Saudi Arabia steps up renewables investment

Oil-rich Saudi Arabia recently completed a financial agreement between Abu Dhabi’s Mubadala Investment (Masdar) and Électricité de France. The 400-megawatt Dumat Al Jandal facility, set to begin producing electricity in the first quarter of 2022, will be the biggest wind-power plant in the Middle East when it begins producing, according to Masdar.

Greenfield foreign investment into renewable energy across the Middle East totals 89 projects since 2003, valued at $19.3bn, according to greenfield investment monitor fDi Markets. Most of this has gone to the United Arab Emirates, Jordan and Iran, while Saudi Arabia has received seven projects. 

Saudi Arabia’s energy ministry has pre-qualified 60 companies to bid for 12 renewables projects that began tendering in July 2019. The second round of its National Renewable Energy Programme aims to add 3000 megawatts of capacity, according to Bloomberg. 

The 600-megawatt Al Faisaliah project near Jeddah was among the solar investments on offer, alongside 300-megawatt facilities in Jeddah itself and a 200-megawatt installation at Al Jawf. 

As part of Saudi Vision 2030, Saudi Arabia is aiming to move its economy away from oil with help from the Public Investment Fund, one of the world’s largest sovereign wealth funds. The country hopes to reduce the 600,000 barrels of crude that it currently burns each day to generate power.