Renewables tipped to boom in Saudi Arabia

Abundant sunshine and government support are set to expand Saudi Arabia’s market for renewable energy, says a ratings agency.

Independent power producers will provide much of the renewable capacity, predicts Moody’s. This would align with the country’s Vision 2030 plan, which aims to boost the private sector.

“The government of Saudi Arabia’s plans are motivated by a desire to diversify the energy mix and take advantage of the compelling economics of renewables, especially solar, in the country,” said Christopher Bredholt, author of Moody’s report.

The Saudi government opened an auction for 700 megawatts of renewable capacity in February and has a target to generate 9.5 gigawatts from renewable sources by 2030.

Saudi Arabia currently generates the majority of its energy from oil.

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