Saudi, UAE hold biggest share of renewable energy capacity in GCC: S&P
The GCC region has renewable energy (RE) capacity of 867 MW, or 0.6 percent of its total electricity capacity, out of which the biggest share is in the UAE (68 percent), followed by Saudi Arabia (16 percent), S&P Global Ratings has said in its latest report.
Kuwait and Qatar hold 9.11 percent and 5 percent share of RE in the region, the report added.
Noting that e green finance in the GCC has the potential to play a bigger role in funding the region's ambitious pipeline of green projects, the report said the region continues to make good progress toward green growth and transition to a low-carbon economy, setting new sustainability and resilient infrastructure targets that are creating demand for capital and new green financial vehicles.
“The UAE and Saudi Arabia are ahead of the other GCC members in this area as the region's biggest energy markets. Deployment in the rest of the region is limited to demonstration and pilot projects,” it added.
Saudi Arabia, it continued, wants to diversify its economy and invest in a mitigation program that includes energy efficiency and clean energy projects, promotion of carbon capture, greater use of natural gas, further reductions in gas flaring, and improved water and waste water management.
Furthermore, S&P report said according to Saudi Vision 2030, the kingdom aims to produce 3.45 GW of renewables by 2020, 9.5 GW by 2023, increasing to 30 percent of the total mix by 2030.
Saudi Arabia's government indicated it seeks to attract between $30 billion-$50 billion of new investment in renewables by 2030. By 2021, there are also targets to reduce electricity consumption and peak demand by 8 percent and 14 percent, respectively, S&P report maintained.
Looking forward, it said, according to IRENA, RE deployment in the GCC is set to grow by an annual compound growth rate of 179 percent from last year, with total additions of 6.7GW by 2020, S&P report noted adding this will be led primarily by the UAE, Oman, and Kuwait, with solar photovoltaics being the dominant technology.