RIYADH
\nIn a push to reshape its oil-dependent economy, Saudi Arabia is hoping a new solar power program will generate about 7,000 jobs by 2020 and build a local manufacturing industry.
\nAccording to the country\u2019s Ministry of Energy and Natural Resources, bidders who want to build about 3.45 gigawatts of solar and wind plants over the next three years, will be required to spend 30 percent of the capital they invest using the domestic workforce and companies.
\n\u201cWe want to create value,\u201d Saudi Arabia\u2019s head of the renewable project development office Turki al-Shehri told Bloomberg in an interview. \u201cWe don\u2019t just want to bring in companies that open up manufacturing facilities at a very high premium, which the consumer will end up paying. We want to ensure that whatever they are opening is competitive, that it can compete globally for exports.\u201d
\nThe country\u2019s growing population and surging demand for electricity are among the primary reasons behind the solar program.
\nRiyadh wants to leave more oil for export, thus generating more government revenue, and at the same time diversifying the economy away from crude oil.
\n\u201cWe see it as complementing oil because renewables bring more than just a low-value fuel,\u201d Al-Shehri said. \u201cIt fits perfectly into our demand profile, which is high demand, almost 50 percent higher than you see in the evening from air conditioning.\u201d
\nAccording to the IEA, the country burns around 900,000 thousand barrels of oil per day just to run air conditioning and keep the lights on during peak demand in the summer months.
\nSaudi ministers are reportedly working on a second auction of power-purchase deals for renewable energy developers that would grant government-guaranteed contracts for up to 25 years.
\nThe ministry offers land and grid connection to the projects, and developers are required only to build the power plants.
\nAs part of the \u201cVision 2030\u201d plan aimed to diversify the Saudi economy away from fossil fuels, the government is spurring local industry to build products for export. The program also includes creating banks, a tourism industry, and manufacturing from the proceeds of energy.<\/p>\n","protected":false},"excerpt":{"rendered":"
RIYADH In a push to reshape its oil-dependent economy, Saudi Arabia is hoping a new solar power program will generate about 7,000 jobs by 2020 and build a local manufacturing industry. According to the country\u2019s Ministry of Energy and Natural Resources, bidders who want to build about 3.45 gigawatts of solar and wind plants over […]<\/p>\n","protected":false},"author":1,"featured_media":16913,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-16902","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n