Saudi Arabia is expected to play a significant role in the future of solar energy following an agreement it signed with an inter-governmental organization that has its headquarters outside Delhi in India.
The International Solar Alliance (ISA) is a network of 122 “sun-rich” countries that the Kingdom joined during Crown Prince Mohammed bin Salman’s tour of India earlier this year. Most of the countries lie either completely or partly between the Tropic of Cancer and the Tropic of Capricorn. Countries that do not fall within the Tropics can join the ISA and enjoy all benefits as other members, with the exception of voting rights.
The ISA was launched jointly by the prime ministers of India and France in Paris in 2015 on the sidelines of COP21, the UN climate conference. Its primary objective is to work for efficient exploitation of solar energy to reduce dependence on fossil fuels. Its activities are aimed, among other things, at ramping up solar energy applications in agriculture, mini-grids and rooftops; financing; e-mobility and storage; and supporting solar technologies.
“The ISA welcomes the Kingdom’s signature on the framework agreement,” said Upendra Tripathy, head of the ISA, referring to the UN Framework Convention on Climate Change.
“The decades of experience in energy policy, infrastructure, investment and financing that Saudi Arabia will bring on board will be incredibly valuable for ISA members. This will help member countries to promote solar-energy deployment and implement the Paris accord.”
The Paris accord is an agreement within the UN Framework Convention on Climate Change, dealing with the reduction of greenhouse-gas-emissions, which was signed in 2016.
“As a prominent member of OPEC, Saudi Arabia has always played a major role in global energy markets,” said Tripathy. “The Saudi government is now sending a clear message to the global community that it can play a prominent role in the future of solar energy.”
Experts say that the Saudi renewable-energy market is the largest in the Middle East, with massive capacity expansion, amounting to almost 16 gigawatts, expected to happen in the coming years.
“From what we can see in the Kingdom’s approach, the ambition is much bigger than just ensuring that a part of the internal consumption of electricity is generated by renewables,” said Yousif Al-Ali, acting executive director of clean energy at Abu Dhabi’s Masdar, which has been chosen by Saudi Arabia to develop its first commercial wind project.
“The Saudis have plans to be an exporter of clean energy to their neighboring countries. The Kingdom has all that is required to undertake such projects successfully and sustainably, namely sufficient acreage, very good resources of solar and wind energy, the right legislation, and a system that attracts very competitive finance and equity. So Saudi Arabia is well positioned to compete in this market.”
For his part, Tripathy noted that because Saudi Arabia is rich in both oil and solar energy resources, an optimum energy mix will not only maximize the Kingdom’s revenues but also reduce its carbon footprint and conserve its hydrocarbon resources.
“By boosting its investment in solar energy, Saudi Arabia can lead by example for other Gulf Cooperation Council countries,” he said. At the same time, he said, “the Kingdom can earmark part of its bilateral aid for supporting the adoption of solar technologies by other developing countries.”
With Saudi Arabia’s entry, according to Tripathy, the ISA will form a partnership with the Islamic Development Bank (IsDB), which is headquartered in Jeddah, to expand investments in solar power in the bank’s member countries.
