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  • 8/11/2019 Review of Energy Supply Status

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    Review of the energy supply status for sustainable developm ent

    in the O rganization of Islam ic Conference

    M oham ed G abbasaa,b,Kam aruzzam an Sopiana,Zahira Yaakob b,M .Reza FarajiZonooza,

    Ahm ad Fudholia,N ilofar Asim a,n

    a Solar Energy Research Institute,UniversitiK ebangsaan M alaysia (UKM ),43600 Ban gi,Selangor,M alaysiab D epartm ent ofChem icalan d Process Engineering,Faculty of Engineering,UniversitiK ebangsaan M alaysia (UKM ),43600 Bangi,Selangor,M alaysia

    a r t i c l e i n f o

    Article history:

    Received 30 Septem ber 2011

    Received in revised form

    26 M arch 2013

    Accepted 21 July 2013

    Keyw ords:

    Energy

    Energy supply

    Sustainable d evelopm ent

    O rganization of Islam ic Conference

    G rossd om 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 the Organization ofIslam icCon ference(OIC).Thisexerciserevealsthatthe increase in energy consum ption is

    associated w ith econom ic grow th and population expansion.The interconnectivity betw een energy use and

    nationallevel,asw ellasthe connection betw een energyutilization and grossdom esticproduct(GD P),w hich is

    an indicator of econom ic developm ent,m ust be explained to determ ine the signi cance of national energy

    utility in these countries.Therefore,alternative energy source utilization is necessary for the provision of an

    appreciable constituent of im m inent energy requirem ents in sectors that utilize energy.Alternative energy

    source utilization is a crucial factor in ensuring the totalcapacity of energy sources in various grow ingeconom ies ofthe w orld w here clean energy is unavailable.Furtherm ore,som e ofthese countries also possess

    alternative energy sources such as hydropow er,solar,w ind, geotherm al,and biom ass.This paper provides

    detailson sustainable energy supply developm entsin O IC countries.These countries m ustsustainably develop

    energy despite their suf cient w ealth in crude oil and natural gas.The m ain purpose of this study is to

    determ ine econom icgrow th in relation to energy supply to facilitate sustainable developm ent.In addition,this

    paper suggests necessary requirem ents to sustain the energy developm ent processesin OIC countries and as

    w ellas som e stagesthatm ustbe adopted to enhance developm entata sustainable rate.

    & 2013 Elsevier Ltd.A llrights reserved.

    Contents

    1. Introduction ......................................................................................................... 19

    1.1. O IC: selection ofcountries and population .......................................................................... 19

    1.2. Energy as basis for sustainable developm ent......................................................................... 20

    1.3. Concept ofsustainable energy developm ent ......................................................................... 21

    1.4. Increasing energy consum ption and the shift to com m ercialform s ofenergy............................................... 21

    2. Energy supply in OIC countries..........................................................................................222.1. Energy supply related w ith G D P (per capita)......................................................................... 22

    2.2. Econom ic grow th...............................................................................................22

    2.3. Effects ofenergy supply on G DP ................................................................................... 22

    2.4. Im portation and exportation in O IC countries........................................................................ 23

    3. Role ofalternative energy sourcesin supporting fossilfuels w orldw ide ......................................................... 23

    4. Energy consum ption and production in O IC countries .......................................... ............................. 24

    4.1. Concept ofenergy consum ption and energy production ................................................................ 24

    4.2. Relationship betw een energy consum ption an d G D P/PPP

    (per capita) ................................................................................................... 24

    5. Electricity generation and electric consum ption ........................................ .................................... 25

    5.1. Electric net generation in O IC countries............................................................................. 25

    5.2. Renew able and fossilfuels as a source ofelectricity ................................................................... 25

    5.3. Relationship betw een electric net generation and electric net consum ption in O IC coun tries .................................. 26

    Con tentslists available at ScienceD irect

    journalhom epage: w w w .elsevier.co m /locate/rser

    Renew able and Sustainable Energy Review s

    1364-0321/$-see front m atter & 2013 Elsevier Ltd.A llrights reserved.

    http://dx.doi.org/10.1016/j.rser.2013.07.04 5

    n Correspond ing 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 .A sim ).

    Renew able and Sustainable En ergy R eview s 28 (2013) 1828

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    6. Energy supply balance.................................................................................................27

    7. Conclusion ..........................................................................................................27

    Acknow ledgm ents........................................................................................................28

    References..............................................................................................................28

    1. Introdu ction

    Energy has becom e a vitalcom ponent of hum an life,particu-

    larly in term s ofeconom ic activities.Energy is also an indicator of

    econom ic and social im provem ent. M ost of the energy supplyutilized 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 ent is eviden t.Th is close association has been observed

    betw een energy production and energy consum ption levels on the

    one hand and betw een econom ic grow th and developm enton the

    other [1,44]. Conven tional en ergy sources still d om inate the

    com m ercial en ergy m arket, w ith coal occupying the highest

    m arket share.D espite having the leastshare am ong conventional

    energy sources,oilseem s the m ostim portant.The m ovem ents of

    oil prices are am ong the m ost closely follow ed variables in the

    w orld. O il variables rem ain at the center of w orld international

    relations and policy-m aking debates.The dim inished contribution

    and w eight of oilshould 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 ic grow th

    and on the non -linear changes in social status. These grow ths

    could also be controlled by industrialized countries.To m eetfuture

    dem and, a continuous exhaustion of localresources is necessary.

    Fossil fuels alone cannot supply global energy needs. Con se-

    quently,studies are being un dertaken 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 of all required tasks w ithout causing passive social

    effects.Energy sources such as fossilfuels,naturalgas,and other

    energy resources such assolar,w ind,and hydro are assum ed to be

    renew able.Therefore,sustainability w ill exceed the relative out-

    lying term strategies [3].Fig.1show s a schem atic ofsustainability

    for long-term developm ent.

    Renew able energy sources are responsible for m eeting 1520%

    of the total w orld energy dem and [3]. A ll renew able energy

    sources produced nearly 2900 TW h in 2001, w hich is approxi-

    m ately 24% of the total global electricity supply.If the conven -

    tionalutilization ofbiom assis also considered,then m ostefforts inthe renew able eld w ith respect to the current electricity supply

    w ill be m ade possible by hydroelectric m echanism s, of w h ich

    a huge percentage has been in existence for a long tim e [2,3].

    N evertheless,the signi cance of recent engineering w ork in this

    eld is only starting to un fold.From a pilotscale perspective in the

    1970s, the latest class of renew able energy such as biom ass,

    geotherm al,sm all-scale hydro,solar therm al,and others,has been

    increasing exponentially and has becom e even m ore im portant

    than technology as far as the supply of electricity is con cerned.

    H ow ever,in term s of the utility of these 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.The m ajority ofthe data used in the study are based on

    those obtained from the energy section ofthe W orld Bank D evelop-

    m entInd icators(W BD I)and the Statistical,Econom ic,SocialResearch

    Training Centre for Islam ic Countries (SESRIC).Energy data from

    differentsourcesare converted to a standard unitbased on the M etric

    Ton of O ilEquivalents (M TOE).Th ese conversion factors are used to

    standardize countries. Som e data w ere unavailable for som e OIC

    m em ber countries (M Cs).

    1.1. OIC: selection of countries and population

    The afterm ath ofan arson attack on 21 Augu st,1969 facilitated

    the establishm ent of the O IC on 25 Septem ber, 1969 in Rabat,

    M orocco. The Secretariat's w ork gradually expan ded during the

    1970s. The M ecca declaration in 1981,w hich w as centered on

    enhancing trade and com m ercial collaboration am ong the parti-

    cipating states,resulted in a totalturn aroun d. W ith 57 m em ber

    states,the O IC is the largest organization aside from the United

    N ations (U N ).The O IC is m ade up ofcountries w ith peoples w ho

    arem ainlyfollow ersofIslam .O IC coun tries representa substantial

    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 natural resources and exhibiting consider-

    able potentialfor cooperation and exchange w ith various sectors

    [4,5]. Fig. 2 show s the structure of cooperation betw een O IC

    countries w ith their corresponding ags.

    According to recent inform ation,M uslim s constitute approxi-

    m ately 22% of the global pop ulation of 1.5 billion people. The

    overall global population w as approxim ately 6.6 billion in 2009,

    w ith an increase rate of 1.8% from 2000 to 200 6.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

    O IC countries [4].N otably,the dem ography ofthe O IC M Cs differs

    noticeably. For exam ple, Pakistan, Bangladesh, and N igeria are

    am on g the w orld's m ost crow ded countries w ith populations

    exceeding 100 m illion,includ ing Indonesia w ith over 200 m illion

    people.By contrast,eightO IC M Cs have lessthan 1 m illion people,

    including Surinam e,Brunei,and M aldives,w hich have few er than

    500,000 people.Based on the 2008 w orld population, ve other

    countries w ith popu lations less than 1 m illion are Q atar,D jibouti,

    Bahrain, G uyana, and Com oros. The grow th rate of the w orldpopulation has been declining [46].

    Fig.1. A schem atic of sustainability for sustainab le developm ent.

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    1.2. Energy as basis for sustainable developm ent

    Energy is a m otivator of genuine econom ic grow th,but the

    availability of ap propriate services (an anom aly) could im p ede

    developm ent. This anom aly restricts the possibility of achieving

    som e setgoalsand the prim ary needs ofend users such as those in

    the m edical eld, engineering, arts,and sciences.This anom aly

    also restricts the delivery of infrastructural,dom estic,and indus-

    trialam enities.Sustainabilityand en vironm entalfriendliness m ust

    be considered in the use of renew able resources to achieve som e

    ofthese specialgoals [6].A w ell-de ned energy source is basically

    regarded as a necessity; its availability is insuf cient for the totaltransform ation of society.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 all set tasks w ith no adverse

    consequences. The availability of energy from fossil fuels and

    uranium is tim e-dependent because 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 ent of developed 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

    aroun d the globe. These fossil fuels,w hich are often obtained

    from developing countries w here the technical know -how for

    m eaningful exploitation is often un available,had assisted devel-

    oped countries in m aintaining their status at the forefront of the

    w orld econ om y w h ile shaping 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 still unstable.The energy dem and of developing countries

    increased during a tim e w hen the rate of oil prices w as higher

    com pared w ith the dem and ofother industrialcoun tries.The price

    of fossil fuel w orldw ide has recently decreased, but the energy

    supply pricesrem ain considerably higher than 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 ent in developing cou ntries [45].

    G lobal energy consum p tion over the last 50 years has taken aquantum leap and is anticipated to rise for the next half century

    [10].Fig.3 show s the rising need for fossil fuels.Th e rem aining

    fossil fuel deposits are expected to be depleted by 2020. The

    increases in the pricesand dem and for crude oilare results ofthe

    1970 and 1990 crises,w hich strengthened the questfor renew able

    sources of energy [11]. Before the 1970s, the price of oil w as

    com fortably affordable w ithin the costof living.H ow ever,during

    the 1970s, these affordable prices started to rise and steadily

    increased.A perpetual presence of pow er shortages w as experi-

    enced in less developed nations because of the rising oil prices.

    Consequently,the actual costof fossiloilutility in less developed

    countries becam e higher than the corresponding costs of renew -

    able energy sources.H ow ever,w ith the availability of alternative

    energy sources,price differences are determ ined by the choices

    m ade by consum ers.In 1970,oil-producing countries belonging to

    the O ilProducersAssociation increased the price ofcrude oilfrom

    2 dollars to 10 dollars per barrel.This p rice increase generated

    confusion and problem s in the global m arket.This situation w as

    Fig.2 . Structure of the coop eration betw een O IC cou ntries w ith their ags.

    Fig.3. Internationalenergy statuses w ith the p rices outlook.

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    heightened by the constant increm entsin the prices ofoilbarrels

    [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. Concept ofsustainable energy developm ent

    Sustainable energy drives the quest for a robust econom y

    aim ed atpro t-m aking.The role of sustainable energy in creating

    a viable econom y has been identi ed and recognized globally.M oreover,historicalfacts and gures suggest a strong proxim ity

    betw een the availability of energy and econom ic activities [8].

    Energy is an im portant factor in solving the day-to-day challenges

    of hum an beings.Energy accom plishes diverse operations,w hich

    often results in m echanism s that ensure the im proved w ell-being

    of hum ans.N evertheless,the link through w hich the services are

    m ade available to end-users and its m ode ofutilization adversely

    affect the environm ent,such as through various cases of air and

    w ater pollution [12].The conceptofsustainable energy refers to a

    system thatvisibly ensures environm entalfriendlinessin addition

    to the generation ofchances and avenues for socialand econom ic

    advancem ent.

    1.4. Increasing energy consum ption and the shiftto com m ercial

    form s ofenergy

    Prior to the ind ustrial 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.Bu rning different form s of biom ass rem ained the only

    available m eans of converting energy from one form to another,i.

    e.,chem icalenergy to heat and light.The use ofen ergy per capita

    w as beneath 0.5 TOE of oil per year. A m arked difference w as

    observed in the dem and and subsequent use ofenergy from 1850

    to 2005 from approxim ately 0.2 TO E to 11.4 billion TO E [13].A s

    societies becam e m ore industrialized,the use ofdifferent form s of

    energy have becom e a hallm ark w ithin the polity because of the

    diverse w ays by w hich energy is being utilized,w h ich ranges from

    dom estic to ind ustrialusage.Severaltransform ations in the use of

    fuel have been identi ed,from prim itive d ung to w ood or crop

    residues and ,recently,to largely com m ercialform s such as crude

    oil, natural gas, and electricity. O btaining the statistics on the

    usage of conventional w astes and biom ass is often dif cult.

    H ow ever, these fuels h ave accoun ted for app roxim ately 10% of

    totalbasic energy use at present.A larger extent of this 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 latter partof the 20th century,are also

    available.Considering that the origin ofm ostcom m ercialform s of

    energy is fossilfuels (coal,crude oil,and naturalgas),the usage of

    such energy sources surged w ithin the 20-fold vicinity in the 20th

    century alone.Fig.4 show s that approxim ately 76% of the global

    basic energy supplies cam e from non-renew able,carbon -releasing

    fossil fuels, w hereas approxim ately 24% of the global energy

    supply is com bustible and renew able[13].

    Current energy needs are being m et by non-renew able

    resources such as petroleum and natural gas. N ine m em bers

    of the O rganization of the Petroleum Exporting Countries (O PEC)

    currently ow n 84% ofthe w orld crude oilreserves,seven countries

    Fig.5 . Energy data (indicators) per capita in O IC countries.

    Fig.4. Share ofw orld prim ary energy supply 2008.

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    ow n 72% ofthe naturalgasreserves,and eightcountries ow n 82% of

    all coalreserves.A ll these countries are O IC 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 is rooted in the non-stop

    energy generation requirem ent in these countries.The w orld facesan

    unsustainable supply ofenergy in the future ifpolitiesw illnotrevam p

    their energy 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-

    oping countries.M orethan 86% ofthesedem ands w illbe m etby fossil

    fuels.Greenhouse gas em issions w illalso increase by 59% [43].Som e

    forecasts on global oilusage indicate that the usage w illcontinue to

    grow exponentially and w ould reach an all-tim e high by 2050[13].

    Interpreting these data from an environm ent-friendly perspective,the

    w orrisom e trend of continuous fossilfuel consum ption accounts for

    alm ostallenergy sources consum ed globally w ith the corresponding

    consequences [9,13].

    The rising dem and for energy coupled w ith increasing oilprices

    and unstable energy supply arejointly responsible for the uprising

    in the energy m arket. M oreover, the recent global econom ic

    dow nturn caused a urry of activities in attem pting to revertto

    the norm al schedule in the energy m arket. U nder these h ighly

    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.H ow ever,m ostof these factors possess m ajor

    econom ic bearings aim ed at enhancing the industrial values of

    m odern econom ies [14].Previous studies have highlighted various

    m echanism s for controlling energy factors, but accurate energy

    m arkers for standardizing econom ic system s over a long period of

    tim e are yet to be exam ined [1417].

    2. En ergy sup ply in O IC coun tries

    2.1. Energy supply related w ith GD P (per capita)

    This paper did not use an undisputable criterion for de ning

    M uslim countries.M uslim countries are de ned as all countries

    identi ed w ith the O IC regardless ofthe percentage ofM uslim s in

    their population.Countries w ith M uslim s as the m ajority of their

    population are also includ ed in the classi cation [18].Am ong the

    154 less-developed countries identi ed by W orld Bank in 2010,57

    w ere M uslim countries.Fig. 5 show s selected energy indicators

    such as en ergy supply per capita,prim ary energy consum ption,

    production, and nal energy consum ption for all O IC countries.

    D ata w ere obtained from the W orld Bank in 2008.

    These indicators enable a com parison ofGDP per capita w ith the

    energy supply of each O IC country.The com parison show s that the

    GDP percapita in the m ajority ofthese countriesrem ain very low ,but

    countries such as Qatar,the United A rab Em irates (UAE),SaudiArabia,

    Libya,Kuw ait,Bahrain,Brunei,O m an,and Turkey have high G D P per

    capita because they are net oilexporters,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 countriesare Gabon,M alaysia,Indonesia,

    Kazakhstan,Egypt,Sudan,Yem en,and Tunisia.O nly a few indicators

    w ere investigated because of insuf cient data. Thus, only a few

    im portant factors can be explained in OIC countries.

    G D P per capita is one of the indicators of the ef ciency of an

    energy input,w hereas barrel of oil per capita is an indicator of

    energy ef ciency [14].The connection betw een energy supply and

    use h as been an issue of discussion and an objectof investigation

    in studies over the lasthalfcentury.Previous studies have focused

    on different countries and used d ifferentinputsfor the supply and

    use of energy [19,20]. H ow ever, the results of som e of these

    studies w ere not uniform in term s of the causes of the shift in

    direction and the com parison betw een long-term and short-term

    effects on energy policy, but the im p lications of these policies

    could be very signi cant [20].H ow ever,the focus on 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 ic grow th,irrespective ofw hich are econom ic grow th and

    energy consum ption,w hich are interrelated.Th e num ericalim pli-

    cation of nding the path of causality 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

    levelofp ercapita energy use.An increm ent in the G D P per capita

    is equivalent to an increase in energy use per capita.H ow ever,this

    relationship m ay not necessarily be linear and proportional,and

    differences m ay be caused by several factors such as energyef ciency,ind ustrialstructure,an d clim ate chan ge.

    2.2. Econom ic grow th

    G DP is a high-pro le dom estic socio-econom ic indicator,w hich

    appropriates the totaldom estic and foreign output of each 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 O IC countries are

    classi ed into ve m ajor levels,nam ely,high,upper m iddle,m iddle,

    low ,and no incom e econom ies.The classi cations ofthese countries

    are explained in Table 1because they cover a w ide econom ic range.

    2.3. Effects ofenergy supply on GD P

    Energy is considered in the production process because it is

    used for com m ercialan d non-com m ercialactivities.Thu s,energy

    Table 1

    The classi cation of O IC cou ntries as respect to G D P per capita.

    The classification of O IC countries as respect to GD P per capita (U SD$) (2009)

    Group of econom ic N um ber of O IC

    cou ntries

    H igh-incom e econom ies:(GD P per capita4 10,000 USD) 14 countries

    U pper M iddle-incom e econom ies:(5000 U SDo GDP per

    capita4 10,000 USD )

    9 countries

    M iddle-incom e econo m ies:(1500 U SD o GD P per capita4

    5000 USD)

    18 coun tries

    Low -incom e econom ies:(G D P per capitao 15 00 U SD ) 14 cou ntries

    N o-incom e econom ies:(GD P p er capita

    0 00 0 U SD ) 2 cou ntries

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    is d irectly related to a country's G D P.This relationship could be

    through usage,trade,orcom m erce because energy generation and

    use affectthe constituents of overalldem and. A large num ber of

    less-developed countries do not possess 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 d om estic and

    industrial supply of energy for activities such as cooking,trans-

    portation,and m aintenance ofinfrastructuralam enities.Electricity

    serves a criticalfun ction in the provision of infrastructural am e-

    nities.Thus,the existence ofa correlation betw een energy use and

    econom ic developm ent is highly probable.Any adverse action on

    energy w ill negatively affect G D P because of the very strong

    interdepen dence betw een energy and econom ic grow th. If the

    supply of energy eventually fails to satisfy dem and,the value of

    G D P w illd e nitely drop[24].

    2.4. Im portation and exportation in OIC countries

    Im portation and exportation refer to the m ovem ent of goods

    across international borders w ith respect to a country and its

    neighbors.H ow ever,these activities do not ensure thatgoods pass

    through the appropriate legal channels and routes[25].Table 2

    show s som e selected O IC M Cs classi ed as exporters or im porters.

    The exam ination of the global situation w ith respect to the use of

    alternative energy sources am ong O IC countries is saddled w ith

    factorsthat m ustbe considered[23,25].Som e of these factorsare

    m en tioned below :

    Appropriateness ofthe m echanism Previous research nd ings and their practicability Proxim ity to adequate and appropriate h um an resources Production potential Econom ic accessibility

    As show n inFig.6,petroleum reserve and G D P are not directly

    correlated.Countries such as Algeria,Iran,Iraq,Libya,and N igeria

    have suf cient reserve, but they have low G D P. By contrast,

    countries such as Turkey, Turkm enistan, Tun isia, M alaysia, and

    Azerbaijan do not have suf cient reserves, but their GD Ps are

    relatively better.Table 2 show s the criticalcrude oilsituation in 22

    of the O IC countries.M ost of these countries constitute the low -

    incom e econom y group.H ow ever,a high fractional percentage of

    these countries (app roxim ately 35 countries) depen d totally on

    crud e oilim portation.

    3. Role of alternative energy sourcesin suppo rting fossilfuels

    w orldw ide

    Energy accom plishes alm ost alldaily hum an activities related

    to m etabolism ,health care,telecom m un ications,and m anufactur-

    ing.Currently,fossilfuel can cater to allglobal energy need s,but

    fossilfueld eposits around the w orld are tending tow ard depletion.

    Thus,allactivities associated w ith fossilfuels areexpected to com e

    to a stop.A bout a quarter of a century ago,the use of renew able

    energy started to gain prom inence because of the crisis that

    engulfed the w orld oilm arket.H ow ever,about 10 years ago,the

    Fig.6 . Totalexports & totalim ports of re ned the petroleum product.

    Table 2

    An energy classi cation of57 OIC countriesw ith respectto the export& im portof

    crude oil.

    Source:W orld B ank d ata 20 07 an d SESR IC data 20 08.

    The energy classification of m osto f57 coun tries in O IC state w ith respect

    to the export& im portof crude oil

    O il exp orters O il im p orters

    O PEC N on -O PEC 0% to 50% 50% to 75% 75% to 10 0%

    Algeria Om an Bangladesh Burkina Faso Jordan

    Iran K azakhstan Benin A lbania ChadIraq Indonesia Cote d'Ivoire Kyrgyzstan Com oros

    K uw a it T urkey M o zam b iq ue M o ro cco M ald ives

    Libya G abon Pakistan Syria M ali

    Nigeria M alaysia Senegal Lebanon M auritania

    Q atar Egyp t Tajikistan D jibou ti N iger

    SaudiArabia Brunei Togo Sierra Leone

    UAE Sudan Tunisia U ganda

    Azerbaijan Guyana Gam bia

    Cam eroon A fghanistan G uinea

    B ah rain U zbekistan G uin ea-B issau

    Turkm en istan Som alia

    Yem en Palestine

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    attention gradually shifted to creating a safer environm ent for

    everyon e 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 of energy w ith lim ited naturalsources lies

    in the group of energy w ith non-lim iting natural sources.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 all countries from an econom ic an d political per-

    spective.For thisreason,techn ologicalchan ge in energy system sis

    a very im portant and inevitable factor that researchers should

    focus on[41,42].

    The future of renew able energy resources as the m ain sources

    of global energy consum ption cannot be over-em ph asized, as

    evidenced by the various professionalbodies that associate them -

    selves w ith the prospects ofrenew able energy.Ifallthe necessary

    m echanism s,precautions,and techn icalities 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 inFig.7.Based on recentdocum ents and policies obtained

    from the eld,this target w illlikely be m et notw ithstanding the

    foundational problem s experienced initially. The prospects of

    renew able energies com pared w ith fossil fuels are peculiar to

    speci c countries.The attend ant m arket strategies m 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 inh erentfactors,to guaranteethe viability ofrenew -

    able en ergy as a replacem ent for fossilfuel [22,23].

    4. En ergy con sum ption and production in O IC coun tries

    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 of com m ercialenergy give rise to a

    num ber of im portant contem p orary issues [1]. In this regard,

    econom ic and social developm ents are largely depen dent on

    energy.N evertheless,the m odalities of the current energy supply

    and use m ay be unsustainable because of certain environm ental

    issues,such as global w arm ing and acid rain, w hich are conse-

    quences of energy use [27].The O IC region has strategic global

    im portance in currentand future energy prospects.M any O IC M Cs

    are blessed w ith suf cient energy potential,w hereas other M Cs

    are not so fortunate.H ow ever, energy issues pose serious chal-

    lenges for all O IC M Cs.A ccordingly,en ergy-related issues hold a

    special position for O IC. 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 produ cts of the local environm ent,and,in that sense,are notfullm arketcom m odities.M ore com p lex

    settings depen d prim arily on com m ercial energy. The m ore

    developed an econom y becom es,the m ore dependent itbecom es

    on com m ercial energy. The im p ortance of energy h as increased

    w ith the developm ent of econom ic life and diversi cation of

    econom ic activity.Energy rem ains a vitalinput in every aspect of

    life,especially in production activities.Energy use has becom e a

    basic indicator ofeconom ic grow th and developm ent [1,27].

    4.1. Conceptofenergy consum ption and energy production

    The use ofenergy prior to conversion to other form s is referred

    to as energy consum ption [5,46].In this process,energy w ould beput to further use in total local production, in addition to the

    im ported stock,butw ithout the quantity intended for exportation

    or those used for fueling purposesfor aircrafts or sea going vessels

    on international routes.Energy production, on the other h and,

    refers to the supply of basic energy in different form s such as

    petroleum (crude oil,natural gas,and oil from non conventional

    sources),solid fuels (coal),derived fuels,com bustible and renew -

    able fuels,and electricity[5].

    4.2. Relationship betw een energy consum ption and GD P/PPP

    (percapita)

    Energy is regarded as a high pro le facilitator of events that

    eventually generates w ealth. M oreover, energy is a signi cant

    factor in the developm ent of the econom y,as w idely recognized

    and acknow ledged globally.A large body ofevidence suggests the

    existence of a strong tie am ong energy availability, econom ic

    exercise,and advancem ents in hum an living conditions and the

    overall social w ell-being of people [28,48].Another relationship

    exists betw een energy u sage and econom ic grow th, w hich has

    facilitated the em ergence of tw o opposing view s.O ne 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 postulatesthat the costofen ergy isa m icropart

    of the G D P and should therefore have an insigni cant effect on

    outputgrow th.The possibility ofan effectofenergy consum ption

    on grow th,depending on the structures of the econom y and the

    extentofitsgrow th in respective countries,has also been analyzed

    [29].The relationship betw een energy usage and econom ic grow th

    has been closely scrutinized.H ow ever,no clear-cut agreem ent or

    statem ent concerning this so-called energy consum ption grow th

    nexus has been arrived at. D ecision m akers regard the path of

    causality h ighly.For exam ple,ifthe causality path is from energyusage to econom ic grow th,the energy conservation agenda aim ed

    Fig.7 . The totalw orld prim ary energy production.

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    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 that have been taken

    from the 2009 W orld Bank Data.The relationship betw een energy

    consum ption and GDP/PPP (per capita)is show n inFig.8.The results

    show thatm ostO IC countries have low GDP,exceptfor som e export

    oil-exporting countries such asQatar,UAE,Kuw ait,Libya,SaudiArabia,

    and Bahrain.Thus,the m eaning of energy use is not dependent on

    GDP percapita.Currently,approxim ately 42% ofthe globaltotalenergy

    usage relies on crude oil.Tw enty-tw o out ofthe 57 OIC countries are

    m ajor oilexporters,and these countries contribute 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 is approxim ately 15%.The instability

    in the w orld price of oilm akes it im possible for the m ajority of OIC

    countries,w hich are m ajor oil exporters,to have a stable econom ic

    situation.H ow ever,the m ajority ofthesecountriesare blessed w ith an

    appreciable am ountofrenew able energy,particularly solarenergy and

    biom ass.W ind energy and hydropow er have not been ruled out in

    som e ofthese countriesas w ell.How ever,rate ofenergy consum ption

    and availability of crude oilshould not be the criteria for considering

    alternative energy m eans.The effects of fossilfuels on the environ-m entare being closely m onitored and w illcontinue to attractstricter

    policies and regulations [22,24].

    5. Electricity generation and electric con sum ption

    Sustainability w ith regard to production and consum ption

    cannot be attained if technology rem ains constant.The ef ciency

    of the production,transm ission,distribution,and u sage of energy

    in countries w ill be determ ined by the efforts to regulate the

    pollution of the environm ent,speci cally by air pollutants com -

    prising m ainly greenhouse and other gases as w ell as other

    polluting agents particular to such coun tries.The supply m echan-

    ism ofelectricalenergy in m ostofthese countriesisbeing 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 of living [31,32,34].

    5.1. Electric net generation in OIC countries

    Electricity production is un doubtedly the m ost im portant

    product of the com m ercial form s of energy. Lighting, heating,

    and cooling are the rstfun ctions that com e to m ind in relation to

    electricity.Betw een 1980 and 1990,electricity generation grow th

    in O IC countries w as 6.8% per annum com pared w ith the global

    grow th of 3.6%.In the follow ing decade, the grow th rate fell to

    4.8% per annum in the O IC and 2.6% globally.In 1980,the share of

    O IC countries in w orld electricity production w as 4.4% ,increasing

    to 6.0% in 1990 and 7.4% in 200 0[33,42].The indicators show n in

    Fig.9 can be used to exam ine the patterns and trend sofelectricity

    net consum p tion and net generation,as w ellas to determ ine the

    energy supply in these coun tries.In the alternative energy policy

    arrangem ent,the non-lim iting form of energy is a m ajor source

    that supplies slightly m ore than a quarter of the total energy

    consum ption. This percentage w as app roxim 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

    largest source ofelectricity after coal[34].

    The OIC M Cs produced 3.03 m illion TOE in 2008,w hich w asnearly

    30% m ore com pared w ith thatin 1998.How ever,a slightincrease w asobserved 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 by SaudiArabia,follow ed by 10.2% produced

    by Iran and Indonesia.Four M Cs provided nearly half of the total

    production w hen the 7.8% share of N igeria 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.The three leading countriesdid notshow a change in order.

    In 2009,of the 35.5% totalO IC energy consum ption,12.8%,12.2%,and

    10.5% w ere registered by Indonesia,Iran, and Saudi Arabia,respec-

    tively.N igeria 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 fossilfuels as a source ofelectricity

    In 2005,the global electricity p roduction w as 17.58 TW h, 39%

    ofw hich w as obtained from coal,20% from gas,16% from nuclear

    Fig.8. The relationship betw een en ergy consum ption & G D P/PPP (per capita).

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    sources,17% from hydro sources,8% from crude oil,and 2% from

    non-lim iting sources such as geotherm al,solar,w ind,com bustible,and renew able energies[35,36].W hile the globaluse offossilfuels

    for electricity generation decreased by 6.4% betw een 1980 and

    2001,the value increased in the O IC countries by 11.7%.The O IC

    M Cs,w h ich accoun ted for the highestshare (83.60%) offossilfuels

    in electricity generation in 2001,are show n inTable 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,coalshares rose in allof the groups exam ined and in the

    O IC during the study period.H ow ever,the share in 2001 w as 11.5%,

    the low est am ong the groups exam ined.Betw een 1980 and 2001,

    both the low -incom e and m iddle incom e countriesexperienced a rise

    ofapproxim ately 15% pointsin the share ofnaturalgas in electricity

    production,w hereas the w orldw ide increase w as approxim ately 8%

    points.The use ofnaturalgasasa source ofelectricity has becom e an

    im portant choice for m ostO IC M Cs.Overall,naturalgas w as used in

    the O IC 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 has taken a nosedive since the second oilprice

    fallof1979.Oilaccounted for 28.4% ofelectricalfuelconsum ption in

    1980,butin 2001,its share fellto 8.4%.M ore signi cantdecreases insharesw ere w itnessed am ong the low -and m iddle-incom e countries

    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

    despite the decrease from 46.3% to 27.7%.The use ofnuclearpow erin

    electricity generation in the w orld rose from 8.5% in 1980 to 16.6% in

    2000.H ow ever,the contribution ofn uclearpow eris insigni cantfor

    the O IC.In 2001,Pakistan rem ained the only O IC 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 for 0.03% of electricity generation [33,37].

    5.3. Relationship betw een electric net generation and electric net

    consum ption in OIC countries

    The annualglobalgeneration ofelectricalenergy isapproxim ately

    3.20 billion kW /h. Renew able energy sources,w hich include w ind,

    Fig.9. The electric generation and energy con sum ption in O IC countries.

    Table 3Sourcesof electricity net generation (per percentage).

    Source:W orld Bank D ata 20 062007.

    Sources W orld High-incom e econom ic group OIC

    cou ntries

    M iddle-incom e econo m ic group O IC

    cou ntries

    Low -incom e econo m ic group O IC

    cou ntries

    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

    O il 28.4 8.4 46.3 27.7 48.0 11.2 53.7 8.2

    G as 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:

    H ydro-pow er 20.6 17.5 28.0 16.0 21.6 22.7 27.8 22.7

    N uclear-pow er 8.5 16.6 0.0 0.0 3.2 7.3 3.7 7.9

    O thers 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

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    solar,biom ass,and geotherm alenergies,m ake up approxim ately 22%

    of the earth's total electricity generation [38,39]. Electrical energy

    produced from non-lim iting sources m ay be channeled into large

    grids,but the best bene t of non-lim iting sources of energy is its

    decentralized use. In this case, the advantages of renew ability

    becom e clear.Renew able sources of energy often play vitalroles in

    placesofruralareasw here setting up electricalnetw ork is generally

    dif cult or non-pro table despite its perceived usefulness in the

    form idable effortbeing w aged against poverty[31,48].In 2006,the

    OIC countries produced 1.63 billion kW /h. In 2000, the O IC M Cs

    supplied 8.5% of the totalelectricity of the w orld,w hereas the O IC

    share w as 7.4% or 1.12 billion kW /h.H ow ever,w hen com paring the

    electric net generation and net consum ption of2000 and 2006,the

    share ofthe O IC M Cs show ed a decrease [5,46].

    InFig.10,Iran is show n asthe top producerin 2008,accounting

    for 12% of the totalO IC produ ction w ith alm ost 2.16 billion kW /h

    of electricity.Iran is follow ed by Saudi Arabia,Turkey,Indonesia,

    Egypt,and M alaysia.The electricity produced in these six coun-

    tries constituted nearly 50% of the totalO IC electricity production

    for the years 2007 and 2008.

    6. Energy sup ply b alance

    Adequate energy distribution facilitateseconom ic proliferation

    of any country.A ccess to these m odern form s of energy enables

    extrem ely low -incom e people to enjoy som e facilities.The design

    and effective m anagem ent ofan ef cient energy supply system is

    necessary to the success of the goals of the U N M illennium

    D eclaration.Ren ew able energies,in addition to other m echanism s

    aim ed at im p roving energy ef ciency in developing countries

    tow ard the enhan cem ent ofquality oflife,are designed to achieve

    these goals.These m echanism s also ensure an enhanced w idely

    distributable netw ork ofenergy that can reach the rem otestareas.

    This condition can eradicate bottlenecks in obtaining energy

    supply [31,47]. D irectives and guidelines have been form ulated

    by the European U nion for the energy sector to guard against

    certain constraints encountered 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 goal delivery.Additionally,

    these goals asw ellas theircontrolm ay be atvariance and serve as

    huge puzzles resulting from provision of solutions to certain

    energy issues [40,46].

    7. Conclusion

    The energy status as w ell as the enorm ous potentialof alter-

    native energy sources in the O IC countries can m eet the global

    energy dem and.Therefore,this can facilitate m ultiple channels of

    energy supply for the needed long-term sustainable energy

    supply.This condition w ill assist in job creation,and in opening

    up m anu facturing prospects particularly in less-developed coun-

    tries.In addition,an appropriate energy supply schem e plays an

    im portant role in en hancing the quality oflife across the globe in

    generalan d in O IC countries in particular.Besides increased G D P,

    advancesin technologicaland engineering prow ess,cleaner envir-

    onm ent,m ore secured neighborhood, and ef cient w ater supply

    schem e, num erous em ploym ent chances and incom e generating

    ventures are som e of the bene ts obtained from system s w hereenergy supply is effective.

    O verthe nextfew years,the focusofboth the O IC 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 p acton the environm ent.This choice w illgo a long

    w ay in reducing the dependence on im ported products, and

    subsequently im proving the GD P as w ell as the balance of

    paym ents of respective countries.In addition,this w ill assist in

    protecting the environm ent from contam ination.It is suggested

    that in plann ing for the energy supply,national factors such as

    energy supply infrastructure,energy ef ciency considerations,and

    institutional con straints as w ell as a sustainable developm en t

    schem e m ust be taken into consideration.

    The above discussion can be sum m arized as follow s:

    (1) Sim ilarto O PEC coun tries,som e O IC countries are blessed w ith

    a supply ofcrude oiland naturalgas.The oiland gasindustries

    Fig.10. The relationship betw een electric net generation and electric net consum ption of O IC countries.

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    in these countries have contributed trem endously to their

    developm ent as re ected in the high G D P/PPP values.

    (2) The countries w ith extrem ely low G D P/PPP values have to

    im portcrude oiland p etroleum products.O n the other hand,

    the use ofrenew able energy resourcessuch as biom 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,SaudiA rabia,Indonesia,Egypt,and M alaysia w ere

    able to generate energy for export.H ow ever,they w ere not

    able to supply electricity to all areas particularly the rem ote

    areas due to insuf cient transm ission and distribution infra-

    structure,causing groups of population in these countries to

    be d eprived of m odern en ergy services.

    (4) Long- and short-term strategies h ave 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

    for the im plem entation of the strategies.Th e tim eline can be

    m od i ed depending on the needs and urgency ofthe applica-

    tions of suitable alternative energy resources in the O IC

    countries.

    Acknow ledgm ents

    The authors w ould like to thank the Solar En ergy Research

    Institute,and the D IP-2012-22 Research Fund for providing logical

    and nancialsupport to this study.

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