Saudi Arabia invests 8.3 billion: green effort begins!

Saudi Arabia invests 8.3 billion: green effort begins!

Saudi Arabia is planning a major expansion of its renewable energies with a total investment of $8.3 billion. This project is part of the National Renewable Energy Program (NREP), which aims to achieve 130 gigawatts of total output. The heart of the project are several solar and wind projects that are being implemented by a consortium ACWA Power be directed.

The signing of the contracts, worth over 31 billion riyals (about $8.3 billion) for seven different projects, took place in the presence of Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman. This is the largest renewable energy project capacity ever signed in one phase worldwide. In total, the systems will have a capacity of 15 gigawatts, spread over five solar power plants (11 GW) and two wind farms (4 GW). The first plants should come online by 2027, with full commissioning by 2028 at the latest, reported TechZeitgeist.

ACWA Power’s commitment

ACWA Power, the main developer, has so far implemented a large number of projects in various countries and also wants to play a pioneering role in Saudi Arabia. In addition to the Public Investment Fund (PIF) and the Saudi Power Procurement Company (SPPC), the water and electricity company Badeel and the Aramco subsidiary are significantly involved in the implementation. So far, the principal buyer has launched projects with a total output of 43 gigawatts through public tenders, and sports contracts for 38 gigawatts have already been signed.

The solar projects include, among others, the 3 gigawatt project in Bisha and a 2 gigawatt plant in Makkah. On the wind side, the projects in Riyadh with a capacity of 2 gigawatts and 1 gigawatt in Shaqra are particularly noteworthy. These initiatives are not only crucial to Saudi Arabia's energy diversification, but also part of the national "Vision 2030", which aims to reduce dependence on the oil sector.

Expectations and challenges

With over ten thousand jobs expected in construction, operations and maintenance, the expansion of renewable energy could also promote social mobility in Saudi Arabia. This could offer young people in particular better training and career opportunities. However, there are technical challenges to overcome, such as grid stability and infrastructural requirements, which can be complex, especially given the extreme climate, including sandstorms.

The ambitious program could not only position Saudi Arabia as a responsible actor in the global climate discourse, but also change the international perception of the country from skepticism to cautious recognition. With steady growth in renewable energy production in the Middle East, expected to increase by 14 percent per year through 2027 and could increase its share of total energy supply from 5 to 7 percent, Saudi Arabia is on a promising path to playing a central role in future energy supplies.

How EcoNews reported, the projects remain in government hands, emphasizing economic stability and experience in the energy sector while offering important lessons for other countries in the Middle East.