Solar power ‘crucial’ for KSA

The pact signed earlier this year to set up an independent solar power plant would help meet some of the country’s rising energy demands over the next few decades.
This is according to Abdularahman Almuhanna, chief executive officer of Taqnia Energy, who said the 50 megawatt (MW) plant to be established in Al-Aflaj would assist with demand in the country, which is rising by 8 percent annually and is expected to be 120,000 MW by 2030.

“The future of Saudi Arabian energy is very promising. Saudi Arabia is blessed with hydrocarbons (or fossil fuel) and ample renewable energy sources, especially solar,” Almuhanna said.
Taqnia Energy, King Abdulaziz City for Science and Technology (KACST) and the Saudi Electricity Company (SEC) signed a memorandum of understanding in July this year to launch the first stand-alone 50 MW solar power station.

He said the agreement is for Taqnia Energy to construct, own and operate the independent power project for 25 years. The SEC is committed to buy all the generated power at an unsubsidized tariff starting with 5 US cents per kilowatt-hour. The SEC would make the land available for the plant.
He said the KACST would supply local photovoltaic (PV) modules for the solar project because the institution has 35 years experience in this area. “It established a PV solar module production line in Oyayna. The increase of the local content of the project will support technology transfer and knowledge development inside the Kingdom.”

He said that the current trends in energy supply was unsustainable — economically, environmentally and socially. This means renewable energy such as solar power has a particularly promising future, he said.
“Global PV capacity has been increasing and has significant potential for long-term growth over the next few decades. This allows for optimal technology progress, cost reduction and ramping-up of industrial manufacturing.”

Regarding the viability of the project, Almuhanna said it is expected to save 4 million barrels of high-cost diesel and limit CO2 emission by 1.7 million tons over the 25 years of the project’s lifetime.

Also, it was highlighted in the announcement that the PV modules would be produced by KACST, which would increase the participation of local players. The oil savings would be a positive contribution to the country’s gross domestic product, he said.

Taqnia Energy is a subsidiary of Taqnia Holding and was established in 2014 in Riyadh, with a mandate to develop and invest in cost effective businesses that would include knowledge transfers and jobs for Saudis.