SAUDI ARABIA’S ambitious plan to become a world leader in installed solar power appears to have run into the sand amid disagreements over its scale, ownership and technology.
The world’s largest crude exporter announced three years ago it wanted to install 41 gigawatts of solar electricity by 2032 to help meet surging local demand for energy as the Saudi population increases rapidly and the economy grows strongly.
The decision was prompted by concerns about cost rather than about cutting Saudi carbon emissions to help combat climate change. The kingdom currently generates much of its electricity by burning crude oil, thereby reducing the amount available for export and threatening its market share.
But despite a 2013 statement that bids would soon be issued for the first solar power projects, the body set up to spearhead alternative energy development — King Abdullah City for Atomic and Renewable Energy (KACare) — has made no progress and in January it pushed back the 2032 target to 2040.
“It hasn’t been approved yet, we are in a waiting mode,” said a Saudi government source who declined to be identified.
“There is a divergence of views. Everybody agrees on the goals, but they have different ideas on how to implement them.”
With its sunny climate and strong demand for electricity during the summer, Saudi Arabia seems perfectly suited for solar power projects, though its high levels of atmospheric dust and soaring temperatures pose difficult technical problems.
The biggest obstacle, however, is bureaucratic. KACare’s relationship with the powerful ministries of electricity and oil was never clearly defined, meaning that no single department was put in charge, industry sources say.
“The key issue is KA Care does not belong to any particular ministry leading the initiative and does not have the balance sheet to conclude power purchase agreements directly,” said Imtiaz Mahtab, president of the Middle East Solar Industry Association.(SD-Agencies)
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