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Saudi Targets Lowest Cost of Electricity Globally Through Solar Energy Project

Solar panels. File photo
Solar panels. File photo
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Saudi Targets Lowest Cost of Electricity Globally Through Solar Energy Project

Solar panels. File photo
Solar panels. File photo

Saudi Energy Minister Prince Abdulaziz bin Salman revealed that the Kingdom is shifting closer to activating energy efficiency programs and applications at an intensified rate.

He also disclosed that the solar energy file will be activated to give the Kingdom the lead in terms of the lowest-cost per kilowatt of electricity.

Saudi Arabia will “very soon” be announcing a solar project that will take the lead in terms of the lowest-cost per kilowatt of electricity, the energy minister said during the “Don’t Forget Our Planet” virtual event organized by the Future Investment Institute (FII) to address environmental sustainability.

The Kingdom will produce 50 percent of electricity from renewables by 2030, Prince Abdulaziz added, stressing that Saudi Arabia is also planning to expand wind energy.

In March 2018, Saudi Crown Prince Mohammed bin Salman signed a memorandum of understanding with SoftBank to build the 200-gigawatt solar project in Saudi Arabia by 2030.

“I can assure you that Saudi Arabia will not only be the last producer, but Saudi Arabia will produce every molecule of hydrocarbon and it will put it to good use, and it will be done in a most environmentally sound and more sustainable way. I am willing to say that by 2050, we will be the last and the biggest producer of hydrocarbon,” the energy minister said.

He reaffirmed Saudi Arabia’s commitment to the concept of the circular carbon economy, which seeks to remove carbon emissions from the environment via a mixture of recycling and removing harmful pollutants, as well as sophisticated technology to remove emissions from the industrial process.

“We are trying to lead by example, and we are putting our money where our mouth is,” he said.

He highlighted Saudi projects in energy efficiency, solar power generation, and renewables that aim to generate half of its electricity from non-hydrocarbon sources by 2030. “We have a leadership that values sustainability,” he added.

The minister was speaking on a panel with other energy leaders, discussing the challenges and opportunities presented by recovery from the COVID-19 pandemic.

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Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
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Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters

The credit rating agency “Moody’s Ratings” upgraded Saudi Arabia’s credit rating to “Aa3” in local and foreign currency, with a “stable” outlook.
The agency indicated in its report that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification and the robust growth of its non-oil sector. Over time, the advancements are expected to reduce Saudi Arabia’s exposure to oil market developments and long-term carbon transition on its economy and public finances.
The agency commended the Kingdom's financial planning within the fiscal space, emphasizing its commitment to prioritizing expenditure and enhancing the spending efficiency. Additionally, the government’s ongoing efforts to utilize available fiscal resources to diversify the economic base through transformative spending were highlighted as instrumental in supporting the sustainable development of the Kingdom's non-oil economy and maintaining a strong fiscal position.
In its report, the agency noted that the planning and commitment underpin its projection of a relatively stable fiscal deficit, which could range between 2%-3% of gross domestic product (GDP).
Moody's expected that the non-oil private-sector GDP of Saudi Arabia will expand by 4-5% in the coming years, positioning it among the highest in the Gulf Cooperation Council (GCC) region, an indication of continued progress in the diversification efforts reducing the Kingdom’s exposure to oil market developments.
In recent years, the Kingdom achieved multiple credit rating upgrades from global rating agencies. These advancements reflect the Kingdom's ongoing efforts toward economic transformation, supported by structural reforms and the adoption of fiscal policies that promote financial sustainability, enhance financial planning efficiency, and reinforce the Kingdom's strong and resilient fiscal position.