Energy ministry allocates two land areas to develop renewable energy plants

  • 8/19/2021
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The Ministry of Energy (MoE) announced the allocation of two land areas of 12 million square meters to develop renewable energy plants with a capacity of 600 megawatts. The energy plants will be set up in the two industrial cities — the third industrial city of Jeddah and the industrial city of Rabigh. The ministry has worked with the Saudi Authority for Industrial Cities and Technical zone (MODON) to provide the necessary lands for these projects. The ministry plans to diversify energy sources by increasing the share of gas and renewable energy sources. This in return will achieve an optimal energy mix that costs less and is more efficient at producing electricity. In addition to that, renewable energy sources will make up 50% of the energy mix for electricity production by 2030. In working toward a "perfect mix" for its domestic power consumption, replacing liquid fuel currently used to provide its needs, the Kingdom is planning a 50/50 dependence on natural gas and renewables. The ministry added, the National Renewable Energy Program (NREP) was a key enabler for achieving the optimal energy mix. The NREP achieved this by creating a competitive environment for private sector investors and promoting a new industry of energy technologies. The NREP is one of the pillars of the circular carbon economy that Saudi Arabia adopted during its G20 presidency last year, intending to reduce emissions from the energy sector in the Kingdom. The ministry’s and MODON’s plans are in line with Saudi Vision 2030 and its initiatives in the National Industry and Logistics Development Program (NILDP).

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