................ 24
4.2. Relationship betw een energy consum ption and GDP/PPP
(percapita) ................................................................................................... 24
5. Electricity generation and electric consum ption ............................................................................25
5.1. Electric netgeneration in OIC countries.............................................................................25
5.2. Renew able and fossilfuelsasa source ofelectricity ...................................................................25
5.3. Relationship betw een electric netgeneration and electric netconsum ption in OIC countries ..................................26
Contentslists available atScienceDirect
journalhom epage:w w w .elsevier.com /locate/rser
Renew able and Sustainable Energy Review s
1364-0321/$-see frontm atter& 2013 ElsevierLtd.Allrights reserved.
http://dx.doi.org/10.1016/j.rser.2013.07.045
n
Corresponding author.Tel.:+60 3 89118576;fax:+60 3 89118574.
E-m ailaddresses:asim nilofar@ gm ail.com ,n_asim 2001@ yahoo.com ,nilofarasim @ukm .m y (N.Asim ).
Renew able and Sustainable Energy Review s 28 (2013)1828
6. Energy supply balance.................................................................................................27
7. Conclusion ..........................................................................................................27
Acknow ledgm ents........................................................................................................28
References..............................................................................................................28
1. Introduction
Energy has becom e a vitalcom ponentofhum an life,particu-
larly in term sofeconom ic activities.Energy isalso an indicatorof
econom ic and social im provem ent.M ost of the energy supply
utilized w orldw ide is produced from non-renew able energy
resources,w hich are not used sustainably [1,2].Therefore,the
relationship betw een energy supply and econom ic grow th and
developm entis evident.This close association has been observed
betw een energy production and energy consum ption levelson the
one hand and betw een econom icgrow th and developm enton the
other [1,44]. Conventional energy sources still dom inate the
com m ercial energy m arket, w ith coal occupying the highest
m arketshare.Despite having the leastshare am ong conventional
energy sources,oilseem sthe m ostim portant.The m ovem ents of
oilprices are am ong the m ost closely follow ed variables in the
w orld.Oilvariables rem ain at the center ofw orld international
relationsand policy-m aking debates.The dim inished contribution
and w eightofoilshould have reduced the interestand attention
paid to it,but in reality,the opposite is true [1,2].Indeed,the
increase in energy dem and m ay be prem ised on econom icgrow th
and on the non-linear changes in social status.These grow ths
could also becontrolled by industrialized countries.To m eetfuture
dem and,a continuous exhaustion oflocalresources is necessary.
Fossil fuels alone cannot supply global energy needs. Conse-
quently,studies are being undertaken to replace energy sources
w orldw ide [13].
Sustainable energy developm ent requires the long-term sus-
tainability of energy resource. Sustainability also refers to the
perform ance ofallrequired tasks w ithout causing passive social
effects.Energy sources such as fossilfuels,naturalgas,and other
energy resourcessuch assolar,w ind,and hydro are assum ed to be
renew able.Therefore,sustainability w illexceed the relative out-
lying term strategies[3].Fig.1 show sa schem aticofsustainability
forlong-term developm ent.
Renew able energy sourcesare responsible form eeting 1520%
of the total w orld energy dem and [3]. All renew able energy
sources produced nearly 2900 TW h in 2001,w hich is approxi-
m ately 24% of the totalglobalelectricity supply.If the conven-
tionalutilization ofbiom assisalso considered,then m osteffortsin
the renew able eld w ith respectto the currentelectricity supply
w ill be m ade possible by hydroelectric m echanism s, of w hich
a huge percentage has been in existence for a long tim e [2,3].
Nevertheless,the signi cance ofrecentengineering w ork in this
eld isonly starting to unfold.From apilotscale perspective in the
1970s, the latest class of renew able energy such as biom ass,
geotherm al,sm all-scale hydro,solartherm al,and others,hasbeen
increasing exponentially and has becom e even m ore im portant
than technology as far as the supply ofelectricity is concerned.
How ever,in term s ofthe utility ofthese new resources,several
steps are being undertaken by people across different races,
regions,and geographicalareas [2,3].
This study w ill investigate the effects of energy supply on
sustainable developm ent,as w ellas the necessary requirem ents for
sustainable developm ent processes based on the energy supply of
OIC countries.Them ajorityofthedataused in thestudyarebased on
those obtained from the energy section ofthe W orld Bank Develop-
m entIndicators(W BDI)and theStatistical,Econom ic,SocialResearch
Training Centre for Islam ic Countries (SESRIC).Energy data from
differentsourcesareconverted to astandard unitbased on theM etric
Ton ofOilEquivalents (M TOE).These conversion factorsare used to
standardize countries.Som e data w ere unavailable for som e OIC
m em bercountries(M Cs).
1.1. OIC:selection ofcountriesand population
The afterm ath ofan arson attack on 21 August,1969 facilitated
the establishm ent of the OIC on 25 Septem ber,1969 in Rabat,
M orocco.The Secretariat's w ork gradually expanded during the
1970s.The M ecca declaration in 1981,w hich w as centered on
enhancing trade and com m ercialcollaboration am ong the parti-
cipating states,resulted in a totalturn around.W ith 57 m em ber
states,the OIC is the largestorganization aside from the United
Nations (UN).The OIC is m ade up ofcountries w ith peoples w ho
arem ainly follow ersofIslam .OIC countriesrepresentasubstantial
portion of the w orld's developing countries or approxim ately
21.60% of the w orld's population, thus possessing signi cant
hum an,m aterial,and naturalresources and exhibiting consider-
able potentialforcooperation and exchange w ith various sectors
[4,5]. Fig. 2 show s the structure of cooperation betw een OIC
countriesw ith theircorresponding ags.
According to recent inform ation,M uslim s constitute approxi-
m ately 22% of the global population of 1.5 billion people.The
overallglobalpopulation w as approxim ately 6.6 billion in 2009,
w ith an increase rate of1.8% from 2000 to 2006.A faster rate of
population grow th w as observed in M uslim nations com pared
w ith w estern nations over the sam e period. A 3.3% average
increase in the rate of population grow th w as observed in 57
OIC countries[4].Notably,the dem ography ofthe OIC M Csdiffers
noticeably. For exam ple, Pakistan, Bangladesh, and Nigeria are
am ong the w orld's m ost crow ded countries w ith populations
exceeding 100 m illion,including Indonesia w ith over200 m illion
people.By contrast,eightOIC M Cshave lessthan 1 m illion people,
including Surinam e,Brunei,and M aldives,w hich have few erthan
500,000 people.Based on the 2008 w orld population, ve other
countriesw ith populationslessthan 1 m illion are Qatar,Djibouti,
Bahrain, Guyana, and Com oros. The grow th rate of the w orld
population hasbeen declining [46].
Fig.1.A schem atic ofsustainability forsustainable developm ent.
M .Gabbasa etal./Renew able and Sustainable Energy Review s28 (2013)1828 19
1.2. Energy asbasisforsustainable developm ent
Energy is a m otivator of genuine econom ic grow th,but the
availability of appropriate services (an anom aly) could im pede
developm ent.This anom aly restricts the possibility of achieving
som esetgoalsand theprim ary needsofend userssuch asthosein
the m edical eld,engineering,arts,and sciences.This anom aly
also restricts the delivery ofinfrastructural,dom estic,and indus-
trialam enities.Sustainability and environm entalfriendlinessm ust
be considered in the use ofrenew able resources to achieve som e
ofthese specialgoals[6].A w ell-de ned energy source isbasically
regarded as a necessity;its availability is insuf cientforthe total
transform ation ofsociety.In addition,a self-m aintaining m echan-
ism requires a sustainable energy source, w hich is generally
available in the long-term ,could be m anaged at an affordable
cost,and could thus be useful in allset tasks w ith no adverse
consequences. The availability of energy from fossil fuels and
uranium is tim e-dependentbecause these sources are lim iting in
nature.By contrast,som e alternative sources of energy such as
solar,w ind,and biom ass are non-lim iting in nature and are thus
renew able and could be utilized and reutilized severaltim es[7,8].
The constant availability of energy positively in uences the
technologicaland engineering advancem entofdeveloped econo-
m ies w orldw ide. M ost of these advancem ents result from the
m echanism s that used fossil fuel deposits in different places
around the globe.These fossil fuels,w hich are often obtained
from developing countries w here the technical know -how for
m eaningfulexploitation is often unavailable,had assisted devel-
oped countries in m aintaining theirstatus atthe forefrontofthe
w orld econom y w hileshaping the life and policy ofless-developed
countries [9].The high sustained rates of econom ic grow th in
developing countries occurred from 1973 to 1981 w hen oilprices
w ere stillunstable.The energy dem and ofdeveloping countries
increased during a tim e w hen the rate of oilprices w as higher
com pared w ith the dem and ofotherindustrialcountries.Theprice
of fossilfuelw orldw ide has recently decreased,but the energy
supply pricesrem ain considerably higherthan in the beginning of
the 1970s.Ifthe grow th ofenergy dem and accelerates,sustainable
energy w ill require the im portation of crude oil and other
resources. Energy could again pose a m ajor threat to further
econom ic developm entin developing countries [45].
Globalenergy consum ption overthe last50 years has taken a
quantum leap and is anticipated to rise for the nexthalfcentury
[10].Fig.3 show s the rising need for fossilfuels.The rem aining
fossil fuel deposits are expected to be depleted by 2020. The
increasesin the pricesand dem and forcrude oilare resultsofthe
1970 and 1990 crises,w hich strengthened the questforrenew able
sources of energy [11]. Before the 1970s,the price of oil w as
com fortably affordable w ithin the costofliving.How ever,during
the 1970s, these affordable prices started to rise and steadily
increased.A perpetualpresence ofpow er shortages w as experi-
enced in less developed nations because ofthe rising oilprices.
Consequently,the actualcostoffossiloilutility in less developed
countries becam e higher than the corresponding costs ofrenew -
able energy sources.How ever,w ith the availability ofalternative
energy sources,price differences are determ ined by the choices
m ade by consum ers.In 1970,oil-producing countriesbelonging to
the OilProducersAssociation increased the price ofcrude oilfrom
2 dollars to 10 dollars per barrel.This price increase generated
confusion and problem s in the globalm arket.This situation w as
Fig.2.Structure ofthe cooperation betw een OIC countries w ith their ags.
Fig.3.Internationalenergy statuses w ith the pricesoutlook.
M .Gabbasa etal./Renew able and Sustainable Energy Review s28 (2013)1828 20
heightened by the constantincrem entsin the pricesofoilbarrels
[911].Fig.3 show s the international energy status w ith price
outlook. The data w ere obtained from the Energy Inform ation
Adm inistration in 2005.According to these data, the situation
accom panied by increm ents in crude oil dem and w ill continue
until2030.
1.3. Conceptofsustainable energy developm ent
Sustainable energy drives the quest for a robust econom y
aim ed atpro t-m aking.The role ofsustainable energy in creating
a viable econom y has been identi ed and recognized globally.
M oreover,historicalfacts and gures suggesta strong proxim ity
betw een the availability of energy and econom ic activities [8].
Energy isan im portantfactorin solving the day-to-day challenges
ofhum an beings.Energy accom plishes diverse operations,w hich
often resultsin m echanism sthatensure the im proved w ell-being
ofhum ans.Nevertheless,the link through w hich the services are
m ade available to end-users and itsm ode ofutilization adversely
affectthe environm ent,such as through various cases ofair and
w aterpollution [12].The conceptofsustainable energy refersto a
system thatvisibly ensuresenvironm entalfriendlinessin addition
to the generation ofchancesand avenuesforsocialand econom ic
advancem ent.
1.4. Increasing energy consum ption and the shiftto com m ercial
form sofenergy
Prior to the industrial revolution, hum an activities w ere
centered around naturalenergy ow s as w ellas on the efforts of
fellow hum an beings to generate different form s of energy.
M echanicalenergy sourcesw ere restricted to draftanim als,w ind,
and w ater.Burning differentform s ofbiom ass rem ained the only
available m eansofconverting energy from one form to another,i.
e.,chem icalenergy to heatand light.The use ofenergy percapita
w as beneath 0.5 TOE of oil per year.A m arked difference w as
observed in the dem and and subsequentuse ofenergy from 1850
to 2005 from approxim ately 0.2 TOE to 11.4 billion TOE [13].As
societiesbecam e m ore industrialized,the use ofdifferentform sof
energy have becom e a hallm ark w ithin the polity because ofthe
diverse w aysby w hich energy isbeing utilized,w hich rangesfrom
dom esticto industrialusage.Severaltransform ationsin the use of
fuelhave been identi ed,from prim itive dung to w ood or crop
residues and,recently,to largely com m ercialform s such as crude
oil,natural gas, and electricity.Obtaining the statistics on the
usage of conventional w astes and biom ass is often dif cult.
How ever,these fuels have accounted for approxim ately 10% of
totalbasic energy use atpresent.A largerextentofthis usage is
found in the villages and the countryside of less-developed
countries. Additional accurate data on com m ercial energy use,
w hich rose sw iftly in the latterpartofthe 20th century,are also
available.Considering thatthe origin ofm ostcom m ercialform sof
energy isfossilfuels(coal,crude oil,and naturalgas),the usage of
such energy sourcessurged w ithin the 20-fold vicinity in the 20th
century alone.Fig.4 show s thatapproxim ately 76% ofthe global
basicenergy suppliescam e from non-renew able,carbon-releasing
fossil fuels, w hereas approxim ately 24% of the global energy
supply iscom bustible and renew able [13].
Current energy needs are being m et by non-renew able
resources such as petroleum and natural gas. Nine m em bers
ofthe Organization ofthe Petroleum Exporting Countries (OPEC)
currently ow n 84% ofthew orld crude oilreserves,seven countries
Fig.5.Energy data (indicators)percapita in OIC countries.
Fig.4.Share ofw orld prim ary energy supply 2008.
M .Gabbasa etal./Renew able and Sustainable Energy Review s28 (2013)1828 21
ow n 72% ofthe naturalgasreserves,and eightcountriesow n 82% of
allcoalreserves.Allthese countries are OIC M Cs [4].Furtherm ore,
m ost African and Asian countries im port m ore than half of their
com m ercialenergy.Therefore,the problem isrooted in the non-stop
energy generation requirem entin these countries.The w orld facesan
unsustainablesupplyofenergyin thefutureifpolitiesw illnotrevam p
theirenergy policies by 2030.W orldw ide prim ary energy consum p-
tion w ill increase by 60%.This increase started in 2010 and w ill
continue until2030.Accretion dem ands w illoccur m ostly in devel-
opingcountries.M orethan 86% ofthesedem andsw illbem etbyfossil
fuels.Greenhouse gasem issionsw illalso increase by 59% [43].Som e
forecasts on globaloilusage indicate thatthe usage w illcontinue to
grow exponentially and w ould reach an all-tim e high by 2050 [13].
Interpreting these datafrom an environm ent-friendly perspective,the
w orrisom e trend ofcontinuous fossilfuelconsum ption accounts for
alm ostallenergy sourcesconsum ed globally w ith the corresponding
consequences[9,13].
Therising dem and forenergycoupled w ith increasing oilprices
and unstable energy supply are jointly responsible forthe uprising
in the energy m arket. M oreover, the recent global econom ic
dow nturn caused a urry ofactivities in attem pting to revertto
the norm al schedule in the energy m arket.Under these highly
charged circum stances, several countries are refocusing their
energy policies to com ply w ith sustainable developm entalgoals
and objectives.Energy ef ciency and strategic perform ances of
som e countries should be appraised to sustain the process of
econom ic recovery.How ever,m ostofthese factors possessm ajor
econom ic bearings aim ed at enhancing the industrial values of
m odern econom ies[14].Previousstudieshave highlighted various
m echanism s for controlling energy factors,but accurate energy
m arkersforstandardizing econom icsystem sovera long period of
tim e are yetto be exam ined [1417].
2. Energy supply in OIC countries
2.1. Energy supply related w ith GDP (percapita)
This paper did notuse an undisputable criterion for de ning
M uslim countries.M uslim countries are de ned as allcountries
identi ed w ith the OIC regardlessofthe percentage ofM uslim sin
theirpopulation.Countries w ith M uslim s as the m ajority oftheir
population are also included in the classi cation [18].Am ong the
154 less-developed countriesidenti ed by W orld Bank in 2010,57
w ere M uslim countries.Fig.5 show s selected energy indicators
such as energy supply per capita,prim ary energy consum ption,
production,and nalenergy consum ption for allOIC countries.
Data w ere obtained from the W orld Bank in 2008.
These indicators enable a com parison ofGDP percapita w ith the
energy supply ofeach OIC country.The com parison show s thatthe
GDP percapitain them ajority ofthesecountriesrem ain very low ,but
countriessuch asQatar,the United Arab Em irates(UAE),SaudiArabia,
Libya,Kuw ait,Bahrain,Brunei,Om an,and Turkey have high GDP per
capita because they are netoilexporters,OPEC m em bers,and have
less population than others. Som e countries that are not net oil
exporters have high GDP per capita because they have alternative
energy resources,w hich balance the consum ption and production of
energy supply.Am ong these countriesareGabon,M alaysia,Indonesia,
Kazakhstan,Egypt,Sudan,Yem en,and Tunisia.Only a few indicators
w ere investigated because of insuf cient data. Thus, only a few
im portantfactorscan be explained in OIC countries.
GDP per capita is one ofthe indicators ofthe ef ciency ofan
energy input,w hereas barrelofoilper capita is an indicator of
energy ef ciency [14].The connection betw een energy supply and
use hasbeen an issue ofdiscussion and an objectofinvestigation
in studiesoverthe lasthalfcentury.Previousstudieshave focused
on differentcountriesand used differentinputsforthe supply and
use of energy [19,20]. How ever, the results of som e of these
studies w ere not uniform in term s of the causes ofthe shift in
direction and the com parison betw een long-term and short-term
effects on energy policy,but the im plications of these policies
could be very signi cant[20].How ever,the focuson the cause of
this relationship m ay not be straightforw ard despite the w ell-
established status of the relationship betw een energy use and
econom icgrow th,irrespective ofw hich are econom ic grow th and
energy consum ption,w hich are interrelated.The num ericalim pli-
cation of nding the path ofcausality betw een energy utility and
econom ic exercises for less-developed and w ell-developed coun-
tries has been established [21]. Fig. 5 show s that dom estic
econom ic grow th has a signi cant effect on increm ents in the
levelofpercapita energy use.An increm entin the GDP percapita
isequivalentto an increase in energy use percapita.How ever,this
relationship m ay notnecessarily be linear and proportional,and
differences m ay be caused by several factors such as energy
ef ciency,industrialstructure,and clim ate change.
2.2. Econom ic grow th
GDP is a high-pro le dom estic socio-econom ic indicator,w hich
appropriates the totaldom estic and foreign outputofeach country
across the w orld [22].According to the data of the W orld Bank
in 2010, this classi cation depends on a num ber of indicators,
including socioeconom ic indicators.These indicators are character-
ized from a range ofzero to $10,000 USD.The 57 OIC countries are
classi ed into ve m ajorlevels,nam ely,high,upperm iddle,m iddle,
low ,and no incom e econom ies.The classi cationsofthese countries
are explained in Table 1 because they covera w ide econom icrange.
2.3. Effectsofenergy supply on GDP
Energy is considered in the production process because it is
used forcom m ercialand non-com m ercialactivities.Thus,energy
Table 1
The classi cation ofOIC countries asrespectto GDP percapita.
The classication ofOIC countries asrespectto GDP per capita (USD$)(2009)
Group ofeconom ic Num ber ofOIC
countries
High-incom e econom ies:(GDP percapita4 10,000 USD) 14 countries
UpperM iddle-incom e econom ies:(5000 USD o GDP per
capita4 10,000 USD)
9 countries
M iddle-incom e econom ies:(1500 USD o GDP percapita4
5000 USD)
18 countries
Low -incom e econom ies:(GDP percapitao 1500 USD) 14 countries
No-incom e econom ies:(GDP percapita0000 USD) 2 countries
M .Gabbasa etal./Renew able and Sustainable Energy Review s28 (2013)1828 22
is directly related to a country's GDP.This relationship could be
through usage,trade,orcom m erce because energy generation and
use affectthe constituents ofoveralldem and.A large num ber of
less-developed countries do notpossess crude oildeposits.Thus,
these countries are devoid of adequate energy resources and
consequently depend on the im portation of natural gas, coal,
crude oil, or its re ned form for m ost of their dom estic and
industrialsupply ofenergy for activities such as cooking,trans-
portation,and m aintenance ofinfrastructuralam enities.Electricity
serves a criticalfunction in the provision ofinfrastructuralam e-
nities.Thus,the existence ofa correlation betw een energy use and
econom ic developm entis highly probable.Any adverse action on
energy w ill negatively affect GDP because of the very strong
interdependence betw een energy and econom ic grow th.If the
supply ofenergy eventually fails to satisfy dem and,the value of
GDP w illde nitely drop [24].
2.4. Im portation and exportation in OIC countries
Im portation and exportation refer to the m ovem ent ofgoods
across international borders w ith respect to a country and its
neighbors.How ever,these activitiesdo notensure thatgoodspass
through the appropriate legalchannels and routes [25].Table 2
show ssom e selected OIC M Csclassi ed asexportersorim porters.
The exam ination ofthe globalsituation w ith respectto the use of
alternative energy sources am ong OIC countries is saddled w ith
factorsthatm ustbe considered [23,25].Som e ofthese factorsare
m entioned below :
Appropriatenessofthe m echanism
Previousresearch ndings and theirpracticability
Proxim ity to adequate and appropriate hum an resources
Production potential
Econom ic accessibility
Asshow n in Fig.6,petroleum reserve and GDP are notdirectly
correlated.Countriessuch asAlgeria,Iran,Iraq,Libya,and Nigeria
have suf cient reserve, but they have low GDP. By contrast,
countries such as Turkey,Turkm enistan,Tunisia,M alaysia,and
Azerbaijan do not have suf cient reserves,but their GDPs are
relatively better.Table 2 show sthe criticalcrude oilsituation in 22
ofthe OIC countries.M ostofthese countries constitute the low -
incom e econom y group.How ever,a high fractionalpercentage of
these countries (approxim ately 35 countries) depend totally on
crude oilim portation.
3. Role ofalternative energy sourcesin supporting fossilfuels
w orldw ide
Energy accom plishes alm ostalldaily hum an activities related
to m etabolism ,health care,telecom m unications,and m anufactur-
ing.Currently,fossilfuelcan caterto allglobalenergy needs,but
fossilfueldepositsaround thew orld aretending tow ard depletion.
Thus,allactivitiesassociated w ith fossilfuelsareexpected to com e
to a stop.Abouta quarterofa century ago,the use ofrenew able
energy started to gain prom inence because of the crisis that
engulfed the w orld oilm arket.How ever,about10 years ago,the
Fig.6.Totalexports & totalim ports ofre ned the petroleum product.
Table 2
An energy classi cation of57 OIC countriesw ith respectto the export& im portof
crude oil.
Source:W orld Bank data 2007 and SESRIC data 2008.
The energy classication ofm ostof57 countriesin OIC state w ith respect
to the export& im portofcrude oil
Oilexporters Oilim porters
OPEC Non-OPEC 0% to 50% 50% to 75% 75% to 100%
Algeria Om an Bangladesh Burkina Faso Jordan
Iran Kazakhstan Benin Albania Chad
Iraq Indonesia Cote d'Ivoire Kyrgyzstan Com oros
Kuw ait Turkey M ozam bique M orocco M aldives
Libya Gabon Pakistan Syria M ali
Nigeria M alaysia Senegal Lebanon M auritania
Qatar Egypt Tajikistan Djibouti Niger
SaudiArabia Brunei Togo Sierra Leone
UAE Sudan Tunisia Uganda
Azerbaijan Guyana Gam bia
Cam eroon Afghanistan Guinea
Bahrain Uzbekistan Guinea-Bissau
Turkm enistan Som alia
Yem en Palestine
M .Gabbasa etal./Renew able and Sustainable Energy Review s28 (2013)1828 23
attention gradually shifted to creating a safer environm ent for
everyone to live.In addition,other disadvantages associated are
w ith the use of fossil fuels [26].The answ er to the problem s
resulting from the use ofenergy w ith lim ited naturalsources lies
in the group ofenergy w ith non-lim iting naturalsources.Som e
non-lim iting sources of energy include the solar,w ind,w aves,
hydropow er,and biom ass [2,26].Therefore,energy resources are
im portant for allcountries from an econom ic and politicalper-
spective.Forthisreason,technologicalchange in energy system sis
a very im portant and inevitable factor that researchers should
focuson [41,42].
The future ofrenew able energy resources as the m ain sources
of global energy consum ption cannot be over-em phasized, as
evidenced by the variousprofessionalbodiesthatassociate them -
selvesw ith the prospectsofrenew able energy.Ifallthe necessary
m echanism s,precautions,and technicalities are considered,the
W orld Energy Conference predicted a tw o-fold rise in renew able
energy sources by 2020 and a three-fold grow th by 2030, as
show n in Fig.7.Based on recentdocum entsand policiesobtained
from the eld,this targetw illlikely be m etnotw ithstanding the
foundational problem s experienced initially. The prospects of
renew able energies com pared w ith fossil fuels are peculiar to
speci ccountries.The attendantm arketstrategiesm ay be slightly
com plicated because severalfactors are considered.Peculiar cir-
cum stances of each nation m ust be m eticulously exam ined,
including the inherentfactors,to guarantee the viability ofrenew -
able energy asa replacem entforfossilfuel[22,23].
4. Energy consum ption and production in OIC countries
Energy is involved in basic socio-econom ic activities. Thus,
energy consum ption is one of the pillars of m odern life. The
production and consum ption ofcom m ercialenergy give rise to a
num ber of im portant contem porary issues [1]. In this regard,
econom ic and social developm ents are largely dependent on
energy.Nevertheless,the m odalities ofthe currentenergy supply
and use m ay be unsustainable because ofcertain environm ental
issues,such as globalw arm ing and acid rain,w hich are conse-
quences of energy use [27].The OIC region has strategic global
im portance in currentand future energy prospects.M any OIC M Cs
are blessed w ith suf cient energy potential,w hereas other M Cs
are not so fortunate.How ever,energy issues pose serious chal-
lenges for allOIC M Cs.Accordingly,energy-related issues hold a
special position for OIC.Therefore,energy problem s related to
production and dem and are am ong the m ain issues faced by
developed and developing countries alike. In subsistence life
styles, energy sources are products of the local environm ent,
and,in thatsense,are notfullm arketcom m odities.M ore com plex
settings depend prim arily on com m ercial energy. The m ore
developed an econom y becom es,the m ore dependentitbecom es
on com m ercialenergy.The im portance of energy has increased
w ith the developm ent of econom ic life and diversi cation of
econom ic activity.Energy rem ains a vitalinputin every aspectof
life,especially in production activities.Energy use has becom e a
basic indicatorofeconom ic grow th and developm ent[1,27].
4.1. Conceptofenergy consum ption and energy production
The use ofenergy priorto conversion to otherform sisreferred
to asenergy consum ption [5,46].In thisprocess,energy w ould be
put to further use in total local production,in addition to the
im ported stock,butw ithoutthe quantity intended forexportation
orthose used forfueling purposesforaircraftsorsea going vessels
on international routes.Energy production,on the other hand,
refers to the supply of basic energy in different form s such as
petroleum (crude oil,naturalgas,and oilfrom nonconventional
sources),solid fuels(coal),derived fuels,com bustible and renew -
able fuels,and electricity [5].
4.2. Relationship betw een energy consum ption and GDP/PPP
(percapita)
Energy is regarded as a high pro le facilitator ofevents that
eventually generates w ealth. M oreover, energy is a signi cant
factor in the developm entofthe econom y,as w idely recognized
and acknow ledged globally.A large body ofevidence suggeststhe
existence of a strong tie am ong energy availability, econom ic
exercise,and advancem ents in hum an living conditions and the
overallsocialw ell-being of people [28,48].Another relationship
exists betw een energy usage and econom ic grow th,w hich has
facilitated the em ergence of tw o opposing view s.One of these
opinions adheres to the idea that the use of energy lim its
econom ic grow th.The other view argues that energy does not
affect econom ic grow th.This situation highlights the neutrality
hypotheses,w hich postulatesthatthecostofenergy isa m icropart
of the GDP and should therefore have an insigni cant effect on
outputgrow th.The possibility ofan effectofenergy consum ption
on grow th,depending on the structures ofthe econom y and the
extentofitsgrow th in respectivecountries,hasalso been analyzed
[29].Therelationship betw een energy usageand econom icgrow th
has been closely scrutinized.How ever,no clear-cutagreem entor
statem entconcerning this so-called energy consum ption grow th
nexus has been arrived at.Decision m akers regard the path of
causality highly.Forexam ple,ifthe causality path is from energy
usage to econom icgrow th,the energy conservation agenda aim ed
Fig.7.The totalw orld prim ary energy production.
M .Gabbasa etal./Renew able and Sustainable Energy Review s28 (2013)1828 24
atbringing dow n energy usage m ay have an adverse effecton the
grow th ofeconom y [30].
The study em ployed data on OIC countries thathave been taken
from the 2009 W orld Bank Data.The relationship betw een energy
consum ption and GDP/PPP (percapita)isshow n in Fig.8.The results
show thatm ostOIC countrieshave low GDP,exceptforsom e export
oil-exportingcountriessuch asQatar,UAE,Kuw ait,Libya,SaudiArabia,
and Bahrain.Thus,the m eaning ofenergy use is notdependenton
GDP percapita.Currently,approxim ately42% oftheglobaltotalenergy
usage relieson crude oil.Tw enty-tw o outofthe 57 OIC countriesare
m ajoroilexporters,and these countriescontribute signi cantly to the
w orld oil com m ercial transaction.Approxim ately 61% of the total
w orld population resides in underdeveloped countries but their
annualcom m ercialenergy usage isapproxim ately 15%.The instability
in the w orld price ofoilm akes itim possible forthe m ajority ofOIC
countries,w hich are m ajor oilexporters,to have a stable econom ic
situation.How ever,them ajorityofthesecountriesareblessed w ith an
appreciableam ountofrenew ableenergy,particularlysolarenergyand
biom ass.W ind energy and hydropow er have notbeen ruled outin
som eofthesecountriesasw ell.How ever,rate ofenergyconsum ption
and availability ofcrude oilshould notbe the criteria forconsidering
alternative energy m eans.The effects offossilfuels on the environ-
m entare being closely m onitored and w illcontinue to attractstricter
policiesand regulations[22,24].
5. Electricity generation and electric consum ption
Sustainability w ith regard to production and consum ption
cannotbe attained iftechnology rem ains constant.The ef ciency
ofthe production,transm ission,distribution,and usage ofenergy
in countries w ill be determ ined by the efforts to regulate the
pollution ofthe environm ent,speci cally by air pollutants com -
prising m ainly greenhouse and other gases as w ell as other
polluting agentsparticularto such countries.The supply m echan-
ism ofelectricalenergy in m ostofthesecountriesisbeing updated
to be at par w ith the latest technology because it has been
identi ed as a strategic contributor to econom ic grow th and
im proved standards ofliving [31,32,34].
5.1. Electric netgeneration in OIC countries
Electricity production is undoubtedly the m ost im portant
product of the com m ercial form s of energy. Lighting, heating,
and cooling are the rstfunctionsthatcom e to m ind in relation to
electricity.Betw een 1980 and 1990,electricity generation grow th
in OIC countries w as 6.8% per annum com pared w ith the global
grow th of3.6%.In the follow ing decade,the grow th rate fellto
4.8% perannum in the OIC and 2.6% globally.In 1980,the share of
OIC countries in w orld electricity production w as4.4%,increasing
to 6.0% in 1990 and 7.4% in 2000 [33,42].The indicatorsshow n in
Fig.9 can be used to exam ine the patternsand trendsofelectricity
netconsum ption and netgeneration,as w ellas to determ ine the
energy supply in these countries.In the alternative energy policy
arrangem ent,the non-lim iting form ofenergy is a m ajor source
that supplies slightly m ore than a quarter of the total energy
consum ption.This percentage w as approxim ately 18% in 2004.
Electricity generation from renew able energy sources generally
rose from 3.21 TW h to 7.84 TW h, thus becom ing the second
largestsource ofelectricity aftercoal[34].
TheOIC M Csproduced 3.03 m illion TOE in 2008,w hich w asnearly
30% m orecom pared w ith thatin 1998.How ever,aslightincreasew as
observed globally,w herein the globalelectricity production from OIC
M Cs w as 25.7% in 2008 and 24.0% in 1998.In the 2007 production
level,18.8% w asproduced bySaudiArabia,follow ed by10.2% produced
by Iran and Indonesia.Four M Cs provided nearly half of the total
production w hen the 7.8% share of Nigeria is included.A sim ilar
picture can be seen in the consum ption side.The OIC M Cs w ere
responsible for 12.1% of the global consum ption in 2008 w ith
1.39 m illion ton of energy use,indicating a 38% increase from its
1998 level.Thethreeleadingcountriesdid notshow achangein order.
In 2009,ofthe 35.5% totalOIC energy consum ption,12.8%,12.2%,and
10.5% w ere registered by Indonesia,Iran,and SaudiArabia,respec-
tively.Nigeria once again ranked fourth w ith a share of7.5%,w hereas
the energy consum ption ofTurkey m ade up 6.8% ofthe total[5,34].
5.2. Renew able and fossilfuelsasa source ofelectricity
In 2005,the globalelectricity production w as 17.58 TW h,39%
ofw hich w asobtained from coal,20% from gas,16% from nuclear
Fig.8.The relationship betw een energy consum ption & GDP/PPP (percapita).
M .Gabbasa etal./Renew able and Sustainable Energy Review s28 (2013)1828 25
sources,17% from hydro sources,8% from crude oil,and 2% from
non-lim iting sourcessuch asgeotherm al,solar,w ind,com bustible,
and renew able energies[35,36].W hile theglobaluse offossilfuels
for electricity generation decreased by 6.4% betw een 1980 and
2001,the value increased in the OIC countries by 11.7%.The OIC
M Cs,w hich accounted forthe highestshare (83.60%)offossilfuels
in electricity generation in 2001,are show n in Table 3.
The share of coal, the m ost im portant source of electricity
production, rose from 33.0% to 38.2% betw een 1980 and 2001.
M oreover,coalsharesrose in allofthe groupsexam ined and in the
OIC during the study period.How ever,the share in 2001 w as 11.5%,
the low est am ong the groups exam ined.Betw een 1980 and 2001,
both thelow -incom eand m iddleincom ecountriesexperienced arise
ofapproxim ately 15% pointsin the share ofnaturalgasin electricity
production,w hereas the w orldw ide increase w as approxim ately 8%
points.Theuseofnaturalgasasasourceofelectricity hasbecom ean
im portantchoice form ostOIC M Cs.Overall,naturalgasw asused in
the OIC to generate 44.4% of the electricity in 2001,a substantial
increase from 20.5% in 1980. The function of oil in the w orld's
electricity production hastaken a nosedive since the second oilprice
fallof1979.Oilaccounted for28.4% ofelectricalfuelconsum ption in
1980,butin 2001,itsshare fellto 8.4%.M ore signi cantdecreasesin
sharesw erew itnessed am ong thelow -and m iddle-incom ecountries
w ithin the sam e period. The share of oil in electricity fuel use
declined from 53.7% to 8.2% am ong the low -incom e countries and
from 48.0% to 11.2% am ong the m iddle-incom e countries.The share
of oil of the OIC in electricity production rem ained the highest
despitethedecreasefrom 46.3% to 27.7%.Theuseofnuclearpow erin
electricity generation in the w orld rose from 8.5% in 1980 to 16.6% in
2000.How ever,the contribution ofnuclearpow erisinsigni cantfor
the OIC.In 2001,Pakistan rem ained the only OIC m em bercountry to
bene t from nuclear pow er, w hich accounted for 0.6% of
its electricity generation. In the OIC as a w hole, nuclear pow er
accounted for0.03% ofelectricity generation [33,37].
5.3. Relationship betw een electric netgeneration and electric net
consum ption in OIC countries
Theannualglobalgeneration ofelectricalenergy isapproxim ately
3.20 billion kW /h.Renew able energy sources,w hich include w ind,
Fig.9.The electric generation and energy consum ption in OIC countries.
Table 3
Sourcesofelectricity netgeneration (perpercentage).
Source:W orld Bank Data 20062007.
Sources W orld High-incom e econom ic group OIC
countries
M iddle-incom e econom ic group OIC
countries
Low -incom e econom ic group OIC
countries
Year 1980 2001 1980 2001 1980 2001 1980 2001
Fossilfuels:
Coal 33.0 38.2 5.1 11.5 22.3 38.5 13.1 44.5
Oil 28.4 8.4 46.3 27.7 48.0 11.2 53.7 8.2
Gas 8.8 17.2 20.5 44.4 4.6 19.6 1.6 16.3
Total 70.2 63.8 71.9 83.6 74.9 69.3 68.4 69.0
Renew ables:
Hydro-pow er 20.6 17.5 28.0 16.0 21.6 22.7 27.8 22.7
Nuclear-pow er 8.5 16.6 0.0 0.0 3.2 7.3 3.7 7.9
Others 0.5 1.5 0.1 0.4 0.3 0.7 0.1 0.4
Total 29.8 36.2 28.1 16.4 25.1 30.7 31.6 31.0
M .Gabbasa etal./Renew able and Sustainable Energy Review s28 (2013)1828 26
solar,biom ass,and geotherm alenergies,m akeup approxim ately 22%
of the earth's totalelectricity generation [38,39].Electricalenergy
produced from non-lim iting sources m ay be channeled into large
grids,but the best bene t ofnon-lim iting sources ofenergy is its
decentralized use. In this case, the advantages of renew ability
becom e clear.Renew able sources ofenergy often play vitalroles in
placesofruralareasw here setting up electricalnetw ork isgenerally
dif cult or non-pro table despite its perceived usefulness in the
form idable effortbeing w aged againstpoverty [31,48].In 2006,the
OIC countries produced 1.63 billion kW /h. In 2000, the OIC M Cs
supplied 8.5% ofthe totalelectricity ofthe w orld,w hereas the OIC
share w as 7.4% or 1.12 billion kW /h.How ever,w hen com paring the
electric netgeneration and netconsum ption of2000 and 2006,the
share ofthe OIC M Csshow ed a decrease [5,46].
In Fig.10,Iran isshow n asthetop producerin 2008,accounting
for12% ofthe totalOIC production w ith alm ost2.16 billion kW /h
ofelectricity.Iran is follow ed by SaudiArabia,Turkey,Indonesia,
Egypt,and M alaysia.The electricity produced in these six coun-
triesconstituted nearly 50% ofthe totalOIC electricity production
forthe years 2007 and 2008.
6. Energy supply balance
Adequate energy distribution facilitateseconom ic proliferation
ofany country.Access to these m odern form s ofenergy enables
extrem ely low -incom e people to enjoy som e facilities.The design
and effective m anagem entofan ef cientenergy supply system is
necessary to the success of the goals of the UN M illennium
Declaration.Renew able energies,in addition to otherm echanism s
aim ed at im proving energy ef ciency in developing countries
tow ard the enhancem entofquality oflife,are designed to achieve
these goals.These m echanism s also ensure an enhanced w idely
distributable netw ork ofenergy thatcan reach the rem otestareas.
This condition can eradicate bottlenecks in obtaining energy
supply [31,47].Directives and guidelines have been form ulated
by the European Union for the energy sector to guard against
certain constraintsencountered in energy issues:com petitiveness
of energy m arkets, safety of energy supply, and environm e-
ntal protection. This action ensures an unhindered sectoral
developm entalschem e w ith focus on goaldelivery.Additionally,
these goalsasw ellastheircontrolm ay be atvariance and serveas
huge puzzles resulting from provision of solutions to certain
energy issues [40,46].
7. Conclusion
The energy status as w ellas the enorm ous potentialofalter-
native energy sources in the OIC countries can m eet the global
energy dem and.Therefore,thiscan facilitate m ultiple channelsof
energy supply for the needed long-term sustainable energy
supply.This condition w illassistin job creation,and in opening
up m anufacturing prospects particularly in less-developed coun-
tries.In addition,an appropriate energy supply schem e plays an
im portantrole in enhancing the quality oflife acrossthe globe in
generaland in OIC countries in particular.Besides increased GDP,
advancesin technologicaland engineering prow ess,cleanerenvir-
onm ent,m ore secured neighborhood,and ef cientw ater supply
schem e,num erous em ploym ent chances and incom e generating
ventures are som e ofthe bene ts obtained from system s w here
energy supply is effective.
Overthe nextfew years,the focusofboth the OIC countriesand
less-developed countries w ill be on the cost and availability of
energy supply. The choice of alternatives to the conventional
energy supply system should be based on abundance, renew -
ability,and im pacton the environm ent.Thischoice w illgo a long
w ay in reducing the dependence on im ported products, and
subsequently im proving the GDP as w ell as the balance of
paym ents ofrespective countries.In addition,this w illassist in
protecting the environm ent from contam ination.It is suggested
that in planning for the energy supply,nationalfactors such as
energy supply infrastructure,energy ef ciency considerations,and
institutional constraints as w ell as a sustainable developm ent
schem e m ustbe taken into consideration.
The above discussion can be sum m arized as follow s:
(1) Sim ilarto OPEC countries,som e OIC countriesareblessed w ith
asupply ofcrude oiland naturalgas.The oiland gasindustries
Fig.10.The relationship betw een electric netgeneration and electric netconsum ption ofOIC countries.
M .Gabbasa etal./Renew able and Sustainable Energy Review s28 (2013)1828 27
in these countries have contributed trem endously to their
developm entasre ected in the high GDP/PPP values.
(2) The countries w ith extrem ely low GDP/PPP values have to
im portcrude oiland petroleum products.On the otherhand,
theuseofrenew ableenergy resourcessuch asbiom ass,biogas,
hydro,solar therm al,w ind,and geotherm al,w hich m ost of
these countries are naturally endow ed w ith, has rem ained
untapped.
(3) Iran,Turkey,SaudiArabia,Indonesia,Egypt,and M alaysiaw ere
able to generate energy for export.How ever,they w ere not
able to supply electricity to allareas particularly the rem ote
areas due to insuf cient transm ission and distribution infra-
structure,causing groups ofpopulation in these countries to
be deprived ofm odern energy services.
(4) Long- and short-term strategies have to be adopted to pro-
m ote the alternative energy resources and energy supply.
Tim eline should be form ulated and developed as a guideline
forthe im plem entation ofthe strategies.The tim eline can be
m odi ed depending on the needsand urgency ofthe applica-
tions of suitable alternative energy resources in the OIC
countries.
Acknow ledgm ents
The authors w ould like to thank the Solar Energy Research
Institute,and the DIP-2012-22 Research Fund forproviding logical
and nancialsupportto thisstudy.
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