Saudi Arabia Announces Renewable Energy Projects

Saudi National Renewable Energy Program seeks to increase the Kingdom's share in renewable energy production (Asharq Al-Awsat)
Saudi National Renewable Energy Program seeks to increase the Kingdom's share in renewable energy production (Asharq Al-Awsat)
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Saudi Arabia Announces Renewable Energy Projects

Saudi National Renewable Energy Program seeks to increase the Kingdom's share in renewable energy production (Asharq Al-Awsat)
Saudi National Renewable Energy Program seeks to increase the Kingdom's share in renewable energy production (Asharq Al-Awsat)

Saudi Arabia launched five new projects to produce electricity using renewable energy as part of the fourth phase of the Kingdom's National Renewable Energy Program (NREP).

The Saudi Power Procurement Company (SPPC) explained that the new projects have a total capacity of 3,300 megawatts, including three wind energy projects and two solar energy projects.

The total production of wind energy projects stands at 1,800 megawatts, distributed for a project in Yanbu with a capacity of 700 megawatts, another in al-Ghat with 600 megawatts, and a third in Waad al-Shamal with 500 megawatts.

The total capacity of solar projects reaches 1,500 megawatts, distributed to a project in al-Henakiyah with 1,100 megawatts and another in Tubarjal with 400 megawatts.

The kingdom targets to reach the best energy mix to produce electricity from renewable energy resources, use gas with 50 percent for each of them, and replace the fuel used to produce electricity by 2030.

Last August, the Ministries of Energy and Finance completed all necessary legal procedures to purchase and transfer the ownership of Saudi Electricity Company's (SEC) stakes in the SPPC to the government ownership.

The arrangements came from the electricity sector's restructuring program and complemented the financial and regulatory reforms.

The reforms were approved by the Ministerial Committee for the Restructuring of the Electricity Sector, with oversight of the Supreme Committee for energy mix for electricity generation and empowering the renewable energy sector.

The Ministry of Energy revealed the transfer of assets, obligations, and commercial contracts related to the business of the Procurement Company, part of the comprehensive reforms which contribute to achieving sustainability, raising efficiency, and achieving the goals of Vision 2030.

The main focus will be on planning and offering the required electric power generation projects, concluding purchase and wholesale agreements, developing the sector's trade and services markets and global exchange, and purchasing fuel to achieve the company's purposes and supplying it to producers.

The Ministry of Energy indicated that the new measures would achieve the objectives of the optimal energy mix, the displacement of liquid fuels and the raising of the level of environmental compliance, to encourage local and foreign investments, increase localization, and ensure the security and reliability of supplies at the lowest costs.

The National Renewable Energy Program began with a specific and consistent roadmap to diversify local energy sources and stimulate economic development toward sustainable financial stability in the Kingdom.

It includes establishing the renewable energy industry and supporting the development of this promising sector by working to fulfill the country's commitments towards reducing carbon emissions.



Euro Zone Poised to Enter Trade Quagmire as Trump Wins

A container ship unloads its cargo in the German port of Hamburg (Reuters)
A container ship unloads its cargo in the German port of Hamburg (Reuters)
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Euro Zone Poised to Enter Trade Quagmire as Trump Wins

A container ship unloads its cargo in the German port of Hamburg (Reuters)
A container ship unloads its cargo in the German port of Hamburg (Reuters)

As Trump 2.0 becomes a reality, Europe is poised to enter a new geopolitical and trade quagmire with its biggest trading partner.

Donald Trump's victory may harm Europe's economy as proposed 10% US tariffs risk hitting European exports such as cars and chemicals, eroding Europe's GDP by up to 1.5% or about €260 billion.

Analysts warn of European Central Bank (ECB) rate cuts, euro weakness, and a recession risk.

According to several economic analyses, there is broad agreement that Trump's proposed 10% universal tariff on all US imports may significantly disrupt European growth, intensify monetary policy divergence, and strain key trade-dependent sectors such as autos and chemicals.

The long-term effects on Europe's economic resilience could prove even more significant if tariffs lead to protracted trade conflicts, prompting the European Central Bank (ECB) to respond with aggressive rate cuts to cushion the impact, according to Euronews.

Trump's proposed across-the-board tariff on imports, including those from Europe, could profoundly impact sectors such as cars and chemicals, which rely heavily on US exports.

Data from the European Commission shows that the European Union exported €502.3 billion in goods to the US in 2023, making up a fifth of all non-European Union exports.

European exports to the US are led by machinery and vehicles (€207.6 billion), chemicals (€137.4 billion), and other manufactured goods (€103.7 billion), which together comprise nearly 90% of the bloc's transatlantic exports.

ABN Amro analysts, including head of macro research Bill Diviney, warn that tariffs “would cause a collapse in exports to the US,” with trade-oriented economies such as Germany and the Netherlands likely to be hardest hit.

According to the Dutch bank, Trump's tariffs would shave approximately 1.5 percentage points off European growth, translating to a potential €260 bn economic loss based on Europe's estimated 2024 GDP of €17.4 tn.

Should Europe's growth falter under Trump's tariffs, the European Central Bank (ECB) may be compelled to respond aggressively, slashing rates to near zero by 2025.

In contrast, the US Federal Reserve may continue raising rates, leading to “one of the biggest and most sustained monetary policy divergences” between the ECB and the Fed since the euro's inception in 1999.

Dirk Schumacher, head of European macro research at Natixis Corporate & Investment Banking Germany, suggests that a 10% tariff increase could reduce GDP by approximately 0.5% in Germany, 0.3% in France, 0.4% in Italy, and 0.2% in Spain.

Schumacher warns that “the euro area could slide into recession in response to higher tariffs.”

According to Goldman Sachs' economists James Moberly and Sven Jari Stehn, the broad tariff would likely erode eurozone GDP by approximately 1%.

Goldman Sachs analysts project that a 1% GDP loss translates into a hit to earnings per share (EPS) for European firms by 6-7 percentage points, which would be sufficient to erase expected EPS growth for 2025.