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.



Bank of England Cuts Main Interest Rate by a Quarter-point to 4.75%

Bank of England Deputy Governor for Monetary Policy Clare Lombardelli, Bank of England Governor Andrew Bailey, The Bank of England's Head of Media and Stakeholder Engagement Katie Martin and Deputy Governor, Markets and Banking, Dave Ramsden hold the central bank's Monetary Policy Report press conference at the Bank of England, in London, on November 7, 2024. HENRY NICHOLLS/Pool via REUTERS
Bank of England Deputy Governor for Monetary Policy Clare Lombardelli, Bank of England Governor Andrew Bailey, The Bank of England's Head of Media and Stakeholder Engagement Katie Martin and Deputy Governor, Markets and Banking, Dave Ramsden hold the central bank's Monetary Policy Report press conference at the Bank of England, in London, on November 7, 2024. HENRY NICHOLLS/Pool via REUTERS
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Bank of England Cuts Main Interest Rate by a Quarter-point to 4.75%

Bank of England Deputy Governor for Monetary Policy Clare Lombardelli, Bank of England Governor Andrew Bailey, The Bank of England's Head of Media and Stakeholder Engagement Katie Martin and Deputy Governor, Markets and Banking, Dave Ramsden hold the central bank's Monetary Policy Report press conference at the Bank of England, in London, on November 7, 2024. HENRY NICHOLLS/Pool via REUTERS
Bank of England Deputy Governor for Monetary Policy Clare Lombardelli, Bank of England Governor Andrew Bailey, The Bank of England's Head of Media and Stakeholder Engagement Katie Martin and Deputy Governor, Markets and Banking, Dave Ramsden hold the central bank's Monetary Policy Report press conference at the Bank of England, in London, on November 7, 2024. HENRY NICHOLLS/Pool via REUTERS

The Bank of England cut its main interest rate by a quarter of a percentage point on Thursday after inflation across the UK fell below its target rate of 2%.
The bank said its rate-setting panel lowered the benchmark rate to 4.75% — its second cut in three months — though its governor Andrew Bailey cautioned that interest rates would not be falling too fast over coming months.
“We need to make sure inflation stays close to target, so we can’t cut interest rates too quickly or by too much,” he said. “But if the economy evolves as we expect it’s likely that interest rates will continue to fall gradually from here.”
In the year to September, UK inflation stood at 1.7%, its lowest level since April 2021 and below the central bank’s target rate of 2%, The Associated Press reported.
Central banks worldwide dramatically increased borrowing costs from near zero during the coronavirus pandemic when prices started to shoot up, first as a result of supply chain issues built up and then because of Russia’s full-scale invasion of Ukraine which pushed up energy costs.
As inflation rates have recently fallen from multi-decade highs, the central banks have started cutting interest rates.
Economists have warned that worries about the future path of prices following last week's tax-raising budget from the new Labour government and the economic impact of US President-elect Donald Trump may limit the number of cuts next year.
The decision comes a week after Treasury chief Rachel Reeves announced around 70 billion pounds ($90 billion) of extra spending, funded through increased business taxes and borrowing. Economists think that the splurge, coupled with the prospect of businesses cushioning the tax hikes by raising prices, could lead to higher inflation next year.
The rate decision also comes a day after Trump was declared the winner of the US presidential election. He has indicated that he will cut taxes and introduce tariffs on certain imported goods when he returns to the White House in January. Both policies have the potential to be inflationary both in the US and globally, thereby prompting Bank of England policymakers to keep interest rates higher than initially planned.