Saudi Arabia expects to attract more than $20 billion in investments in renewables over the next decade, the CEO of Saudi National Grid said Oct. 19, as the world’s biggest oil exporter seeks to free up oil burned in power generation for export.
The kingdom is aiming to generate 30 GW from renewables by 2025 and 60 GW by 2030, Ibrahim al-Jarbou told the Siemens Energy Week virtual conference.
The Gulf state also expects to attract near-record low prices for its renewables projects, he said.
“There is a tender going for some projects and we are expecting these numbers to be very low cost,” he said.
The Saudi ministry of energy in January launched round three of its National Renewable Energy Program (NREP). The round comprises four solar projects with a total combined capacity of 1.2 GW.
In April, the ministry said 49 companies had pre-qualified to bid in the third round, 28 of which were from Saudi Arabia.
The ministry of energy, through the NREP, has pre-developed and tendered 2.17 GW of renewable energy capacity, of which 700 MW was awarded in 2019 and a further 1.47 GW to be awarded in 2020.
Saudi Arabia is investing in renewable energy to free up oil burned in power generation for export and lower its CO2 emissions.
The kingdom plans to produce 70% of its power from gas and 30% from renewable energy, Energy Minister Prince Abdulaziz has previously said. Currently the country burns mostly oil to produce power.
Saudi Arabia’s local energy reforms will reduce domestic consumption by 2 million b/d of oil equivalent by 2030, the minister said in October.
This article originally appeared on spglobal.com