The Gap Between an Oil-Rich Country and the Movement to Decarbonise the Energy Sources in Saudi Arabia

This research study discusses the increased use of non-renewable sources of energy in Saudi Arabia and its impact on the health of the people. It proposes the installation of rooftop solar panels in Jeddah to store renewable sources of energy and minimize the usage of non-renewable sources. The study highlights the significance of renewable energy and the need for alternative sources of power in Saudi Arabia.

Running head: The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi
Arabia
THE GAP BETWEEN AN OIL-RICH COUNTRY AND THE
MOVEMENT TO DECARBONIZE THE ENERGY SOURCES IN
SAUDI ARABIA

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
Executive Summary
Saudi Arabia is one of the largest exporters of oil and most of its revenue comes from
their export business of oil. It has been observed that currently, there has been an increased
prevalence of the use of non-renewable sources of energy in Saudi Arabia. Presently, the proven
oil reserves that are present in Saudi Arabia are about 268 billion of barrels that would last about
the next 70 years. Therefore, it is essential that the government of Saudi Arabia take certain steps
in order to mitigate this issue of the increased use of non-renewable sources of energy. In the
past few years, this country has been facing energy crisis for non-renewable sources of energy.
Therefore, the government has planned to use their natural resources in order to mitigate this
issue of the prevalent energy crisis.
The government of Saudi Arabia needs to take specific measures in order to minimize the
use of non-renewable sources of energy as it impacts the health status of most of the people.
Most of the people of Saudi Arabia suffer from chronic pulmonary disorders and therefore, it is
essential to use these renewable sources of energy. Renewable source of energy is highly
effective in replenishing these non-renewable sources of energy and can be used for generating
power. It has been seen that most of the countries are switching to these renewable sources of
energy in order to save power for their sustainable use in the future.
The main aim of this research study is to propose a solar panel installation on rooftop
houses in Jeddah. The previous researchers have failed to mention the efficiency of using solar
panels during night time or during rainy days. Moreover, the researchers had not installed any
solar panels and therefore, majority of the house uses non-renewable sources of energy. This
appraised literature would detail the necessities of installing such solar panels in Jeddah in order
to ensure high usage of solar energy for generating electricity. Moreover, a detailed investigation

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
of the rooftop materials would also be evaluated in this research study. In this study, both
primary, as well as secondary research has been undertaken that highlight the necessities of using
renewable sources of energy. A primary research on households was carried out in order to
understand their perception regarding the installation of rooftop solar panels on their houses.
Most of them have revealed that they would prefer to use such solar panels for generating
electricity, however; such panels should not harm the existing infrastructures of their houses.
The proposed research project has been enriched by the previous works of scholars on
this issue. Hence, it may be influenced by published facts pertaining to the current socio-
economic conditions prevailing in Saudi Arabia. The nation is targeting an investment of
approximately forty-seven billions in the next three years to install photovoltaic cells in the
domestic electrical grid. The proposed plan involves a steady supply of 10% of total power
demand (9,500 MW) through solar energy. The proposed solar plant is planned to install in
Jeddah due to the area being abundantly exposed to sunlight.
An adequate amount of available sunlight would help these solar panels to store a high
amount of solar energy that could be converted into electricity. Therefore, this high availability
and exposure to sunlight would help these houses to get a continuous flow of electricity. The
overall cost for conventional generation electricity is supported by the government. Thus, it is
anticipated that the Saudi Arabian government may extend the required funding for the proposed
solar power project. Saudi Arabian government can use issue-specific intervention strategies to
mitigate obstacles related to climatic and demographic barriers. Saudi Arabia exhibits the effect
of prolonged mining and urbanisation on climate and its effect on human activities like power
generation.
Summary of the opportunity

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
Installation of rooftop solar panels would overall help the houses of Jeddah to receive a
continuous flow of electricity. Furthermore, Jeddah is exposed to high sources of solar energy
and therefore, the installation of solar panels would be highly beneficial. Moreover, it can also be
seen that most of the households do not have any issue with such installation of rooftop solar
panels. Thus, the researcher has planned to install such kind of rooftop solar panels in order to
store a huge amount of solar energy and later convert it to electricity. This sort of using solar
energy would help to minimize the raise non-renewable energy crisis that affects the entire
country.

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
Table of Contents
CHAPTER 1: INTRODUCTION 8
1.1 Introduction 8
1.2 Research scope 8
1.3 Significance of the research 9
1.4 Rationale 10
1.5 Problem statement 13
1.6 Aim and objectives 14
CHAPTER 2: LITERATURE REVIEW 15
2.1 Introduction 15
2.2 Current planning of Saudi Arabia regarding the use of non-renewable sources of energy 15
2.3 Significance of domestic installation of solar panels 16
2.3.1 Use of semiconductors 19
2.3.2 Conduction of electricity and the energy bands 19
2.3.3 Semiconductors in solar panel 21
2.4 Monocrystalline silicon solar cells 21
2.4.1 Crystalline silicon cells with their advantage and disadvantage in generating solar
energy 22
2.4.2 Thin film solar cells with their advantage and disadvantage in generating the solar
energy 23
2.5 Diffusion and adoption protocol 26

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
2.5.1 Robert and urban model of a rooftop solar system 27
2.6 Photovoltaic modules in generation of solar energy 28
2.6.1 Photovoltaic system and solar panel 31
2.6.2 Power conditioning equipment 32
2.6.3 Photovoltaic arrays 33
2.7 Irradiance on the solar collector plane 34
2.8 Grid connected rooftop solar systems 36
2.8.1 Role of inverter in case of grid-connected solar panels 36
2.8.2 Advantages and disadvantages of grid-connected solar panels 37
2.9 Demand of distributed power supply 38
2.10 Organic photovoltaic technologies 40
2.11 Credibility of organic photovoltaic technologies in domestic power grids 41
2.12 Gap in literature 43
2.13 Conclusion 44
CHAPTER 3: SCOOPING OF THE PROJECT 46
CHAPTER 4: METHODOLOGY 49
4.1 Research philosophy 49
4.2 Research approach 50
4.3 Research design 50
4.4 Data collection tools and techniques 50
4.4 Data analysis tools and techniques 51
4.5 Primary market research 51

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4.6 Stakeholders analysis 53
4.7 Costing and financing 54
CHAPTER 5: ECONOMIC STATUS OF SAUDI ARABIA TO PRODUCE SOLAR ENERGY
55
5.1 Introduction 55
5.2 Energy generation 55
5.3 Economics of Solar Energy 56
5.4 Steps of government for solar energy 58
5.5 Need for production of alternative energies 59
5.6 The environmental condition of Saudi Arabia 60
5.7 Factors that are required for driving Renewable Energy in Saudi Arabia 62
5.8 Domestic Energy demand in Saudi Arabia 64
5.11 Value proposition to reduce carbon dependency 69
5.12 Preservation of contingency and regulation 70
CHAPTER 6: MARKET ANALYSIS OF RENEWABLE ENERGY DEMAND 72
6.1 Analysis of the current market 72
6.2 Participation of local human resource 75
6.3 Constraints of the project 76
6.4 SWOT analysis 77
6.5 Work Breakdown: 79
6.6 Gantt Chart 82
6.7 PESTLE analysis 83
6.6 Project specification 85

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
6.7 Material and technology costs 86
6.8 Cash flow 87
6.9 Simulation of on-grid solar energy consumption 88
6.10 FORSA design 90
6.11 Risk analysis 90
6.12 Environmental impact assessment 92
Quality of air and the greenhouse gases 93
CHAPTER 7: GENERATION OF ENERGY 94
7.1 Significance of renewable sources of energy 94
7.2 Saudi Arabia and non renewable sources of energy 95
7.3 Saudi Arabia and its solar form of energy 96
7.4 Biomass-based solar panels 96
7.5 Solar Photovoltaics 97
7.6 Types of solar technology 98
7.7 Demand for solar energy in Saudi Arabia 99
7.8 Proposed uses of solar panel in bigger project and manufacturing department 101
CHAPTER 8: FUNDING AND COSTING 106
Sources of finance 106
Financial expenditure 107
CHAPTER 9: CONCLUSION AND RECOMMENDATION 109
Conclusion 109
Objective linking 109

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
Recommendation 110
Future scope 110
Appendices 126
Appendix A: Questionnaire 126

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
CHAPTER 1: INTRODUCTION
1.1 Introduction
Renewable energy provides a promising intervention in a world that is battling the issue
of resource depletion. This form of energy is highly effective in replenishing the non-renewable
form of energy that often affects the natural environment. Furthermore, renewable energy is
widely available than their non-renewable counterparts and this implies that renewable sources
of energy can be used for a prolonged period of time. Addition of annual capacity in case of
renewable energy can be reported to exceed combined usage of fossil fuels. In the year 2015,
renewable technologies have encouraged approximately $300 billion investment that has yielded
23% of worldwide generation of power. International Energy Agency asserts renewable energy
to create larger contribution in the mix of global power production, in comparison to fossil fuels.
The photovoltaic electrical grid is one of such promising technologies that make use of
renewable energies available in the vicinity and this will be discussed in detail in the later part of
this research study.
1.2 Research scope
The advent of technology has given rise to the extensive use of non-renewable sources of
energy without calculating its impact on the environment. It has been observed that Saudi Arabia
has been using these non-renewable sources of energy. This affected the health of many citizens
and therefore, it is essential to take an initiative for installing panels to store renewable sources
of energy. Moreover, this source of energy does not seem to pollute the environment and
therefore, it is highly eco-friendly. Countries with a rich natural heritage like New Zealand and
Canada have already initiated the switch to alternative energy sources to meet the power

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
demands of their population. The population of Saudi Arabia is about 3.23 crores and therefore,
they have an extensive need for electricity during their summer time. Majority of the residents of
Saudi Arabia has been using this non-renewable sources of energy, fossil fuels and this have
tremendous impact on the health condition of the people. The geographical position of Saudi
Arabia ensures exposure to high temperature and therefore, it is easy to store this solar energy
and later convert it into electricity.
Saudi Arabia has been one of the greatest oil producers and this country meets about 40%
of the oil requirement globally. Therefore, it can be said that this enormous amount of oil
production has resulted in increased use of non-renewable sources of energy. Moreover, Lane
(2018) commented that the majority of the revenue of the SA government comes from their
export and import oil business. The aforementioned usage has also given rise to the level of
aerosols and fly-ash into the atmospheric contents due to the combustion of fossil fuels. It has
been observed that this fly-ash affects the health of the exposed people. As opined by Mortimer,
Rosseinsky & Monk (2015), most of the affected people suffer from pulmonary syndromes that
often become chronic and affect them in the long term. This situation has given rise to the need
for an alternative source of power in Saudi Arabia. Due to the abundance of sunlight in the
region, extraction of solar energy to generate thermal and electrical power is a plausible
intervention.
1.3 Significance of the research
There has been an increased use of non-renewable sources of energy that impacted the
health of most of the people. Furthermore, SA has large oil reserves and is one of the leading
exporters of oil. However, the government of SA has taken steps to minimize the usage of these
non-renewable sources of energy and switch to the use of their alternative sources of energy. As

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
per the statistical data, Saudi Arabia has already initiated the strategies to operate solar farms for
commercial purposes in Dhahran (Weforum.org, 2018). However, domestication of solar power
is yet to achieve in this nation. Due to the nation's vast oil resources, the population is reluctant
to shift to solar energy cells presuming that such oil reserves are sufficient to last long. However,
Jen et al. (2014) opined that the residents have little information and knowledge regarding the
devastating impact of the use of non-renewable sources of energy. Another reason for this
reluctance can be due to the fact that the installation of new photovoltaic power grids can cost
exhaustive in nature. Furthermore, the majority of the household believed that such an
installation of solar panels on their rooftops could destroy their building configuration.
1.4 Rationale
The main issue is that in Saudi Arabia, there has been extensive use of non-renewable
sources of energy. It has been observed that they have been involved in exporting these oil
reserves in order to incur high revenue and augment the economy of this country. However,
recently, there has been an awareness regarding the extensive use of non-renewable sources of
energy and the government has been planning to replace these non-renewable sources of energy
with the renewable one.
It has been observed that the majority of the revenue of Saudi Arabia's government
depends on the export business of oil and non-renewable sources of energy. Therefore, it is
essential to understand the concept of these renewable sources of energy and its need for
ensuring a sustained and pollution-free environment. Furthermore, the issues regarding the
prolonged use of non-renewable sources have also been summarised and this would also help the
households to understand the importance of using renewable sources of energy. As opined by
Lane (2018), a huge amount of methane and carbon dioxide are liberated due to the combustion

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
of fossil fuels. Combustion of fossil fuel liberates huge amount of gases that have detrimental
impact on the health of most of the citizens present in Saudi Arabia. Huge amount of carbon
dioxide and nitric oxides are liberated due to this combustion of fossil fuels. Therefore, it can be
said that Saudi Arabia need to use renewable sources of energy in order to ensure that the health
do not get impacted. Furthermore, this combustion of fossil fuels also affects the environment
and therefore, it is essential to install solar panels that could store solar energy.
This is a major issue as combustion of fossils liberates a huge amount of greenhouses
gases that impact the environment. Furthermore, it has also been observed that this huge amount
of methane and carbon dioxide also impacts the livelihood thereby affecting the health of the
affected people. Asthma, as well as non-respiratory illness, has been common among this
affected group of people. In order to meet the increased energy demands in the summer, the
people of Saudi Arabia have been using these fossil fuels like coal and petroleum that have a
devastating impact on the health of the people. Mortimer, Rosseinsky & Monk (2015)
commented that liberation of gases impact variety of age group people.
Many congenital disorders have been common among these affected people on being
exposed to these harmful gases. It is estimated that in Saudi Arabia, about 11.75 million barrels
of oil are produced per day. Furthermore, it is estimated that about 259.90 billion barrels of oil
has been collected and this amount would last for about 90 years. Moreover, Nowotny (2016)
commented that due to globalisation and digitalisation, population growth has augmented
dramatically (Wang et al. 2014). Therefore, there has been over consumption of these non-
renewable sources of energy. Thus, it is essential for the country to switch to renewable sources
of energy. As per their geographic demographics, solar energy would be beneficial for them and
therefore, it is essential for the country to promote the use of renewable sources of energy.

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
This is currently an issue due to the fact that almost half of the population has been using
these non-renewable sources of energy. Kannan & Vakeesan (2016) opined that almost half of
the population of Saudi Arabia has been using these non-renewable sources of energy and they
receive their electricity by combustion of fossils. Furthermore, many people had been suffering
from both respiratory as well as non-respiratory lung disorders. This overall affects their health
and impairs their functioning. Furthermore, as per the statistical records, about 52% of electricity
comes from natural gas while the remaining 40% of electricity comes from oil. Moreover, about
63% of electricity generation comes from the combustion of coal. Therefore, a majority of
people uses these non-renewable sources of energy due to the high amount of energy.
This research project sheds light on understanding the impact of non-renewable sources
of energy and its devastating impacts on the livelihoods. Furthermore, the researcher has
intended to install solar panels that could store solar photons that could be used to generate
electricity. Moreover, Fernando & Siani (2016) commented that most of the governmental
revenue comes from the export business of oil and therefore, the residents use these non-
renewable sources of energy. However, several health impacts have been observed due to this
use of non-renewable sources of energy and therefore, the government of SA has planned to use
their natural gases and switch to alternative sources of energy in order to minimize the impact on
their lives. Jeddah has high exposure to sunlight and therefore, installation of solar panels would
overall help the households to use renewable sources of energy. Furthermore, this solar panel
would also be able to store a huge amount of solar energy that could be later converted to
electricity. Therefore, in this project, the researcher would install rooftop solar panels in order to
conserve this solar energy.

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
1.5 Problem statement
In Saudi Arabia, about 63% of energy comes from fossil fuels while 20% of energy
comes from the use of nuclear energy. In summer, there occurs an increased demand for energy
and therefore, most of the people in Saudi Arabia use this particular form of energy in order to
benefit themselves. Jen et al. (2014) stated that this almost the gases that are liberated due to
combustion of fossil fuels affect half of the children. About 46.45% of congenital anomalies
have been evident in the last few decades. Xiong et al. (2015) stated that antenatal congenital
anomalies have also been evident and therefore, it can be said that the use of non-renewable
sources of energy overall affects the health. Thus, the government of Saudi Arabia must find an
alternative to using these non-renewable sources of energy. The government has taken the
decision to take several measures in order to minimize the use of non-renewable sources of
energy. Depending on the geographic location, solar energy would be beneficial and therefore,
the researcher needs to analyse the significance of using this renewable sources of energy.
1.5.1 Responsibility of the residents of Saudi Arabia of using renewable sources of energy
It has been observed that about 90% of oil production occurs in Saudi Arabia and this
accounts to 75% of governmental revenue. Saudi Arabia has been one of the largest exporters of
oil and therefore, most of the people use these non-renewable sources of energy. However, it has
been observed that this continuous usage of oil and fossil fuels have detrimental impact on the
physical well being of most of the residents. Furthermore, it has also been observed that this use
of oil and fossils also affect the environment.
As per the environmental safety regulations, this combustion of fossil fuels affect the
environment due to extensive liberation of greenhouse gases. Therefore, the government need to
take an initiative in order to look after this issue and install solar panels to store solar energy.
This energy could be later converted to electricity and can be used by the local residents.

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
However, due to the geographical location of Saudi Arabia, the researcher has intended to install
solar panels on the rooftops. This installed rooftop solar panels need to be protected by both the
government as well as the residents. The local people need to carry out a regular surveillance of
this rooftop solar panels to ensure continuous flow of electricity.
1.6 Aim and objectives
This project attempts to propose installation of rooftop solar panels in Saudi Arabia. This
installation of rooftop solar system overall improves the efficiency of power supply in the
strategic cities like Jeddah. Therefore, this research study is aimed at understanding this
installation of solar panels. The objectives of this project are listed below.
● To explore the concept of renewable sources of energy used in Saudi Arabia by focusing
on the usage of solar energy to produce electricity
● To understand the necessity of using renewable sources of energy
● To identify opportunities to reduce costs of energy generation and investigating the
market of solar energy in Saudi Arabia
● To investigate the various rooftop materials that can be effective to trap solar energy
thereby producing high source of energy
● To offer cost-effective and durable solutions in the present energy situation of Saudi
Arabia
● To boost awareness of solar power in population of Jeddah through assistance and
training
● To explore rooftop photovoltaic grid systems and understanding its effectiveness in
providing energy to the country

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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
Solar energy is free and an inexhaustible source of energy in nature. Nevertheless, solar
energy is a contemporary idea in Saudi Arabia as the country has high exposure to sunlight. It
has been observed that most of the residents in Saudi Arabia favour using non-renewable sources
of energy because they provide a huge amount of energy. Moreover, there are easily available
and no prior installation materials are required to avail this kind of energy. However, prior
installation of materials is required in order to use these renewable sources of energy. The
capacity to tap solar power for the production of heat and electricity is conceptualised by Horace
de Saussure. The following chapter will provide an in-depth analysis of the use of non-renewable
sources of energy. Recently, the nation has invested about 47 billion for using non-renewable
sources of energy and this will also be detailed in this current chapter. The significance of solar
panels as well as the use of semiconductors will also be explained in detail in this current section.
Finally, the present demand for electricity in Saudi Arabia will also be highlighted in this section
by mentioning the working protocol of solar panels in conserving solar energy and generating
electricity.
2.2 Current planning of Saudi Arabia regarding the use of non-renewable sources of
energy
Saudi Arabia has progressed in its attempts to take up a carbon-free strategy in the next 5
years. The nation, at present, is aiming for 9.5 GW capacity of renewable energy by the year
2023. Saudi Arabia is seeking investment of Up To 47 billion of investment in the recent years.
The plan of Saudi Arabia is to supply 9,500 MW or 10% of the power demands that are

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
renewable sources by 2023. Moreover, Saudi Arabia is located in the sun-belt and therefore, it
receives a higher amount of photons from the sun (Zboril et al. 2016). These photons could be
trapped in efficiency and used to produce energy. It can be said that the installation of these solar
panels in Jeddah could effectively address the issue of the increased use of non-renewable
sources of energy. Thus, it can be stated that Saudi Arabia has been prioritising the usage of solar
energy over fossil fuels through multiple projects. One of the first projects in Saudi Arabia, the
300MW Sakaka the photovoltaic project in the Al Jouf region was announced. This also
evidences the developments in the kingdom related to renewable resources. Hence, rapid
development is necessary in order to develop large-scale projects and achieve the
aforementioned objectives.
2.3 Significance of domestic installation of solar panels
Domestic solar panels are effectively suited to adapt to the current urban environment.
These solar panels have the capability to store and secure the solar energy and convert it into
electricity. Furthermore, it has also been observed that household solar panels do not destroy the
architecture and shape of their households. As opined by Giridharagopal, Cox & Ginger (2016),
a household's installation of solar energy is quite difficult as they could alter the shape and
structure of the existing households. However, it has now been observed that most of the solar
panels do not take much space and therefore, they could be easily installed on the rooftops of the
households.

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
Figure 2.1: Solar cells
(Source: created by the researcher)
Cleaner systems should also need to be installed along with the solar panels that would
help the panels to remain cleaned. Lashgari & Zeinalkhani (2017) commented that staying in the
atmosphere could affect these solar panels and therefore, effective cleaner systems should also
require to be installed along with the solar panels. These effective technologies offer
opportunities for customers to take a stand on their environmental concerns. As per the
Environment Protection Act 1992, the households should use such energy resources that do not
affect the environment. These households should also maintain these solar panels so that they do
not get destroyed. As opined by Özkök & Güler (2015), development of economic systems is
crucial for the public to accept implementation of cleaner energy systems. Jouhara et al. (2017)
concur by stating alternative energy producers must be affordable for the users and should be
readily compatible with technologies supplied by third party vendors. Furthermore, Hu et al.

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
(2015) stated that the households should understand the usage of these solar panels. These
residents should understand these solar panels and their necessities for using renewable sources
of energy. However, Zboril et al. (2016) argued and commented that many households could
object such installation of solar panels due to the maintenance costs; therefore, it is essential to
make them understand about the necessity of such installation. It can be further added that
individual ownership of rooftop solar panel installation is essential. As opined by Wang et al.
(2014), the SA government could also rent rooftops from the residents in order to install solar
panels. In order to lower the rate of energy consumption driven by fossil fuels, technically
reliable usage of solar panel is needed. Freeman, Hellgardt & Markides (2015) justify the
dilemma in the usage of solar power can be explained by the help of a consumer-based approach
in most nations.
However, international policies driven by UNESCO can attempt to lower global carbon
emissions. This practice can also contribute to global GDP with the help of increased scope of
jobs in engineering and manufacturing sectors. It has been observed that such implantation of
solar panels could provide job opportunities to many people. Moreover, this would also allow the
households to be more cautious regarding their energy usage. Application of solar systems can
help to raise the awareness in a household to reduce energy consumption through regular
monitoring. The aforementioned monitoring facility can be installed with solar panels. The
applicability of suitable technology forms the foundation of this approach.
In the Saudi Arabian communities, people face blistering heat during the summer months.
Summer heat can be therefore used to trap the energy from rising temperatures. Solar panels are
built on this philosophy in order to attain the purpose of offsetting energy costs. Reduction of
energy bills is a prominent significance associated with the installation of solar panels.

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According to Schinko & Komendantova (2016), the amount of daylight that a Saudi Arabian city
is subjected in a day can be used to efficiently power a house without any non-renewable energy
consumption.
In summer days, the ratio of consumption to generation is tipped due to lower utilisation
of energy. In case of clouded skies, required energy can be drawn from power grid lines of
conventional electricity sources. However, Ni et al. (2015) argue, diffused sunlight is still
capable to generate power. This is emphasised by the study of Xu et al. (2016), who show cloudy
days produce 15 to 21% of the total power produced on sunny days. In addition to this,
utilisation of solar energy can also decrease stress on energy reserves caused by household
consumption through the provision of multiple benefits. The aforementioned benefits involve
energy independence contribution and support of local enterprises.
2.3.1 Use of semiconductors
In order to have some of the active layers in the solar panels, solar cells use a material
known as semiconductors. Semiconductors come under the three general classification of the
solid materials related to the electrical conductivity that is insulators, conductors and
semiconductors. As stated by Fernando & Siani (2016), the conductivity of a semiconductor can
be altered by the adding small amount of the heat or light energy. In addition, energy is being
absorbed by the electrons that can move more freely in the materials (von Hirschhausen et al.
1468). However, the amount of energy that is required to free the electron depends upon the
materials and is known as the band gap energy.
2.3.2 Conduction of electricity and the energy bands
It has been observed that both insulators and semiconductors tend to have full valence
bonds. In addition, the empty conduction of the bands makes the electricity and conduction much

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difficult. In case of a semiconductor, the light of heat helps in providing energy for an electron so
that they can get up to the conduction band with a lot of space in it. This is considered as the
amount of energy in the band gap energy. The semiconductors are related to the light and the
energy stored in it. The frequency of the light helps in determining the colour and the frequency
which is related to it. As stated by Nikolova et al. (2018), semiconductors that are being used
with the visible lights have the band gaps that match with the energy of the visible photon. When
an electron received enough energy to cross the required band gap, the electron is being left
behind a hole in the valence bond (Hu et al. 2015). However, the electron that moves to the same
effect as the one which is moving in the opposite direction. In some cases, doping of
semiconductors is also done. In this case, impurities are deliberately introduced to introduce a
number of carriers. In case semiconductors have more electrons it is termed as n- types, however,
in case more holes are provided it is termed as p - types.
Figure 2.2: PV cell
(Source: created by the researcher)

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2.3.3 Semiconductors in solar panel
PN junctions are the most advantageous part of the semiconductors for making the solar
panels. Due to the presence of PN junctions, a small electric field is being produced that help in
getting solar energy trapped in those solar panels. There are photons in the sunlight that are being
trapped by the semiconductors such as silicon. As commented by Zhu, Romain & Williams
(2016), the chemical bonds are much vital for the process in order to work properly. Silicon in
the semiconductor is used as two layers. The first layers are of boron and the other is
phosphorus. Thus, it can be evidenced that less gap and the photos trapped by semiconductors
dies the task of exciting the electrons without any kind of complication.
2.4 Monocrystalline silicon solar cells
Monocrystalline or single-crystalline silicon is a recognisable material to build solar
panels. They are characterised by an even coloured exterior that indicates the high purity of the
constituting element. Monocrystalline photovoltaic cells are made of cylindrical silicon ingots.
As opined by Urban, Geall & Wang (2016), these photovoltaic panels reduce costs and optimise
performance as the ingots are cut into silicon wafers to absorb additional solar energy. According
to the findings of Mohan et al. (2016), monocrystalline panels possess the highest rates of
efficiency, approximately 15 to 20%, due to their constituting silicon. The photovoltaic cells help
to produce high-efficiency solar panels with conversion efficiencies ranging as high as 21.5%. In
addition to this, Herrando & Markides (2016) assert monocrystalline silicon panels to be
compact and thus reduces stress on infrastructure. The aforementioned panels yield up to four
times of electricity in comparison to conventional photovoltaic panels. Another advantage of
using monocrystalline solar panels for domestic power lines is that they have a long product life.
Most manufacturers offer a 25-year warranty on these solar panels. Hence, application of

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Monocrystalline silicon in photovoltaic cells can be considered beneficial in multiple
perspectives of a project.
Efficiencies of solar cells can be contrasted on the basis of the in-vitro analysis, which is
commercially produced on large scale basis. As opined by Zhou et al. (2016), maximum
efficiency observed by laboratory analysis of monocrystalline silicon amounts to 25%.
Nevertheless, Castillo, e Silva & Lavalle (2016) has stressed on obtaining higher efficiencies
through the application of this monocrystalline silicon. Maghami et al. (2015) argue in order to
acquire efficiency of more than 25%; power generation has to do through multi-junction cells.
Due to this reason, monocrystalline silicon is readily applicable in the case of photovoltaic
devices to increase their performance. According to the findings of Wesseh Jr & Lin (2016), the
demand for installation is rarely stringent in contexts of structural imperfections. In comparison
to microelectronics applications, solar-grade silicon (Sog-Si) of low quality is used in case of
domestic installation of power grids. Nevertheless, monocrystalline-silicon has benefited the
photovoltaic industry through its rapid development in the faster production of monocrystalline
silicon for alternative power generation. However, a higher rate of production and decreasing
costs has resulted in a gradual reduction in the market shares of monocrystalline silicon.
2.4.1 Crystalline silicon cells with their advantage and disadvantage in generating solar
energy
While the silicon wafers are being made, they are cut from the boule of silicon. The
measurement varies from 150 mm in diameter and 2-2 m in length. As asserted by Yazdanpanah,
Komendantova & Ardestani, (2015), the boule is being grown from the molten silicon that is
extracted from the sand and it later purified. P- Types are made by adding boron to them. Silicon
wafers are being observed around 250-300 microns in thickness. On the other hand, phosphorus

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is being diffused at the top of the water so that n - type’s materials can be made from the
junction.
Advantage
● Silicon can be advantageous as solar cell materials because it is abundant in nature and
can be easily extracted from the sand (Agert et al. 2015). Thus, solar panels used by the
silicon can be made in the cheapest way.
● Silicon being a solar material is stable and can be understood well. This will help the
researcher to make a better quality of the solar panels.
Disadvantage
● While silicon is used as solar materials, a thick cell is required in order to absorb light
properly.
● A large amount of energy is required for purifying the silicon. Thus, it may take more
time in preparing the solar panels through the silicones.
2.4.2 Thin film solar cells with their advantage and disadvantage in generating the solar
energy
It has been observed that semiconductor material such as silicon absorbs lights very
strongly. As stated by Guerrero et al. (2015), thin film solar cells are just a few microns thick.
Thin film cells are made by sequential deposits of film that constitutes materials and patterning
the individual cells that make the module.

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Figure 2.3: Amorphous silicon triple junction cell
(Source: created by the researcher)
Based on the photovoltaic material used there are four major types of thin film solar cells.
● Cadmium telluride (CdTe)
● Some other organic cells and the Dye-sensitized solar cells (DSC)
● Copper indium gallium diselenide (CIGS or CIS)
● Amorphous silicon (a-Si) and other thin films made up of silicon (TF-Si)

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Figure 2.4: Thin Film solar cells
(Source: created by the researcher)
Working
Basic material in a photovoltaic cell is semiconductors. When the semiconductors are
being doped with phosphorus then, an excess of free electrons are being developed. In the
absence of light, there is a small number of atoms that are being excited that moves across the
junction (Karytsas & Theodoropoulou, 2014). This leads to the drop in voltage across the
junction. However, in presence of light more atoms are being excited that causes large current
output. This current is stores of a rechargeable battery and can be used as per the requirement.

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Figure 2.5: a layer of arrangement in the thin film solar cell
(Source: created by the researcher)
The advantage of thin film cell
● While making solar panels with thin film solar cells, a small amount of material is needed
● In addition, the solar panels made up of thin film cells requires a low energy
manufacturing process
The disadvantage of thin film cell
● However, manufacturing of solar panel includes, uniformity of deposition of material,
this requires large areas
● Some cell types such as silicon show less stability than a real crystalline silicon.
2.5 Diffusion and adoption protocol
Diffusion of innovation is communicated with channels in a society. According to
Freeman, Hellgardt & Markides (2015), this protocol is theorised and modelled overdue time.
However, Jouhara et al. (2017) argue the weaknesses relating to pro-innovation bias and
adoption forecasting can create issues in the later stages of installation. For instances, Roberts
and Urban model can be used in these areas of photovoltaic installation. The theory of diffusion

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of innovations helps to guide the installation of solar panels through an adoption process. This
facilitates the members of a society to accept radical changes in their lifestyle or general
ambience. These attributes in case of particular innovations can lead to the propensity of
adopters to retrieve innovation.
On the basis of these innovations, market penetration can typically vary through the curve
of S-shaped graph. Intake of technology occurs gradually in the lag stages. In presence of
commercial viability, this pace can be increased through rapid production. After a definite time,
the promotion of products diffuses prior to reaching a stationary phase. The stationary phase can
be used to either retain the market position or give rise to product extinction. Hence, introduction
of photovoltaic cells in a consumer-driven society can be progressed through innovation
diffusion.
2.5.1 Robert and urban model of a rooftop solar system
Reconstructing energy economy is the most effective strategies that aimed to resolve the
issues regarding the dual energy as well as climatic challenges. It has been observed that most of
the urban cities suffer from high energy demand. Therefore, a government of most of these
urbanised countries has shifted to the use of non-renewable sources of energy. This model
explains that rooftop installation of these solar panels is essential in order to resolve the issues
regarding energy. Furthermore, it has also been observed that rooftop solar panels would overall
help the houses to use this particular type of energy thereby ensuring an uninterrupted flow of
electricity.
Purpose of solar power is majorly driven by the process of diffusion of solar energy.
This, in turn, helps to determine the variables that can affect adoption and diffusion strategies.
Castillo, e Silva & Lavalle (2016) collect observations catering to several users of solar energy

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that reveal their insight on alternative energy generation. According to Ni et al. (2016), 79% of
population in Saudi Arabia is aware of the contrast that differentiates finite and non-finite energy
sources. Schinko & Komendantova (2016) state vendors of solar panels and power plant
manufacturers must provide comprehensive workshops and active discussions to enhance
customer acceptance for solar energy. It is essential that these residents have adequate
information and knowledge of using these solar panels. They should have plenty of idea
regarding their working protocol to ensure regular surveillance. Therefore, Lester et al. (2016)
commented that the government of SA should train the involved residents regarding the
monitoring of these solar panels. Relative advantage and economic compatibility influence
intention of the customers to install solar power panels in households.
Furthermore, Hirschhausen et al. (2017) stated that the SA government could take rented
rooftops from the residents. This sort of rent would allow the residents to install solar panels as
this would increase their revenue. Therefore, this sort of governmental decision of renting
rooftops from residents would overall allow them to install rooftop solar panels. An increment in
usage and adoption of solar energy as an alternative source of power generation can reduce stress
on finite resources of Saudi Arabia. The work of Xu et al. (2016) offers a targeted focus that
allows adoption and diffusion of solar energy through frequent aspiration and guidance. This, in
turn, helps to provide an interactive platform to the government to introduce policies and
decision.
2.6 Photovoltaic modules in generation of solar energy
Several individual cells are used and they are interconnected in order to form a
photovoltaic module. These photovoltaic models are used in order to deliver required amount of
energy that could be used in order to generate electricity. Furthermore, Wassermann, Reeg &

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Nienhaus (2015) opined that these photovoltaic modules also protect individual cells thereby
facilitating a better flow of electrons. These modules could be connected in the form of series
and this would, in turn, promote better energy consumption. As commented by Wesseh & Lin
(2016), polycrystalline silicon panels could also be used in these solar cells. The crystal structure
is not perfect in case of polycrystalline silicon panel thereby providing a grainy appearance. This
sort of appearance makes it difficult for the solar panels to capture solar energy thereby losing its
efficiency. Kannan et al. (2016) stated that most of the households use monocrystalline solar
panels due to its high efficiency in storing solar energy. However, Huang et al. (2015) argued
and commented that the manufacturing of these polycrystalline solar panels uses less energy
thereby ensuring high-cost advantage to the producer.
Figure 2.6: Photovoltaic modules
(Source: Given by the researcher)

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Thin-film solar panels are another useful technology that has been used by many
households in order to store solar energy. So et al. (2015) stated that this particular type of solar
technology has less market share due to its less power usage. Moreover, it is lightweight as well
as highly portable that makes it user-friendly. In case, any households wanted to change their
location, they could change their solar panels and install it to their existing houses due to its high
endurance. However, Zhu et al. (2016) argued and stated that thin film technology uses an
efficiency of 20.3% and it uses amorphous silicon. Cadmium telluride, as well as indium gallium
selenide, is the most prevalent components of this type of thin technology solar panels.
Figure 2.7: Thin film photovoltaic module
(Source: Given by the researcher)
Polycrystalline silicon has been globally used by households having market share of
about 55% as compared to its monocrystalline market share of 33%. It has been observed that
polycrystalline cells have high efficiency than monocrystalline panels.

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2.6.1 Photovoltaic system and solar panel
More than one photovoltaic cell connected in an electrical load that supplies electricity is
called a photovoltaic system. There is four major application of the photovoltaic system. Each of
them has their advantages in making the solar panels in an effective manner.
Telecommunications, health care, electrification in a rural area and water pumping are the main
application of the photovoltaic system. Along with that grid support and building, integration is
also are some application while utilizing the photovoltaic system.
Figure 2.8: Applications of the photovoltaic system
(Source: created by the researcher)

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A stand-alone PV system consists of names of small individual modules of the
photovoltaic cell. This photovoltaic cell produces 12 volts with the power output between 50 to
100 watts (Lashgari & Zeinalkhani, 2017). These PV modules are being connected to a single
array that provides a required output. These types of solar PV systems are being used in the
sewage treatment plant for waste disposal. As stated by Urban, Geall & Wang, (2016), there is
some photovoltaic system, with better that allows the load to be powered at the night, when there
is a low amount of sunlight. PV hybrid system is suitable for the application where there are
large differences in the sunlight across the year.
Figure 2.9: PV hybrid system
(Source: created by the researcher)
2.6.2 Power conditioning equipment
One of the most common types of device used for power conditioning is stand-alone
systems. As stated by Samargandi, Fidrmuc & Ghosh (2014), charge controllers are used in all
the systems that have the rechargeable battery. This helps in managing the charge in a better
way. This is done by reducing the current from the array, while the battery is close to fully

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charged. In the solar energy facilities, it has been observed that collection of the electrical
equipment that helps in converting direct current to alternating currents. Thus, this, power
conditioning systems are used in the making of solar panels so that bulk electricity grid of solar
panel can be connected (Ma, Yang & Lu, 2015). There are some monitoring devices in the power
conditioning equipment that help in solving the solar energy facility from the bulk electricity
grid. There is a maximum power point tracker that operates the array at the maximum power
point. This also includes the voltage transformer that helps in converting the voltage to the
required value of the load. As stated by Özkök & Güler (2015), a maximum power point tracker
may be integrated with the charge controller or the inverter. On the other hand, there are
inverters that are required for the system that helps in powering the AC loads. Along with that
the inverter also converts the direct current output of the array into the alternating current at the
required voltage.
2.6.3 Photovoltaic arrays
A proper array of photovoltaic cells would provide a greater amount of energy and therefore,
this would be beneficial for obtaining high amount of solar energy. Almasoud, & Gandayh
(2015) commented that a series or parallel connection of PV cells are essential in order to
establish a sustained flow of energy. Zhang et al. (2015) stated that the developer needs to
understand the significance of installing a similar orientation of PV cells. Similar mounting along
with same type of PV modules would ensure high efficiency of the solar panels.

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Figure 2.10: Array of photovoltaic modules
(Source: Given by researcher)
Uniformity is essential in order to ensure high efficiency of these photovoltaic cells.
Amini, Moghaddam & Karabasoglu (2017) commented that arrays are often divided into various
sub-arrays that further help these solar panels to receive high form of energy. Moreover, an
uniformity of these sub-arrays are essential in order to receive a high amount of solar energy.
2.7 Irradiance on the solar collector plane
Positioning of the sun is essential while installing solar panels on rooftops of households.
Solar altitude, as well as azimuth angles, is essential in order to ensure better focusing of sun on
the collector plane. Piggott et al. (2018) commented that the orientation of the solar collectors is
essential in order to ensure high solar energy. Furthermore, it has also been observed that at the

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time of installation of these solar panels, the sun's position should be kept in mind. Butler, Frost
& Walsh (2015) commented that the tilt angle of the sun should be kept in mind while installing
such panels. Therefore, it can be said that the developers should understand such tilt angle of sun
while posting these solar panels. This would ensure better focusing of sun and ensuing high
generation of solar energy.
Figure 2.11: Inclination of the solar panels
(Source: Given by the researcher)
It can be seen from the above figure that inclination of solar panels at right direction is
essential in order to ensure high generation of solar energy. Castillo, Silva & Lavalle (2016)
opined that direct sunlight would provide large number of photons on the solar collectors that
would overall induce high generation of energy. Reflected sunlight has less number of electrons
and therefore, conservation of such kind of reflected light would induce lower amount of energy.
Therefore, it can be said that such kind of solar panels should be installed at appropriate angle
that would facilitate better focusing of sun rays on the collectors. However, Taatjes et al. (2015)

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argued and commented that albedo radiation from sun needs to be collected effectively in order
to ensure high amount of solar energy. Freeman, Hellgardt & Markides (2015) stated that the
output obtained from these photovoltaic cells is dependent on the input of energy from sunlight.
Therefore, this orientation of sunlight is essential in order to promote high amount of solar
energy.
2.8 Grid connected rooftop solar systems
Grid connected PV systems helps in generating high amount of solar energy by
connection with utility grids. It consists of several solar panels along with investors and a
conditioning grid. Freeman, Hellgardt & Markides (2017) commented that in this type of grid
connected solar panels, an integrated battery is not provided. It has been observed that this grid-
connected power provides higher amount of energy at the time of requirement. Š ket et al. (2014)
commented that at the time of summer days, high amount of electricity is required and therefore,
this grid would provide higher amount of energy to the households. Therefore, grid-connected
solar panels can be used by many households at the time of necessity as this provides adequate
amount of energy.
2.8.1 Role of inverter in case of grid-connected solar panels
The photovoltaic cells that are located on rooftops are meant to collect and store
solar energy. However, this energy needs to be converted to electricity with the help of an
inverter. Herrando & Markides (2016) stated that it is essential to install an inverter along with
solar panels that would help in conversion of solar energy into electricity. Zboril et al. (2016)
opined that inverter changes the DC output from PV cells to AC voltage. This conversion from
DC to AC voltage is significant to facilitate electricity. This inverter is positioned between the

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grid and solar arrays receiving solar energy from both array as well as grid. Giridharagopal, Cox
& Ginger (2016) stated that another major role of this inverter is to monitor the waveform as
well as grid voltage of the solar panels. As commented by Kolb et al. (2016), this sort of
monitoring would ensure normal functioning of the grids. In case of households, it is essential to
enable a regular monitoring of these grid solar panels to promote a constant supply to electricity.
An inverter attached or connected to any malfunctioning solar panels would
automatically disconnect the safety rules of any households. UL1741 is a safety standard that
needs to be followed while installing such kind ofgrid-connectedd solar panels. Moreover, an
appropriate synchronisation of these grid-connected solar panels with inverter is also essential to
produce high voltage energy. Therefore, it can be said that inverters are essential in order to
ensure high voltage electricity.
2.8.2 Advantages and disadvantages of grid-connected solar panels
Grid-connected solar panels are effectively used by many households in order to trap
solar energy and convert into electricity. Moreover, high voltage of electricity is obtained with
the help of these particular grid-connected solar panels.
Advantages-
● A proper installation of grid-connected solar panels is quite easier since these types of
solar panels do not require any sort of battery. Therefore, it is highly economic installing
this particular type of grid-connected solar panels.
● This type of photovoltaic solar cells is carbon negative and therefore, need for
combustion of fossil fuels are not necessary.
Disadvantages

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● The power quality can get compromised on installation of these particular type of grid-
connected solar panels. PV cells have intermittent nature and this means that voltage can
be rapidly changed. Therefore, a constant monitoring and regulation of these cells are
essential to ensure high voltage output.
● Lastly, protection related challenges may occur with grid connected solar panels. Lewis
et al. (2016) commented that installation of two high level grid-connected photovoltaic
cells could develop several issues like desensitization as well as nuisance tripping.
Furthermore, it has also been observed that several inferences could also occur with this
particular type of grid connected solar system.
2.9 Demand of distributed power supply
Demand of domestic energy across Saudi Arabia depends on the usage range of each
household. This range can be influenced by type of household, use of appliances, total occupants,
options of energy source and behavioural patterns. According to Freeman, Hellgardt & Markides
(2017), production of energy estimates in the national energy usage is differentiated by terminal
application and type of fuels used in the concerned sectors. Net end-use demand of energy in an
average Saudi Arabian household can be approximately 21,000 kWh per year that is primarily
supplied by electricity produced through crude oil combustions (Herrando & Markides, 2016).
61% of the produced energy is spent in thermoregulation, 23% in heating, 12% lighting and
appliances and the remaining 4% in cooking. Özkök & Güler (2015) indicate these usages are
primarily supported by electricity as well as liquid petroleum gas. While considering impact of
energy consumption, it is crucial to consider consumption of primary energy with respect to the
demands of end-users. This application is mainly susceptible to the economic tolerance of

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common people in a country. Hence, 1 kWh of consumed energy in domestic household can be
calculated as 2.9 kWh of input into power stations.
The present economy deregulated electricity market through active participation of
generators as well as in trading for energy utilisation. The residents should take care of their
usage for non-renewable sources of energy. Saudi Arabia has adequate oil reserves and this does
not imply that the residents could over-exploit these resources (Zhu et al. 2015). The residents
should take care of their use of non-renewable sources of energy and limit their usage.
Furthermore, Jung et al. (2014) stated that the government has planned to use renewable sources
of energy by installing rooftop solar panels. This would not only restrict the prolonged use of
renewable sources of energy but will also educate people regarding the necessity of using
renewable sources. This is critical and essential for consideration in a global platform to meet the
growing demands of energy.
In order to implement flexible operations on power grid lines, the aforementioned supply
and demand ratio must be balanced through dispersion of the demand on alternative energy
resources (Wesseh Jr & Lin, 2016). Hence, distributed management to meet energy demands of
consumers can be influenced in real-time marketing environment. According to Zhou et al.
(2016) balance of global energy can be encompassed by smart grid technology that is achieved
by the agents that decide on demand and supply of power. These agents mark the energy demand
of the residents and accordingly develop these smart grids in order to meet their demands.
Moreover, it has also been seen that the government should develop a rough estimation regarding
the amount of energy usage for a locality and accordingly install rooftop solar panels. Network
models demonstrate power imbalance and can be interchanged through existing system
networks.

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2.10 Organic photovoltaic technologies
Primary drivers for solar power development in a context of an economical module can
lead manufacturers to build affordable solar electricity at a base level. Jung et al. (2014) stated
that the development of affordable solar panels is essential that would attract a majority of the
residents. It is evident that residents would not install expensive solar panels and therefore, the
installed rooftop solar panels should be lower in cost. Freeman, Hellgardt & Markides (2017)
stated that grid-connected power systems can be analysed in the presence of direct energy
processes. Moreover, Nikolova et al. (2018) stated that these grid-connected photovoltaic cells
could be used by the government as this ensures easy installation of solar panels. However,
Mohan et al. (2016) argued that human resource, system balance, and maintenance costs are
equally crucial for the calculation.
Before the installation of these solar grids, it is essential to calculate the total expenditure
for such installation of solar panels. As stated by Sari et al. (2018), the photovoltaic cells should
be installed properly that could promote better storage of solar energy. The assumption of values
for performance ratio of photovoltaic cells is calculated in the presence of interest and inflation
and rates of levelised electricity costs. As stated by Jouhara et al. (2016), the average irradiance
of solar power is calculated to be within the range between 7.004 kWh/m2 and 4.479 kWh/m2,
per day. The aforementioned calculation for 1kWp systems are driven by modules that contain
cells with 7% efficiency and 5 year lifetime (Urban, Geall & Wang, 2016). This module can
constitute a majority of cost systems while cost of materials can comprise large contribution in
mainstream energy production. Thus, application of the aforementioned technology can ensure
greater participation from the base level economies.
Organic photovoltaic cells involve organic polymeric and hybrid dye sensitive
technology. It serves as a promising solution, which can generate solar electricity in a cost

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effective manner in comparison to conventional photovoltaic systems. This technology of
organic photovoltaic cells helps in better consumption of solar energy. Furthermore, this
technology also helps in better accumulation of solar photons that overall help the residents to
store a high amount of solar energy that can be later converted into electricity. Ismail et al.
(2015) have analysed the life cycle of organic photovoltaic cells through bulk heterojunction of
organic photovoltaic cells. The comparison of efficiencies has been tallied against industrial
demand of solar energy in a given area. In addition to this, detailed inventory of raw materials
and its successive channeling to photovoltaic modules identifies potential bottlenecks. These
bottlenecks reside in future logistic of large output. Wassermann, Reeg & Nienhaus (2015) find
carbon dioxide emission and energy payback time to be critical parameters for photovoltaic
technologies. This enumerates the scope of improvement in an optimized fabrication procedure
scaled in an industrial protocol. Fabrication of organic photovoltaic modules with fullerene
requires a spin coat of a polyester compound.
2.11 Credibility of organic photovoltaic technologies in domestic power grids
The purpose of the present project targets cellular level research on organic photovoltaic
energies. However, advances in the comprehension and innovation of new processes and
materials are applied in contexts of organic transistor display and photosensitive diodes.
According to Zhou et al. (2015), photovoltaic technology helps to improve efficiency of
gridlines upto 5,000 un encapsulated hours. This, in turn, creates a potential to create roll-to-roll
production. As stated by Yaacobi‐Gross et al. (2015), building-driven PV markets can provide
ample scopes to organic photovoltaic technologies in domestic power grids. This is because;
availability of absorbers in multiple spectrums can manage transparent devices in a more
effective manner. According to Alshehry & Belloumi (2015), development of organic

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photovoltaic devices paves the way for extensive processing and deposition of materials for
device fabrication. In case of domestic grid lines, this fabrication has to be done in presence of
an ambient pressure and temperature range. A prominent advantage of this technology in the
retrospective of domestic gridlines is the diversity of organic PV cells (Bernardo et al. 2014).
These cells are synthesised for acceptors, interfaces and absorbers. However, discussions
pertaining to improve lifetime and efficiency of the device can explain operational fundamentals
of charge-separation.
Figure 2.12: Organic photovoltaic cells
(Source: Nrel.gov, 2018)
Furthermore, mechanisms of charge-transports allow creating more efficient and stable
device architecture. The aforementioned architecture is based on materials that can enhance
energy-level alignments of spectral response. Castillo, e Silva & Lavalle (2016) present a
modified polymer to deduce appropriate photovoltaic properties through addition of fluorine
atoms in side chains. Configurational changes in polymers can affect cell efficiency and
increases output by several multiples. Schinko & Komendantova (2016) investigate microscopic

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polymer structures of organic PV and characterise them through enhanced carrier mobility
charges. This amounts to better conduction of material electricity through domestic power
gridlines. Kulbak, Cahen & Hodes (2015) comment multiple manufacturing phases in traditional
silicon photovoltaic systems. Light-absorbing polymerisation can also be used in domestic power
grid lines in order to obtain better performance in affordable rates. These designs can also be
used to deposit solar batteries of organic origin on the roof tiles. According to Bernardo et al.
(2014), challenges of installation of organic photovoltaic cells in domestic gridlines can be
challenging due to the need of solar energy optimisation through accurate molecular energy
ranges of donors and acceptors. Overall, installation of organic photovoltaic grid lines can
encompass a cost-effective and durable energy generation for domestic power consumption.
2.12 Gap in literature
Based on the critical analysis of published literature, the researcher has recognised a
number of gaps in the concepts and efficacy of photovoltaic cells. The previous journals do not
detailed much regarding the initial installation charges that are required for solar panels.
Moreover, there has been a misconception that installation of solar panels would require a
change. The researcher has provided details about several types of solar panels that do not
require any configuration change of their houses. In addition to this, power plants take up a
significant area to accept a large amount of concentrated solar radiation.
The literature also fails to cover the issues pertaining to fluctuations in efficiency during
night time, or cloudy days. However, previous researchers have provided an in-depth analysis of
the devastating impact of using non-renewable sources of energy. Gorton et al. (2017)
commented in their research study that non-renewable sources of energy have a detrimental
impact on the health of most of the affected people. However, the previous researchers have

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failed to execute a proper planning regarding the installation of rooftop solar panels. In this
current research study, the researcher has provided planning regarding installation of rooftop
solar panels. Both advantages as well as disadvantages of such installation of rooftop solar
panels have been detailed in this current research study. Ismail et al. (2015) have asserted the
need for large battery banks to store the energy for future use. In addition to this, devices that run
on direct current are more costly. The literature also fails to address the impact of geographical
locations on expected dimensions of photovoltaic panels. As opined by Wassermann, Reeg &
Nienhaus (2015), the sizes of these panels vary in accordance with power generation. However,
no definite measurements have been given in the appraised literature.
2.13 Conclusion
As studied in the above paragraphs, it can be concluded that photovoltaic cells are
electrical devices, which converts light energy of the sun into electricity through the photovoltaic
effect, in the form of a physio-chemical phenomenon. Currently, there has been prolonged use of
non-renewable sources of energy and this affects the health of the residents. Therefore, the
government has taken initiatives in order to switch to alternative sources of energy. It is essential
to use renewable sources of energy as this would reduce the devastating impact on health.
Thin film photovoltaic cells are a few microns thick, which gives them the capacity to be
used in places that lack ample space. In addition, it also ensures maximum intake of energy
during their exposure to solar radiation. The gaps in this literature have demonstrated a need for
further research in the categories of storage of solar electricity and its cost-effectiveness.
Previous researchers have detailed about the impact of non-renewable sources of energy on
people. However, they have not provided any preventative measures that could be used in order
to reduce or minimize this impact. The current literature explains details about the need for

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installing rooftop solar panels. The concept of using renewable energy has been discussed in the
light of previous works. This has established a common ground for initiation of the proposed
project to be discussed in the following sections.

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CHAPTER 3: SCOOPING OF THE PROJECT
The area chosen for the project is Jeddah. This area is chosen due to its prolonged
exposure to sun rays. Results from the house energy survey recognise almost all the households
use electricity to which 99.2% are to a public electricity grid. 0.6% of the population uses a
private electricity grid. The remaining 0.13% of the households consumes power generated from
their own electrical generator. The present survey that encompasses the city of Jeddah has
revealed 1.3% of total population that utilises solar powers for domestic uses. This offers ample
opportunities of integration of solar power generators in broader base. This in turn can increase
energy consumption from alternative sources. 92.16% households use liquid petroleum for
cooking, whereas 6.71% use electricity as a cooking fuel. The remaining trace of masses depends
on fuel wood as their fuel source
These results indicate that consumable fuel is mostly derived from finite sources such as
fuel oil (diesel), kerosene and LPG (gas). Furthermore, the city of Jeddah uses biomass products
such as coal, agriculture waste and firewood. It can be indicative of biomass production in
Jeddah is essentially represented by cooking and heating purposes. Residential sectors in Jeddah
are responsible for 0.34% and 1.39% of diesel and kerosene consumption in Saudi Arabia
respectively. The city of Jeddah is highly populous with two-third of the population devoting 5 to
10% of their net income on fuel and electricity. It can be easier to raise awareness in large
population about the need of using alternative sources of energy, given they portray definite
concern for the environment (Helmig et al. 2016). Almost half of the population supports the
idea of installing expensive solar power cells to reduce the impact of energy consumption on
finite resources through the present project. However, the rest of the population is yet either
sceptic or disagree to the aforementioned.

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
Figure 3.1 Demand and consumption of crude oil (1000 barrels per day)
(Source: Agsiw.org, 2016)
A significant reason for choosing Jeddah for the project is that the city administration
relies in the custodian of several governmental programs of renewable energy. Solar-powered
stations are prominently established due to the expansion of environmental awareness. Another
reason for choice of solar energy to be used as privatised power generation source is that it is
noiseless and free of emissions. Installation of these renewable energy power stations in
domestic gridlines can reduce the stress on mainstream power generation. This reduces amount
of carbon emission in atmosphere and aids in benevolent investments in the context of
environmental development. The present project is drawn in the context of leadership vision to
provide a cheap and surplus energy resource to the Saudi Arabian energy market. The critical
aspects of reform program can be used to nationalise the value chain of renewable-energy to
render solar power a strong contender in the national energy market.
Melding of renewable and fossil fuel energy can help the consumption of energy to be
channelled into a more sustainable manner. These resources can be utilised in the presence of

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
overall perceptions of customers that may opt for installation of solar power grids in their houses.
This project analyses the need for additional solar applications in the Saudi energy markets and
meet their demands through objective achievement. Solar-energy projects can be beneficial for
domestic households, mainstream energy production systems as well as local manufacturers. The
infrastructure of this project collaborates with the joint effort of government and private sectors.
A number of Saudi providers of energy products have initiated their transformation to
photoelectric energy to charge supply stations. This sustainable, versatile and natural energy
source can also develop the corporate social responsibility of the nation in a global perspective. It
is predicted national consumption of energy would be tripled by 2030, which further adds to the
need of developing household solar panels.

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CHAPTER 4: METHODOLOGY
The researcher will formulate primary as well as secondary research involving overlook
of local markets and necessary resources (rooftop materials, sustainable houses). A competitive
analysis will be done to implore SMART objectives. Relationship with stakeholders will also be
attempted to enhance through appropriate awareness programme. Furthermore, both primary, as
well as secondary market research will be performed in order to obtain information regarding the
use of photovoltaic solar panels. Moreover, the researcher will carry out this primary research on
households of Jeddah in order to analyse their perception regarding the use of photovoltaic cells.
Sari et al. (2018) stated that most of the residents of these households would provide detailed
information regarding the use of solar panels. Moreover, the researcher has planned to install the
solar panels on the rooftop and therefore, permission from these households are essential before
installing photovoltaic cells.
4.1 Research philosophy
The philosophy of the present research is based on post-positivism. Post-positivism is a
contemporary research philosophy that has combined favourable characteristics of positivism
and realism. According to Helmig et al. (2016), research philosophy drives the mannerism in
which information about events are gathered, appraised and implemented. Research philosophy
also helps the researcher to carry out this research study with utmost authenticity. Furthermore,
in this case, post-positivism research physiology has been selected as the researcher will
conclude results based on the primary findings that are obtained from the survey questionnaire
conducted on the households.

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4.2 Research approach
The present research has been driven by a deductive approach. This helps to design the
project in a way that can facilitate the researcher to gain awareness about insight of local people.
This insight will help to formulate the strategic development of the solar power project.
According to Saunders et al. (2011), research approach formulates a procedure that involves
wide assumptive details of data analysis, accumulation and recognition. Research approach
divided into data collection and. reasoning.
4.3 Research design
The study follows an explanatory research design to conform to the theoretical paradigms
of alternative energy generation. The researcher has used this design to facilitate comprehensive
understanding of people’s opinions in Saudi Arabia about installing rooftop photovoltaic grid
lines. Research designs are arranged through specific set of collections in either descriptive,
correlation or experimental manner.
4.4 Data collection tools and techniques
Collection of data is done from both primary and secondary sources. Primary data is
retrieved from interviews of customers, builders, and vendors to analyse the situation of
alternative energy demand in Saudi Arabia. The information gathered through semi structured
interview is qualitative in nature. This data has facilitated the researcher to understand the
perspective of people through some open ended questions. These questions address the issues of
economy and environmental awareness in customers. Secondary data that is collected from
published literature is both qualitative and quantitative in nature. Diverse category of information

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
has helped the researcher to form a comprehensive appraisal of the situation. [Refer to Appendix
A]
4.4 Data analysis tools and techniques
Analysis of data is one of the most significant portions of research studies. The data that
is collected from interviews and published literature is thematically analysed. The segregation of
information into specific themes has facilitated enhanced understanding pertaining to the issue of
energy consumption. Saudi Arabia enjoys rich deposits of finite resources. However, these
resources are readily depleting due to indiscriminate consumption by the economy. Nevertheless,
consumer-driven approach of Saudi Arabic society has suppressed the level of environmental
awareness among people. Appropriate analysis of information can help to formulate the present
standpoint of customers in the face of resource depletion.
4.5 Primary market research
This research project will carry out a comprehensive literature review that concerns
production and utilisation of solar energy in Saudi Arabia. The researcher will also perform a
detailed analysis of the renewable as well as non-renewable sources of energy. Gorton et al.
(2017) further added that it is essential to understand and get an insight about the issues faced by
using these particular non-renewable sources of energy. Therefore, this proposed research will
detail the issues faced by the people regarding their use of non- renewable sources of energy.
The proposed research project implies the usage of theoretical paradigms of solar power
generation. This can be beneficial to generate a steady power source in households of Jeddah.
The following sections have further discussed the significance of rooftop solar panels in the
generation of electrical and thermal power. It has been observed that these small households of

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
Jeddah might have some sort of issues while implementing these photovoltaic cells. As opined
by Huang et al. (2015), installation of these photovoltaic cells requires spaces and therefore, the
researcher should understand the issues faced by these small households. As opined by So et al.
(2015), it is essential that before installing these photovoltaic cells, permission should be taken
from these households. Small households are considered to be an important catalyst to instigate
power generation from solar energy.
Countries like Germany, Spain, Italy, Japan and the USA have installed solar-capacity
generators through appropriate utilisation of renewable technology. Concepts of feed-in-tariff
can be evaluated in the context of present scenario. As commented by Butler, Frost & Walsh
(2015), feed-in tariff is payments that are made to households in order to generate their own
electricity. It has been observed that apart from Saudi Arabia, many other countries like USA
and Japan has provided these tariffs to their households. However, it is essential that these
households use such form of energy that does not deplete natural resources. This is because it
can establish a prominent building integrated and small-scale photovoltaic power generation
centres. Feed-in-tariff policies have showed promising growth in photovoltaic markets. In case of
Saudi Arabia, government-funded feed-in-tariff policies for household developers can be
implemented in Jeddah.
The aforementioned strategies have motivated the researcher to evaluate rooftop overlook
and analyse efficacies of solar panels. Researcher has attempted an evaluation of sustainable
housing strategies that can facilitate the installation of photovoltaic power grids. This overlook
can be aided by raising overall awareness of the citizens and motivate them to opt for renewable
power sources. The installation strategies have been formulated by keeping consideration of the
present market scenario with respect to solar panels. In order to understand the impact of the

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
above-mentioned solar panels, a thorough economic evaluation of Jeddah is implemented.
Overall, researchers have analysed the proposed feasibility study through SWOT and PESTLE
analysis to offer comprehensive views of intrinsic and extrinsic influencers of the project.
Furthermore, a competitors' analysis is detailed to estimate demands for power generation. The
presence of commercial solar panel installation projects and their success rates is to be evaluated
to understand market position of the proposed project.
4.6 Stakeholders analysis
The researcher has built a relationship with the stakeholders, as this would help the
researcher to carry out this project. Local contractors have aided in the development of these
installation projects effectively on rooftops. Permission from the ministry of energy will also be
ensured for better communication and conduct of this project. Apart from ministry of energy the
researcher has facilitated permission from Industry and Mineral Resources Institution.
Figure 4.1: Stakeholder analysis

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
(Source: Given by Learner)
4.7 Costing and financing
The financial plan will be done based on involved capital costs and possible financial
revenues generated by the project. In addition to the conceptualisation, the present project will
also implement a comprehensive financial assessment of the installation proposal that will
involve the costing of photovoltaic cells and other relevant equipment. The researcher will also
enlist the total amount of funding that could be received for this project. Based on these findings,
the researcher will recruit staff members who will carry out this installation process. Moreover,
several materials are required in order to carry this installation process. The photovoltaic cells
need to be installed appropriately. Apart from cells, mirrors should also need to be implanted
appropriately that are essential to focus sunlight on these photovoltaic cells.
A detailed financial project of the consultation of the workers is also essential for better
analysis by the researcher. The workers need to be trained regarding proper installation of the
solar panels on the rooftop and therefore, such training involves better recruitment of efficient
trainers. Therefore, the researcher needs to carry out cost of such trainers. Furthermore,
technicians are also required and their cost should be detailed in this research project. During
installation of photovoltaic grid systems, several materials are used and their costing would also
be listed in this research project. Therefore, it can be said that the researcher would provide a
detailed analysis of the overall costing as well as their financing.

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CHAPTER 5: ECONOMIC STATUS OF SAUDI ARABIA TO PRODUCE SOLAR
ENERGY
5.1 Introduction
It has been observed that there is a continued rise in demand for electricity in Saudi
Arabia that means the power generation must expand. Thus, the conventional; generation is one
of the major cause of environmental pollution that negatively impacts human health with the
emissions of greenhouse gases. The recent high loads require appropriate as well as adequate
power generation of the power. Since 1960, the use of solar energy has been increasing in Saudi
Arabia. It has also been observed that one of the systematic research and development of work
for developing solar energy technologies was started by the KACST in 1977. This solar plant is
located at the north of Jeddah and the operations were started in May 2010.
5.2 Energy generation
The university has 9300 modules of 215 Wp over11600m2. This is intended to produce
3300 MWh of clean energy every year. Moreover, it can save up to 1700 tons of annual carbon
emissions in the Kingdom. According to Alshehry & Belloumi (2015), anticipated cost of a solar
power plant driven by photovoltaic grid connections can be around approximately 65 million.
This, in turn helps to shed light on the socio-economic status of Saudi Arabia.

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Figure 5.1: CO2 emission from electricity consumption in Saudi Arabia
(Source: Almasoud & Gandayh, 2015)
Another solar plant named Farasan solar power plan has the capacity of 500 kW. It was
being constructed in Saudi Arabia in an area of 7700m2. As stated by Guerrero et al. (2015), this
solar power plant of a standalone system, that is being intended to feed the Farasan Island, south
of Saudi Arabia. The world’s largest solar generation project is located in Dhahran, Saudi
Arabia. This is at the headquarters of the oil company Saudi Armco. This oil company in Saudi
Arabia has 10 MW carport systems that have the capacity to cover 2000,000 m2.
5.3 Economics of Solar Energy
It has been estimated that solar energy cost has been declined from 90 Kwh in 1980 to
approximately 20Wh today. As stated by Tey & Mekhilef (2014), overhead costs of photovoltaic
cells in the year 2018 will lie in the range of $11,380 to $14,990 (post tax credits). However, the
USA has a target to make more photovoltage-generated electricity that costs competitive with

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
energy sources by 2020. In 2008, based on the report it is identified that overall cost in Saudi
Arabia for conventional electricity generation is being supported by the government was
approximately SR 0.15. Nevertheless, according to global pricing strategies of oil, the expected
cost of per barrel oil is asserted to increase by $68.31 in the year 2018. Moreover, it is estimated
that by 2020 it will increase by $98.
Figure 5.2: PV generated electricity cost in Saudi Arabia (100 Halalas= 1 Saudi Riyal)
(Source: Almasoud & Gandayh, 2015)

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
Figure 5.3: Solar insulation in Saudi Arabia Annually
(Source: Almasoud & Gandayh, 2015)
5.4 Steps of government for solar energy
The Saudi Arabian government has recently announced their programme to develop a
commercial and industrial area that is powered by solar energy. The aforementioned area can be
located in the northwestern region of the nation and can extend to Jordanian and Egyptian
borders. Public Investment Fund of Saudi Arabia has developed a formal understanding with
respect to a privatised equity fund to develop 3 GW worth of solar photovoltaic projects. ACWA
Power is the chosen company that can develop the PV Sakaka project. As stated by Farret
&Simões (2017), investments in the sector of renewable energy can facilitate increment in short-
ranged income of oil-exporters.
This can be implemented through disclosure of respective hydrocarbon resources for the
purpose of export. However, Bhattacharya et al. (2016) comment this can be only possible when
international rates of hydrocarbons are situated above the break-even point. Large-scale oil-

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
exporting nations like Saudi Arabia possess unique characteristics, which can settle for attractive
investment rations on the sector of renewable energy (Weitemeyer et al. 2015). In addition to
this, Saudi Arabia is also in a stage that includes an enhanced energy demand. In the case of
developing countries, economic growth can be directly related to energy consumption.
5.5 Need for production of alternative energies
Application of energy is a nation-wide requirement, irrespective of the economy. Hence,
the recognition of various resources that involve both traditional and modern sources is
necessary for Saudi Arabia. The operational area of primitive energy production has been
lowering since ages. According to Stigka et al. (2014), public awareness is essential to make a
nation accept the contemporary approaches of energy production. Internal energy institutions that
can educate consumers to reduce over-consumption of energies drive the lower levels. However,
Mwasilu et al. (2014) argue problems occur after the passage of several generations that remain
staunch in their dependence on fossil fuels.
Despite the rich mineral and oil deposits of Saudi Arabia, it is critical that the nation
starts implementing alternative products that can reduce stress on the traditional energies. Thus,
this research compares the present levels of traditional energy deposits as well as the scope of
alternative and nuclear sources of energy. As stated by Yazdanpanah, Komendantova &
Ardestani (2015), the resources that are used in an Arabian household for energy consumption
are mainly expended in domestic affairs like water heating, air-conditioning, and cooking. As
commented by Gude (2015), these are run by various energy sources that involve the production
of fuel through a nuclear or thermo-chemical reaction. Similarly, domestic needs are met by the
usage of Diesel. Usage of farming machinery and personal transport can also increase the use of
fossil fuels.

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5.6 The environmental condition of Saudi Arabia
The increase in climate change will lead to the increase in the global temperature by 2100
(1.4C to5.8C and 34.52F to 42.44F). Thus, this will affect the quality as well as availability on
the water in the earth's atmosphere that is being associated with the global warming. As stated by
Amini, Moghaddam & Karabasoglu (2017), Middle East countries such as Syria and Saudi
Arabia are in the water crisis. Saudi Arabia includes the majority of the Arabian Peninsula
without having any permanent rivers or lakes. In Saudi Arabia, the long-term, average rainfall is
114mm per year. In spite of being one of the wealthiest nations globally due to its economic
condition, the country is poor in its natural renewable water resources.
Figure 5.4: Sectoral withdrawal of water in Saudi Arabia
(Source: Carpenter et al. 2015)
As commented by Zhu, Romain, & Williams (2016), mismanagement of water use in the
agricultural sector is one of the significant reasons for Easter- starved status. The annual

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
population growth rate that is 2.5% is being coupled with 8.8% of the annual increase that
brought changes in the climate of Saudi Arabia. It has been observed that Saudi Arabia has
become a global leader in the use of desalination technologies. This new has been replaced as
one of the primary source of drinking water in Saudi Arabia. As commented by Taatjes et al.
(2015), the ability to adopt any kind of change largely depends upon the national resources.
Thus, it is required the hardships is associated with the climate change are not equally distributed
among the poor population.
Saudi Arabia is one of the most influential Middle Eastern nations in the grounds of
demographic, economic and bio-geographical outreach. The national reserves of crude oil and
gas are considered amongst largest deposits of fossil fuels that are further aided by highly
subsidised energy prices. Overall, these factors have facilitated the creation of an energy-
intensive society in Saudi Arabia. Since early 1950s, the nation has undergone rapid
transformation in its socio-economic strata. This change is driven by massive developments in
infrastructure and national economy. As opined by Mallakh (2015), the evidence of
aforementioned development is clarified through rapid growth in building and construction
sectors. Saudi-Arabian building sectors consume approximately 80% of net power. In addition to
this, domestic buildings use 51% of the nationally generated power. Samargandi, Fidrmuc &
Ghosh (2014) state power demand in domestic sector may be doubles in the next ten years. Saudi
Arabia is one of the leading nations in the grounds of carbon dioxide emissions and energy
consumption. Thus, this growth can substantially increase environmental burdens, which
demands paradigm shifts in practices of energy consumption.

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5.7 Factors that are required for driving Renewable Energy in Saudi Arabia
It has been observed that there is a lot of potential solar energy in Saudi Arabia. As stated by Š
ket et al. (2014), the horizontal solar irradiation ranges between 2,000 and 2,500 KWh/m2/year.
This is one of the highest ranges in the world. This is being coupled with the drop in world oil
prices. Four key drivers can accelerate the adoption of the technology in Saudi Arabia in 2018.
● Net -Metering Regulations
Net-Metering Regulations are the regulations that are being designed to foster the private
investment in renewable resources. In August 2017, the ECRA have developed a framework for
the electricity consumers to operate own small-scale solar power. As asserted by Lewis et al.
(2016), this regulation creates significant financial incentives and accelerates the private sector in
small-scale renewable energy applications. This has come into force in July 2018. Thus, those
who are pre-qualified and registered installers, they must carry out work so that system can be
eligible. The three key energy projects in Saudi Arabia are as follows:
● 300 MW Solar PV plant in Skaka
● 2,400 MW wind energy plant in Madinah
● 2,400 MW wind energy plant in Dumat al Jandal
In order to achieve the targets that set out in the above-mentioned project, some of the
additional projects will also be tendered for the next coming years. This creates opportunities for
both the public and private relationships. Thus, these projects and the deployment of renewable
energy solutions can be gained.
● National Renewable Energy Plan

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Figure 5.5: Technical Bids for 300MW Sakaka PV project
(Source: World Economic Forum, 2018)
The above is one of the key components of vision 2030. This is a long-term renewable
energy strategy that is being designed to balance strategic designs and domestic power mix; this
is done in order to deliver long-term economic sustainability to the kingdom. The above-named
programs sums to increase the shares of renewable energy in the total energy mix that targets the
generation of 3.45 gig watts of the renewable energy by the year 2020 and 9,5 GW by 2023.
● Technology Advancements
The advancements in Saudi Arabia has enhanced the output of the solar panels that have
driven the expense of solar panel significantly over past 5 years, it is expected that price will
decrease due to the further advancements in solar manufacturing, energy storage and solar
technology (Schomaecker et al. 2014). However, two more challenges that remain in local level
are high temperature and dust. Researchers are going on in order to overcome the problems such
as electrodynamics screens, air blowers and coatings.
● Increased Tariffs
It has been observed that in January 2018, the Electricity and Cogeneration Regulatory
Authority (ECRA) had announced that there is a threefold increase in the human resource

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
employed by power generation sectors. Hence, it has given rise to the costings for maintaining a
sustainable energy farm. This has hiked the price for 87.5% of domestic users, who pay nearly
18 Saudi riyal per kilowatt hour in comparison to 7 Saudi riyal per kilowatt hour. The prominent
effect of this occurrence is the increment in costing of monthly electricity bills. As commented
by Hermans et al. (2016), the increase in electricity bill enhanced the solidification of the
business renewable energy projects. Previously, the payback period was of 10- 15 years.
However, now being small scale solar photovoltaic cells that are now expected to have a payback
of 5 to 7 years (World economic forum, 2018). This is much attractive that considers the25-yearr
life cycle of the overall system.
5.8 Domestic Energy demand in Saudi Arabia
The prominence of multiple energy sources (fossil fuels, solar and wind) has rendered a
strong vantage point from Saudi Arabia. The inclusion of both renewable as well as non-
renewable energy sources has led the country to its economic success in the past few decades.
The large energy reservoirs cater to the global energy need. However, with indiscriminate usage
the aforementioned deposits have been readily depleting and are giving rise to energy shortages
in the social economy.
The acute energy shortage in past few years has influenced the growth in oil demands. As
mentioned by Alshehry & Belloumi (2015), growth in the demand of any commodity is also
responsible to a hike in its costs. Due to increased globalisation, there has been an increase in the
demand for energy and this contributes to energy crisis. Erdinc, Paterakis & Catalão (2015)
commented that enormous population growth has contributed in increased demand for energy
thereby impacting the renewable energy store. Khorshidi, Shabaninia & Niknam (2016) further
stated that there are limited supply of non-renewable sources of energy like coal and oil. Thus, it

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
is essential to secure and store such energy reserves for ensuring sustainable future. In Saudi
Arabia, high rate of industrialisation, as well as economic developmen t, has prompted high use
of energy. Moreover, with increase in the national wealth, the demand for energy also increases.
Figure 5.6: Primary energy consumption pattern in Saudi Arabia
(Source: Nachet & Aoun, 2015)
It has been observed that Saudi Arabia generates a total of 25% of oil per year, however;
the demand for energy per year gets increased by 10%. Based on various statistical findings,
Germany produces much less oil having three times more population as compared to Saudi
Arabia. Moreover, it has also been observed that the energy demand of Saudi Arabia has been
increased by 9% per year while the generation of electricity has increased only by 7%.
Therefore, it can be said from these statistical findings that the country is facing energy crisis
despite being one of the largest exporter of oil. Therefore, in order to solve these issues of energy
crisis, Saudi Arabia need to import oil in order to meet this energy demand. Hosseinian et al.
(2015) stated that import of oil from other countries would be disastrous for the country as they
would not be able to export their oil reserves. Most of the revenue of the country comes from its

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
export business and therefore, this sort of import would overall affect the economy of the
country.
The only remedy of this energy crisis could be utilisation of their renewable energy
sources. Saudi Arabia needs to use several energy efficient measures that could minimise this
energy issues and ensure high efficiency of their power supply. Various renewable energy
projects need to be implemented by the country in order to reduce such energy crisis and
promote high power supply.
5.9 Rise in power demands and natural sources
The exponential rise in power demands in Saudi market contributes to the need of
expansion in the sectors of power generation. Conventional energy generation is a prominent
reason that can give rise to environmental degradation. In addition to this, it creates adverse
impact on human health through increased emissions of greenhouse gases like carbon dioxide
and chlorofluorocarbons. The national economy of Saudi Arabia has been recently modified to
cater to an additional industrial sector relative to power generation. Herrando & Markides (2016)
comment the geographic positioning of Saudi Arabia in the tropical belt has paved its way to
grow as one of the strongest solar energy giants. Due to prevalence of conventional generation of
energy, indirect costs for mining and processing of fossil fuels can be inclusive of the total
budget. In case of photoelectricity, processing of sunlight through photovoltaic cells can generate
cleaner energy. Although the economic costs can be higher for the latter system, it can be said
that environmental impact will be considerably lesser.

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Figure 5.7: Crude oil use to generate electricity in Saudi Arabia (million barrels per day)
(Source: Eia.gov, 2018)
The society in Saudi Arabia is defined through surplus oil content. Over the prolonged
use of finite sources, the vast sector has given rise to a large number of employments in the
country. At present, Saudi Arabia has tapped into another abundantly available natural resource
in its vicinity. Under the reign of Prince Mohammed bin Salman, the ambitious efforts of
resource diversification has facilitated reinvigoration and growth of the national economy. The
government of Saudi aims to reshape energy mix on individual level to facilitate its emergence
as a competitive force in cleaner energy production in the global platform. The strategy has been
progressing through joint collaboration of public and government sectors. The projects in Jeddah
have been in collaboration with ACWA Power to construct solar farms. These farms can produce
photoelectric energy to power up approximately 200,000 homes in the city. A significant impact
of this project is that it can create a large number of jobs and employment scopes. This in turn
can help to enhance the lifestyles of Saudi people.
5.10 Significance of oil reserves in implementing energy shift

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Saudi Arabian government aims to invest approximately US$7 billion to construct new wind
farms and solar plants to boost the generation of green energy in the country. As stated by
Kulbak, Cahen & Hodes (2015), renewable represent negligible amount of energy use to offer
about 10% of total power generation in the next 5 years. Saudi Arabian has enabled the
formation of extensive plans through collaborative approaches of various companies and
ministry departments. This project can be considered as a significant step to provide solar energy
for household usage in a major market. Saudi Arabia has taken calculated risks in the market of
renewable energy. The country has adopted ambitious objectives to generate green energy.
However, lack of major projects has initially stalled development of the aforementioned
objectives. The largest solar farm is operated through a joint venture of an oil producing
company that provides power for peripheral blocks. However, experiment in solar power has
catalysed through sustainable power generation through concentrated solar energy. This strategy
has been developed under the time of Mr Khaled al-Falih as energy minister.
According to Jouhara et al. (2017), prioritisation of green energy has influenced recent
expedition in this venture. In order to meet the targets of Saudi energy market, this project has to
make a contract for innovative facilities. Installation and operation costs have drastically fallen in
international economy. As Saudi Arabia is already enriched with finite fuel resources, renewable
energy generations are treated as a cleaner alternative to fossil fuels. Wesseh Jr & Lin (2016)
state solar power is to be charged at 2 to 3 cents for each kilowatt-hour. This can also reduce the
stress on oil generated electricity in the country. As per the survey of Özkök & Güler (2015), on
an average, 680,000 oil barrels can be used to supply the demands of electrical energy. In
comparison to output of international oil sales, central funding of the national budget is derived
from its energy generating sector. This is why developers must pay an upfront cost of solar farms

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
to obtain green power to be supplied to the grid. This practice, in turn, enables Saudi Arabia to
focus on oil production and exportation while it performs its shift towards cleaner power. The
sheer size of Saudi markets can provide a competitive advantage to renewable energy
manufacturers all over the world.
5.11 Value proposition to reduce carbon dependency
The objective of the proposed installation is to reduce the levels of energy consumption
that is obtained from finite resource. As opined by Yazdanpanah, Komendantova & Ardestani
(2015), low-carbon policies help to attract interests of consumers, businesses as well as policy
makers. According to Khorshidi, Shabaninia & Niknam (2016), this has increased the rate of
carbon dependence that can reduce the economic-condition of Saudi Arabia once fossil fuel
deposits starts depleting. In order to implement the strategy, the researcher has used a labelling
scheme that can be integrated in organisational decision-making for business investors and
ministry officials.
Sustainable supply chain:
The theoretic concept of sustainable supply chain can help raise awareness in
stakeholders and can motivate government’s pricing decision for photovoltaic power panels.
Erdinc, Paterakis & Catalão (2015) suggest a systematic contrast and empirical analysis to label
schemes that can reduce overall carbon emission. This can create an initially adverse impact on
the profitability of businesses. However, after the initial phases, both household owners and
manufacturers can achieve ample profitability by their continuous investments in low-carbon
technologies. Exploration of carbon dependency in the lives of common people in rural areas
helps to raise their awareness about the environmental impact of their activities. The degree of
awareness and concern about the environment can help to devise necessary actions that can help

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
to adapt or mitigate dependency. As opined by Agert et al. (2015), high carbon dependency can
influence low effect made by adaptive actions. The disjuncture between actions and awareness
persists in several Saudi Arabian regions.
Effect of consumer-oriented approach on the project:
Erdinc, Paterakis & Catalão (2015) argue people are driven by a consumer-oriented
approach that makes them opt for services that can cater to their needs, often at the compensation
for adverse implications on the environment. This approach leads to a profound lack of
reforming action that is needed to establish the balance between capacity and drainage of
resources (Steemers et al. 2015). Translation of the aforementioned recognition of carbon value
and its recognition with respect to financial tools demand a separate forum. Saudi Arabian
government articulates to centralise banking sectors and multilateral ventures to establish
guaranties to reduce carbon assets (Sket et al. 2014). This can eventually lead to the formation of
government-backed strategies and enable subsequent resource mobilisation from private to
public financial systems. In addition to this, it can produce progressive repercussions in the
microeconomic environment of Saudi Arabia by providing carbon-efficient framework for
quantitative operations.
5.12 Preservation of contingency and regulation
Addition storage values can provide operational reserves like contingency and regulation
preservation in an overall small-sized market. Furthermore, smaller storage amount can collapse
service prices to undercut the values of production. As commented by Moseley & Garche (2014),
analytical errors in market data can hinder project evaluation in terms of renewables and storage.
However, Twidell & Weir (2015) justify the presence of these errors through variable
introduction and its fundamental effect on system operations and market prices. As stated by

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Klovins et al. (2017), Utilisation of photovoltaic cells is driven by the concept of a segregated
energy future. Application of solar widgets would be crucial in the face of resource depletion by
the end of this century (Zhu, Romain & Williams, 2016). Distribution of solar energy as per its
efficiency is the driving force of solar power distribution. Stigka, Paravantis & Mihalakakou
(2014) further assert concepts of net-energy metering are developing value propositions of
reduction in energy consumption. The techniques that can be used to sell this energy undergo
frequent iteration as per the needs and preferences of the target market.

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CHAPTER 6: MARKET ANALYSIS OF RENEWABLE ENERGY DEMAND
6.1 Analysis of the current market
Despite prominent potential, presence of multiple obstacles like lack of skilled human
resource and technical support can hinder objective attainment including the technicians and
specialist. In addition to this, shortage of on-grid stand-alone system and a consumer-oriented
community can impact economy on citizens. According to the statement of Wu et al. (2015:
1156-1166), conventional construction methods are time-exhaustive in nature and can often
prove to be unsustainable due to added construction waste. These areas in Jeddah are not likely
to incorporate on-roof photovoltaic system. In addition to this, oil and gas industries in Jeddah
can facilitate diversification through the creation of new factories. This, in turn, can create
linkages in both upstream and downstream flow of production for solar power generation. In the
event of enhanced uncertainty, flexible strategies can be used to maximise benefits of cash
generation through oil and gas industry. Thus, positioning Saudi Arabia in the renewable and
solar power sector as per stagnation or decline of oil demand is essential in the present economy.
However, fast-track construction techniques mandated by FORSA approach are
compatible with a personal photovoltaic system. FORSA has formulated an extensive
construction system that aims mass production in case of concrete housing systems. The
approach that has been sustained by FORSA in its daily application employs a cost-effective
method of stand-alone implementation. The incorporation of sustainable approaches renders
greater durability to the unit structure of a building. FORSA offers efficient concrete finishes to
the builders. The company also makes sturdy and practical design for the constructional frames
with a large variety of materials like high strength plastic, steel and plywood. The following

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figure shows the design prototype that will be used by FORSA to cover roofs of domestic
households with photovoltaic solar.
Figure 6.1: FORSA prototypes to install photovoltaic cells
(Source: Saudiforsah.com, 2018)
The organisational objectives of FORSA for this project are to make durable and
lightweight building products for the installation of photovoltaic grids. The sustainable waste
generation strategies of the company is befitting to its green housing approach and production of
energy from cleaner resources. The focus of the current market is based on large-scale
government projects and joint ventures with multinational organisations like, Aquapower.
According to a survey done by Energy Information Administration Saudi Arabia is
responsible for 13% of global oil production. Furthermore, 60% of Saudi Arabia’s electric
energy is derived from petroleum. This caters to the need of alternative energy generation.
Softbank, a Japan-based technological conglomerate has laid a foundation of a green-energy

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project that involves the production of 200 gigawatts of electrical by the year 2030. As opined by
Carrero et al. (2014) production of thermal and electrical energy from solar power is a practical
choice for a country based in the tropic zone. Jeddah obtains 8.9 hours of sunshine per 24 hours
on an average day. Saudi Arabia is predicted to be significantly affected by temperature rise in
the next 15 years. The survey submitted to Climate Action Tracker reveals an optimal rise of
temperatures around 4 degrees can make more than three-fourth of country arid in the next few
decades.
Choice of alternate power sources
Apart from such, there is also seen an increasing use of crude oil within the domestic
sector consulting to that of power generation within the Saudi province. Against such practices
and aspects, the governing body is with the compliance of putting its focus over the exploration
for alternate power generation sources. The city of king Abdullah regarding renewable and
atomic energy that is K.A CARE, is with the module for introducing the program for renewable
energy constituting the addition of 54 gig watts of additional power capacity. For such aspects,
the investment is to be expected in an amount of USD$109 billion within the year of 2032
(newsok.com, 2018).
The K.A CARE, or the city of king Abdullah regarding renewable and atomic energy, is
subjective to be a major driving force consulting to that of solar power industries within Saudi
Arabia within upcoming ages (tradearabia.com, 2018). The country is with the aspects of
shedding the light over generation of the solar powers from that of concentrated technologies of
solar power. Apart from such, the Board of Renewable energy of Saudi Arabia provides the
analysis of potentials of future growths regarding the market of solar power and is with aspects
of running with the ongoing statistics.

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The debate over the concern of CSP that is concentrated sources of power and that of
photovoltaic panels that is PV, are the consulted one. Concerning the future rates along with that
of ongoing present rates, the CSP is subjective to have the highest electricity costs in a levelled
manner. On the other hand, the greater reduction amount over the prices while consulting the
photovoltaic panels is subjected to have dominance through the concern of LCOE (newsok.com,
2018). For such, the cost returns to half the cost price of concentrated sources of power. Apart
from the construction of such models are with the concern of space requirement that is
considered as another restraint for solar energy market of Saudi Arabia (newsok.com, 2018).
6.2 Participation of local human resource
The present project of installation is driven by the need to develop a local awareness
about energy consumption. This can be done through the provision of training programs and
interactive sessions with local population (Amini, Moghaddam & Karabasoglu, 2017). The
housing ministry in Saudi Arabia can use extensive awareness program to encourage local
citizens to participate in the project. Hence, project termination can enable local citizens of
Jeddah, Saudi Arabia to comprehend the significance of application of solar panels as alternative
sources of electricity. The companies chosen for implementation of the feasibility has a large
scope in the current blue ocean market of sustainable energy production in Saudi Arabia. The
climatic condition of Jeddah provides multiple options due to wide availability of raw materials.
Compliance of domestic use of solar power
Provision of awareness within the domestic uses of solar power can be provided to the
people. For such, the awareness program are included the installation of solar panels within the
rooftops. Through such, the catering to domestic power generation can be achieved through a
positive extent would be effective to provide the justification for their positive uses. Apart from

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such educative programs can also be conducted through which the efficiency of solar energy can
be entailed towards the learners. Apart from that, the participation of the local population for
small scaled project management can also be taken into consideration. Through such aspects, the
actual application of the solar projects along with their importance and reliability can be
procured. As an alternative source, it can be made as to be viewed in form of a major power
sources that might be effective to get hold of electricity in case of power failures or any negative
power constraints.
6.3 Constraints of the project
Another constraint in construction market is its downhill economy due to the global
crisis. Companies like National Solar Systems and Zayel Solar Trading Company can offer large
scale projects with Ministry of electricity and Aramco. Since the project is to be localised at
Jeddah, EGPHIL is a possible company that can help to implement this project. This company
has maintained a stable reputation of organising sustainable and multipurpose projects around the
nation in the areas of energy and its renewable production.
Wage prevailing constraint
Within the Saudi province, the dependence factor consulting the region for the
construction of utility scale projects is taken towards the aspects of prevailing wages. Within the
markets with maturity, the accuracy of the prevailing wages factor can be maintained through
successful deployments of photovoltaic solar panels. Within the concern of fresh and current
energy generation market, the consideration of prevailing wage can be taken in the form of
representatives concerning commercial as well as industrial wages (tradearabia.com, 2018).
Within the developing markets, a pay scale higher than that of prevailing wage is to be taken into
consideration. The least consideration of wage prevalent along with fringe benefits can be

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entailed through the promotion of regulations along with undertaking evaluations over the
conjunction requirements within the solar project management. Over such constraint, the
ensuring of collective compliances over the conjunctive requirement are required to be
entertained for the enactment of proper wage prevalent within the Saudi Arabian wage solar
project.
6.4 SWOT analysis
STRENGTH
· Strategic positioning
· Large exposure to solar energy
· Compatible feasibility study
· Environment friendly strategies
WEAKNESS
· Negotiation with local vendors
· Highly dependent on
participation of local population
· Centralisation
· Requires extensive research
OPPORTUNITY
· Partnership with ministry of
housing Limited competitors
· High availability of data
· Increased dependency of the
market on the vendor
THREATS
· Unstable weather
· Funding and investment issues
· Issues in time frame

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Table 1: SWOT analysis
(Source: Given by Researcher)
The above SWOT analysis has shown the possible factors that can hinder the project.
However, recognition of strengths and opportunities can help to formulate appropriate
interventions for the project to flourish on given time and budget. The present project thus
depends on availability of funds from Saudi Arabian ministry of housing and government. The
present project attempts to create a feasibility study for the on-grid systems. This means the
available ends of this project are both the government (Saudi Arabian Ministry of Power) as well
as the householder. According to Nastasi et al. (2015), in these scenarios electricity bills are
usually credited in the name of the building owner. Lack of specification in the context of
residential flats can create financial issues in the later parts of the project. In addition to this, the
high end costing of the project requires the participation of private investors and non-profitable
organization. Persuasion plays an essential role in this project. Local citizens must be encouraged
to participate in this project. This can be done by organising awareness campaigns, workshops
and public conferences.
It is essential to obtain approval of local government to establish solar power system in
domestic households. If Saudi Arabian government does not provide enough funding for project
process, this project of domestic usage can be initiated through corporate exportation of certified
raw materials. The aforementioned logistic and supply chain can be driven by a profitable market
build of the corporate sector. A ministry certification is mandatory for this venture. Issues
pertaining to sustainable and renewable energy sources can prove to be influential research in the
academic sector. As opined by Franzitta et al. (2016: 1034), academics are one of the major
influencers of parameters. This is because; academics can provide extensive research on the

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conceptualization of this and area. Research studies in the area of renewable energy can cater to
the availability of ample amount of data. Providence of data can reduce the issues involved in
this project.
6.5 Work Breakdown:
There has been an increased use of non-renewable sources of energy that overall affected
the health of the residents. Saudi Arabia has an adequate amount of oil reserves and therefore, it
can be said most of the revenue of the country comes from their export business of oil.
Therefore, it is essential to reduce this extensive use of oil and implement strategies that could
help them to use renewable sources of energy. Depending upon the geographical location of
Saudi Arabia, the households could use solar panels in order to store solar energy. However, it is
essential that these households have adequate information and knowledge regarding the use of
solar panels. They need to carry out a regular surveillance of these solar panels to ensure that
these photovoltaic cells perform well and ensure a continuous flow of electricity.
Engineers also require to be appointed to ensure that they could properly install these
solar panels on the rooftop. Therefore, the government has taken a decision to install solar panels
on the rooftops of their households. Before installing such solar panels on the rooftops,
permission from the ministry of housing is essential. Furthermore, a private investigator needs to
be hired in order to promote better installation of such solar panels. Giebink et al. (2014)
commented that it is essential to recruit engineers for effective installation of solar panels.
Therefore, this sort of breakdown structure needs to be followed by the researcher to ensure
effective installation of rooftop solar panels.

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Figure 6.2: Work breakdown structure
(Source: Given by the researcher)

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6.6 Gantt Chart
(Source: Given by the researcher)

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6.7 PESTLE analysis
Factors Description
Political International practices of energy regulations have involved the
participation of legislative guidelines in an efficient manner. The
culmination of production and investment strategies has created a stable
environment for the formulation of a consistent market situation for solar
power generation.
It has also been observed that in Saudi Arabia, there has been an
increased demand for electricity. Therefore, rooftop solar panels would
be installed as a part of their construction materials in order to provide a
sustainable and effective solution for a prolonged energy crisis.
Economic An overall generic framework can meet relevant parameters that can be
regarded as a strategic concern of the company. This is in context to fund
availability, competitive advantage in the technical market and cost
inflation for purchasing raw materials for the product. Last decade has
optimised to receive a decrement from 50 to 70%, which in turn has
contributed to the exponential growth in the need for solar energy.
The government needs to take an effective pricing strategy that would
minimize the hiked up pricing of solar panels. It is essential that the
government should implement certain measures that would minimize the
impact on residents.

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Socio-economic Saudi Arabian society is governed by a consumer-oriented outlook. This
reduces the scope of installation of renewable energy power grids in
households. The installation projects and its equipment are expensive and
can be troublesome for the companies to encourage customers to install
these pieces of equipment.
It has further seen that use of these rooftop solar panels would bring the
communities together in case the solar panels are installed by people.
Such kind of joint installation would bring the communities in close
interaction. Furthermore, Leech et al. (2017) added that this sort of
installation would overall reduce the unemployment rate due to training
and be hiring efficient and skilled staff members for such an installation.
Technological Installation of a decentralised solar energy grid line has been a critical
point in the balanced system cost. This panel has been considered as an
advanced technology that can compose the product with silicon cells.
Most of the solar panels are based on on-grid technology and has the
capability to stand alone. Therefore, this sort of technology would overall
help proper use of renewable sources of energy.
Environmental Environmental laws can be in compliance with the effect on the
environment caused by the construction procedures. Surplus raw
materials and manufacturing processes can threaten the local ambiance
Solar panels are perfect to mitigate the current issues that lead to an
energy crisis. Furthermore, Giebink et al. (2014) commented that these

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solar panels would reduce the electricity loss as well as minimize the
emission of carbon dioxide or other harmful greenhouse gases.
Therefore, solar panels help to tackle the climate thereby improving the
environment.
Legal Legal factors involve the environment law of General Environmental
Regulation 2001 and the compliance of manufacturers in photovoltaic
cells for domestic households. In addition to this, the regulatory
framework as per Council of Ministers Resolution 2002 can be held in
the context of the effects caused by widespread construction and
technological prowess.
Competitor’s infringement is some of the issues that may arise from
installing solar panels. Furthermore, Sari et al. (2018) opined that it is
essential; that before installing such solar panels, the government should
abide by the terms and conditions. Moreover, it is also essential that the
government follow international standards while using such rooftop solar
panels.
Table 1: PESTLE analysis
(Source: Created by the researcher)
6.6 Project specification
The researcher has specified the project through an overlook of local raw materials
market. In addition, sustainable housing strategies are also maintained. The competitor analysis
helps to formulate the SMART goals and use an enhanced cost accounting system. Current focus

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is maintained on government projects to enable efficient collaboration and funding. companies,
such as Aqua power. Construction markets in the nation are confronting a downgradation that
creates lack of ideas to implement energy systems in local suppliers. ACWA Power can develop
300 MW PV project in the cost of US $ 2.36 for each kWh.
6.7 Material and technology costs
The specifications of the present project involve the prevalence of local resources. This has been
done through the belief of enabling high amount of community participation in this project.
Saudi Arabian government has incorporated the infrastructure construction plan for
aforementioned project to create additional job scopes for its population. This is awarded as a
300MW solar project that has to be implemented by Aquapower in Saudi Arabia.
Materials Estimated costs
Solar cell $25,000
Solar panel array $3,50,000
Cables $12,000
Installation costs $29,000
Labour costs $42,000
Table 2: Estimated costs for installing rooftop solar panels
(Source: Created by the researcher)
The company collaborates with the Department of Renewable Energy Project Development.
Representatives of both private and government bodies are responsible for supervision of this

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
project. It is stated in their agreement that Aquapower may sign a power purchase contract in the
context of a cost effective solar power tariffs in the city of Jeddah. This tariff is settled with
respect to 8.784 Saudi Riyal. This value is inclusive of principal offset prices along with a
cooperation fund formed with Saudi government. The aforementioned project has to obtain a
financial closure by the end of a January 2019, after which the government will be taking over
the management and production of solar power and energy generation.
6.8 Cash flow
The Saudi Ministry of Energy, Resources and Industry has collaborated with a privatised
conglomerate in an expectation to include surplus capital investment from private sectors. This
has involved an investment of US$300 million with added job opportunities for more than 400
skilled labours. Hence, this project can be termed as Saudi Arabia’s initial step towards
environmental conservation and energy diversification to install its position in the global
leadership of renewable energy. The launch of renewable energy protocol in January 2018 has
encouraged private sectors to lay down their objectives in accordance to the designated goal of
energy consumption in Saudi Arabian city of Jeddah. This has helped to formulate a goal for
both government and the private companies to render it as a well-executed investment program.
This has been followed by a rigorous competition conducted through a transparent tender
distribution. After the distribution, Saudi Arabian government has received some record-
breaking bidding from the private sectors. This enumerates the fact that private companies are
equally motivated to establish their standpoint on this blue ocean market of renewable energy
sector.
It can be seen that the cash flow in the year 1 is about £4,024,091 while in the 10th year;
this amount is about £4,125,623. Furthermore, the amount of cash outflow in the year 1 is about

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
£6,324,767 while this amount is about 2,284,727 in the year 10. Therefore, it can be said that the
amount of cash outflow has drastically reduced in the consecutive years. [Refer to Appendix 2]
6.9 Simulation of on-grid solar energy consumption
Aquapower has presented an integrated and competitive offer to comply with required
specifications, standards and conditions. Significance of this photovoltaic project forms the
foundation of this household renewable energy projects in the country. This has provided a
strong competitive advantage to Saudi Arabia in the sector of alternative energy generation. In
addition localisation of power generation is also facilitated through harnessing of solar energy.
Provision of lowest tariff has also motivated the local public to take an interest in this project.
This opportunity is appropriately utilised by local vendors and project supervisors to raise
awareness in the minds of common people in Saudi Arabia about the need of alternative energy.
These capabilities have further enabled service and industrial sectors to comply efficiently within
the effective supply chains. Aquapower and Marubeni consortium have been the remaining
players in the bid. However, bids of EDF and Masdar to put lowest tariffs have been enumerated
in opening bids.
The possibility of finance structuring has given Masdar a choice to implement bifacial
energy modules to lower prices of energy generation by minimising waste generation and
appropriate resource allocation. Simultaneously, EDF and Masdar have put the bid of US$1.786
cents per kWh. This is considered to be approximately 25% lesser than Aquapower US$2.342
cents bid. This bid has been drawn on the basis of LCOE with a rough percentage of efficiency
profits that are enjoyed through the installation of bifacial modules. The foundation of this
visionary program has utilised energy sources as per the National Transition Plan of 2020 and
Saudi Vision objectives 2030. REPDO has asserted the blend of enhanced local contents to meet

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The gap between an oil-rich country and the movement to decarbonise the energy sources in Saudi Arabia
the demands of local population and offer them large-to-small scale influential projects. These
projects cater to the need of international and domestic investments in renewable energy sector to
manufacture capability in the country.
The compliance of supplementary services
Apart from procuring the designs regarding the solar energy system being reliable and
efficient, the Egphil Company is with the aspirations of the providing the supplementary services
consulting to that of designs or supply management aspects. The supplementary services are also
with the inclusion of the operation management along with inspections of the solar project
management to be undertaken within the province of Saudi regarding PV installations. Apart
from such there are also present supplementary services pertaining to that of maintenance aspects
along with support activities in consultation of the project. It emphasizes over their innovations
along with applicability of the solar projects on a wider approach.
On further scale, the management of on grid system is taken by the company for
establishing the connection between system of grids and that of domestic grids for the energy
supply (tradearabia.com, 2018). In favour of such judgement the company is with the
consideration of the creating alternative energy sources along with the opportunities that would
be cost efficient producing savings. On further scale, the facets of operations consulting to the
integration of solar photovoltaic panels towards the operators of grid are taken in a more
pronounced form consulting higher penetrations of PV panels.
The intermittency cost in respect to the integration of the solar photovoltaic panels are
with exclusion of any sort of attained benefits from that of operations through PV, is subjected to
rise to a amount of 1.3”/kWh concerning energy are made taken into provision by virtue of solar
photovoltaic’s at a rate of 20 gig watts consulting its deployment (newsok.com, 2018). With

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consultation over the lower penetrable levels, the aspects of renewable are subjective of
imposing the amount of costs that are taken as negligible or even proclaim to be over the overall
benefits. Prior to ascertain level, the levels of cost are subjective of outweighing the consulted
benefits.
6.10 FORSA design
The designs of FORSA are a leading quality in its service sector. The multinational
formworks can create firm products that can meet the needs and demands of the present project.
FORSA infrastructures create resources for the execution of quality solutions of technology that
is associated in the present project. Options of formwork has been inclusive of phenol steel wood
as well as certified scaffolding systems in a multidirectional platform. The application of
multidirectional scaffolding can complement the housing construction system with its light but
durable structuring. FORSA scaffolding creates an intricate and advanced support that can hold
up the weight of household photovoltaic grid systems. The added load capacity and versatility
can guarantee a safe framework in the household systems of Jeddah. The present project uses the
modular designing skills of FORSA to offer optimal range of frameworks that can support
assemblies for difficulty due to lack of space. In addition to this, a specific ring lock system can
be delivered in this framework based on union rosettes to adjust platform levels in accordance to
the required height. This scaffolding system of FORSA is constituted of lesser parts that caters to
the ease of assembly aided by precise fit.
6.11 Risk analysis
Prominent risks that can affect the present project are listed below.

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Construction risks: This involves risks of damage or destruction of property during the
construction of new infrastructure for the power plants.
Company risks: This involves the risks that threaten the project viability through risks in the
areas of personnels, finance and technical capacity.
Environmental risks: Environmental risks involve damage caused by the project ot immediate
or peripheral environment with inappropriate waste disposals or discharge of gaseous waste in
the atmosphere.
Financial and market risks: These types of risks involve insufficient access in case of operating
capital and investment in the present operating market. It can also involve the cost revenue that
increased through critical input parameters, like labour or module rates.
Apart from the primary risks mentioned above, there exist several other secondary risks
that are effective to provide hindrance to the development of solar projects. The main elements
that are included within the list of secondary risks are taken in form of operations, technology,
politics, regulatory, climate and weather risks and sabotages (tradearabia.com, 2018).
Risk of operation
Operation risks are the most conferred risks that are subjective of its occurrence. It
sustains the aspects of unscheduled closure of solar plant. The reasons pertaining to such
compliances are regarding the presence of lower resources present along with damages done
over the equipments or any failed working component.
Risk of technologies
Technological risks within a solar power plant pertain to the generation of lesser amount
of electricity beyond the expectations. Such constraints arise due to the failure of working
components of the plant or that of any failures in electrical management. It also consists of grid

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failures due to improper maintenance of the working components (cleanenergyreviews.info,
2018).
Risk of politics and regulations
The risk subjecting to that of politics and regulations are with the concern of affecting the
project profitability. The effect can be viewed through the changing tax credit levels or the
targets of RPS. Apart from such it also takes the inclusion of policy changes in relevance to that
of interconnections and permissions.
Risk of weather and climate
Solar projects are more affiliated to the sunshine that provides the ultimate power source
for electricity generation. In case of any sort of weather changes that hinder incoming sunlight
are a potential risk for the solar project plants (tradearabia.com, 2018). Also the aspects of
snowfall or rains are also subjective to disrupt the electricity generations, prompting as one of
major risks.
Terrorism and sabotage risks
The less likely but still to be considered is the risk of sabotages or thefts or any sort of
terrorism activities. The sabotaging of solar plant is subjective of hindering the power
generation. Any sort of theft activities are also prone to hinder the plant working operations.
6.12 Environmental impact assessment
The researcher has carried out a legalisation of this research project before installing any
solar panels. Furthermore, a detailed analysis of the protected areas helps the researcher to carry
out this installation work. Despite magnitude of IP legislation, technology holders have retained
IP to protect their strategies from being copied. Multiple instances of developing-nations can
purchase the certification to gain access to the proposed technology. In other cases, it can be

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made possible to influence markets and production capacities. As opined by Alshehry &
Belloumi (2015), IP systems aid the stakeholder firm to ensure the quality of technologies that is
has acquired. Thus, patents can be a concern in the present project. This is because, it can act as a
hindrance to Saudi Arabian government to apply technology and facilitate the usage to promote
overall quality.
Quality of air and the greenhouse gases
Use of disposal cell surface
Regarding the installation of system of PV, there are not being allowed any sorts of
grading over the cell surfaces. It would be considered important for the excavation of the shallow
trenches being effective for the conveying of electrical power lines connecting the solar panels to
that of inverter, causing fugitive dusts, risking the environment (tradearabia.com, 2018). Against
such, the up gradations of dirt accessed pathways are to be entertained through addition of
gravelled surfaces. Apart from such, use of small amounts water can be considered as a form of
measures sustaining dust control.
Factor of electron fission from the power grid
As the solar plants consulted in the content are in major scale, hence the power
generation aspects are also expected to be in higher amount. Hence over such context, there is a
chance of electron fission from the power grids (cleanenergyreviews.info, 2018). It is subjective
of its occurrence due to passing of higher voltages through metals conducting wires within the
grid. Against such aspects the assessment would be to procure the use of insulators over the grid.
The insulators would be effective to lower down the aspects of electron fission or leakage thus
not emitting reactive electron into the air and that of environment.

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CHAPTER 7: GENERATION OF ENERGY
7.1 Significance of renewable sources of energy
Renewable sources are one of the forms of energy that can be easily replenished thereby
making ensuring better life forms. This form of energy liberated a few amount of greenhouse
gases that could impact the environment and have less detrimental impact on the life forms.
Keyhani (2016) commented that recently there has been an increased awareness regarding the
use of renewable sources of energy. Therefore, Saudi Arabia has decided to reduce their oil
usage and switch to renewable sources of energy. Furthermore, it has also been seen that this
increased usage of non-renewable sources of energy has overall affected the life forms of the
residents. Sovacool & Drupady (2016) commented that these increased use of non-renewable
sources of energy released huge amount of greenhouse gases that also affected the environment.
Methane is one of the main gases that cause global warming and greenhouse effect. Therefore,
Saudi Arabia needs to use some forms of non-renewable sources of energy that would reduce
and minimize this impact and improve the life forms of the residents.
In the past few decades, there has been an increased awareness for the use of renewable
sources for energy for environmental conservation and protection. In addition, global demand for
energy has been increasing exponentially and this accounts to increased demands for renewable
sources of energy. In Saudi Arabia, nearly 90% of governmental profit is dependent on the oil
business for more than 63 years. Avdis et al. (2018:842-856) commented that the Environmental
Protection Act 1990 restricts the use of non-renewable sources of energy. However, Bahramara,
Moghaddam & Haghifam (2016) argued that Saudi Arabia is one of the countries that have huge
reserves for oil. Most of the time, revenue of the government comes from their export of oil

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reserves and therefore, this change or switch to renewable form of energy overall affected the
revenue of the country.
7.2 Saudi Arabia and non renewable sources of energy
The Environmental protection Act 1990 promotes the use of renewable sources of energy
in order to protect the environment from any detrimental effect (Karytsas & Theodoropoulou,
2014:480-485). Therefore, the government of Saudi Arabia has developed methods in order to
reduce the usage of non-renewable sources of energy. It has been seen that this sort of
investment in renewable sources of energy could incur little profit to this oil-exporting country
by releasing hydrocarbons (Sarralde et al. 2015:10-17). However, it is essential that the country
find out certain ways that could help the country to export oil in a more reliable manner.
Alternative methods could be used by Saudi Arabia in order to incur high productivity as well as
profitability. Traditional as well as modern methods could be used by the country as an
alternative method of using renewable sources. In Saudi Arabia, diesel is used for domestic
purposes. It has been observed that diesel has been used extensively by this country in order to
promote better revenue. The government of Saudi Arabia uses export of oil reserves in order to
promote high revenue and ensure high economy of the country. Therefore, it can be said that this
non-renewable sources of energy has been highly used by this country in order to ensure high
economy of the country.
Diesel is used in various machineries in order to augment their efficiencies. Moreover,
this diesel has also been used in transportation services thereby making this transportation cost
higher. Motola et al. (2015) commented that in transportation, renewable sources of energy could
be used as this would ensure low transportation costs. This is a liquid hydrocarbon fuel that can
be extracted with the help of distillation of crude oil. Götz et al. (2016:1371-1390) stated that

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Liquefied Petroleum Gas (LPG) has been used extensively in order to minimize the impact of
non-renewable sources of energy. This is a mixture of gases that have been extracted from crude
or natural gas. This LPG is made up of a mixture of butane as well as propane and is extensively
used for cooking purposes. Furthermore, heating as well as in chemical industries, this LPG can
be used.
7.3 Saudi Arabia and its solar form of energy
Saudi Arabia is one of the most productive regions for harvesting solar energy. The
geographical area of the Arab country is best for obtaining solar sources of energy and therefore,
this solar power can be used in order to generate their renewable sources of energy. Furthermore,
Noirot et al. (2017) commented that most of the countries have decided to import solar energy
from Saudi Arabia and therefore, this form of energy can be used in order to incur high form of
revenue. Fais, Sabio & Strachan (2016) added that this form of energy can be exported to other
countries where the potential for energy is quite less and the need for energy is high. It has been
observed that this form of energy incur huge profit to the country. Therefore, Goosen et al.
(2015) opined that Saudi Arabia need to use this form of energy in order to secure fuel usage.
Furthermore, it has been observed that implantation of solar panels on the rooftop would help the
staff workers to restore their solar form of energy. It has been observed that the country receives
high amount of solar energy and this could be easily converted to solar energy.
7.4 Biomass-based solar panels
Biomass has been extensively used by many countries in order to secure and save energy.
Kasaei, Gandomkar & Nikoukar (2017) commented that biomass involves various plant or
organism based material that can be used extensively in the form of energy. Khorshidi,

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Shabaninia & Niknam (2016) stated that biomass can be used in order to absorb this solar energy
that can be later used in order to generate energy. Therefore, it can be said that solar energy can
be stored for some amount of time and later can be used by the professionals. Yi et al. (2015)
added that biomass can also be shipped to other countries that require solar energy economically.
Therefore, this shipment of biomass further incurs revenue to the country thereby benefiting the
country. Thus, it can be said that this biomass can be used by many countries including Saudi
Arabia in order to secure and save their solar energy that can be later used. Furthermore, it has
also been seen that this particular type of energy can be used extensively in order to charge up
electricity.
Biomass contains huge amount of stored energy from sun. Catalão et al. (2015) stated
that plants absorb solar energy in the form of photosynthesis and on burning this biomass, huge
amount of stored energy are released into the atmosphere. Therefore, it can be said that biomass
can used extensively used in order to liberate huge amount of energy.
7.5 Solar Photovoltaics
Solar panels often crown the rooftops of many houses in order to absorb solar energy. It
is utmost significant to understand the working protocol of these solar panels as this would help
the staff workers to implant these solar photovoltaic cells on the rooftop. Therefore, it is essential
to understand this working protocol. Wassermann, Reeg & Nienhaus (2015) commented that
most of the solar photovoltaic cells work by allowing the photons. These photons knock down
the electrons thereby allowing free flow of energy. Moghavvemi et al. (2015) opined that
photovoltaic means conversion of sunlight to electricity. Therefore, these photons present within
the solar panels help to convert this form of energy. Furthermore, Ma, Yang & Lu (2015) stated
that these photovoltaic cells are basically a sandwich of two semiconducting materials. These

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materials are composed of silicon that is used in microelectrodes. Motola et al. (2015) further
added that these photovoltaic cells need to develop an electric field that would allow them to
work better. Like magnetic field, in these photovoltaic cells, two opposite power is developed.
Therefore, the manufacturers usually dope this silicon between the electrodes thereby allowing
each sandwich to work together.
It has been observed that most of the manufacturer's add phosphorus on the top layer of
the silicon and this added extra layer of electrons to these photovoltaic cells. This phosphorus
provides a negative charge; however, the bottom layer receives a dose of boron. Therefore, both
this positive as well as negative charges liberates free electrons. Keyhani (2016) commented that
several conducting plates are provided to the metals and therefore, this also adds to the electric
field thereby providing them with energy. Sovacool & Drupady (2016) opined that the recent
researchers have developed ultrathin solar cells that are only about 1.3 micron thick. Such kind
of flexible solar cells would overall allow the cells to generate huge amount of energy.
Moreover, these cells would also allow the cells to get integrated into architecture.
7.6 Types of solar technology
There are various other types of solar energy that can be used by Saudi Arabia in order to
store and change their sources of energy. Bahramara, Moghaddam & Haghifam (2016)
commented that solar thermal, as well as concentrated solar power, are the two main types of
solar power technology that can be used the country in order to power their stations.
Furthermore, Noirot et al. (2017) added that this form of solar energy uses a different type of
solar photovoltaic panels. However, these types of solar technology also use solar energy in
order to generate electricity. Thus, it can be said that these photovoltaic cells can be used by
Saudi Arabia in order to generate a huge amount of energy. Furthermore, Fais, Sabio & Strachan

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(2016) opined that solar thermal systems use various forms of techniques in order to focus
sunlight in order to generate energy. It has been observed that currently three types of thermal
powers are developed. Power towers, parabolic troughs as well as engine systems are the types
of solar thermal systems.
Power tower systems use the circular type of solar heliostats in order to focus the
sunlight. Goosen et al. (2015) opined that the focus point of these power systems is significant
and therefore, it is essential for these power systems to focus the sunlight that can be converted
later to electricity.
It has been seen that better focus point of these solar panels allows a high number of
photons to enter into the solar system thereby producing greater intensity of energy. This energy
can be extensively used in order to light up the roads and the house. Therefore, it can be said that
this solar power system can be used extensively by Saudi Arabia in order to generate solar
energy. Furthermore, parabolic troughs are another type of thermal system that uses parabolic
mirrors in order to focus sunlight on the photovoltaic cells. These mirrors are trough-shaped that
allows better focusing of the sunlight (Ma, Yang & Lu, 2015). The sunlight also gets focused on
receiver tubes that could transfer this fluid. The transferred heat gets pumped to produce
superheated steam that power up the turbines. These rotating turbines produce electricity thereby
converting the solar energy into electricity. It has been observed that many countries have been
using this particular solar technology in order to convert thermal power into electricity. In Saudi
Arabia, this particular type of solar technology could be used in order to produce electricity.
7.7 Demand for solar energy in Saudi Arabia
A rise in electricity demand implies that the Power generation needs to expand in Saudi
Arabia. Conventional power generation is a major reason behind environmental pollution and

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also affect on human health. Greenhouse gas emission is the common problem that is raising
awareness to mitigate the use of conventional entries and increase the use of non-conventional
energy. The alternative method is therefore expected to take place and meet the huge demand for
solar energy. In order to become a leading solar power, a country requires having an advanced
form of infrastructure that can access the processes to use such powers (Alshehry & Belloumi,
2015). Geographical location of Saudi Arabia is quite suitable as the country exists in Sun Belt.
This advantage can be a great help to become the largest solar energy in the world. Processing of
Sunlight through photovoltaic cells is the most compatible way to meet the demand of present
generation. As suggested by Fernando & Siani (2016), in comparison with others energy sources
the cost is less to use or access this resource. Additionally, this energy source can help to
decrease the environmental and health damages.
There are collaborations between Softbank, the giant venture capital fund and Saudi
Arabia to build the largest solar power installation in the kingdom. The centralized economic
plan "vision 2030" is massively working to develop the country as a solar power generation
(forbes.com, 2018). In according to the statistical review of World Energy 2014, Saudi Arabia
was the major producer of crude oil and consumes a large amount of crude oil for the production
of electricity. The increasing growth rate of population, industrial development, and urbanization
give rise in consumption of more oil. As a result of the increasing consumption, the government
of the country is looking to explore the alternate source for power generation. It is aiming to
produce additional 54GW power generation capacity with an investment of USD 109 billion by
the year 2032 (Itechsciresearch.com, 2018). As opined by Gude (2015), concentrated solar power
energy and installation of proper infrastructure can help to access a non interrupted energy

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production. Thus, the investment decisions prefer to build a concentrated solar power
technology.
Figure 7.1: The level of energy consumption by 2030
(Source: Itechsciresearch.com, 2018)
7.8 Proposed uses of solar panel in bigger project and manufacturing department
Based on the information in U.S Energy Information Administration, Saudi Arabia is the
second largest oil producer in the world. The huge consumption of oil for electric energy and
power has been already rated as insufficient by climate tracker in the Paris Agreement.
Partnership with Japanese technology conglomerate is helpful to build the largest project by
2030. The project will be placed in Saudi desert is not only help to access a number of generation
power but also create 100,000 jobs to produce 200 GW of power (Martin et al. 2016).
Opportunity, cost, and efficiency are the three key drivers that can help to conduct the solar
project successfully in market.
National Renewable Energy Plan (NREP):
Renewable energy strategy has been made to develop the power mix in domestic aspect
and supply long term stability in economy of the country. The programme helps to develop the

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share of renewable energy with engagement of bigger project from different industrial sector.
Energy mixes, target generation of 3.45 GW are contributing factors to create the opportunity in
public private partnership and accelerate the implementation of these projects (weforum.org,
2018). Sakaka independent power photovoltaic solar plant has been conducting to develop an
independent Greenfield solar plant. The ongoing solar project is a great hope for the country to
increase the power generation capacity. In the viewpoint of Nachet & Aoun (2015), the common
aim of the power plant projects are to access a changed internal infrastructure that can reduce the
cost of production and provide more profits. As for example Future Power Technologies,
SkyFuel INC and Enviro-Tech are the names of some solar panel companies that provide solar
supply panel and infrastructure installation in commercial purpose. The ventures are looking to
implement the massive use of solar panel in different places. The demand and use of this energy
have been influencing the ventures to access a large market for solar business in the country. At
another point, the solar project is cheaper than the other power projects. For example, bid for the
300MW Sakaka Photovoltaic project was 24% cheaper than the Riyadh based Acwa power.
Thus, the overall analysis has been clearly depicting that NREP based project planning is much
more effective to make a rapid growth in solar energy production.
Net Metering Regulations:
It is a term of policy that was designed to access private investment in renewable energy.
As suggested by Lashgari & Zeinalkhani (2017), collaboration of cogeneration authority and
electricity is helpful to issue a regulatory framework to regulate own electricity consumption.
Thus, the production of solar power can be supplied easily to a different manufacturing unit and
they can easily control their own consumption capacity. This method is effective to operate a
small scale solar power system such as less than 2 Mega Wyatt. In addition to this, this

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framework can also help to export the remaining energies in national grid and get a discount on
their consumption level. As said by Özkök & Güler (2015), the operation can help to deliver
relevant financial incentive and drive up the private sector investment. This framework is used to
assist the medium and small-sized firms to access the photovoltaic solar system. Moreover, they
can supply the unused sources to other parts of the country.
Advancement of technology:
Technological advancement has created significant opportunities to access solar system
or solar panel in a low cost in past five years. The present major ongoing projects have been
assuring that the price will be more decreased after further advancement. As suggested by
Wesseh Jr & Lin (2016), it is not a matter to produce and energy only but the firm’s needs to
deliver the power in required places. The most compatible storing place is solar cell that can
store the excess part of solar energy. Technological advancement can only help to develop the
efficiency of energy storage after production. In this aspect, the most challenging fact is to deal
with high temperature and dust in the local places of Saudi Arabia. Thus, it requires making an
advanced solar cell that can be affected by outer temperatures. According to the researches, it
can be assumed that the technological development has already gone to the extinct to overcome
such challenges. For example, coating, air blowers, electrodynamics screen are those promising
solutions that can easily overcome the issues related to the external environment. Such
advantages are helpful to increase the capacity and outcome of solar use. At the same time, it
also develops significant financial gain with large-scale use in Saudi Arabia.

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Figure 7.2: Decrease of the cost of solar PV by 59%
(Source: weforum.org, 2018)
Increasing Tariff:
Electricity and Cogeneration Regulatory Authority has announced an increased rate of
electricity tariff at beginning of the year. The domestic users have been informed to pay
18ha/KWh which was 8-13% increment from the previous rate (weforum.org, 2018). In this
situation the first impact on users to pay an increased electricity bill. In the deeper aspect, the
announcement provided a reason to access and implements a major solar project to replace the
non-renewable sources. Small scale solar system PV deployment is expected to have a payback
period of 7 years. That implies that the system has an average 25 year life cycle (weforum.org,
2018). This initiative is considerable to access a profitable output for long term.
Fuel subsidies effect on solar system:
Global Solar market Attractiveness Index has implied to the Middle East as the most
attractive and new build solar market in the world. The competitiveness of solar subsidized retail

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price is helpful to access helpful market segmentation. The government of the country has
developed to take subsidiaries on all fuel and fuel processed other products. As suggested by
Williams et al. (2016) though the source of non renewable energies are continuously decreasing
day by day yet the expensive cost and other taxes is a major reason to replace it. Moreover the
expansion of solar project has a large market apart from its native places. Thus, it can be easily
recognised that Saudi Arabia will be again the leading power supplier of non renewable energy
sources in future years. The overall discussion has overviewed on the uses of renewable power
supplying sources that can be best used in environmental and economical aspect of Saudi Arabia.
According to its geographical position the country has focused on renewable energy sources and
especially on solar system. In reviewing the other aspects and comparing the recent power
supply background the study has achieved to access the key factors. In analysing those factors it
has interpreted to overcome challenges related to the installation of solar power plant and use the
source for commercial purposes.

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CHAPTER 8: FUNDING AND COSTING
Sources of finance
The sources of funding are important to subsidies the financial cost. As opined by Urban,
Geall & Wang (2016), renewable energy project developers have the option of obtaining their
funds or initial investments from other financial institutions or can also obtain by borrowing
from bank. They can choose from the option of taking debt or can finance their project by equity
investments or both. Following are some of the sources to obtain their investments.
Equity investors
Since renewable energy sources provide with higher returns the investors are more likely
to take the risk of providing funds for the project. They analyze the project from a risk-return
point of view.
Lenders
Lenders consider the renewable energy sources as worst place to lend their money in.
They think that they will not earn profit or expected return from the project. In the view of
Samargandi, Fidrmuc & Ghosh (2014), the debt contract is a based on a fixed obligation as the
lenders are more risk averse.
Reserves and surplus
The additional money which the company reserves from its profits earned from sale of
assets forms a part of the sources of funds.
Streams of revenue
The various streams from where the revenue for the renewable energy sources can flow
are given as follows

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Selling electricity to the grid
By selling electricity to different grids the project can earn revenues to finance its project
further. They can either sale the electricity at fixed prices or at the prices prevailing in the
market.
Tax benefits
The project gets tax benefits from the government in the form of tax credits. This is also a
form of revenue for the project.
If the installation is not connected through grid
As suggested by Klovins et al. (2017), if the installation of plant is not connected through
a grid then the project does not has to purchase electricity to run its set up and thus it saves a lot.
This makes up for revenue flow for the project as Net income is improved.
Financial expenditure
Operating cost
Maintenance cost of the equipments or operations form part of operating cost of the
project. In case of renewable energy resources the operating is very low and never becomes
cause of concern.
Capital costs
These are the cost to construct the plant i.e. installation cost of the plant. Maintenance
cost also forms a part of the capital costs. These are incurred beyond operating expenses of the
project. The project can use solar energy sources to run its project as it is the cheapest technology
available on a per MW scale.
Cost of capital of the project

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It measures the amount to be paid to the lenders and the return that the equity
shareholders expect from their investment in the project. It is also called the weighted cost of
capital or WACC
Marginal cost of the project.
The expenses incurred in order to finance the additional unit of energy consumed over the
fixed cost of the project is the marginal cost. Less amount of fuel consumption will drive down
the marginal cost. The lesser the marginal cost the higher the income generated by the plant.

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CHAPTER 9: CONCLUSION AND RECOMMENDATION
Conclusion
The study conducted so far concludes that the company has been able to achieve its
objectives of producing electricity in a more cost effective way. According to the study
photovoltaic cells can be used in places where there is no enough space left. It is effective in
taking maximum energy when exposed to solar radiation. The constraint to the project is global
crisis which has led to downsizing of the economy. The SWOT analysis shows that there are
certain factors which can hamper the project. The financial funding and costing illustrates that
the company will be able to efficiently run the project and there will be no hindrances. The
company uses sustainable waste generation strategies and therefore it will be successful in
making durable and lightweight products for the installation of photovoltaic grids.
Objective linking
The first objective focused on the usage of solar energy to produce electricity. In the
literature review section it has been shown that solar energy could be an effective source of
energy in Saudi Arabia as it is an eco friendly approach to produce electricity. Therefore the first
objective has been met.
In the second objective of study, the identification of ample opportunities to reduce cost
of energy generation has been discussed. In the data analysis part it has been shown that there is
a great scope of solar energy resource in the market of Saudi Arabia. There are ample
opportunities to reduce cost of energy generation. Hence this objective has also been met.

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Third objective of investigating the effectiveness of rooftop materials also been
accomplished as shown in data analysis part of the study. The rooftop materials are able to
produce high source of energy and are effective in trapping solar energy.
As inferred from the data analysis section the company can produce durable and
lightweight materials and hence the fourth objective is met.
The company is able to boost awareness of solar power in Jeddah as shown in the
literature review part of the study. Therefore the fifth objective is met.
The last objective of exploring rooftop photovoltaic cells has been met and this has been
shown in the literature review section of the study. The effectiveness of photovoltaic cells lies in
the fact that it has large capacity to capture solar energy.
Recommendation
Saudi Arabia has a market as well as the capacity to generate renewable energy resources
and the company can utilize this ample opportunity to produce cost effective electricity to the
people. Though there are various factors which can prove to be a hindrances , yet the lightweight
and durable rooftop materials and the photovoltaic cells are enough to produce electricity at low
cost. Hence it is recommended after a critical analysis that the company has the ability to take the
advantage of the opportunity in the market of Saudi Arabia to produce low cost electricity.
Future scope
The future scope of this study is wider. The study can be further referred in the field of
education. The researchers can used it as a secondary material of study. This study can be a
useful reference for any project on renewable energy resources.

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Appendices
Appendix A: Questionnaire
1- Do you prefer to live in a house flat using the solar photovoltaic system? ( Social, Economical
finding)
2- what you know about the solar system, and do you use them in your home? ( Social awareness
finding)
3- do you prefer to buy a house where the roof-top solar system implemented but with a higher
cost than the other homes? (Economical finding)
4- do you believe the solar system can be an effective solution to decrease the new electricity
tariff. (Social, economical finding)
5- would you like to anticipate on a course explain how the solar system is connected and how
you will get benefits out of it? (Social awareness)
6- does the government help the locals by providing subsidies to improve the lifestyle and
providing renewable energy solution? (Political and economic and social finding)

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Appendix 2: Cash flow statement