Sunshine-rich Gulf slow to adapt solar, clean energy
The share of renewables in Gulf states’ electricity generation is marginal, and the region still utilizes fossil-fuel driven power grids, but the potential for clean energy is substantial.
Electricity consumption in the Gulf region is reaching its annual peak as armies of energy-intensive air conditioners work at full throttle to insulate populations from extreme summer temperatures endemic to the vast stretches of the Arabian Desert. In June, the Kuwaiti city of Nuwaiseeb recorded the hottest temperature on earth for 2021, 53.2 degrees Celcius.
In the background of the pleasant breeze that cools down houses and offices lies polluting power plants fueled by natural gas and oil; despite the Gulf region having the world's lowest solar tariffs and the International Energy Agency (IEA) noting that solar projects now offer the lowest cost electricity ever seen. In 2018, plants that burn oil to produce electricity generated over 40% of Kuwait's and Saudi Arabia’s power, about 14 times the world’s average.
But a recent push to decarbonize the global economy, and in particular the transportation and power generation sectors, is enticing oil-rich Gulf states to pledge to clean their power grids. Saudi Arabia de facto ruler, Mohammed bin Salman, said the kingdom will generate 50% of its electricity from renewables by 2030, from just 0.02% in 2019.
“Maybe they will not hit all targets, but seeing the share of renewables in power generation jumping to 10%-20% within the next five to seven years is realistic,” a source in the Saudi energy sector told Al-Monitor on condition of anonymity. The Saudi Electricity Company did not respond to a request for comment about the timeline for retiring oil-fired power plants.
