Energy Trade in the MENA Region: Looking Beyond the Pan-Arab Electricity Market

Abstract

This article contributes to the debate on energy security within the Middle East and North Africa (MENA) region by highlighting various aspects of the energy sector, specifically electricity and gas, which are relevant to the discussion on regional integration and their convergence with sustainable development. Development is not possible without energy and sustainable development is not possible without sustainable energy. The article discusses energy sustainability through the trading system and proposes regional trade agreements as means to further enhance peace and the energy security agenda of the region. The article makes the case that, to achieve security of energy supply, two main factors are important: diversification to minimize risk and regional cooperation. It is suggested that the MENA region should reduce or eliminate the technical barriers to energy trade. The article concludes with some recommendations on how to move forward.

Keywords: Energy Trade, MENA Region, Electricity Trade, Gas Trade, Energy Sustainability, Clean Energy, Regional Trade Agreements

JEL Classification: K33, K32, Q3, Q37, Q4, Q5