Saudi renewable energy plans just got a major boost.
Chinese solar materials manufacturer GCL Technology Holdings held discussions with Saudi to build its first overseas factory in the kingdom to produce 120,000 tons of polysilicon annually. This is a crucial material in the solar photovoltaic supply chain.
Saudi aims to produce 50 percent of its electricity from renewable sources by 2030. Its share of renewables in installed electricity generation capacities has doubled since 2020, but it still accounts for merely 1.3 percent of the total.
IN the next 7 years, renewable power needs to reach 58.7 gigawatts (GW) compared to only 1.2 GW today, if it is to meet its targets.
It is estimated there are plans for 19.3 GW of solar and wind projects in Saudi as of August, but only 45 percent of that is under construction.
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The kingdom seeks to raise its GDP by 54 percent by 2030 to $1.7 trillion, and “phase out all power stations that use petroleum and diesel,” the US Department of Commerce’s International Trade Administration noted in a report.
The Public Investment Fund (PIF) said it will develop 70 percent of Saudi’s renewable energy by 2030.
The Saudi Ministry of Energy said in 2021 that it expects the kingdom to invest $293 billion in power and renewable energy projects by 2030.
Saudi pledged in 2021 to eliminate or offset all its emissions of planet-warming gas by 2060.
Al Shuaibah solar plant
Saudi’s largest renewable energy project is the 2.6 GW Al Shuaibah solar plant. It is moving ahead after completing financing led by the National Development Fund on Aug. 20 to the tune of $2.2 billion.
The project is a joint venture between Saudi Aramco, the Badeel water and electricity company and ACWA Power. It is expected to start commercial operation in 2025. The PIF owns Badeel and commands a 44 percent stake in ACWA Power.
The country has 13 renewable energy projects under development with a collective capacity of 11.3 GW.
Badeel is in charge of five projects having a total capacity of 8 GW and garnering $6 billion in capital investment.
In May 2023, Badeel and ACWA Power agreed to power purchase agreements with the Saudi Power Procurement Co. for three solar projects that reach 4.55 GW of capacity combined.
S&P Global Commodity Insights said in an August report that the King Salman Renewable Energy Initiative sets targets of 27.3 GW (20 GW of solar PV and 7 GW of wind) by 2023.
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