Saudi, UAE seek cash for $1.5bn solar shift

Saudi, UAE seek cash for $1.5bn solar shift:

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An Emirati man stands on a balcony overlooking the Shams 1, Concentrated Solar Power (CSP) plant, in al-Gharibiyah district on the outskirts of Abu Dhabi on March 17 during the inauguration of the facility (file). Renewables investment in the Middle East and North Africa rose 40% last year to $2.9bn, according to the International Renewable Energy Agency.

Two of the largest oil producers are readying the Middle East’s first big push into renewable energy, planning solar-power plants that will need more than $1.5bn in financing by the end of 2014.

Saudi Arabia, the biggest member of the Organisation of Petroleum Exporting Countries, and the UAE, fourth-biggest in the group, are seeking to add 1,000MW of solar capacity, enough to electrify 200,000 homes. The forecast expansion, which includes Jordan, will require loans and export credits, said Vahid Fotuhi, president of the Dubai-based Emirates Solar Industry Association.

Governments across the Middle East and North Africa consider sun and wind energy as crucial for meeting the needs of growing populations and economies, with Saudi Arabia leading the way. Oil-producers want to develop renewables to conserve more crude for export, while countries relying on imported fuel see local green power as a cheaper alternative. State support for utilities and a growth in regional power demand of about 5% a year mean companies such as Abu Dhabi National Energy Co can borrow at rates that are 100 basis points, or 1 percentage point, lower than Spain’s Abengoa Solar."

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