Saudi Arabia Plans $109 Billion Boost for Solar Power


12/05/2012 10:38 AST  Bloomberg

Saudi Arabia is seeking investors for a $109 billion plan to create a solar industry that generates a third of the nation’s electricity by 2032, according to officials at the agency developing the plan.

The world’s largest crude oil exporter aims to have 41,000 megawatts of solar capacity within two decades, said Maher al- Odan, a consultant at the King Abdullah City for Atomic and Renewable Energy. Khalid al-Suliman, vice president for the organization known as Ka-care, said on May 8 in Riyadh that nuclear, wind and geothermal would contribute 21,000 megawatts.

“We are not only looking for building solar plants,” al- Odan said in an interview in Riyadh yesterday. “We want to run a sustainable solar energy sector that will become a driver for the domestic energy for years to come.”

The comments highlight the scale of Saudi Arabia’s ambitions to boost renewable energy use as a way to pare back on oil consumption used for domestic desalinization and power plants, potentially saving 523,000 barrels of oil equivalent a day over the next 20 years.

For the solar panel manufacturers such as First Solar Inc. (FSLR) and SunPower Corp. (SPWR), the Saudi Arabian market would open a huge new market as European countries reduce subsidies to keep a lid on installations. Panel sales may dip this year for the first time in more than a decade from 27,700 megawatts installed last year, according to a survey of analysts by Bloomberg on March 9.

‘Less Profitable’
“These markets are likely to be a lot less profitable than existing markets,” Vishal Shah, an analyst at Deutsche Bank AG in New York, wrote in a note to clients yesterday, noting the Saudis may require bid winners to supply from factories built in the nation. “It looks like both First Solar and SunPower would need to set up local manufacturing.”

First Solar dropped 4.9 percent yesterday, taking its slide this year to 55 percent. SunPower slid 0.7 percent, for a 16 percent decline this year.

Ka-care is the government agency set up in April 2010 to oversee the nation’s renewable energy strategy. Its plans are likely to be approved later this year, al-Suliman said, according to a copy of the presentation he gave on May 8.

The government is targeting 25,000 megawatts from solar thermal plants, which use mirrors to focus the sun’s rays on heating fluids that turns a power turbine. Another 16,000 megawatts would come from photovoltaic panels, according to the Deutsche Bank note.

For more on this:

http://www.bloomberg.com/news/2012-05-10/saudi-arabia-plans-109-billion-boost-for-solar-power.html

Economic and Business News
2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | News Archive

JAN | FEB | MAR | APR | MAY | JUN | JUL | AUG | SEP | OCT | NOV
Most Viewed Companies
Ticker Price Volume
EMAAR 11.35 28,501,263
EEC 55.52 4,727,728
SABIC 102.98 6,821,078
RIBL 18.75 595,801
ALKHODARI 58.5 2,921,014
TAWUNIYA 61.73 974,964
NCB 61.49 6,639,977
Recent News

2015 an active year for SWFs in the Middle East, says KPMG
Middle East Sovereign Wealth Funds (SWFs) have been forced to navigate shifting economic currents at home and abroad as they seek to invest their oil-fuelled capital to generate the best returns for

Zain Technology Conference focused on innovation and opportunities
Zain Group, a leading telecom innovator in eight markets across the Middle East and Africa, announces the successful completion of its fourth annual Zain Technology Conference (ZTC) that took place i

GCC petrochemical revenues hit $89.4 billion in 2013, says GPCA
Petrochemicals revenues reached an all-time high in 2013 hitting the $89.4 billion mark, according to the latest industry report by the Gulf Petrochemicals & Chemicals Association (GPCA). According t

Annual inflation on the rise in the GCC
A report by the Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf says that the GCC states showed annual inflation rates between 0.86 per cent and 3.6 per cent by the

NBK Capital MENA reiterates ‘HOLD’ on Qatar Islamic Bank (QIB)
In a research note, NBK Capital MENA said, “We have increased our fair value for QIB by 20 per cent to QR 104.80 per share on higher net profit and dividend payouts in the forecast horizon, a richer

GulfBase GCC Index
Search By
  • Company Symbol
  • Company Name
  • Mutual Fund Name
  • News Content
Send this page to a friend

Poll

Which of the following do you think is the best long-term investment?