- Title: SAUDI ARABIA: Saudi sets its sights on solar energy
- Date: 30th September 2013
- Summary: RIYADH, SAUDI ARABIA (SEPTEMBER 29, 2013) (REUTERS) VARIOUS ATTENDEES AT SOLAR ARABIA SUMMIT LOGO OF SUMMIT PARTICIPANTS VARIOUS OF SOLAR ENERGY COMPANIES BANNERS COMPANY REPRESENTATIVES TALKING TO CUSTOMERS (SOUNDBITE) (English )STEFAN SPORK, MANAGING DIRECTOR OF MOUNTING SYSTEMS (GERMAN COMPANY) SAYING: "Saudi Arabia really has a great future for solar energy. It's because of it has the natural resources - there's a lot sunshine here in Saudi Arabia, we have a clear blue sky so this is the first real requirement for PV (photovoltaic) installations. On the other hand, Saudi Arabia has a huge demand for electricity and the demand is growing year by year. So it's really already something where you can make a huge advantage out of it." VARIOUS OF BANNERS OF SOLAR PROJECTS ESTABLISHED IN SAUDI ARABIA VARIOUS OF BANNERS OF SOLAR ENERGY PRODUCTS FOREIGN COMPANY REPRESENTATIVES SPEAKING TO REPRESENTATIVE FROM SAUDI COMPANY (SOUNDBITE) (Arabic) ABDULLAH AL-SALEM, DIRECTOR OF RENEWABLE ENERGY OF SAUDI COMPANY, SAYING: "For us as a company in the energy sector, we are trying to get to know the foreign companies that are coming to Saudi Arabia in order to make a partnership with them, or which will result in a factory in Saudi Arabia once this field is established in Saudi Arabia." VARIOUS OF SUMMIT ATTENDEES SUMMIT IN PROGRESS LOGO OF SUMMIT (SOUNDBITE) (English) IMTIAZ MAHTAB, BOARD MEMBER OF SAUDI ARABIA SOLAR INDUSTRY ASSOCIATION, SAYING: "The energy demand is expected to double here by 2020, which is round the corner. And the opportunity cost of using oil reserve to cater for this demand is staggering. If you look at Saudi today, roughly Saudi produced 13 million barrels per day. Out of that 3 million is domestically used. You all know this figure. If you continue this trend with the rising population, as well as the industrialisation here, as you all know, Saudi Arabia will be a net importer of energy in the next 20 years." VARIOUS OF ATTENDEES LISTENING TO SPEAKERS ATTENDEES APPLAUDING
- Embargoed: 15th October 2013 13:00
- Keywords:
- Location: Saudi Arabia
- Country: Saudi Arabia
- Topics: Environment,Energy
- Reuters ID: LVA1W66Q4UKIIYX5PEWE5J478UXD
- Story Text: The world's top oil exporting country Saudi Arabia is looking to tap into the solar energy market, in a bid to move away from its dependency on oil.
A summit in the Saudi capital Riyadh is bringing together energy specialists, investors and local businesses to share knowledge and expertise on the renewable energy source.
Saudi Arabia wants to generate much more solar power as it lacks coal or enough natural gas output to meet rapidly rising power demand.
Doing so would allow it to slash the volume of oil it burns in power plants bankrolled by billions of dollars worth of saved oil earnings.
Speaking on the sidelines of the summit, Stefan Spork, who works for a German company said Saudi Arabia has the perfect environment for solar power.
"Saudi Arabia really has a great future for solar energy. It's because of it has the natural resources - there's a lot sunshine here in Saudi Arabia, we have a clear blue sky so this is the first real requirement for PV (photovoltaic) installations. On the other hand, Saudi Arabia has a huge demand for electricity and the demand is growing year by year. So it's really already something where you can make a huge advantage out of it, " he said.
Germany is the world's leading producer of solar power and leads the way in photovoltaic installation.
According to the organisers of the Solar Arabia Summit it provides a platform for more 'companies to capitalise on the emergence of this rapidly developing market.' One Saudi company attending the two day summit is Renewable Energy of Saudi.
"For us as a company in the energy sector, we are trying to get to know the foreign companies that are coming to Saudi Arabia in order to make a partnership with them, or which will situate a factory in Saudi Arabia once this field is established in Saudi Arabia," said the company's director Abdullah Al-Salem.
A slide in solar power costs and a surge in oil prices over the last few years has made solar power a win-win strategy for Saudi Arabia: saving billions of dollars of crude for export while making electricity at less than half the cost.
Riyadh plans to install 41,000 megawatts (MW) of solar power over the next 20 years, but to date has built only 12 MW - or less than even Britain installed in early May.
Despite year round sunshine, the oil and gas rich countries of the Gulf have lagged far behind most of the world in solar power - so far. Saudi energy officials have talked of becoming major solar players for years, but while China built 5,000 MW in 2012 alone, Saudi solar capacity is still insignificant.
That is set to change, with an economic argument too strong to ignore.
"The energy demand is expected to double here by 2020, which is round the corner. And the opportunity cost of using oil reserve to cater for this demand is staggering. If you look at Saudi today, roughly Saudi produced 13 million barrels per day. Out of that 3 million is domestically used. You all know this figure. If you continue this trend with the rising population, as well as the industrialisation here, as you all know, Saudi Arabia will be a net importer of energy in the next 20 years," said Imtiaz Mahtab, from the board of Saudi Arabia's Solar Industry Association.
After years of stalling on solar, Saudi authorities now appear to be moving quickly to capitalise on the slump in costs, with contracts for the first round of 500-800 MW of solar power expected before the end of 2013 and a target of over 5,000 MW installed in the next five years.
The summiton Monday (September 30).
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