KSA taps the sun to meet a third of its energy needs

[The SC]

Electricity powers the industry.. All industrial powers have an abundant output of Electricity..generated by all means.. but mostly nuclear power plants (560 nuclear reactors in use World Wide).. the Arabs and other developing countries have just awakened to this vital reality.. When the 200GW solar energy project along with the 16+ nuclear reactors will be finalized in KSA it will sustain the huge industrial revolution in view for the whole region and beyond.. North, South, East and West of Saudi Arabia..Many African countries will benefit on top of most Arab countries and even Europe..

 

[Saif al-Arab]

Electricity powers the industry.. All industrial powers have an abundant output of Electricity..generated by all means.. but mostly nuclear power plants (560 nuclear reactors in use World Wide).. the Arabs and other developing countries have just awakened to this vital reality.. When the 200GW solar energy project along with the 16+ nuclear reactors will be finalized in KSA it will sustain the huge industrial revolution in view for the whole region and beyond.. North, South, East and West of Saudi Arabia..Many African countries will benefit on top of most Arab countries and even Europe..

Spot on brother. You understand all the dynamics very well.

 

[-SINAN-]

Electricity powers the industry.. All industrial powers have an abundant output of Electricity..generated by all means.. but mostly nuclear power plants (560 nuclear reactors in use World Wide).. the Arabs and other developing countries have just awakened to this vital reality.. When the 200GW solar energy project along with the 16+ nuclear reactors will be finalized in KSA it will sustain the huge industrial revolution in view for the whole region and beyond.. North, South, East and West of Saudi Arabia..Many African countries will benefit on top of most Arab countries and even Europe..

16 Nuclear reactors ?

Can you share more info ?

P.S: I never liked solar energy, it's efficiency of coefficient drops by weather, dust on the panels, pollution in the air, can't generate power at nights, etc...

 

[Saif al-Arab]

16 Nuclear reactors ?

Can you share more info ?

P.S: I never liked solar energy, it's efficiency of coefficient drops by weather, dust on the panels, pollution in the air, can't generate power at nights, etc...

Saudi Arabia to award nuclear reactor contract by end 2018 - official

Reuters Staff

RIYADH, Oct 10 (Reuters) - Saudi Arabia plans to award a construction contract for its first nuclear reactors by the end of 2018, a senior government official said on Tuesday.

“With sponsorship from the highest levels in the state, the contract will be signed by the end of 2018,” Maher al Odan, the chief atomic energy officer of King Abdullah City for Atomic and Renewable Energy, told a news conference in the capital Riyadh. (Reporting By Reem Shamseddine; Writing by Noah Browning; Editing by Gareth Jones)

https://www.reuters.com/article/us-...-wine-country-tourism-lifeblood-idUSKBN1CH34U

http://www.world-nuclear.org/information-library/country-profiles/countries-o-s/saudi-arabia.aspx

https://en.wikipedia.org/wiki/Nuclear_energy_in_Saudi_Arabia

https://en.wikipedia.org/wiki/King_Abdullah_City_for_Atomic_and_Renewable_Energy

https://en.wikipedia.org/wiki/Nuclear_program_of_Saudi_Arabia

See more in this thread and others (just search "nuclear energy Saudi Arabia on PDF" or better Google).

https://defence.pk/pdf/threads/saud...reactor-contract-by-end-2018-official.522943/

It is truth that there are more efficient (for now) alternative energy sources but have in mind that solar energy is a field in constant development and that future technology will only improve. KSA's energy plan (and that of any reputable country) is centered around various energy sources. Solar just being one of them.

Time will tell if such a project below will come to fruition but the thought of it is impressive (to put it mildly) on its own.

Saudi Arabia is planning to build the world’s largest solar power plant

It’s really, really big
By Liz Stinson Apr 3, 2018, 10:00am EDT

A 700MW PV Plant in Ningxia, China.
David Sanchez via Electrek


Saudi Arabia is one of the world’s biggest exporters of oil and natural gas. Now, the country is in talks to develop the world’s largest solar power plant. Mohammed Bin Salman, the crown prince of Saudi Arabia and SoftBank have entered an agreement to develop a $200 billion solar power plant that’s anticipated to be up and fully running by 2030.

The proposed plant would generate 200 gigawatts of solar power, which is approximately double the amount of solar energy produced globally last year and more than 100 times as large as the new next biggest solar plant project, according to Bloomberg. The plan is to build the plant in Saudi Arabia’s vast desert, which gets above-average amounts of sunshine.

Though it’s still in the planning phase, proponents of the plan are already boasting about its value, which would reportedly generate more than 100,000 jobs. No telling how large a solar power plant of this size would be, but some estimate it could stretch for an area larger than most big cities. Stay tuned.

Via: Bloomberg

https://www.curbed.com/2018/4/3/17186292/saudi-arabia-largest-solar-power-plant

SOLAR BLANKET
What Saudi Arabia’s 200 GW solar power plant would look like—if placed in your neighborhood

Saudi Arabia has a plan to wean its economy off oil. In the biggest sign of what the future of the Gulf state would look like, Saudi Arabia’s crown prince, Mohammed Bin Salman, has signed a memorandum of understanding with Japanese multinational Softbank to build 200 GW of solar power by 2030 at a cost of $200 billion.

These are eye-popping numbers. If built, that solar-power plant will be about 200 times the size of the biggest solar plant operating today. It would more than triple Saudi Arabia’s capacity to produce electricity, from about 77 GW today.

With current technology, solar panels capable of generating 200 GW would likely cover 5,000 sq km—an area larger than the the world’s largest cities.



And, yet, these are not unrealistic figures. Based on data from Bloomberg New Energy Finance (BNEF), the global solar industry produced about 100 GW worth of solar panels last year, and production capacity is ramping up quickly.

But memorandums like the one signed by Bin Salman often don’t turn into reality. “I’ve probably made more binding agreements to grab a coffee,” Jenny Chase, a solar analyst with BNEF, joked on Twitter.

Still, the prince stands to damage his reputation if he doesn’t at least ramp up Saudi Arabia’s solar-power contribution. Though the country has talked about investing in clean energy for quite some time, it was only in 2017 that it began taking bids to build solar-power plants. And if any country could build a solar plant of this scale, it’s Saudi Arabia: the country gets plenty of sun, has vast areas of empty desert, and possibly has the financial power to pull it off.

To come up with the estimated size, we calculated the area covered by one of the world’s largest solar power plant: the 1 GW Kurnool Ultra Mega Solar Park in India, which began operations in 2017. Officially, it covers an area of approximately 24 sq km. The massive Saudi solar power plant then would cover an area of about 5,000 sq km. It’s worth noting that the estimated area is based on current efficiency of solar panels, which will almost certainly increase in the next decade and thus the area is likely to be smaller (though it’s impossible to predict how much smaller). Also, the 200 GW of solar capacity is likely to be built across Saudi Arabia, rather than being concentrated in one area—but where’s the fun in that?

https://qz.com/1240862/what-saudi-arabias-200-gw-solar-power-plant-would-look-like-from-space/

 

[my2cents]

Saudi Arabia to award nuclear reactor contract by end 2018 - official

Reuters Staff

RIYADH, Oct 10 (Reuters) - Saudi Arabia plans to award a construction contract for its first nuclear reactors by the end of 2018, a senior government official said on Tuesday.

“With sponsorship from the highest levels in the state, the contract will be signed by the end of 2018,” Maher al Odan, the chief atomic energy officer of King Abdullah City for Atomic and Renewable Energy, told a news conference in the capital Riyadh. (Reporting By Reem Shamseddine; Writing by Noah Browning; Editing by Gareth Jones)

https://www.reuters.com/article/us-...-wine-country-tourism-lifeblood-idUSKBN1CH34U

http://www.world-nuclear.org/information-library/country-profiles/countries-o-s/saudi-arabia.aspx

https://en.wikipedia.org/wiki/Nuclear_energy_in_Saudi_Arabia

https://en.wikipedia.org/wiki/King_Abdullah_City_for_Atomic_and_Renewable_Energy

https://en.wikipedia.org/wiki/Nuclear_program_of_Saudi_Arabia

See more in this thread and others (just search "nuclear energy Saudi Arabia on PDF" or better Google).

https://defence.pk/pdf/threads/saud...reactor-contract-by-end-2018-official.522943/

It is truth that there are more efficient (for now) alternative energy sources but have in mind that solar energy is a field in constant development and that future technology will only improve. KSA's energy plan (and that of any reputable country) is centered around various energy sources. Solar just being one of them.

Time will tell if such a project below will come to fruition but the thought of it is impressive (to put it mildly) on its own.

Saudi Arabia is planning to build the world’s largest solar power plant

It’s really, really big
By Liz Stinson Apr 3, 2018, 10:00am EDT

A 700MW PV Plant in Ningxia, China.
David Sanchez via Electrek


Saudi Arabia is one of the world’s biggest exporters of oil and natural gas. Now, the country is in talks to develop the world’s largest solar power plant. Mohammed Bin Salman, the crown prince of Saudi Arabia and SoftBank have entered an agreement to develop a $200 billion solar power plant that’s anticipated to be up and fully running by 2030.

The proposed plant would generate 200 gigawatts of solar power, which is approximately double the amount of solar energy produced globally last year and more than 100 times as large as the new next biggest solar plant project, according to Bloomberg. The plan is to build the plant in Saudi Arabia’s vast desert, which gets above-average amounts of sunshine.

Though it’s still in the planning phase, proponents of the plan are already boasting about its value, which would reportedly generate more than 100,000 jobs. No telling how large a solar power plant of this size would be, but some estimate it could stretch for an area larger than most big cities. Stay tuned.

Via: Bloomberg

https://www.curbed.com/2018/4/3/17186292/saudi-arabia-largest-solar-power-plant

SOLAR BLANKET
What Saudi Arabia’s 200 GW solar power plant would look like—if placed in your neighborhood

Saudi Arabia has a plan to wean its economy off oil. In the biggest sign of what the future of the Gulf state would look like, Saudi Arabia’s crown prince, Mohammed Bin Salman, has signed a memorandum of understanding with Japanese multinational Softbank to build 200 GW of solar power by 2030 at a cost of $200 billion.

These are eye-popping numbers. If built, that solar-power plant will be about 200 times the size of the biggest solar plant operating today. It would more than triple Saudi Arabia’s capacity to produce electricity, from about 77 GW today.

With current technology, solar panels capable of generating 200 GW would likely cover 5,000 sq km—an area larger than the the world’s largest cities.



And, yet, these are not unrealistic figures. Based on data from Bloomberg New Energy Finance (BNEF), the global solar industry produced about 100 GW worth of solar panels last year, and production capacity is ramping up quickly.

But memorandums like the one signed by Bin Salman often don’t turn into reality. “I’ve probably made more binding agreements to grab a coffee,” Jenny Chase, a solar analyst with BNEF, joked on Twitter.

Still, the prince stands to damage his reputation if he doesn’t at least ramp up Saudi Arabia’s solar-power contribution. Though the country has talked about investing in clean energy for quite some time, it was only in 2017 that it began taking bids to build solar-power plants. And if any country could build a solar plant of this scale, it’s Saudi Arabia: the country gets plenty of sun, has vast areas of empty desert, and possibly has the financial power to pull it off.

To come up with the estimated size, we calculated the area covered by one of the world’s largest solar power plant: the 1 GW Kurnool Ultra Mega Solar Park in India, which began operations in 2017. Officially, it covers an area of approximately 24 sq km. The massive Saudi solar power plant then would cover an area of about 5,000 sq km. It’s worth noting that the estimated area is based on current efficiency of solar panels, which will almost certainly increase in the next decade and thus the area is likely to be smaller (though it’s impossible to predict how much smaller). Also, the 200 GW of solar capacity is likely to be built across Saudi Arabia, rather than being concentrated in one area—but where’s the fun in that?

https://qz.com/1240862/what-saudi-arabias-200-gw-solar-power-plant-would-look-like-from-space/

Your solar installed capacity as of 2018 is 77 GW which is commendable. With your vast deserts and unlimited potential you can easily scale this up to meet most of your electricity needs. Total solar installed capacity of the world is about 300 GW. So, you can imagine the scale of this project. You guys can do it.

 

[Ali_Baba]

Does beg the question of who will supply the Solar Panels! The Chinese must be rubbing their hands in glee as they virtually own the Solar Market. A project of this size needs a corresponding large scale battery banks to store that energy. Tesla ?

 

[Saif al-Arab]

https://twitter.com/x/status/1018472096165449733

https://twitter.com/x/status/1021037662814330880

 

[Saif al-Arab]

Saudi’s OMAS Acquires German Solar PV Firm

OMAS, a wholly-owned subsidiary of Saudi Arabian conglomerate Zahid Group, has acquired a 50 per cent share in Greencells Group, a German provider for solar photovoltaic (PV) power plants

Greencells develops utility-scale solar projects globally

OMAS, a wholly-owned subsidiary of Saudi Arabian conglomerate Zahid Group, has acquired a 50 per cent share in Greencells Group, a German provider for solar photovoltaic (PV) power plants

Andreas Hoffmann, CEO of Greencells, commented, “With a solid financial base, we can further strengthen our global footprint, serving more customers with our hallmarks of flexible, modular services, a high-quality product and lean operations to respond quickly in a competitive market.

In close collaboration with our new partner Zahid Group and OMAS, we will continue in our mission to make utility-scale solar the world’s cheapest and most scalable power source.”

Solar energy is the ideal complement to our conventional power solutions. We have been actively seeking companies to partner with that would fulfil our bold ambitions in the renewables sector, which will be the key future growth driver for power globally,” said Majid T Zahid, group president (Energy) at Zahid Group.“Solar energy is the ideal complement to our conventional power solutions. We have been actively seeking companies to partner with that would fulfil our bold ambitions in the renewables sector, which will be the key future growth driver for power globally,” said Majid T Zahid, group president (Energy) at Zahid Group.

“We look forward to jointly realising growth and success in this burgeoning industry,” he further added.

Greencells develops utility-scale solar projects globally. The company builds more than 1.3 GW of capacity in more than 100 individual projects in 25 countries.

It has built a substantial presence expanding into the US, Asia Pacific and the Middle East including the supply of the mounting system and construction services for the world’s largest solar power plant, the 1.2 GW Sweihan project in Abu Dhabi, which is currently under construction.

https://www.utilities-me.com/power/11670-saudi’s-omas-acquires-german-solar-pv-firm

 

[Saif al-Arab]

POWER
MENA Solar Demand To Grow By 170%
There are currently 12.3GW of utility-scale solar contracted or under construction and a further 21GW in the pre-contract phase

Saudi and the UAE are expected to account for half of all the additional solar capacity installed out to 2023

By Utilities Middle East staffAug 19, 2018


The Middle East and Africa is set to enjoy a year-on-year PV demand increase of 170%, according to GTM Research.

In its latest regional breakout, deployment is expected to land at 3.6GW this year spiking to 20GW in 2020. Cumulatively the region will install 83.7GW in the period 2018-2023.

According to the report’s author, Ben Attia, there are currently 12.3GW of utility-scale solar contracted or under construction and a further 21GW in the pre-contract phase.

Major utility-scale tender programmes in Saudi Arabia, Egypt and the UAE have boosted numbers and Attia expects Africa to contribute more than 6.4GW from 2020 onwards.Major utility-scale tender programmes in Saudi Arabia, Egypt and the UAE have boosted numbers and Attia expects Africa to contribute more than 6.4GW from 2020 onwards.

Saudi and the UAE are expected to account for half of all the additional solar capacity installed out to 2023.

GTM Research expects the global solar market to decline to 85.2GW in 2018, driven by China’s decision to cap its two largest markets, utility-scale and Distributed Generation (DG) at the end of May.The Middle East and Africa is set to enjoy a year-on-year PV demand increase of 170%, according to GTM Research.

https://www.utilities-me.com/power/11689-mena-solar-demand-to-grow-by-170

 

[GeraltofRivia]

Does beg the question of who will supply the Solar Panels! The Chinese must be rubbing their hands in glee as they virtually own the Solar Market. A project of this size needs a corresponding large scale battery banks to store that energy. Tesla ?

Shouldn’t need a battery to store the power. When you are using solar to generate power during the day to meet demand, thermal plants can reduce their output and save gas. Effectively you are “storing” the gas that can be used to generate power during night.

 

[Timur]

Shouldn’t need a battery to store the power. When you are using solar to generate power during the day to meet demand, thermal plants can reduce their output and save gas. Effectively you are “storing” the gas that can be used to generate power during night.

good point.. if there would be technology to create hydogen (yes I know low effective most energy will be wasted) it would be good.. but if you have so many solar plants + wind energy you may have too much energy that is not being used.. so you can use it to create hydrogen (if tech would be aviable) or water

I am a fan of solar power or alternative energy sources.. if there are rivers you could pumb up water to a higher place and use it later to get energy in the night.. there are plenty ways for storing the energy with some losses..

the last option is to sell energy to neighbor countries

 

[Saif al-Arab]

good point.. if there would be technology to create hydogen (yes I know low effective most energy will be wasted) it would be good.. but if you have so many solar plants + wind energy you may have too much energy that is not being used.. so you can use it to create hydrogen (if tech would be aviable) or water

I am a fan of solar power or alternative energy sources.. if there are rivers you could pumb up water to a higher place and use it later to get energy in the night.. there are plenty ways for storing the energy with some losses..

the last option is to sell energy to neighbor countries

Correct.

KSA is planning and already exporting wind energy to neighboring countries and obviously the same will occur with solar.

Building 16 nuclear power plants is obviously also part of the energy transformation plan to become less reliant on oil and gas internally for energy purposes and instead use more renewable energy, alongside nuclear, for environmental reasons but mostly for economic reasons (more oil can be exported and eventually gas which is not really exported by KSA but consumed locally).

BTW such energy transformations do not only require the involvement of the state and private sector (private firms) but also a mentality change among people. For instance not to waste energy senselessly, use solar power panels privately etc. Stop thinking that everything will be gifted for free by the state etc. Energy not being subsided for cheap (almost free) etc.

The problem is similar in most of the region and another topic that could be mentioned is wasting water privately or in the agricultural sector.

 

[Pakistani Aircraft]

What is Saudi Arabia's current installed solar power capacity? Not in the future but as of today.

 

[Saif al-Arab]

What is Saudi Arabia's current installed solar power capacity? Not in the future but as of today.

Not sure as of today but not enough yet.

SAUDI ARABIA RENEWABLE ENERGY SOLAR & WIND 2018

• Saudi Arabia Renewable Energy Solar & Wind 2018

ABOUT EVENT / Overview


The Kingdom of Saudi Arabia, the world’s biggest oil exporter, is expected to lead Renewable Energy Developments in the coming years with up to $7 billion worth, according to the International Renewable Energy Agency. The Kingdom of Saudi Arabia, which largely relies on oil to generate power, has set ambitious targets to add 9.5 GW of renewable energy by 2023, as it looks to sell more of its crude oil to export markets. As per the Vision 2030, the Ministry of Energy, Industry, and Mineral Resources (MEIM) are expected to tender 3.25GW of solar and 800 Megawatts of wind capacity this year alone. The Kingdom’s inaugural 400MW wind project received global interest. It expects to commence $7 billion worth of renewable energy projects this year, with solar plants leading the way.

The Kingdom’s National Renewable Energy Program (NREP) that is managed and executed by the MEIM is directly supporting Saudi Arabia’s National Transformation Program (NTP) and Vision 2030.

Saudi Arabia’s first Solar-Powered Gas Station recently opened in the Red Sea city of Jeddah. The Kingdom’s drive toward solar power began in February with the Energy Ministry’s announcement of a Solar Station in the northern city of Sakaka. The project is the first of many within the Initiative of Custodian of Two Holy Mosques for Renewable Energy. Winning bidders will cover financing costs while the government guarantees to buy power produced from the projects over 25 years.

But Saudi Arabia’s biggest project is a $200bn, 200GW solar development, set to be the world’s largest in the newly announce NEOM city. Japan’s Softbank and Saudi Arabia’s Public Investment Fund are leading the development, which will be completed by 2030, create 100,000 jobs and reduce the cost of generating electricity.

Saudi Arabia has an impressive natural potential for solar and wind power, and the local energy consumption will increase threefold by 2030, the country still lack competitive renewable energy sector at present. In the wake of these events, Bricsa Consulting has developed this agenda to bring Renewable Energy sector leaders across the globe under one roof and discuss various facets of Renewable Energy. Despite the Kingdom’s clear strengths in solar and wind energy, the Vision 2030 is yet to have a competitive space in the global market. The Kingdom aims to review the legal and regulatory framework that allows the private sector to purchase and invest in the renewable energy sector. It also focuses to localize the Energy Industry and produce the necessary skill-sets for local resource development; they will also encourage Public-Private Partnerships (PPP). In future, The Kingdom is also looking forward to guaranteeing the competitiveness of Renewable Energy through the gradual liberalization of the fuel market.

HIGHLIGHTS OF THE CONFERENCE

• National Renewable Energy Plan (NREP)
• NEOM - Mega City Powered by Renewable Energy
• The Masdar Initiative - Pioneering renewable energy in Middle East
• Dubai Clean Energy Strategy 2050
• To recognize the future of Renewable Energy in Saudi Arabia
• To get a better understanding of the opportunities of PPP offered by NREP
• Inception of Neom city, Masdar initiative and Mohammed bin Rashid Al Maktoum Solar Project - Largest single-site Solar Park in the world
• UAE towards transforming Dubai as a city with the least carbon foot print in the world

https://bricsaconsulting.com/event/saudi-arabia-renewable-energy-2018/

 

[Saif al-Arab]

Saudi Arabia Renewable Energy Solar & Wind 2018
+91 22 48803419
aditi@bricsaconsulting.com
https://bricsaconsulting.com/event/saudi-a...
Riyadh, Saudi Arabia
Business Details
Start Date
26 Nov 2018
End Date
27 Nov 2018
Focus
Renewable Energy
International / National
National

Ⅰ. Introduction:

The kingdom of Saudi Arabia, the world’s biggest oil exporter, is expected to lead Renewable Energy Developments in the coming years with up to $7 billion worth, according to the International Renewable Energy Agency. The kingdom of Saudi Arabia, which largely relies on oil to generate power, has set ambitious targets to add 9.5GW of renewable energy by 2023, as it looks to sell more of its crude oil to export markets. As per the Vision 2030, the Ministry of Energy, Industry, and Mineral Resources (MEIM) are expected to tender 3.25GW of solar and 800Megawatts of wind capacity this year alone. The kingdom's inaugural 400MW wind project received global interest. It expects to commence $7 billion worth of renewable energy projects this year, with solar plants leading the way.

Saudi Arabia has an impressive natural potential for solar and wind power, and the local energy consumption will increase threefold by 2030, the country still lack competitive renewable energy sector at present. In the wake of these events, Bricsa Consulting has developed this agenda to bring renewable energy sector leaders across the globe under one roof and discuss various facets of Renewable Energy. Despite the kingdom's clear strengths in solar and wind energy, the Vision 2030 is yet to have a competitive space in the global market. The kingdom aims to review the legal and regulatory framework that allows the private sector to purchase and invest in the renewable energy sector. It also focuses to localize the energy industry and produce the necessary skill-sets for local resource development; they will also encourage Public-Private Partnerships (PPP). In future, The Kingdom is also looking forward to guaranteeing the competitiveness of Renewable Energy through the gradual liberalization of the fuel market.

Ⅱ. Conference Highlights:

● National Renewable Energy Plan (NREP)
● NEOM - Mega City Powered by Renewable Energy
● The Masdar Initiative - Pioneering renewable energy in Middle East
● Dubai Clean Energy Strategy 2050 - UAE towards transforming Dubai as a city with the least carbon foot print in the world
● To recognize the future of Renewable Energy in Saudi Arabia
● To get a better understanding of the opportunities of PPP offered by NREP
● Inception of Masdar initiative and Mohammed bin Rashid Al Maktoum Solar Project - Largest single-site Solar Park in the world

https://www.enfsolar.com/directory/...nt&utm_content=32&utm_campaign=profiles_event

Solar PV demand in MEA set to grow 170% in 2018

Solar power installation in South Africa. Source: Renusol GmbH
August 20 (Renewables Now) - The Middle East and Africa (MEA) region is expected to see a 170% year-on-year surge in solar deployments this year with the addition of 3.6 GW of fresh photovoltaic (PV) capacity, according to GTM Research.

Demand for solar PV is seen to escalate further and lead to 20 GW of annual installations in 2020, while for the whole period between 2018 and 2023, the region will put on stream 83.7 GW of new solar parks. Big projects coming online and the heating African market will be major growth drivers, according to Ben Attia, author of the latest regional market outlook.

The MEA region currently has a 12.3-GW pipeline of utility-scale contracted or under-construction projects and an additional 21 GW of pre-contract projects. Most of those schemes, apart from the UAE and Jordan, come from the utility-scale segment.

Attia forecasts that in 2018, demand is expected to be mainly driven by Egypt, the UAE and Morocco, while nascent African markets are anticipated to mature in 2020 and add more than 6.4 GW of PV. Overall, the growth pace is seen to slow down after 2020 and lead to a “more measured growth” to 2023 following multiple rounds of regional tender programmes and regulatory adaptation.

In terms of pricing, Attia projects that the levelised costs for both utility-scale and distributed generation solar power will drop by 30% by 2022 in the major MEA markets, with prices falling below USD 30 (EUR 26.2) per MWh in tender rounds in Saudi Arabia, the UAE, Egypt and Kuwait.

(USD 1.0 = EUR 0.874)

https://renewablesnow.com/news/solar-pv-demand-in-mea-set-to-grow-170-in-2018-623979/


Ariel Cohen Contributor
Energy
I cover energy, security, Europe, Russia/Eurasia & the Middle East

In this Sunday, July 8, 2018, photograph, 2018 Model 3 sedans sit on display outside a Tesla showroom in Littleton, Colo. Board members at Tesla are evaluating CEO and Chairman Elon Musk’s $72 billion proposal to take the electric car and solar panel maker private. Six of nine members say in a statement Wednesday, Aug. 8, that Musk began talking with the board about the move last week. (AP Photo/David Zalubowski)

Since the beginning of 2017, the managers of Saudi Arabia’s sovereign wealth fund have approached Elon Musk and his iconoclastic Tesla Inc. (NYSE:TSLA) numerous times in an effort to acquire a stake in the innovative all-electric auto manufacturer. So what does a mammoth petro-state want with a company determined to “accelerate the world’s transition to a sustainable energy future” -- and put Big Oil out of business? The answer to this dialectic is Financial Planning 101: portfolio diversification.

Not to mention Prince Mohammed bin Salman’s (MBS) love of everything new and shiny.

The Kingdom has launched a technological, financial, political, and cultural development program known as “Saudi Arabia Vision 2030.” One policy goal of the ambitious roadmap is to decouple fossil fuels from the nation’s identity, instead promoting the digitization, privatization, and decarbonization of the Saudi economy.

Unemployment rates remain high – especially among Saudi youth – which can lead to political and social volatility (remember the Arab Spring of 2010 - 2011). Vision 2030 aims to accommodate the burgeoning working-age population by growing as-of-yet underdeveloped sectors like tech, services, and renewable energy.

As it stands today, 50% of Saudi government revenue comes from oil sales. According to the IMF, the Kingdom’s fiscal breakeven point per barrel of oil is in the $83 - $87 range, meaning that today’s oil prices are insufficient to meet its budgetary needs. Saudi Arabia has projected a budget deficit of 195 billion riyals ($52 billion) in 2018, or 7.3% of GDP, down from 230 billion riyals last year, which is unsustainable in the long term.

What better way to hedge your portfolio than to bet on the company that wants to make your main asset obsolete?

Last week, Tesla CEO Elon Musk took to Twitter announcing his intent to take Tesla private with financial support from the Saudi Public Investment Fund (PIF) at $420 per share -- giving Tesla Inc. a $70 billion valuation. According to Musk, the move would free Tesla from shareholder scrutiny and allow the company to better protect information about its business practices.

While the funding was not as ‘secure’ as Musk had hoped, Riyadh does hold 5% of Tesla stock as of July 31st. It is highly likely that PIF will pursue opportunities to invest further once Musk is cleared of any potential wrongdoing by the SEC regarding his impulsive twitter announcement, especially if MSB remains enthusiastic about the deal.

PIF’s minority stake in Tesla Inc. is just one piece of the Kingdom’s expanding renewables portfolio. KSA plans to have 3.45 gigawatts of renewable (solar and wind) power online by 2020, with $7 billion invested in green projects just this year. Total renewables capacity is expected to reach 9 gigawatts by 2023. Having Tesla’s expertise would boost Saudi’s budding romance with solar and electric power.

Saudi Arabia's commitment to going green is further illustrated by their plans for Neom, a $500 billion economic hub in the country’s Red Sea province of Tabuk. The futuristic mega-city would be more than 12 times the size of Tokyo and is designed to run solely on renewable generation. There, non-fossil fuel sectors would take center stage, encompasisng everything from biotech to entertainment and manufacturing. Tech giants like Amazon (NYSE:AMZN) and aerospace powerhouse Lockheed Martin (NYSE:LMT) are being courted to invest in Neom and other parts of the Kingdom to set the precedent for economic modernization.

Saudi Arabia is set to break ground on its first solar plant later this year, a $302 million, 300MW solar photovoltaic facility FAHAD SHADEED / REUTERS

The Neom model of renewable energy generation could serve as a blueprint for the rest of the country's power sector. Riyadh enjoys an impressive 300 hours of sunlight per month making it an ideal candidate for solar photovoltaic (PV) power. Owing to its overabundance of oil, the Kingdom is one of the few nations which still burns crude to produce electricity despite the method's gross inefficiencies (an astounding 40% of the country's powercame from oil in 2016). Less oil used in power production will mean cleaner air and more supplies available for export.

Moreover, the Saudis are hopeful that a stable flow of domestic renewable energy can help it cope with increasingly-volatile oil market fluctuations. The severe oil price swings of 2014-2015 actually catalyzed the launch of the Vision 2030 diversification strategy.

One of the key tests of Saudi Arabia’s reform efforts is the government’s plan to sell off a 5% stake of Saudi Aramco, the world’s largest energy producer, through an initial public offering (IPO) proposed earlier this year. MSB initially touted a company valuation of $2 trillion – twice that of Apple. But due to a lack of appetite from investors, the proposal remains shelved until 2019.

If realized, the IPO would help raise cash, cover budget deficits, boost Saudi diversification, and pave the way for deals like the one with Tesla to set the course for future development. The kingdom’s economy is set to expand by 2 percent in 2018 according to the Institute of International Finance.

The talks between the IPF and Tesla indicate a bold hedging strategy by the KSA Government. Focusing investment in Tesla would enhance Saudi expertise in solar power and simultaneously grow its own market for electric cars. A shift to electric vehicles and greater renewable power generation will also facilitate the planned draw-down of Saudi gasoline subsidies, a politically charged policy which amounts to billions of dollars in lost revenueeach year.

A Saudi capital infusion into Tesla Inc. would provide a life raft for the Kingdom’s oil-laden economy, and solve Elon's recurrent problems with critical analysts and demanding shareholders.

Who said oil and Musk don’t mix?

James C. Grant, Program Manager at International Market Analysis Ltd, contributed to this article

https://www.forbes.com/sites/arielc...lows-saudi-arabia-and-tesla-inc/#7df7f209221e