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
Most Viewed Companies
Ticker Price Volume
EMAAR 11.65 111,917,890
RIBL 23.22 1,168,075
SAGRINSURANCE 44.13 2,658,011
SPIMACO 51.33 2,293,781
ALKHODARI 68.63 1,539,616
MESC 17.77 1,855,145
SECO 17.77 6,295,646
Recent News

SR1.5 trillion: KSA bank deposits hit all-time high
Total bank deposits in the Kingdom hit a new all-time high above SR1.5 trillion for the first time in July, says a report.

Bank deposits climbed by 1.7 percent in July to cross the SR1.5 tr

SEC awards Siemens largest SVC contract
Siemens, the global powerhouse which innovates the electrical world and operates in the fields of energy, infrastructure, industry and healthcare, signed two contracts with Saudi Electricity Company

Economic guides point to Kingdom’s sustained growth
Saudi Arabia’s economic indicators last July point toward a sustained developmental growth in the Kingdom, Jadwa Investment said in its Saudi Chartbook for this month.

It said the economic

Maritime sector contributed 4.6% to Dubai GDP
Dubai’s maritime sector directly contributs 4.6 per cent to Dubai’s GDP, or the equivalent of Dh14.4 billion, according to Sultan Bin Sulayem, Chairman of Dubai Ports, Customs and Free Zone Corporati

US delegation discusses SAGIA’s role
Saudi Arabian Investment Authority’s (SAGIA) value proposition for investors and the changes that have been made over the years to the registration process for international firms were highlighted at

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?