RIYADH: Better clarity and effective government policies are needed to debunk energy misconceptions and achieve a resilient future, according to Fahad Alajlan, president of King Abdullah Petroleum Studies and Research Center.
Speaking at the Singapore International Energy Week, Alajlan noted that renewable energy will not be cheaper anytime soon, and this fact should be communicated to the public clearly to prevent adverse reactions, according to a press release.
He, however, added that the costs of clean energy technology have been decreasing over the past few years, but factors like rising demand, disrupted supply chains and limited supply of raw materials are negatively affecting the journey toward sustainability by threatening these cost reductions.
Alajlan also cautioned about the shifts in energy perspectives and made it clear that there is a need for consistent policies.
“We can’t just change our stance on policy every year and expect the private sector to invest in long-term energy projects for 2030,” said Alajlan.
Alajlan further praised the recently adopted Inflation Reduction Act passed by the US, which aims to curb inflation by reducing the deficit, lowering prescription drug prices, and investing in domestic energy production while promoting clean energy.
He also noted that Asian countries could potentially learn from initiatives like IRA as a best practice, as it pushes clear policies around technologies including renewables and long-term energy incentives that will drive the industry forward.
