*Khaled Al-Gharbi from Riyadh
Saudi Arabia will need only 0.25 percent of its land area to generate more than 400 metric tons of renewable energy annually.
According to a government report - seen by Al-Eqtisadiah, Saudi Arabia has identified routes that seeks to increase renewable power generation to 9.5 gigawatts by 2023 through raising the share of renewable energy from 1 per cent to more than 10 per cent by 2023.
According to the report "Invest in Saudi Arabia," Saudi Arabia needs a simple area of only 0.25 per cent of its territory to generate more than 400 metric tons of energy annually, with the world ranking 13th in its wind energy production capacity.
It is where the northwestern region of Saudi Arabia was identified as a suitable location for the development of the wind farm industry, which is a wonderful mix of natural resources. In fact, it puts Saudi Arabia among the best fields of renewable energy.
The report expects the approval of more than 20 giant projects over the next few years, while is currently a tender for solar farms. Eight projects have been prepared with a 4.1 GW expected for this year 2018.
The report pointed out that Saudi Arabia aims to raise renewable energy to 9.5 GW by strengthening more than 20 giant projects by 2023.
It noted that the projects would play a far-reaching role in the development of the sector across the GCC, Middle East and North Africa. This would be achieved by devoting its approach as a renewable energy operator, which greatly expands the scope of business owners in Saudi Arabia to invest in a regional market, as the demand is much larger than supply, which requires the export of manufacturing supplies.
The report pointed out that research centers and universities locally are working to the best of their ability to strengthen this sector by developing the latest technologies that increase quality and enhance economic feasibility.
The report pointed out that the Ministry of Energy, Industry and Mineral Resources launched a series of reforms and procedures to support this sector, where it established an independent regulatory body to ensure credibility, transparency and determination.
It noted that the entry of Saudi Arabia into the renewable energy market is a new and exciting era, which makes it take all the steps necessary to achieve leadership in this sector and encourage innovation and ambitious initiatives to break records again and again.
The report said that Saudi Arabia has a geographical area of about 2.15 million square kilometers with enormous potential, which contributes to diversifying its resources away from its oil production. Through harnessing its natural treasures to achieve sustainable development, it is keen to expand energy production from two sources available, "Sun and Wind".
The report said, "Saudi Arabia is committed to benefiting from its natural wealth by opening up the renewable energy sector, which is one of the main goals of Vision 2030 that to 'increasing the contribution of renewable energy sources in support of national energy'".
This would transform the oil-based economy into a sustainable economy, thereby increasing the precious oil release from the subsidized energy market with opening the door to renewable energy sources with green technology that will provide the country with energy in the future.
Saudi Arabia has set ambitious expansion targets across the renewable value chain. In 2017, the 30 per cent resettlement requirement has been identified with a target of 40 per cent future resettlement to 60 per cent in the future.
The report stressed the importance of establishing a local renewable energy industry. It is pointing out that Saudi Arabia aims to establish a domestic renewable energy industry that not only meets the needs of its domestic projects, but it is also able to compete globally and provides its neighbors with the necessary supplies to embrace the industry.
Tender clauses on solar and wind power projects in Saudi Arabia require developers to manufacture a large proportion of renewable energy equipment locally through creating a local industry that can support itself outside the Saudi project.
The report predicted that the total volume of renewable energy market in the GCC countries is up to 17 GW.
In the Middle East and North Africa (excluding the GCC) is up to more than 100 gigawatts by 2030.
It pointed out that Saudi Arabia's proximity to logistics in the Middle East, North Africa and the GCC markets contributes to the export of manufacturing supplies.
