New Fitch Report Says Saudi Arabia Solar Power Expansion To Reach 5.1 GW By 2031

• Saudi Arabia awarded contracts for the development of more than 1.7 GW of solar energy projects until now.
• The report likewise said that Saudi Arabia furthermore has green hydrogen as a key component of its long-lasting energy sector strategy. The country desires create 2.9 million tonnes of green hydrogen each year by 2030.

Fitch Solutions has actually come up with a fresh report stating that the solar power capacity of Saudi Arabia may grow to more than 5.1 GW in between 2022 and also 2031. The solar expansion holds massive possible provided the lasting power market strategies and policy support from the Saudi Arabia federal government. The report also claimed that Saudi Arabia furthermore has hydrogen as a key component of its long-lasting power market method. The countryaspires to generate 2.9 million tonnes of hydrogen annually by 2030.

Green Hydrogen To Play A Key Role

Fitch held that though the hydrogen production and expansion is not explained in the policy, the visibility of large green hydrogen projects in the pipeline suggests that renewable hydrogen will create a substantial proportion of this manufacturing.

The report adds, "Consequently, we note upside take the chance of to our solar power forecasts in the burgeoning green hydrogen market, which will certainly position upward stress on sustainable electricity products and also drive additional financial investment in solar power over the coming years."

Adding a cautionary note to the renewable energy development in Saudi Arabia, Fitch said that the solar energy ambitions could not hit the bull's eye often in the past. It reported, "With concrete growth in the solar power market just showing up in the past two years, policy restrictions on international private ownership in the sector, in addition to the supremacy of big incumbent state-owned utilities, will present hurdles to financiers seeking to take part in the market."

Paving The Path For Renewable Energy

Saudi Arabia is thought to have the greatest solar power possibility on the planet. Under NREP, Saudi Arabia looks to raise its share of renewable energy as well as gas to about 50% and also expand the energy mix in power manufacturing. Towards this objective, the government has granted solar power contracts for 1GW in March, 2022. At the end of 2021, the Kingdom had actually a set up capacity of 518 MW.

The Kingdom has actually created the National Renewable Energy Programme (NREP), which helps with the development of an eco-friendly power capacity auction tendering system. Under the policy, the government has granted contracts for the development of greater than 1.7 GW of solar power projects previously.