Decreasing technology costs and increasing environmental awareness have elevated the need for sustainable energy resources. According to a report published by the International Energy Agency (IEA), the contribution of renewable energy sources to the world’s power demand would reach 30% by the year 2024.
By the year 2024, the overall renewable electricity is projected to grow by 1200 GW. Similarly, the world’s solar capacity would increase to 600 GW. All GCC countries, as part of their long term vision, have announced plans and policies for energy sector diversification.
The Kingdom of Saudi Arabia has developed the Saudi Vision 2030. The project is aimed at reducing the country’s dependency on oil by supporting private energy organizations and by exploring opportunities that contribute to the national economy. The renewable energy sector is expected to provide abundant employment opportunities.
According to the General Authority for Statistics (GAStat), the compound annual growth rate (CAGR) of Saudi Arabia’s population reached 2.8 percent between 2000-2019. The growth in demand for electricity per user surpasses population growth (CAGR = 5.7%). Also, a sharp rise of mega projects over the last couple of decades has added more weight to the demand side of the equation.
Owing to its geography, Saudi Arabia has a vast potential for solar and wind energy production. The upcoming plans by the government to further develop on the current capacities will not only boost energy diversification, shifting from gas and crude oil but will also create many employment opportunities. The government’s efforts are expected to boost significant parts of the renewable energy value chain in Saudi Arabia.
The Saudi renewable sector is projected to create 750000 jobs over the next decade. The government is supporting technology transfers in the sustainable energy sectors. This is in line with the Kingdom’s plan to generate half of its energy requirements by alternative resources. It is localizing its manufacturing base as the primary generator of employment opportunities. The government has further introduced favorable financing mechanisms. One such example is the SR105 billion ($28 billion) Saudi Industrial Development Fund.
Source: Saudi Gazette