Saudi Arabia to invest $30-50bn in renewable energy by 2023

Saudi Minister of Energy, Industrial and Mineral Resources Khalid Al-Falih, speaks during the 10th edition of the World Future Energy Summit on Monday in the United Arab Emirates capital Abu Dhabi. (AFP)
Updated 15 March 2017

Saudi Arabia to invest $30-50bn in renewable energy by 2023

JEDDAH: Saudi Arabia is launching a renewable energy program in the next few weeks that is expected to invest $30-$50 billion by 2023, Energy, Industry and Mineral Recourses Minister Khalid Al-Falih announced Monday.
Al-Falih said at the World Future Energy Summit in Abu Dhabi that the Kingdom would start the first round of bidding for projects under the program, which would produce 10GW of power.
He also said that Saudi Arabia is in the early stages of studying its first two commercial nuclear reactors with a total of 2.8GW. Al-Falih told Reuters that, “there will be significant investment in nuclear energy.”
The minister also said Saudi Arabia was working on ways to connect its renewable energy projects with Yemen, Jordan and Egypt.
“We will connect to Africa to exchange non-fossil sources of energy,” he said.
The step falls into the country’s targets set in Vision 2030, launched last year to prepare for a post-oil era following a plunge in oil prices. Saudi Arabia, the world’s largest oil exporter, plans to reduce its reliance on oil and diversify the economy by moving toward sustainable sources rather than depending on fossil oil.
Renewable energy is listed among the sectors to be launched, as the Vision reads: “In the manufacturing sector, we will work toward localizing renewable energy and industrial equipment sectors.”
John Sfakianakis, director of economic research at the Riyadh-based Gulf Research Center, told Arab News that Saudi Arabia has a “considerable solar power potential” that can reduce its reliance on fossil fuels.
“Saudi Arabia wants to balance economic needs against environmental goals as it has considerable solar power potential and is eager to reduce its use of fossil fuels,” Sfakianakis said. “The country ranks high in per capita greenhouse gas CO2 emissions.”
Achieving the ambitious renewable energy program by 2023 needs time, technical knowledge and capacity, and above all coordination between various stakeholders, according to energy expert Mohamed Ramady.
“The fact that there are many stakeholders in Saudi Arabia involved in the renewable energy program, such as KACST, KACARE, KAPSARC and KAUST among others ensures some duplication of effort and above all lack of specific focus for renewables,” said Ramady, a former professor at King Fahd University of Petroleum and Minerals.
He told Arab News that whether the focus would be on solar or nuclear energy would determine the policy and would lead to different paths and options in terms of domestic and international cooperation.
“If nuclear energy option is the preferred option, then Saudi Arabia has to assess whether current leaders using such energy like France, South Korea and Finland are still committed to this renewable energy source in the long term and whether their technology transfer and nuclear waste programs can be safely transferred,” Ramady said.
Achieving a viable large-scale renewable energy application is not as easy as it sounds, according to Ramady.
“The United Arab Emirates’ (UAE) MASDAR renewable energy model city initiative was a path breaker with mixed success, but from which valuable lessons can be learned by Saudi Arabia,” he said. “However, in the meantime starting off by installing smart electricity household meters coupled with incentives to save energy could help to reduce pressure on the government in the face of potential lower oil prices and revenues.”
The Riyadh-based King Abdullah City for Atomic and Renewable Energy (KACARE) stated that hydrocarbons would remain a prime element in the energy mix in 2023, by an estimation of 60GW. This will also be supported with nuclear energy at 17.6GW, solar at 41GW, of which 16GW will be generated through the use of photovoltaic cells and the balance of 25GW by concentrated solar power, wind at 9GW, waste-to-energy at 3GW and geothermal at 1GW.
Renewable energy is increasingly becoming a new sector in the country and is expected to expand until the new renewable energy program can reach its target by 2023.
“By creating an entirely new sector for the economy, jobs will be generated as it moves into more advanced areas of the production chain. Job creation for Saudis and a cleaner environment are important goals of Vision 2030 for better quality of life values,” said Sfakianakis.
According to the International Renewable Energy Agency (IRENA) report on renewable energy market analysis in the Gulf Council Countries (GCC) region, Saudi Arabia is the world’s seventh largest oil consumer. Domestic consumption of oil witnessed a surge in the 2000s rising from 17 percent in 2000 to 28 percent in 2014. The report, published in 2016, estimated that achieving the GCC renewable energy targets could create an average of 140,000 direct jobs per year.


UK PM raises visas in pitch for post-Brexit trade with Africa

Updated 20 January 2020

UK PM raises visas in pitch for post-Brexit trade with Africa

  • Boris Johnson told leaders including presidents Abdel Fattah El-Sisi of Egypt and Uhuru Kenyatta of Kenya that he wanted to make Britain their investment partner of choice
  • Boris Johnson: By putting people before passports we will be able to attract the best talent from around the world, wherever they may be

LONDON: Prime Minister Boris Johnson told African leaders Monday that Britain would be more open to migrants from their continent after Brexit as he hosted a summit intended to boost trading ties.

He also promised an end to direct UK state investment in thermal coal mining or coal power plants overseas, saying London would focus on supporting a switch to low-carbon energy sources.

Johnson was speaking at the start of the first UK-Africa Investment Summit in London, a clear pitch for business less than two weeks before Britain leaves the European Union.

He told leaders including presidents Abdel Fattah El-Sisi of Egypt and Uhuru Kenyatta of Kenya that he wanted to make Britain their “investment partner of choice.”

After highlighting all that Britain has to offer, he said Brexit would mean an end to preferential treatment for EU migrants.

“Our (immigration) system is becoming fairer and more equal between all our global friends and partners, treating people the same, wherever they come from,” he said.

“By putting people before passports we will be able to attract the best talent from around the world, wherever they may be.”

The Duke of Sussex, Prince Harry, was also in attendance where he met with leader from Malawi, Mozambique and Morocco.

 
 
 
 
 
 
 
 
 
 
 
 
 

This morning at the UK-Africa Investment Summit, hosted by the UK Government, The Duke of Sussex met with leaders from Malawi, Mozambique and Morocco - touching on investment in renewable energy, jobs, tourism, and environmental issues. The Duke has been involved in various causes in Africa for over a decade, and has helped to initiate a number of key projects in the region surrounding conservation and tourism, the threat posed by landmines and the HIV/AIDS epedemic. During their recent visit to Southern Africa last September, The Duke and Duchess met with project teams working to encourage youth employment, entrepreneurship, education and health. Through their roles as President and Vice President of The Queen’s Commonwealth Trust, The Duke and Duchess have worked to support a growing network of young change-makers across the Commonwealth and will continue to do so, especially in the run up to CHOGM 2020. The Duke of Sussex’s love for Africa is well known - he first visited the continent at the age of thirteen and more than two decades later, the people, culture, wildlife and resilient communities continue to inspire and motivate him every day. Photo © PA

A post shared by The Duke and Duchess of Sussex (@sussexroyal) on

Nigeria’s President Muhammadu Buhari, who also attended the summit, said Brexit offered an opportunity for increased free trade across the Commonwealth — and said visas were a key issue.

“While many in the African diaspora enjoy considerable benefits from life in the West, they do not always feel at the heart of the community,” he wrote in an article for The Times on Monday.

“A renewed sense that there are ties that bind us through the Commonwealth, and a concerted effort to grow those links through trade, could act as a spur to encourage togetherness and the certainty of belonging.”

Johnson, whose country hosts the next UN climate change summit in Glasgow later this year, also announced a shift in investment strategy to help combat global warming.

Sub-Saharan African faces a number of environmental challenges, particularly the effects of climate change, water and air pollution, desertification, deforestation and over-fishing.

On fossil fuels, Johnson said: “There’s no point in the UK reducing the amount of coal we burn, if we then trundle over to Africa and line our pockets by encouraging African states to use more of it, is there?“

“We all breathe the same air, we live beneath the same sky. We all suffer when carbon emissions rise and the planet warns.”

He added: “Not another penny of UK taxpayers money will be directly invested in digging up coal or burning it for electricity.

“Instead, we’re going to focus on supporting the transition to lower and zero carbon alternatives.”

The British government’s export agency reports providing £2 billion ($2.6 billion) in financing for UK company exports to Africa in the past two years. The agency says it now wants to “increase its risk appetite” in Egypt and the emerging economies in Nigeria and Rwanda.

The UK government said the London summit will see British and African firms announce commercial deals worth £6.5 billion.

It did not spell out whether these were all firm commitments or included memorandums of understanding that do not always result in actual deals.

Britain will leave the EU on January 31, although ties will remain the same for 11 months while the two sides thrash out a new trading relationship.

The UK has said it will be leaving the bloc’s single market and customs union.

Johnson wants the freedom to strike trade deals with other countries, even at the expense of some of its producers facing trade tariffs and quotas as a result.