- Solar Energy segment will contribute larger share in total percentage of cleantech energy mix.
- Reduction in subsidies will make cleantech energy more price competitive making it an attractive option for investment in energy sector.
- Wind Energy segment along with Waste to Energy will register slow growth compared to development of solar energy.
- Use of CSP technology will get boost for desalination of water.
The government of Saudi Arabia has taken various steps that have increased the investments in the Renewable Energy Sector in Saudi Arabia. The National Renewable Energy Program (NREP) has set the target of increasing the renewable energy production up to 9.5 GW by 2023, to support the Saudi Arabia’s Vision 2030, with the interim target of 3.45 GW of renewable power capacity by 2020 under the National Transformation Program (NTP). Also, the government has reduced the subsidies provided to the electricity sector of the country which have increased the cost of producing electricity from conventional sources of energy. This has made the electricity generation by using renewable resources more competitive and has led to the development of renewable energy sector in the country as more companies are entering into this sector and producing the electricity by using renewable energy resources rather than conventional resources. The country has huge potential of developing wind energy and solar energy sector in Saudi Arabia due to the suitable geographical and climatic conditions of the country. The cleantech energy sector in Saudi Arabia is expected to increase by more than 16 times from 2016-2020. The wind energy sector in Saudi Arabia is expected to increase by manifolds due to the introduction of Midyan Wind Energy project in 2019. The EPC method for developing the project will continue to generate revenue for companies operating in this segment.
Saudi Arabia will be developing many solar energy projects during 2017-2021. The various projects that are in the pipeline are ARAMCO off-grid project, SEC-DUBA ISCC Power Plant Phase 1 CSP, Waad Al-Shamal ISCC Project CSP, Al-Aflaj Solar PV Park, KACARE, Royal Commission for Jubail and Yanbu PV plant, Al Jouf & Rafha, Solar PV and Taiba ISCC. Major projects coming in wind energy sector are Midyan Wind energy project and Saudi Aramco’s wind turbine project.
Analysts at Ken Research in their latest publication Saudi Arabia Cleantech Energy Market Outlook to 2021 believe that promoting the cleantech energy sector by the government and removing the subsidies completely on the electricity generated through conventional sources of electricity will help in the development of the renewable energy sector in Saudi Arabia on a mainstream basis. Investment in R&D and organizing trade fairs to promote the sales of solar and wind equipments will help in developing the domestic industries in this segment.
Key Topics Covered in the Report:
Solar CSP Market Saudi Arabia
Saudi Arabia Future Solar Energy
Upcoming Solar Projects in Saudi Arabia
Saudi Aramco Market Share
Challenges Wind Energy Saudi Arabia
Saudi Arabia Rooftop Solar Installation
Cost Breakdown of Wind Power Plant in Saudi Arabia
Ankur Gupta, Head Marketing & Communications