Solar Power in the Middle East

Source: AP Photo by Kamran Jebreili

Source: AP Photo by Kamran Jebreili

Try this twist: a solar-powered gas station in Dubai. Really? The United Arab Emirates is the fourth-largest oil producer in the world. Yes, the Emirates National Oil Company has opened the first solar-powered gas station. There, 120 kW of solar will provide 130% of the station’s operating needs, theexcess is reportedly fed back into the grid.

It’s part of a larger movement, the transition away from fossil fuels. The UAE fears sea level rise. Much of its land would be threatened by sea level rise. So the government is supporting renewable energy. Solar farms are “springing up everywhere” to take advantage of the country’s consistent and abundant sunshine.
In recognition of the country’s commitment to sustainable energy, the International Renewable Energy Agency has chosen Abu Dhabi, the UAE’s other major city, as the home for its global headquarters. And in related news, Dubai’s Roads and Transport Authority has agreed to lease 200 Tesla electric cars for use as taxis in Dubai.
The Saudi Vision 2030 marks a profound decree: In April 2016, Deputy Crown Prince Mohammad bin Salman Al Saud, announced the Saudi Vision 2030. One of its goals: Freedom from Oil. The powerful Deputy Crown Prince pushing to undertake a transformation of the Saudi economy. Saudi Vision 2030 is a plan to reduce Saudi Arabia’s dependence on oil and to increase alternatives, forming a diverse economy through the development of service sectors such as health, education, infrastructure constructive, recreation and tourism.
The Plan calls for developing a “vast pool of solar energy” in the north of the country. Saudi Arabia’s energy minister, Khalid Al-Falih, said that his country will solicit bids for a “massive renewable energy push,” with spending to be ramped up to as high as $50 billion. The move is intended to source at least 9.5 GW of electricity from solar and wind by 2023 and to achieve the goal of generating 30% of the Kingdom’s electricity from renewable and nuclear sources by 2030.
There are two key objectives that a build out of renewable energy would achieve: leave more oil for export, thus generating more government revenue, while at the same time diversifying the economy. As part of the Vision 2030 plan, thegovernment plans on spinning off a small slice of Saudi Aramco. Experts believe that an IPO of 5% of the company could generate more than $100 billion in revenue, which theprince plans on putting to good use developing other sectors of the economy.
Bloomberg cautions that the Saudi government has been “talking a big game” on renewable energy for several years. In 2012, the government laid out a proposal to install 41 GW of solar by 2032, photovoltaics and concentrated solar powerThe ramp up was to begin immediately. The collapse of oil prices in 2014 dashed all urgency. To date, the country has only a single, 10 MW project at the headquarters of Saudi Aramco.