Saudi Arabia has announced its ambitious $ 30-50 billion renewable energy program in preparation for a post-oil era and to boost the economy, attract investments, create new jobs and protect the environment, in line with Saudi Vision 2030. Energy, Industry and Mineral Resources Minister Khalid Al-Falih told the World Future Energy Summit in Abu Dhabi last week that the Kingdom would soon start the first round of seeking bids for projects under the program, which would produce 10 GW of power. Referring to Al-Falih's statement, Dr. Abdulwahab Al-Qahtani, an energy expert, lauded the program as a step in the right direction to reduce dependence on oil for power generation. Al-Qahtani said that, though late in the day, the government's decision to invest in clean, renewable energy is a wise move since the Kingdom consumes nearly 25 percent of its oil to meet the local demand for energy. He said it was important to explain the benefits of renewable energy to both producers and consumers alike. He said investment in renewable energy would create new jobs and contribute towards the goal of diversification of the sources of income, besides reducing dependence on oil as the conventional source of national income. He was of the view that the government should shift from conventional to renewable energy, before any further drop in oil revenues, if at all, in which case such projects will not draw large investments. Abdullah Al-Saadoun, a member of the Shoura Council, said investments in renewable energy is for the future of energy. "Today the world is heading to invest in solar and wind energy, and spend large sums on research and development," he said. Al-Saadoun explained that the cost of producing electricity from solar energy is negligible compared to generating power from oil. The Kingdom should take the initiative of taking up more renewable energy projects to ensure that it remains immune to oil price fluctuations.
