- Various factors affect the widespread adoption of renewables, writes Mohammed Albalaihed, Head of Energy & Utilities, MENA Investments at PIF
- “Saudi Arabia, a nation built on oil and gas, is determined to be a green leader”
- The Fund is committed to developing 70% of Saudi Arabia’s renewable energy capacity by 2030
With the world population expected to reach almost 10 billion by 2050 and significant demand for energy to power global economies, there is a sense of urgency around the move to renewables, wrote Mohammed Albalaihed, Head of Energy & Utilities, MENA Investments at PIF, in an article for Arabian Gulf Business Insight (AGBI).
But while we live in fast-paced times, the switch to clean energy globally cannot happen overnight. The factors affecting the speed of widespread adoption of renewables range from infrastructure, production and distribution to technology, regulations and differing national priorities.
Albalaihed gave electric vehicles (EVs) as an example of the unpredictable dynamics involved. A prototype electric vehicle was unveiled back in 1832, pre-dating the internal combustion engine by several decades. It is due to government policies and incentives, as well as cheaper batteries, that sales of light-duty electric or hybrid cars are expected to increase notably in the coming years.
Saudi Arabia’s strategic roadmap Vision 2030 focuses on diversifying the economy away from fossil fuels into key sectors and future industries that ensure a sustainable tomorrow. With more than half of Saudi citizens under the age of 25, this is crucial.
As an enabler of Vision 2030, PIF is committed to developing 70% of Saudi Arabia’s renewable energy capacity by the end of the decade. Projects include the Sudair Solar Power Project, one of the largest solar plants globally at 1.5 gigawatts, and a joint venture between PIF-owned giga-project NEOM, Air Products and ACWA Power (in which PIF holds a stake) to develop the world’s largest green hydrogen plant.
“It may be surprising that Saudi Arabia, a nation built on oil and gas, is determined to be a green leader, but our focus on renewables make sense,” wrote Albalaihed.
“As Saudi Arabia commits to net zero emissions by 2060, PIF is excited to contribute to an ample, reliable, affordable and diverse supply; results-oriented environmental action; and a better quality of life for people in Saudi Arabia and across the world.”
Read the full AGBI article here.
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