Renewable energy investment in Saudi Arabia revealed new horizons for those who are looking for a distinct investment opportunity. Let’s discover what this sector hides of treasures that meet all success demands.
What is the Renewable Energy Investment?
In a nutshell, it means injecting capital and technical expertise to build power generation plants that depend on natural resources. For example, sun and wind, instead of relying on fossil fuels.
Also, renewable energy investment is one of the fastest growing sectors all over the world. The initiatives transformed to real implemented projects instead of written strategic plans.
The geographic features of Saudi Arabia also formed a beneficial feature to spread these projects all over the Kingdom. In other words, it meets all the requirements of the global green energy market.
Objectives of Renewable Energy Investment in Saudi Arabia
With a wide range ambitions that lead to enhance the national economy, there are multiple objectives should be achieved to rise, such as:
- Reaching 50% of electric energy production of renewable resources by 2030.
- Providing new job opportunities in technology, engineering and services sectors.
- Supporting the green economy through reducing carbon emissions.
- Reducing the liquid fuel consumption and using it in importing and industries.
Saudi Renewable Energy Initiatives
The renewable energy initiatives deemed as the cornerstone of Saudi Arabia to head toward a sustainable and green future. Here are the prominent initiatives:
National Renewable Energy Program
This program is deemed as the flagship strategic initiative, overseen by the Saudi Ministry of Energy, aimed at achieving balance within the national energy mix.
It focuses on suggesting megaprojects in sequenced phases that depend on competing and transparency systems. In the same context, this will attract prime investors and international companies.
Principal Buyer
Basically, this initiative concentrates on ensuring the financial and operational stability of the project, through holding agreements to buy energy. Following the same point, it aims to buy energy for long term periods that reach 25 years.
The concept of this initiative is based on a commitment to purchase the entire output from the plants, which helps reduce investment risks and encourages the private sector to make substantial investments in the renewable energy market.
Optimum Energy Mix
It embodies a strategic vision that aims to restructure the electricity production system till 2030. Also, it focuses on achieving balance by generating 50% of energy needs from renewable sources and the remaining 50% from natural gas.
Renewable Energy Projects in Saudi Arabia
To apply all the ambitions and objectives the we mentioned above of renewable energy investment , there are numerous projects that will help in this process, for example:
Layla Solar Power Project
Layla solar power project was established in 2019, supervised by the National Electricity Company, built on 720,000 sqm of the total area. This feature leads to producing countless energy.
Jeddah Solar Power Project
Jeddah Solar Power Project established in 2019 with a total capacity of up to 300 MW, the project delivers a substantial amount of electricity to Jeddah. Also, it serves residential neighborhoods, industrial zones and commercial facilities alike.
Rabigh Solar Power Project
Rabigh Solar Power Project is one of Saudi Arabia’s photovoltaic renewable energy projects, with a total capacity of up to 400 MW. It enables the city to supply a substantial and reliable amount of power.
Finally, Renewable energy investment in Saudi Arabia reflects countless effects on multiple aspects. In addition the ability to discover them through Bayut Blog and dive deeply into all types to invest in Saudi.
