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16 April 2024

Saudi's $100bn renewable energy spend

By Wam

More than $100 billion in Saudi renewable energy projects will help meet its skyrocketing energy demand and diversify its energy sector, industry experts said in the build-up to the World Future Energy Summit.

The Kingdom's energy demand is expected to grow by 45 per cent from 69 gigawatts in 2014 to 100 gigawatts in 2040, an amount that is nearly as much as all of the rest of the GCC combined, according to a recent report by Frost & Sullivan.

In anticipation, the kingdom plans to spend $109 billion to install 54 gigawatts of renewable energy by 2040, added Frost & Sullivan. By 2020, Saudi projects alone will account for 70 percent of the total value of the GCC's renewable energy projects.

"With the Middle East's renewable energy sector rapidly advancing, Saudi Arabia holds the region's biggest potential for both solar and wind power," said Roberto De Diego Arozamena, CEO, Abdul Latif Jameel Energy and Environmental Services, which will be one of the key sponsors of the World Future Energy Summit 2016 in Abu Dhabi, UAE.

"Renewable energy can help Saudi Arabia meet its growing energy demand, and also help diversify its economy, shift government energy subsidies, and provide jobs for the Saudi workforce," added Roberto De Diego Arozamena.

Solar power in particular is seeing the strongest take-up, with the Kingdom planning to install 41 gigawatts of solar power by 2040, according to an Arthur D Little report.

To support solar, Arthur D Little calls for easy financing of solar projects, strategic partnerships, deploying before manufacturing, and proactive energy policy reforms.

"The market has significant innovation support thanks to its world-class universities. Generally, for a successful renewable sector, governments need to implement holistic plans that boost both the innovation and manufacturing capacity to deliver practical, affordable, and competitive energy solutions," said Robert De Diego Arozamena.

Abdul Latif Jameel Energy and Environmental Services covers power infrastructure development, sustainable power generation, alternative resources, and energy efficiency.

Through its portfolio company Fotowatio Renewable Ventures (FRV), a leading global developer of large-scale solar power plants the Company holds a 4.3 GWdc pipeline of projects in emerging solar markets including the Middle East, Australia, Africa, and Latin America.

The World Future Energy Summit 2016, including Solar Expo and Sustainable Transport Zone, will be held at the Abu Dhabi National Exhibition Centre on 18-21 January 2016. Co-located events featured are the International Water Summit and EcoWASTE.