Private sector investors are showing new interest in Saudi Arabia’s solar energy market, after the nation’s leadership included plans to add 9.5 GW of renewables to the energy supply as part of Saudi Vision 2030 along with opening the way to greater private sector and international investment, said experts ahead of the Abu Dhabi Sustainability Week which kicks off in January.

Announced in April, the Vision 2030 strategy sets 9.5 GW as an ‘initial target’ to help build the renewables sector, noting that energy consumption will triple in the next 14 years, they stated.

The government has since confirmed that it aims to achieve that target by 2023, a rapid increase from the nation’s 25 MW of installed renewable energy capacity at the end of 2015.

Its plans are being supported by a comprehensive restructuring of government departments responsible for energy, they added.

Vision 2030 also promises a complete review of the legal and regulatory framework to allow the private sector to buy and invest in the renewable energy sector, said the experts.

“The projects that will flow from Saudi Arabia’s renewable energy plan create a landmark opportunity for technology manufacturers, developers and investors in solar energy, setting out a very real, very achievable ambition,” remarked Roberto de Diego Arozamena, the CEO of Abdul Latif Jameel Energy, the largest GCC-based solar photovoltaic developer.

With a pipeline of 5 GW in its worldwide solar energy portfolio, Abdul Latif Jameel Energy is promoting the industry’s growth by sponsoring the World Future Energy Summit and Solar Expo, to be held in Abu Dhabi in January 2017.

“Given that prices for solar, which is the most practical renewable energy source in the region, continue to fall, it is actually likely that Saudi Arabia could achieve more than 9.5 GW in this time period,” said de Diego Arozamena.

“Private companies can play a vital role in unlocking Saudi Arabia’s potential for green energy, enabling technology transfer through international partnerships, and establish the nation as a global leader in renewables, particularly solar,” he noted.

Analysis by Frost and Sullivan for the WFES Solar Expo scores Saudi Arabia highly for solar energy’s potential demand and investor attractiveness, but not so strongly for solar-related policy, as assessed before Vision 2030’s announcement.

The Frost and Sullivan / Solar Expo ‘Advancing Solar Energy Solutions: Market Outlook’ report also gives the Kingdom low scores for not pricing electricity to reflect the cost of production.

WFES, which is the Mena and South Asia region’s leading commercial event for the renewable energy industry, is expected to see strong interest in Saudi business opportunities when the next event is held as part of Abu Dhabi Sustainability Week in January, 2017.-TradeArabia News Service