Zest in the news: The kingdom is yet to live up to its renewable powerhouse potential
Beyer outlines solutions to address barriers to renewable energy deployment in Saudi Arabia
Extract from the full article below:
The kingdom could also benefit from several fiscal and non-fiscal incentives, according to a region-based sustainable finance expert.
“Saudi Arabia has the potential to be a renewable energy powerhouse," says Jeffrey Beyer, managing director of UAE-based consultancy Zest Associates. "Few countries in the world have as much sun, wind and available land.”
“To hit its Vision 2030 targets, the Saudi government can streamline permitting, ensure land rights aren’t contested, build transmission infrastructure to project sites, and prioritise grid connections for renewables.”
Since renewables have low operating costs but high upfront capital costs, Beyer suggests Saudi Arabia can offer low- or zero-interest loans to build solar and wind projects. This would avoid the dampening effect of rising interest rates and use public money strategically to crowd-in private sector investment.
He adds: “While hydrocarbon subsidies are shrinking, they still present a price barrier for renewables. Creating a level playing field would help renewables compete.”
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