Saudi companies are looking to solar electricity to hedge the risk of rising power prices if energy subsidies are cut, according to one of the kingdom’s biggest plant developers.
"Everybody is very convinced that electricity prices are going to be reformed over the next three years,'' the Acwa Power International chief executive Paddy Padmanathan in Paris told Bloomberg. "That means only one thing: that tariffs are going to go up.''
Saudi Arabia is in the midst of implementing its Vision 2030 master plan to wean its economy off oil and diversify into other industries. Crown prince Mohammed bin Salman has enacted policies to shake up the country, from a proposed initial public offering of Aramco to allowing women to drive. Part of his changes may eventually include rolling back energy subsidies that keep a cap on fuel and power prices.
The country plans to increase electricity generation from renewable energy sources to 9.5 gigawatts by 2030.
Saudi set a record October 3 in its first solar tender, drawing bids of just 1.79 cents a kilowatt-hour, a quarter lower than previous prices for the cheapest solar energy in the world.
____________
Read more:
World's cheapest prices submitted for Saudi Arabia's first solar project
UAE's push on solar should open eyes across wider world
Sheikh Mohammed bin Rashid announces winning contract for world's largest CSP solar project
____________
That bid was submitted by Abu Dhabi’s renewable energy company Masdar and France's EDF, coming in 24 per cent cheaper than the second lowest bid from Acwa Power.
Last month, Acwa Power and China's Shanghai Power were selected by the Dubai Electricity and Water Authority to build a 700MW extension to the Mohammed bin Rashid Al Maktoum Solar Complex, the largest concentrated solar plant in the world.
Acwa will be participating in a tender next week to provide a food processing firm with a “significant amount” of solar power that will come in below 100 megawatts, according to Mr Padmanathan.
Clean power purchase agreements between corporations and project developers are already big business in markets such as the US and the Nordics. Companies such as Facebook, Apple and Amazon.com are inking contracts that fix a price on their power. Now, Saudi companies are becoming interested in that approach.
“Everybody is starting to think, 'why don’t I get renewable energy procured and directly into my system now as quickly as I can,'’ Mr Padmanathan said. “This tender is a first off, but there are several others that are preparing tenders like this.’’
He is expecting the market for private renewable energy contracts in Saudi Arabia to ramp up to several hundred megawatts a year, taking as much as 2GW of demand off the country’s central power generation in as little as four years.
It is “what the future of the electricity consumption will look like in terms of energy consumption”, he said.
“Inevitably what you will find will be a very significant amount of renewable energy.”
In addition to its push into renewables, Saudi Arabia is also looking to improve energy efficiency to cut down on consumption.
Last week the Public Investment Fund (PIF), the country's sovereign wealth fund, announced the launch of a new energy service company, Super Esco, designed to increase energy efficiency across government and public buildings.
All government entities will be obliged to contract with the energy service company, established with a capitalisation of 1.9 billion riyals (Dh1.86bn), which will fund and manage the retrofit of government and public buildings, in a bid to reduce government spending on the electricity sector.
Projects in Saudi Arabia’s energy efficiency sector are estimated to be worth around 42bn riyals, or around 3bn annually, according to PIF.
THE SPECS
Engine: 3.5-litre V6
Transmission: 9-speed automatc
Power: 279hp
Torque: 350Nm
Price: From Dh250,000
On sale: Now
COMPANY PROFILE
Company: Eco Way
Started: December 2023
Founder: Ivan Kroshnyi
Based: Dubai, UAE
Industry: Electric vehicles
Investors: Bootstrapped with undisclosed funding. Looking to raise funds from outside
And Just Like That...
Director: Various
Stars: Sarah Jessica Parker, Cynthia Nixon, Kristin Davis
Rating: 3/5
EMIRATES'S REVISED A350 DEPLOYMENT SCHEDULE
Edinburgh: November 4 (unchanged)
Bahrain: November 15 (from September 15); second daily service from January 1
Kuwait: November 15 (from September 16)
Mumbai: January 1 (from October 27)
Ahmedabad: January 1 (from October 27)
Colombo: January 2 (from January 1)
Muscat: March 1 (from December 1)
Lyon: March 1 (from December 1)
Bologna: March 1 (from December 1)
Source: Emirates
The Light of the Moon
Director: Jessica M Thompson
Starring: Stephanie Beatriz, Michael Stahl-David
Three stars
Crops that could be introduced to the UAE
1: Quinoa
2. Bathua
3. Amaranth
4. Pearl and finger millet
5. Sorghum
Jawan
Director: Atlee
Stars: Shah Rukh Khan, Nayanthara, Vijay Sethupathi
Rating: 4/5
COMPANY PROFILE
Company: Mascotte Health
Started: 2023
Based: Miami, US
Founder: Bora Hamamcioglu
Sector: Online veterinary service provider
Investment stage: $1.2 million raised in seed funding
Company Profile
Company name: Cargoz
Date started: January 2022
Founders: Premlal Pullisserry and Lijo Antony
Based: Dubai
Number of staff: 30
Investment stage: Seed
COMPANY PROFILE
Company name: Revibe
Started: 2022
Founders: Hamza Iraqui and Abdessamad Ben Zakour
Based: UAE
Industry: Refurbished electronics
Funds raised so far: $10m
Investors: Flat6Labs, Resonance and various others
The five pillars of Islam
Explainer: Tanween Design Programme
Non-profit arts studio Tashkeel launched this annual initiative with the intention of supporting budding designers in the UAE. This year, three talents were chosen from hundreds of applicants to be a part of the sixth creative development programme. These are architect Abdulla Al Mulla, interior designer Lana El Samman and graphic designer Yara Habib.
The trio have been guided by experts from the industry over the course of nine months, as they developed their own products that merge their unique styles with traditional elements of Emirati design. This includes laboratory sessions, experimental and collaborative practice, investigation of new business models and evaluation.
It is led by British contemporary design project specialist Helen Voce and mentor Kevin Badni, and offers participants access to experts from across the world, including the likes of UK designer Gareth Neal and multidisciplinary designer and entrepreneur, Sheikh Salem Al Qassimi.
The final pieces are being revealed in a worldwide limited-edition release on the first day of Downtown Designs at Dubai Design Week 2019. Tashkeel will be at stand E31 at the exhibition.
Lisa Ball-Lechgar, deputy director of Tashkeel, said: “The diversity and calibre of the applicants this year … is reflective of the dynamic change that the UAE art and design industry is witnessing, with young creators resolute in making their bold design ideas a reality.”
The Emperor and the Elephant
Author: Sam Ottewill-Soulsby
Publisher: Princeton University Press
Pages: 392
Available: July 11
SPECS
Engine: 4-litre V8 twin-turbo
Power: 630hp
Torque: 850Nm
Transmission: 8-speed Tiptronic automatic
Price: From Dh599,000
On sale: Now
The specs
Engine: Single front-axle electric motor
Power: 218hp
Torque: 330Nm
Transmission: Single-speed automatic
Max touring range: 402km (claimed)
Price: From Dh215,000 (estimate)
On sale: September
The Specs
Engine: 1.6-litre 4-cylinder petrol
Power: 118hp
Torque: 149Nm
Transmission: Six-speed automatic
Price: From Dh61,500
On sale: Now
INDIA'S TOP INFLUENCERS
Bhuvan Bam
Instagram followers: 16.1 million
Bhuvan Bam is a 29-year-old comedian and actor from Delhi, who started out with YouTube channel, “BB Ki Vines” in 2015, which propelled the social media star into the limelight and made him sought-after among brands.
Kusha Kapila
Instagram followers: 3.1 million
Kusha Kapila is a fashion editor and actress, who has collaborated with brands including Google. She focuses on sharing light-hearted content and insights into her life as a rising celebrity.
Diipa Khosla
Instagram followers: 1.8 million
Diipa Khosla started out as a social media manager before branching out to become one of India's biggest fashion influencers, with collaborations including MAC Cosmetics.
Komal Pandey
Instagram followers: 1.8 million
Komal Pandey is a fashion influencer who has partnered with more than 100 brands, including Olay and smartphone brand Vivo India.
Nikhil Sharma
Instagram followers: 1.4 million
Nikhil Sharma from Mumbai began his online career through vlogs about his motorcycle trips. He has become a lifestyle influencer and has created his own clothing line.
Source: Hireinfluence, various
The specs
Engine: 6.2-litre V8
Transmission: ten-speed
Power: 420bhp
Torque: 624Nm
Price: Dh325,125
On sale: Now
A cheaper choice
Vanuatu: $130,000
Why on earth pick Vanuatu? Easy. The South Pacific country has no income tax, wealth tax, capital gains or inheritance tax. And in 2015, when it was hit by Cyclone Pam, it signed an agreement with the EU that gave it some serious passport power.
Cost: A minimum investment of $130,000 for a family of up to four, plus $25,000 in fees.
Criteria: Applicants must have a minimum net worth of $250,000. The process take six to eight weeks, after which the investor must travel to Vanuatu or Hong Kong to take the oath of allegiance. Citizenship and passport are normally provided on the same day.
Benefits: No tax, no restrictions on dual citizenship, no requirement to visit or reside to retain a passport. Visa-free access to 129 countries.