Saturday, October 16, 2021

Saudi Arabia expects to save $ 213 billion after using gas and renewable energy domestically

The Saudi Minister of Finance, Muhammad Al-Jadaan, expected that the Kingdom would save about $ 213 billion over the next ten years. By replacing locally used liquid fuels with natural gas and renewable energy sources, in the midst of efforts to reduce costs in order to finance investments.

The largest oil exporter has embarked on a reform plan in recent years, to modernize the economy, create jobs and reduce dependence on oil revenues.

Saudi Energy Minister Abdulaziz Bin Salman gestures as he speaks to members of the media on the sideline of the Future Investment Initiative conference in Riyadh, Saudi Arabia, on October 30, 2019. REUTERS/Hamad I Mohammed – RC1333BFD410

Oil replacement
The minister said, “One of the initiatives that we are about to complete is replacing liquids … This program will provide the government with about 800 billion riyals (213.28 billion dollars) over the next ten years that can be used for investment.”
Al-Jadaan added, “From now until 2025, and maybe until 2030, we will prioritize fiscal sustainability. We believe that in order to achieve all the goals set by Vision 2030, we need to maintain fiscal sustainability and control government spending.”

This month, Saudi Arabia signed electricity purchase agreements with seven solar energy projects; As part of a plan to maximize the utilization of the energy mix used to generate electricity, provide electrical energy to more than 600,000 housing units, and reduce more than 7 million tons of greenhouse emissions.

Saudi Arabia was hit by low oil prices and the Covid-19 crisis last year, and it announced a plan to accelerate domestic investment as part of a program of spending trillions of dollars led by the giant national oil company Aramco and the sovereign wealth fund, the Public Investment Fund, amounting to 400 billion dollars.

Forum gas and oil producers
Yesterday, Saturday, the Saudi Ministry of Energy announced that the Kingdom has joined the United States, Canada, Norway, and Qatar, to establish the “Zero Neutrality Producers Forum”.
The forum is a platform to discuss how to support the implementation of the Paris Agreement on climate change, as one of its main goals is to bring emissions to the level of zero neutrality.

Forum members Canada, Norway, Qatar, Saudi Arabia, and the United States, who together represent 40% of global oil and gas production.

The forum aims to “reduce methane emissions, promote a circular carbon economy approach, develop and deploy clean energy technologies, carbon capture, and storage, and diversify sources of income that do not depend on hydrocarbon revenues.”

Renewable energy in Saudi Arabia
On March 28, the Saudi Crown Prince, Prince Mohammed bin Salman, announced the initiatives of the Green Kingdom and the Green Middle East, to chart the direction of the Kingdom and the region in achieving global targets for reducing carbon emissions.

On April 8, the Crown Prince announced the opening of the Sakaka plant for the production of electricity from solar energy, with a total production capacity of 300 megawatts, providing energy for more than 50 thousand housing units, and reducing about 583 thousand tons of harmful emissions that cause global warming, by an average The cost of 1.2 billion riyals ($ 319.97 million).

The Kingdom plans to launch the Dumat Al-Jandal wind power plant in Al-Jawf in the northern region, 900 kilometers north of Riyadh, the first of its kind in the Kingdom, and the largest in the Middle East, with a capacity of 400 megawatts.
The Dumat Al-Jandal plant, which is expected to be completed and operational in 2022, will contribute to avoiding the emission of about two million tons of carbon dioxide annually, while its production capacity will reach 400 megawatts.

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