Saudi Arabia kicks off a $50bn renewable energy plan to cut oil use

As most oil producing nations especially African states diversify their economy and adopt other means of generating revenue due to a decrease in oil prices.

Saudi Arabia has announced a kick-off of a $50 billion renewable energy project as the world’s top crude export turns to solar and wind power in meeting growing energy demand.

The announcement was made by the Minister of Energy, Industry and Mineral Recourses, Khalid Al-Falih at the just concluded World Future Energy Summit in Abu Dhabi.

Bidders seeking to qualify to build a 700 megawatts of wind and solar power plants are expected to submit documents by march 20, while those selected will be announced by April 10, Falih said in a statement.

“This marks the starting point of a long and sustained program of renewable energy deployment in Saudi Arabia that will not only diversify our power mix but also catalyze economic development,” he added.

The project relates to the country’s vision 2030 which was launched in 2015.

The 2030 vision was developed to help the country diversify and build its economy and move the country towards a more sustainable future.

The vision states the importance of localizing renewable energy by the manufacturing sector.

Building more solar, wind and nuclear power plants is part of a broader plan announced by the kingdom in April to diversify away from crude sales as the main source of government revenue.

Countries of the middle-east like Saudi Arabia, the United Arab Emirates, Jordan and Morocco are working on developing renewable energy to curb their fuel imports or conserve more valuable oil that could be exported.

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Saudi Arabia is planning to develop almost 10 gigawatts of renewable energy by 2023, according to Falih, the country is seeking an investment of $30 billion to $50 billion.