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.



Oil Prices Rise as Investors Eye US Election Fallout

FILE PHOTO: Oil pump jacks are seen at the Vaca Muerta shale oil and gas deposit in the Patagonian province of Neuquen, Argentina, January 21, 2019.  REUTERS/Agustin Marcarian/File Photo
FILE PHOTO: Oil pump jacks are seen at the Vaca Muerta shale oil and gas deposit in the Patagonian province of Neuquen, Argentina, January 21, 2019. REUTERS/Agustin Marcarian/File Photo
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Oil Prices Rise as Investors Eye US Election Fallout

FILE PHOTO: Oil pump jacks are seen at the Vaca Muerta shale oil and gas deposit in the Patagonian province of Neuquen, Argentina, January 21, 2019.  REUTERS/Agustin Marcarian/File Photo
FILE PHOTO: Oil pump jacks are seen at the Vaca Muerta shale oil and gas deposit in the Patagonian province of Neuquen, Argentina, January 21, 2019. REUTERS/Agustin Marcarian/File Photo

Oil prices rose on Thursday following a sell-off triggered by the US presidential election, as risks to oil supply from a Trump presidency and a hurricane building in the Gulf Coast outweighed a stronger US dollar and higher inventories.
Brent crude oil futures were up 65 cents, or 0.87%, at $75.57 per barrel by 0400 GMT. US West Texas Intermediate (WTI) crude gained 54 cents or 0.75% to $72.23, Reuters said.
Concerns around a Trump presidency squeezing oil supply from Iran and Venezuela as well as an approaching storm "more than offset the post-election impact of a stronger US dollar and ... higher-than-expected US inventories," Tony Sycamore, a market analyst with IG, wrote in a note.
Trump's election had initially triggered a sell-off that pushed oil prices down by more than $2 as the US dollar rose to its highest level since September 2022. But the front-month contracts pared losses to settle down 61 cents for Brent and 30 cents for WTI by the end of the Wednesday session.
"Historically, Trump's policies have been pro-business, which likely supports overall economic growth and increases demand for fuel. However, any interference in the Fed's easing policies could lead to further challenges for the oil market," said Priyanka Sachdeva, senior market analyst at Phillip Nova.
"With the bumper surge in the dollar hovering at near 4-month highs, oil seems to be talking massive headwinds in the aftermath of the US election results."
The upside to oil markets may be limited to the short to medium term as OPEC is expected to increase supply capacity in January, while historical trends do not suggest sanctions will prevent India and China from continuing to purchase oil from Russia or Iran, Sachdeva said.
Donald Trump is expected to reimpose his "maximum pressure policy" of sanctions on Iranian oil. That could cut supply by as much as 1 million barrels per day, according to an Energy Aspect estimate.
Trump in his first term had also put in place harsher sanctions on Venezuelan oil, measures that were briefly rolled back by the Biden administration but later reinstated.
In North America, Hurricane Rafael intensified into a category 3 hurricane on Wednesday, and about 17% of crude oil production or 304,418 barrels per day in the US Gulf of Mexico had been shut in response, the US Bureau of Safety and Environmental Enforcement said.
US crude inventories rose by 2.1 million barrels to 427.7 million barrels in the week ending on Nov. 1, the US Energy Information Administration said on Wednesday, compared with expectations for a 1.1 million-barrel rise.