عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Arabia Speeds Up Efforts to Replace Liquid Fuels in Electricity Production

The two agreements will work on achieving the country’s targets to reach 50% of solar energy and other energy sources. (Asharq Al-Awsat)
The two agreements will work on achieving the country’s targets to reach 50% of solar energy and other energy sources. (Asharq Al-Awsat)
TT
TT

Saudi Arabia Speeds Up Efforts to Replace Liquid Fuels in Electricity Production

The two agreements will work on achieving the country’s targets to reach 50% of solar energy and other energy sources. (Asharq Al-Awsat)
The two agreements will work on achieving the country’s targets to reach 50% of solar energy and other energy sources. (Asharq Al-Awsat)

As part of the Saudi government’s efforts to achieve global leadership and the optimal mix in the renewable energy sector, the Kingdom is making accelerated efforts to replace liquid fuels with gas and renewable energy sources in electricity production.

On Tuesday, the Saudi Power Procurement Company (SPPC) signed two agreements to purchase energy with a total capacity of 1,500 megawatts.

In September 2022, the Ministry of Energy completed all legal procedures to purchase the Saudi Electricity Company’s shares in the Saudi Energy Production Company, to be fully owned by the state, as part of comprehensive reforms aimed at achieving sustainability and raising the efficiency of the sector within the country.

In remarks to Asharq Al-Awsat, Dr. Mohammad Al-Sabban, former senior advisor to the Saudi Oil Minister, said that the Saudi Energy Production Company was implementing a road map within the framework of Vision 2030, to reach clean energy and achieve net-zero emissions by 2060.

Al-Sabban explained that the two agreements will work towards the country’s goals of reaching 50 percent of solar energy and other energy sources for power generation and water desalination.

The first agreement signed by the Saudi Power Procurement Company within the fourth phase of the National Renewable Energy Program included the purchase of energy for the Hanakiya solar photovoltaic project, with a total capacity of 1,100 megawatts, with an alliance of three companies: Masdar, EDF and Nesma.

This project will contribute to supplying approximately 190,000 residential units with electrical energy annually.

The company also concluded a power purchase agreement for the Tabarjal Solar Photovoltaic Project, with a total capacity of 400 MW, with an alliance led by three companies, namely, Jinko Power (HK) Company Limited, Sun Glare Holding Co. and Sunlight Energy Holding Co.

The project is expected to contribute to supplying approximately 75,000 residential units with renewable electrical energy per year.
 

Most Viewed

 
 
Business

Dollar Strengthens on Elevated US Bond Yields, Tariff Talks

A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
TT
TT

Dollar Strengthens on Elevated US Bond Yields, Tariff Talks

A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo

The dollar rose for a second day on Wednesday on higher US bond yields, sending other major currencies to multi-month lows, with a report that Donald Trump was mulling emergency measures to allow for a new tariff program also lending support.

The already-firm dollar climbed higher on Wednesday after CNN reported that President-elect Trump is considering declaring a national economic emergency as legal justification for a large swath of universal tariffs on allies and adversaries.

The dollar index was last up 0.5% at 109.24, not far from the two-year peak of 109.58 it hit last week, Reuters reported.

Its gains were broad-based, with the euro down 0.43% at $1.0293 and Britain's pound under particular pressure, down 1.09% at $1.2342.

Data on Tuesday showed US job openings unexpectedly rose in November and layoffs were low, while a separate survey showed US services sector activity accelerated in December and a measure of input prices hit a two-year high - a possible inflation warning.

Bond markets reacted by sending 10-year Treasury yields up more than eight basis points on Tuesday, with the yield climbing to 4.728% on Wednesday.

"We're getting very strong US numbers... which has rates going up," said Bart Wakabayashi, Tokyo branch manager at State Street, pushing expectations of Fed rate cuts out to the northern summer or beyond.

"There's even the discussion about, will they cut, or may they even hike? The narrative has changed quite significantly."

Markets are now pricing in just 36 basis points of easing from the Fed this year, with a first cut in July.

US private payrolls data due later in the session will be eyed for further clues on the likely path of US rates.

Traders are jittery ahead of key US labor data on Friday and the inauguration of Donald Trump on Jan. 20, with his second US presidency expected to begin with a flurry of policy announcements and executive orders.

The move in the pound drew particular attention, as it came alongside a sharp sell-off in British stocks and government bonds. The 10-year gilt yield is at its highest since 2008.

Higher yields in general are more likely to lead to a stronger currency, but not in this case.

"With a non-data driven rise in yields that is not driven by any positive news - and the trigger seems to be inflation concern in the US, and Treasuries are selling off - the correlation inverts," said Francesco Pesole, currency analyst at ING.

"That doesn't happen for every currency, but the pound remains more sensitive than most other currencies to a rise in yields, likely because there's still this lack of confidence in the sustainability of budget measures."

Markets did not welcome the budget from Britain's new Labor government late last year.

Elsewhere, the yen sagged close to the 160 per dollar level that drew intervention last year, touching 158.55, its weakest on the dollar for nearly six months.

Japan's consumer sentiment deteriorated in December, a government survey showed, casting doubt on the central bank's view that solid household spending will underpin the economy and justify a rise in interest rates.

China's yuan hit 7.3322 per dollar, the lowest level since September 2023.