Economic Brief – Renewables: Saudi Arabia Energy Diversification Update – June 2020
The Saudi power sector is in the midst of significant developments aimed at generating and growing its capacity to supply electricity to residential consumers and commercial customers. Facing strong demand for electricity, a desire to diversify its domestic energy mix, the need to improve energy efficiencies, the decline in the cost of alternative energy sources, and the abundance of solar radiation across the country are measures that will allow the Kingdom to become a global leader in renewable energy. The Kingdom has developed robust initiatives under the Ministry of Energy that include the creation of the National Renewable Energy Program (NREP) in line with Vision 2030 and the formation of the Renewable Energy Project Development Office (REPDO), which is responsible for the delivering the goals of NREP. Furthermore, and as part of the Kingdom’s development plan, the private sector’s participation in the sector is instrumental to the proliferation of the renewable energy sector. To date, a number of independent power producers (IPP) have developed solar and wind projects and the growth of the private sector as a catalyst plays a prominent role in shaping the sector’s future.