Energy Transition In Saudi Arabia: Renewable Technology At Home, Oil Abroad
Energy Transition In Saudi Arabia: Renewable Technology At Home, Oil Abroad :
Saudi Arabia has long since been referred to as the Kingdom of oil. Since Saudi Arabia’s first oil discovery in 1933, the region has long been the focus of news when discussing oil because it is the world’s largest producer of that substance. However, new significant changes are being made.
This significant change is Saudi Arabia’s attempt to foster the implementation of energy-specific initiatives pursued by the Ministry of Energy. As a result, this is based on their wish to be recognized as a Kingdom of energy rather than just a Kingdom of oil. The objective of Saudi Arabia is to build more solar panels quickly and use more renewable technology so that the country eventually uses much less oil.
According to Mia Moisio, a climate policy researcher at the New Climate Institute think tank in Berlin, this move is an attempt by states that rely on oil revenues to diversify their economies in the event of a future decline in demand. It also involves using renewable energy to meet the needs of growing domestic populations while saving fossil fuels for export. Another motivator, she continues, is the vulnerability to climate change. These intense heat waves are occurring in the area. That has likely also served as a mild wake-up call.
It’s worth noting that similar efforts are picking up steam in a number of other Middle Eastern countries. The world’s largest oil exporter, Saudi Arabia, and its neighbour, Bahrain, have both committed to reaching net-zero emissions by the year 2060. Saudi Arabia is making sizable investments to support its goals, which include the development of new or expanded carbon-neutral cities.
The Rise Of Energy Transition and Renewable Technology In Saudi
There has been a sevenfold increase in investment in renewables in the Middle East over the past decade, from $960 million in 2011 to $6.9 billion in 2021, as reported by Bloomberg New Energy Finance, a New York City-based energy consulting firm. Last year, Saudi Arabia put about $1.5 billion into solar energy projects.
With its Saudi Green Initiative, the Saudi government expects to invest around 700 billion Saudi Arabian riyal (about US$186 billion). Environmental preservation, energy transformation, and sustainability initiatives are all brought under SGI’s umbrella to achieve three ends. Increase protected areas to cover more than 30% of the country’s marine and land area; reduce carbon emissions by 4% of global contributions; plant 10 billion trees across Saudi Arabia.
Takeaways
The Kingdom of Saudi Arabia is dedicated to contributing to and leading the global energy transition to cleaner sources of energy. Although the Kingdom recognizes that oil and gas will still play an essential role in the worldwide energy mix in the coming decades, it is not simply observing this shift; instead, it is spearheading it.
Last Updated on 9 months by News Editor
