Solar Energy in Saudi Arabia has been a point of discussion for a long time. As global energy prices take a dive, a country driven by fossil fuels can only rely on it for a short period.
Saudi Arabia currently deploys approximately 1% to renewable-based energy generation. Things need to be rectified and scaled on a serious note to meet the demands of KSA vision 2030.
The Saudi government is investing billions of dollars into carbon-neutral energy sources to combat the climate change movement that is being promoted around the world.
Mutjadeda is a program launched by the Saudi Industrial Development Fund (SIDF) that will grant monetary loans totalling 1.2 Billion Riyals (almost $310 Million) to commercial and residential projects or existing infrastructure to install solar panels or other renewable energy initiatives.
These loans are given, in some cases, financing almost 75% of the projects. They have a longer repayment structure, usually 20 years with grace periods of up to 3 years.
The loans are in the best interest of the economical transition from non-renewable sources to renewable. Mutjadeda will certainly play as a pivot for the consumer markets in order to meet electricity’s supply and demand.
Agriculture, Retail or Manufacturing, Mutjadeda will be available for all sectors. The program will certainly help independent power producers (IPP) and renewable product manufacturers to sell their products at a rapid pace.
Ahmad al Gwaiz, SIDF’s Vice President of risk management, said “Mutjadeda will help find new sources of energy to be less dependent on oil and to enable the manufacturing sector to continue its progress”
These funds will also be available to foreign companies working under the kingdom to keep everything under one umbrella of reforms. Mutjadeda will certainly bolster the renewable rhetoric and help the kingdom lessen its dependency on oil.
These reforms come at a time when a report from the Climate Change Performance Index (CCPI) issued a report indicating KSA at the bottom. These reports were at the backbone of vision 2030 which wants to diversify its energy portfolio by breaking renewables at least 10% of the portfolio.
Mutjadeda will help many project developers, just like Ethraa, to help the economy by partnering with the residential and commercial side to procure and operate solar panels. With public-private partnership initiatives like these, KSA will transition towards renewables at a pace required to meet the objectives of Vision 2030.