Saudi Arabia will invest more $100bn in new renewable energy projects as the Kingdom grapples with growing power needs amid increasing population and industrial activity.
Energy demand in the Kingdom is expected to grow by 45% from 69GW in 2014 to 100GW by 2040, a figure that is nearly as much as all of the rest of the GCC combined, according to Frost & Sullivan.
To keep pace with the growing demand, Saudi Arabia is planning to spend $109bn to install 54GW of renewable energy by 2040.
By 2020, Saudi projects alone will account for 70% of the total value of the GCC’s renewable energy projects, says Frost & Sullivan.
“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.
“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.”
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.
“Governments need to implement holistic plans that boost both the innovation and manufacturing capacity to deliver practical, affordable, and competitive energy solutions,” said Arozamena.
Abdul Latif Jameel Energy and Environmental Services covers power infrastructure development, sustainable power generation, alternative resources, and energy efficiency. It is one of the sponsors of the World Future Energy Summit that takes place in Abu Dhabi next week.
