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IEA: Renewable Energy to Grow to New Record in 2022

A field of solar panels is seen near Royston, Britain, April 26, 2021. REUTERS/Matthew Childs
A field of solar panels is seen near Royston, Britain, April 26, 2021. REUTERS/Matthew Childs
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IEA: Renewable Energy to Grow to New Record in 2022

A field of solar panels is seen near Royston, Britain, April 26, 2021. REUTERS/Matthew Childs
A field of solar panels is seen near Royston, Britain, April 26, 2021. REUTERS/Matthew Childs

The world will set a new record for renewable power capacity this year led by solar energy in China and Europe, but growth could lose steam in 2023, the International Energy Agency said Wednesday.

A record 295 gigawatts of new renewable power capacity was added in 2021 despite supply chain bottlenecks, construction delays and high prices of raw materials, the IEA said in a report.

An additional 320 gigawatts is expected to be installed this year, equivalent to the entire electricity demand of Germany or the European Union's total electricity generation from natural gas.

Solar energy will account for 60 percent of renewable power growth in 2022, ahead of wind and hydropower, according to the agency, which advises developed nations on energy policy.

"The additional renewables capacity commissioned for 2022 and 2023 has the potential to significantly reduce the European Union's dependence on Russian gas in the power sector," AFP quoted the IEA as saying.

"However, the actual contribution will depend on the success of parallel energy efficiency measures to keep the region's energy demand in check."

The EU set a goal of slashing its heavy reliance on Russian natural gas by two thirds this year following Moscow's invasion of Ukraine.

"Energy market developments in recent months –- especially in Europe –- have proven once again the essential role of renewables in improving energy security, in addition to their well-established effectiveness at reducing emissions," IEA Executive Director Fatih Birol said in a statement.

He urged governments to cut red tape, accelerate the deliveries of permits and provide the right incentives for a faster deployment of renewables.

The IEA warned that, based on current policies, "renewable power's global growth is set to lose momentum next year."

"In the absence of stronger policies, the amount of renewable power capacity added worldwide is expected to plateau in 2023," the IEA said.

The Paris-based IEA said progress in solar energy is offset by a 40 percent drop in hydropower expansion and "little change" in wind additions.

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Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
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Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)

Telecommunications companies listed on the Saudi Stock Exchange (Tadawul) achieved a 12.46 percent growth in their net profits, which reached SAR 4.07 billion ($1.09 billion) during the second quarter of 2024, compared to SAR 3.62 billion ($965 million) during the same period last year.

They also recorded a 4.76 percent growth in revenues during the same quarter, after achieving sales worth more than SAR 26.18 billion ($7 billion), compared to SAR 24.99 billion ($6.66 billion) in the same quarter of 2023.

The growth in the revenues and net profitability is the result of several factors, including the increase in sales volume and revenues, especially in the business sector and fifth generation services, as well as the decrease in operating expenses and the focus on improving operational efficiency, controlling costs, and moving towards investment in infrastructure.

The sector comprises four companies, three of which conclude their fiscal year in December: Saudi Telecom Company (STC), Mobily, and Zain Saudi Arabia. The fiscal year of Etihad Atheeb Telecommunications Company (GO) ends on March 31.

According to its financial results announced on Tadawul, Etihad Etisalat Company (Mobily) achieved a 33 percent growth rate of profits, bringing its profits to SAR 661 million by the end of the second quarter of 2024, compared to SAR 497 million during the same period in 2023. The company also achieved a 4.59 percent growth in revenues to reach SAR 4.47 billion, compared to SAR 4.27 billion in the same quarter of last year.

The Saudi Telecom Company achieved the highest net profits among the sector’s companies, at about SAR 3.304 billion in the second quarter of 2024, compared to SAR 3.008 billion in the same quarter of 2023. The company registered a growth of 4.52 percent in revenues.

On the other hand, the revenues of the Saudi Mobile Telecommunications Company (Zain Saudi Arabia) increased by about 6.69 percent, as it recorded SAR 2.55 billion during the second quarter of 2024, compared to SAR 2.39 billion in the same period last year.

Commenting on the quarterly results of the sector’s companies, and the varying net profits, the head of asset management at Rassanah Capital, Thamer Al-Saeed, told Asharq Al-Awsat that the Saudi Telecom Company remains the sector leader in terms of customer base expansion.

He also noted the continued efforts of Mobily and Zain to offer many diverse products and other services.

Financial advisor at the Arab Trader Mohammed Al-Maymouni said the financial results of telecom sector companies have maintained a steady growth, up to 12 percent, adding that Mobily witnessed strong progress compared to the rest of the companies, despite the great competition which affected its revenues.

He added that Zain was moving at a good pace and its revenues have improved during the second quarter of 2024. However, its profits were affected by an increase in the financing cost by SAR 26.5 million riyals and a rise in interest, while net income declined significantly compared to the previous year, during which the company made exceptional returns.