Renewable Energy Systems Analysis

This assignment delves into the world of renewable energy systems. It requires students to analyze various types of renewable energy sources, understand multi-criteria decision-making processes used in selecting projects, and explore the integration of renewable energy into existing power grids. The provided resources offer insights into different applications of renewable energy, including case studies on solar deployment in Saudi Arabia and India/Iran.

DISSERTATION PROJECT

ACKNOWLEDGEMENT
Dissertation is prepared on renewable energy projects and issues related to them in Saudi
Arabia and Iran. In order to complete this project extensive research is carried out on different
articles that are published on varied websites. Case studies are also analyzed in order to develop
broad understanding on research topic. During the time when I was carrying out project work
assistance from number of people was received. In this regard, I am thankful to friends for
guiding me in preparation of dissertation. I appreciate my mentor for giving lot of support in
carrying out research work. It is support of friends and mentor which help in completing my
dissertation. At last I willing to give thanks to all those who help me execution of this research
study.

ABSTRACT
This report is prepared on transformation policy of Saudi Arabia and Iran. Both nations
are focusing lots of problems on renewable sources of energy. In this report, there projects and
issues related to them are evaluated. Opportunity for both nations in renewable sources of
energy are identified. Difficulties that are faced by both nations are discussed in detail and there
prospective solutions are identified. In the report case study of Saudi Arabia and Iran are
considered for analysis purpose. On the basis of analysis, conclusion is prepared and
recommendations are made.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................6
1.1 Background.......................................................................................................................7
1.2 Aim & objective...............................................................................................................7
1.3 Rationale of research .......................................................................................................7
1.4 Significance of study........................................................................................................8
1.5 Structure of report ............................................................................................................8
...............................................................................................................................................9
LITERATURE REVIEW..............................................................................................................10
2.1 Solar energy projects in Iran...........................................................................................10
2.2 To identify the impact that transformation policy will put on Saudi Arabia and Iran?..11
2.3 Investment on solar projects...........................................................................................12
2.4 Technology and cost of solar projects............................................................................13
2.5 Conclusion of Literature review.....................................................................................13
RESEARCH METHODOLOGY.................................................................................................15
3.1Research introduction......................................................................................................15
3.2 Research type..................................................................................................................15
3.3 Research design .............................................................................................................15
3.4 Research approach .........................................................................................................16
3.5 Research philosophy.......................................................................................................17
3.6 Data collection methods.................................................................................................17
3.7 Data analysis...................................................................................................................17
3.8 Validity and reliability....................................................................................................17
3.9 Ethical consideration......................................................................................................18
3.10 Limitation of study.......................................................................................................18
3.11 Conclusion....................................................................................................................18
ANALYSIS...................................................................................................................................19
4.1 Case study on Saudi Arabia............................................................................................19
4.1.1 Introduction............................................................................................................19
4.1.2 Detailed analysis of case study...............................................................................19

4.1.3 Some problems that are hampering growth of shifting to renewable source of energy
Institutional barrier..........................................................................................................23
4.1.4 Infrastructure barriers.............................................................................................23
4.1.5 Financial barriers....................................................................................................23
4.1.6 Economic barrier....................................................................................................24
4.2 Case study analysis on Iran............................................................................................25
4.3What does renewable energy mean for future of OPEC?................................................27
4.4 OPEC economic policy for or against renewable energy...............................................28
4.5 Conclusion of analysis section.......................................................................................29
DISCUSSION ..............................................................................................................................30
Conclusion on discussion section.........................................................................................31
CONCLUSION AND RECOMMENDATION............................................................................32
REFLECTION..............................................................................................................................36
REFERENCES..............................................................................................................................37

INTRODUCTION
Energy is one of the important needs that exist in each and every nation. Each year
countries prepare their projections about the points by which they will increase their electricity
generation capacity. Unfortunately, the energy resources that are widely used are scarcely
available and nation needs to import same from other nations. Due to use of specific form of
energy like natural gas and crude oil etc pollution is increasing and due to this reason thousands
of people died in specific nation. In order to reduce this problem to some extent nations are
shifting their attention from nonrenewable to renewable sources of energy. Countries like Saudi
Arabia and Iran are putting emphasis on generating more and more energy by making use of
renewable source of energy (San Cristóbal, 2011). These are major oil exporters across the
globe.
Crude oil is less available resource and only some nations have control on same. Crude oil
have a high demand across the globe and it is scarcely available resource due to which oil
producing nations have strong bargaining power in energy sector. Hence, nations like Iran in
order to protect their environment and to export more and more oil are shifting their focus to
renewable source of energy. The main question that arise is that if oil exporting nations will
commence production of renewable source of energy then what impact it will put on other
OPEC Nations. In order to determine the pace at which oil exporting nation is shifting towards
renewable source of energy it is very important to understand the policies that are followed by
the specific nations.
Hence, in this report focus will be on the nation’s policies that are related to renewable
source of energy. Amount of investment that are made by the nations in developing relevant
infrastructure will also be taken in to account in order to determine the actual direction in which
they are going. This study will also throw a light on the fact that if some nation of OPEC shift
towards renewable energy then what impact it will put on other nations of the group (Hafez and
Bhattacharya, 2012). Question of answer will be identified that in the case if shifting to
renewable source of energy happen than in which way other OPEC nations will respond to that
change. This study will also find out answer of the question that in case of shifting to renewable
source of energy OPEC nations will be able to maintain their dominance in energy market.

1.1 Background
Recently, Paris summit executed in which 190 countries takes a participation and all
participants agree on reducing pollution and emanation of harmful elements in natural
environment. This make inevitable for most of the nation specially OPEC nations to think about
renewable source of energy. Earlier, also these nations were producing mentioned type of energy
but same was happening at very slow pace. Now, more and more nations are exploring alternate
sources of energy to reduce their dependency on traditional nonrenewable sources of energy
(Kanase-Patil, Saini and Sharma, 2010). Hence, this report is prepared to identify the possible
changes that may happen in future time period and its impact on oil producing nations
specifically Saudi Arabia and Iran.
1.2 Aim & objective
Aims of research- The main aim of this research is to evaluate policies related to
renewable source of energy followed by Saudi Arabia and Iran as well as their impact on the
OPEC Nations in future time period.
Objective of study
 To identify the extent to which transformation happened in Saudi Arabia and Iran till the
date.
 To identify the impact that transformation policy will put on Saudi Arabia and Iran.
 To identify the strategies that can be implemented by the nations to maintain their
dominance in the energy market when gradually transformation happens to renewable
source of energy.
 To identify if oil producing nations start production of renewable energy on large scale
then in future also they will have same control on energy market.
1.3 Rationale of research
It is very important to conduct this research because currently it can be seen that with
small change in global economy price of crude oil fluctuate sharply. In future transformation
that will happen to renewable sources of energy is certain. Hence, it is very important to
understand that execution of such kind of policy to what extent will bring changes in the energy
market. It was necessary to identify that what threats and opportunities will come in existence in
the market due to commencement of transformation process across the globe in terms of energy

sector. It can be said that present study will help in analyzing and anticipating present and future
conditions.
1.4 Significance of study
The main significance of this study is that it draw attention towards the fact that there is
need to control pollution by following transformation policy. Under this policy of energy, nation
shift its focus from fossil fuels to renewable sources. This study will also show future scenarios
that may likely to be come in existence in upcoming years in the global energy market. Thus,
results of this study will help intellectual people to determine the direction in which they need to
work out so that balance remain in global energy market and pollution remain in control.
1.5 Structure of report Introduction- It is one of the most important part of the research study because it reflects
the direction in which entire research will be carried out. Aims and objective statements
in relation to study are prepared in this section (Liserre, Sauter and Hung John, 2010).
Along with this, rationale and benefits of present study are also mentioned in this section
of the report. Rationale will reflect the fact due to which it was important to conduct this
research. Apart from this significance of study section indicate the benefits that nation
can receive by shifting to renewable source of energy. Literature review- It can be said that it is second part of the report. Detail analysis of
secondary data is done in this section of the report. In this part whatever happened in
past years is discussed and critical analysis on same is done. Some topics like investment
made by the Saudi Arabia and Iran, challenges that mentioned nations are facing in there
solar projects are covered in the report. It can be said that this stage of research help one
in carrying out study in better way. Research methodology- It is the third section of the report and the way in which research
will be conducted is explained. Techniques of data collection and selection of analysis
method is done in this stage of the report. Approach that will be followed to complete
dissertation in different phases is also determined in this section. In this regard,
appropriate research approach, philosophies and design are selected for present study. Data analysis- It is one of the core section of the report because in this data is analyzed
either by using thematic analysis method or statistical tools. On the basis of analyzed
data conclusion of research is drafted by the researcher.

 Discussion- After completion of data analysis discussion section is prepared in the report
(Beaudin and et.al., 2010). In this section detail discussion will be carried out on the
research results which will be helpful in drafting a conclusion. Discussion will be
prepared on the basis of literature review and data that is analyzed in data analysis
section of the report. It can be said that this section of the report is very important.
 Conclusion and recommendation- It is last section of the report and on the basis of
discussion conclusion will be prepared. On the basis of conclusion recommendations will
be prepared in the research.

LITERATURE REVIEW
According to Tie and Tan, (2013) transformation from nonrenewable energy to
renewable energy is taking place in Saudi Arabia and Iran in past few years. There are many
sources of energy on which mentioned nations can start a project but it is mainly focusing on
solar energy. In this regard Saudi Arabia is planning to invest significant amount of resources on
its projects in upcoming years. Under this by using photo-voltaic technology solar panels are
developed and established in specific locations. There are many other sources of renewable
energy but Saudi Arabia government does not want to focus on all of them collectively. This is
because cost of power generation by using current technology is very high. There is high
temperature in the Saudi Arabia and due to this reason nation is focusing on solar energy project.
2.1 Scenario in Saudi Arabia
Johnstone, Hassic and Popp, (2010) claims that there is lack of strong commitment of
Saudi Arabia government towards generation of energy by making use of photo-voltaic
technology. This is assumed because it takes a decision to delay it solar energy project which
values at 109 billion USD by 8 years. This means that nation will continuously maintain its
dependency on crude oil to meet its energy needs. Such a step back decision raise a strong
question on the commitment of the Saudi government towards development of renewable
energy.
According to Singh and et.al., (2011) Saudi government is fully committed towards its
solar energy project and it delayed same because relevant entity wants to use more appropriate
technology in its solar projects. It is well known fact that cost of generating electricity from solar
power is very high. Right technology will be used then its cost can dropped to large extent.
Hence, it is very important to focus on development of more advanced technology that
substantially reduce electricity generation cost. This is the main reason due to which solar
project get delayed by 8 years.
2.2 Solar energy projects in Iran
In Iran scenario is different in comparison to Saudi Arabia because for long time period
it is focusing on solar energy in comparison to latter nation. According to Belgacem and
Gandini, (2011) in Iran there number of solar energy projects are carried out by the private
sector firms. Under these projects solar panels are installed on some houses. Apart from this

same are also installed on roof of the firms. These firms are meeting there day to day energy
needs by using electricity that is generated by using sun light. As per facts in July 2016 Iran
government target is to generate 43, 00, 00,000 KWH electricity from its plants that are
generating renewable energy. Growth rate of electricity generation from solar power plants
increased significantly in past few years. There are many foreign firms that wants to make
investment in the Iran renewable energy projects.
As per views of Angelis-Dimakis and et.al., (2011) Italian companies will build solar
plant in Iran that will have capacity to generate 1 GW energy. Apart from this, German company
is also making a plan to develop 1.25 GW solar power capacity in Iran. This clearly indicating
that in future also much more investment will be made by foreign companies in Iran. With
lifting of restrictions from Iran it is expected that huge investment will come in Iran in terms of
renewable energy projects.
According to Quaschning, (2016) if Saudi Arabia is thinking that is will be able to attract
more and more FDI on solar projects than it is its mistake. This is because until on domestic
level efforts will not be made foreign investors will not take interest on making investment on
solar projects in Iran. Secondly, nation can not entirely depend on FDI for growth of its
renewable energy sector. This is because they at their own level can not make big investment
within few years in mentioned nation. Hence, Saudi government instead of depending on other
nation to achieve its target must take steps at fast pace on its own level.
2.3 To identify the impact that transformation policy will put on Saudi Arabia and Iran?
Haas and et.al, (2011) claims that transformation policy will put positive impact on Saudi
Arabia. This is because for many years it is producing oil and harmful pollutants released from
same. These pollutants negatively affects natural environment. Hence, by carrying out such kind
of projects firm will be able to prevent further destruction of its environment. The second benefit
that Saudi Arabia will get by carrying out such project is that its energy export will increase. It is
well known fact that there are limited fossil fuels. This means that in future time period there
will be less availability of crude oil in the market. On other hand, as per expert's availability of
crude oil will reduce across the globe in next few years. In that case Saudi Arabia will be in
position to export more oil to other nations of the world if today it commences production of
energy by using sun light. On other hand, nation will meet its needs by using energy that is

generated by renewable sources. Hence, it can be said that solar energy projects will not only
benefit in short term but in long term also they give lots of benefits to the nation.
This transformation policy will also put positive impact on Iran because it has 300 sunny
days and even on small area there is huge concentration of solar energy. Hence, it can be said
that there are huge opportunities in the Iran in respect to generation of solar energy. For long
time period number of restrictions were imposed on Iran by nations like USA due to its its deny
from closing its nuclear programs. This affects investment in the nation and its progress also
reduced to great extent. Iran is already focusing on its above mentioned programs for
development of energy. On other hand, if more fresh investment will come in the nation then
more people will get employment and it will be able to export more oil across the globe.
As per views of Diouf and Pode, (2015) it is not necessary that renewable energy will
economically benefit Saudi Arabia and Iran. This is because if most of OPEC nations will
generate renewable energy then there will be huge availability of crude oil to nations. Due to
excessive availability of oil price of same will decline heavily. Final results will be that export
will increase but growth rate of earning of revenue from export of crude oil will decline. This is
because due to decline in oil price nations will be able to make purchase of same quantity at low
price that they earlier usually buy from Saudi Arabia or Iran. Means that growth rate of elevation
in foreign reserves will decline. So, there are chances that both nations receive more revenue
from export at slow rate.
According to Haas and et.al., (2011) it is very important to review economic policies of
the OPEC because if 50% nations that belongs to this cartel will shift their attention to
renewable energy then remaining nations will also pay due attention on renewable sources of
energy. OPEC nations are the representatives of the energy sector across the globe. If these
nations will shift their attention towards renewable energy then this will promote other nations
of the world to commence projects on generating solar, wind or other sort of powers.
As per views of Frondel and et.al, (2010) OPEC Nations economic policy is to make
more and more investment on clean energy. Two of the largest crude oil producing nations are
focusing on generating power by using photo-voltaic technology. These two nations are Saudi
Arabia and UAE. These two nations invest about 1.5 billion USD in solar power plants in past
years. Jordan is another nation of Middle East that is on line to make investment on solar power
plants. It has been identified that governments of the Middle East nations and North Africa are

focusing on generating solar and wind energy to fulfill needs of population and economy of the
nation. Most of the oil producing nations are focusing on keeping large proportion of oil for
export and they want to establish their reliance on clean energy. In past year's investment in
renewable sources of energy rose by 40% to 2.9 billion.
Aghaei and Alizadeh, (2013) claims that about 100 projects are under development in
Middle East and North African nations. These projects include establishing power plants related
to solar, wind and geothermal energy. In future investment in relevant power plants may rose to
13 billion USD. Hence, it can be said that OPEC economic policies will certainly help nations in
achieving their targets that are related to generation of renewable energy. Both nation's
government must understand seriousness of the condition. India is making investment that is
equivalent to corpus that is invested by gulf nations on solar projects. It is failure of the Saudi
Arabia and Iran that they failed to develop strong governing bodies and policies as well as
procedures to make legitimate investment on solar projects. Mere focus on power generation
from solar energy is not sufficient. Gulf nations mus take steps as fast as possible to generate
more and more renewable energy. Investment of only 1.5 billion that is made by both nations
shows failure of relevant nation's government. They must set a target to elevate investment
fourfold in upcoming years.
2.3 Investment on solar projects
According to Vogel and et.al, (2010) Middle east nations are making heavy investment
on solar energy and in 2004 this investment was just 1 billion USD which elevate to 12 billion
by 2015. It can be said that investment on solar projects increase at rapid rate. However, nation
like India alone is making investment of 15 billion USD on renewable energy. Hence, it can be
said that much more investment need to be made from side of Arabic nations. As, per reports on
technology index apart from Saudi Arabia none of Middle East nation comes in top 40 countries.
Saudi Arabia placed at 38th ranking out of 40 nations that are included in the index. This ranking
is determined on the basis of multiple factors like macro stability, ease of doing business,
prioritization of renewable and bank-ability of same. It can be said that Saudi Arabia is making
reasonable amount of investment and it is economical in nature. Nation takes a right step by
delaying a project as it wants to use advanced technology to generate energy.

2.4 Technology and cost of solar projects
According to Dipola, (2016) cost of solar projects is very high in comparison to other
renewable sources of energy. This is the main reason due to which investment in solar projects is
very low even nation’s wants to generate green energy from relevant source. Saudi Arabia wants
to generate solar energy at large scale but at low cost. Thus, mentioned nation is entirely
focusing on developing its technology base which reduce cost of power generation of solar
power substantially. As per views of Shamseddine, (2016) apart from technology advancement
there are other reasons also that are responsible for delay in project. In Saudi Arabia there are
multiple bodies that governs activities related to renewable energy. There is clear division of
responsibilities among these bodies. Due to disagreement over scope among regulatory
authorities and ownership solar projects get delayed in Saudi Arabia.
Twidell and Weir, (2015) state that creation of multiple governing bodies reflect the
broad thinking approach of Saudi Arabia and Iran. This is because in all nations of the world
there is single governing body and multiple departments are created in them. In both nations
separate bodies were prepared so that eye can be kept on activities of project in maximum
possible way. The mistake that both nation's government make is that clear outline in respect to
there roles and responsibilities was not prepared. Due to this reason lots of confusion among
bodies scope of authority comes in existence which impede growth of solar projects in
mentioned nation. The intention of government was good and it wants to give good supervision
to those who were involved in solar project. But the mistake that it made governing body
ineffective. If loopholes will be removed then good supervision can be given by both regulatory
bodies to relevant entities in Saudi Arabia and Iran.
Currently, renewable energy generation is at initial stage and nations are developing
there technology base in wind and solar energy. However, cost of producing clean energy is high
but no tactics are currently available which can be adopted by the nations to reduce price of
renewable energy. Every effort is made to develop cheaper technology to keep price of same
low. In this regard currently research and development is carried out by the firms. It will take
time to develop cheap technology which will bring down cost of renewable energy.
Present research work will produce different results in comparison to other studies that
were done in past years relevant to research topic. In past studies it can be observed that main
attention was paid on solar projects and initiatives that governments are taking to generate clean

energy. In this study initiatives taken by government are covered and along with this advantage
in terms of economic benefit that Saudi Arabia and Iran will get by shifting their focus on
renewable energy are also explained. Hence, it can be said that present research work is totally
different from past researches.
2.5 Conclusion of Literature review
In this section of report policy that is followed by Saudi Arabia and Iran in respect to
solar projects is critically discussed. It is identified that from past few years both nations are
carrying out solar projects but at very slow rate. It is find out that less number of solar projects
are commenced in both nations. Expensive technology and poor governance structure are two
basic reasons for slow growth of power generation from sun light. The possible impacts that
shifting to solar projects can put on economy and environment of these nations can put are also
described in this section of report. In this regard it is stated that if Saudi Arabia will shift to
renewable energy pollution will come in control. Moreover, excessive oil will be available for
supply which will reduce its price. Hence, nations like India and China can slow down there
work on solar projects. This will finally lead to elevation in demand for crude oil from these
nations. Ultimately, foreign exchange reserves of Saudi Arabia and Iran will increase. Thus,
transformation policy will provide environment and economic benefits to both nations. This
strategy will help these two nations in maintaining their dominance in energy market.

RESEARCH METHODOLOGY
3.1Research introduction
Research is carried out on the energy sector of the UK and under this evaluation of the
policies that are adopted by the Saudi Arabia and Iran is done. In this regard various articles will
be reviewed and it will be identified that in which direction these policies are formulated.
Further, to some extent on the basis of availability of information current and upcoming projects
of both nations will be evaluated (Banister, 2011). This research study will help in
understanding the extent to which transformation is occurring in the energy sector of the both
nations. In this study it will be identified that if shifting happens to great extent in these two
nations then in what way OPEC nations will handle the situation. It can be said that this research
study is fully focused on renewable energy and things that may happen in future time period.
3.2 Research type
There are two type of data that are collected in order to conduct research. These two
types of data are primary and secondary source of information. In order to conduct research it is
very important to collect both sort of data. This is because before conducting any research it is
important to understand the specific topic. Hence, in this regard secondary data is collected by
the researcher. In this research also secondary data will be collected from books, journals and
magazines etc (Groat, and Wang, 2013). On the basis of data collected from these sources of
information literature review part in the report will be prepared. Apart from this, it is very
important to collect primary information. This is because primary information is related to
present conditions. Research cannot be conducted on present scenario until thorough
understanding about it not developed. Hence, in the research both primary and secondary data
will be collected from reliable sources.
3.3 Research design
Research design refers to the approach that is adopted to collect a data. There are three
types of research designs descriptive, exploratory and experimental design. Descriptive research
design is used when one have some knowledge of research topic and he wants to know more
about same (Duncan and Fiske, 2015). Exploratory research design is employed when one
intends to know about research topic in detail. There are different techniques that comes under
descriptive and exploratory research design. Other research design method is experimental

research design which is used when one wants to carry out scientific research. So, it can be said
that all the methods of research design are totally different from each other. In the present study
exploratory research design will be used by the researcher because there is little knowledge
about research topic. It is very important to collect basic facts and figures about renewable
source of energy. Such kind of information gathering is important to conduct this research in a
better way.
3.4 Research approach
Research approach refers to the way in which research is carried out by the researcher. It
is very important to determine the specific approach that will be used to complete the research
study. There are two research approach namely inductive and deductive approach. Both of these
approaches are different from each other. In case there will be wrong research approach then
study will be carried out in wrong way. Hence, research will produce wrong results. Inductive
approach is a way of conducting research in which first of all observation is done. This means
that specific topic on which research is carried out is analyzed by the researcher. In this regard
one keep close eye on the variable or object for specific duration (Hennink, Hutter and Bailey,
2010). By observation of subject data is collected and hypothesis is prepared and it is tested by
applying a statistical tool. The type of statistical tool that will be used in the research is
determined on the basis of research results that we want to find out. This indicate that one of the
specific tool cannot be used in the research. Thus, one needs to understand research topic in
appropriate way.
Instead of using statistical tool one can simply collect a data and can use graphs to
analyze same. One the basis of analysis of charts trends are analyzed and researcher craft a
conclusion. On the basis of research results theory is prepared. Apart from inductive approach
other approach is deductive. It can be said that latter type of approach is completely inverse of
former. In the deductive approach there is a theory and it is tested by using statistical tools. It
can be said that this approach test that to what extent theory can be applied practically. On the
basis of results of research theory is tested and its practical application in current time period is
measured. In this approach also it is very important to select appropriate research technique. In
this research inductive approach will be selected in the research. This approach will be used
because all facts and figures as well as information are available on internet. By observing them
the direction in which progress is happening in solar projects in Saudi Arabia and Iran can be

identified. Moreover, economic benefits that can be received from these projects by these two
nations can be identified only by observing facts and figures as well as information's. Hence,
interpretisim philosophy is used in research.
3.5 Research philosophy
Research philosophy help researcher in determining the sort of data that need to be
collected by the researcher in order to derive reliable results. In research two types of research
philosophies are used and they are interpretivism and positivism. It is necessary for one to
choose correct research philosophy in order to select proper method for data collection. If
researcher intends to conduct research on a topic which is related to science positivism
philosophy is used (Lodico, Spaulding. and Voegtle, 2010). Hence, for non-research projects
this philosophy cannot be used. Under this philosophy scientific methods are used in the
research. Interpretative philosophy is used in researches that are not related to science and in this
data is collected from books, journals and magazines etc. In current study, research is non-
technical and due to this reason interpretivism philosophy is used in research.
3.6 Data collection methods
Data collection methods refers to the tools or ways that are adopted by the firms to
collect facts and figures from various sources of information. In the present research study
secondary data will be collected from sources of information like books or journals etc (Jensen,
2013). Case study will be analyzed in order to carry out research study.
3.7 Data analysis
This is one of the most important section of the report and under this specific technique
will be used to analyze data. In this report case study analysis will be done to conduct a study. In
this way research will be conducted in appropriate way.
3.8 Validity and reliability
Validity and reliability is the one of the most important aspect of the research. Validity
of information indicate that collected information must be authentic in nature. It can be said that
facts and figures that are collected by the researcher must be correct. This is because if research
will be conducted on the basis of inaccurate data then study will produce wrong results (Daymon
and Holloway, 2010). On other hand, it is also very important to ensure that collected
information is reliable. It can be said that facts and figures must be collected from reliable

source of information. In this regard one can identify the sources of information which are not
reliable. One can abstain from collecting an information from non-reliable websites. Hence, due
to all these reasons in present study valid and reliable information will be collected by the
researcher.
3.9 Ethical consideration
In the present study all ethical aspects are taken in to consideration and it is ensured that
none of wrong practice is followed to conduct this research study. It is ethical responsibility of
researcher to ensure that he is adopting each and every way that make certain that research is
carried out in proper way. In this regard secondary data is collected from reliable sources.
Specific data which is collected is cross checked from different websites. Hence, it is ensured
that research will produce true results (Åkerlind, 2012). It is also ensured that collected data is
fully authentic. This is done to ensure that research study produce only true results. One of the
most important ethical standard in research is that primary data that is collected by the
researcher must be kept secret. This is because in research many times personal information are
asked to the people. It is responsibility of the researcher to make sure that collected data is
inaccessible and no one can approach to same without his permission.
3.10 Limitation of study
Like every study there are some limitations of this research. Small sample size of 20
people is taken in this research and it is major limitation. However, it is ensured that sample
units of the research have sufficient knowledge of the research topic and they will be able to
make available reliable information to the researcher (Denzin, 2012). Less availability of time to
complete research is one of the important limitation. Every effort is made make sure that
research is carried out in proper manner.
3.11 Conclusion
The main aim of research is to analyze the transformation policies followed by Saudi
Arabia and Iran and its impact on both nations on multiple areas. Hence, it was important to
analyze relevant cases. Due to this reason interpritivism philosophy and exploratory research
design are used in research. Along with this case study analysis method is selected in order to
understand transformation policy and its impact on above mentioned nations.

ANALYSIS
4.1 Case study on Saudi Arabia
Case study name: Deployment of solar energy in Saudi Arabia
4.1.1 Introduction
This case study is selected for analysis in relation to the dissertation title in which stress
is laid down on the impact that renewable energy is having on Saudi Arabia. The extent to which
transformation happen in the mentioned nation and reasons for slow process of same are also
explained in the report on the basis of this case study. Along with this, transformation and
multiple benefits that Saudi Arabia and Iran will reap in future will also discuss in this section of
report.
4.1.2 Detailed analysis of case study
In order to understand the impact that renewable energy will have on Saudi Arabia it is
necessary to analyze socio-economic environment scenario of the nation. As per the case study
Saudi Arabia is one of the largest oil producers in the world. It is also one of the largest oil
exporting nations of the world. It is the nation of the world whose 80-90% revenue comes from
crude oil. Saudi Arabia's economy is highly dependent on crude oil export and it is proved from
the fact that it’s GDP 60% share comes from oil industry. Apart from this, crude oil is another
source of income for the nation. Saudi Arabia was the fifteenth largest consumer of primary
energy in 2008. It fulfills its most of energy needs from petrol and natural gas. Question arises
that if Saudi Arabia have abundant amount of oil then what are the reasons due to which nation
is looking at renewable sources of energy whose electricity generation cost is already high. The
answer lie on the fact that in past years especially from 2000-2008 economic growth of the
nation happens at rapid rate (Deployment of solar energy in Saudi Arabia: a case study, 2016).
Along with this, population of Saudi Arabia increases at rapid pace. This increases oil
consumption in the nation. As, per this case study domestic oil consumption elevated by 50%
from 2000-2008. This reflects that there was need to generate more energy to meet needs. It is a
well-known fact that in mentioned nation many foreign people migrate for employment which
belongs to India, Pakistan and Bangladesh. Apart from these nations other countries citizens also
comes in Saudi Arabia for employment. This is one side and on other hand it can be observed

that in the nation unemployment is increasing at rapid rate. So there are three major challenges
force Saudi Arabia to shift towards renewable energy. These were higher unemployment rate,
consistent increase in population and sharp elevation in domestic consumption of energy. As per
this case study there is need to create 15,000 new jobs in the nation. This target cannot be
achieved merely focusing on the oil and gas industry that currently exist in the nation. Thus, this
is the one of the main motivating factor that is encouraging Saudi government to make
investment in renewable source of energy.
These were some internal factors that makes it inevitable for the Saudi government to
shift its focus from crude oil to clean energy. There are many international factors that makes it
inevitable to identify the reasons due to which it was necessary to make investment in clean
energy. It is well known fact that in Saudi Arabia there is high pollution. This is because due to
crude oil exploration process heavy amount of pollutants are released which heavily damage
natural environment. Nation also sign Kyoto protocol and Paris meeting makes it inevitable for
the Saudi Arabia to control dispersion of carbon dioxide in the environment. This will help
nation in achieving targets related to global warming. This is the one of the most important
factor that motivate Saudi Arabia to focus on renewable energy (Deployment of solar energy in
Saudi Arabia: a case study, 2016). Crude oil is scarcely available resource and all nations of the
world needs same to meet there energy needs. Currently, few nations of the world are focusing
on clean energy. On other hand, demand for oil is increasing with passage of time. Hence, in
future oil export will increase. In upcoming years it is possible that availability of crude oil get
reduced to large extent. In that case it is possible that most of OPEC Nations have less oil for
export. Saudi Arabia if will be able to meet its energy needs by using same that is generated by
solar power plants then it will be in position to export more and more oil to foreign nations at
high price.
So these were the some main reasons due to which Saudi Arabia is focusing on following
a transformation energy policy on its land. Now on the basis of establishing relationship between
solar energy project and needs impact of former on Saudi Arabia in future time period will be
accessed. Increasing population- As mentioned above population of the Saudi Arabia is increasing
at rapid rate which is matter of concern for government. Population annual growth rate is
about 2% and consistent increase in number of foreigners also increases the problem for

the nation. It is clear that existing industries cannot produce so many jobs in mentioned
country. Hence, renewable energy power plants can generate employment for the nation.
With passage of time number of these plants will increase at rapid rate and
unemployment rate will further fall. Thus, from this point of view it is proved that
transformation policy will surely create huge job opportunities for the people of Saudi
Arabia. The focus of Saudi government is on developing appropriate type of technology
to reduce cost of energy generation from sun light. As it is well known fact that in the
nation there is already a higher level of heat and it is not necessary that solar panels that
are developed by using current technology work out properly in the nation (Twidell and
Weir, 2015). On other hand, cost of generating solar energy is also very high. Hence,
Saudi Arabia government focus is on developing technology so that solar panels work
out properly in high temperature. In this regard it will carry out its own research and
development projects which will also generate employment opportunity in the nation.
Hence, it can be said that with passage of time period the level of employment
generation will increase in Saudi Arabia. Destruction of natural environment- It is well known fact that in Saudi Arabia due to
exploration of natural gas and crude oil pollutants are released in the environment. This
increases concentration of carbon dioxide in natural environment. It is known to
everyone that global warming is one of the main problem that is faced by most of the
nations. On Paris meeting all nations of the world arrive on conclusion that they need to
make an attempt to control pollution on their land and by doing so level of same can be
controlled across the nations. It can be said that Saudi government is also working on
this direction and it wants to use renewable energy so that less pollution happen in
surrounding environment. It has been observed that due to pollution cases of deaths also
elevate across the world. This makes imperative for the nation to focus on natural
environment. Due to generation of more and more energy from rays of sun pollutants
presence in the natural environment will be reduced (Connolly and et.al., 2010). This
will improve condition of natural environment good in the Saudi Arabia. It can be said
that transformation policy of shifting to renewable sources of energy will put positive
impact on the nation in terms of reducing level of pollutants from environment (Tie, S.F.
and Tan, C.W., 2013).

 Compliance with signed protocol and technology sharing- Saudi Arabia signed Kyoto
agreement whose main objective was to control emanation of greenhouse gases across
the globe. This agreement extends the provisions of united nation conventions on climate
change (UNCCC). This agreement makes it necessary for the Saudi Arabia to take some
important measures to reduce level of greenhouse gases in natural environment. Saudi
Arabia in this regard takes many steps on its land. It is preparing to establish its solar
plant and by doing so it intends to fulfill promises that it will take every step to prevent
increase in level of greenhouses gases on its land. All these things will put positive
impact on Saudi Arabia as it is a country which is the largest producer of crude oil. If it
will shift greatly to the renewable energy then this will motivate other nations of the
world to generate more and more MW of clean energy. This will create positive image of
the firm in the eye of international community. Moreover, there will be great demand of
technology and know-how that is used by Saudi Arabia to meet its energy needs. Hence,
by sharing a technology with other nations Saudi Arabia will be able to earn huge
amount of revenue.
 Export of oil and elevation of revenue- The one and main advantage that Saudi Arabia
will get by generating renewable energy is that it will be able to export more oil to
foreign nations. Thus, this will increase financial reserve of the nation to great extent.
This reserve amount will be used to accelerate economic growth of the nation. It is clear
fact that every nation government have limited amount of financial resources to meet its
needs. Due to availability of huge amount of resources nation will be able to give boost
to development of other industries in which there is lot of growth potential (Marszal and
et.al., 2011). This will not only increase profitability of the nation but also will reduce
dependency on natural gas and crude oil for economic growth. Nation progress will be
more balanced.
Hence, on the basis of discussion on all these factors it can be said that transformation policy
will provide two fold or multidimensional benefits to Saudi Arabia. It is also clear that in future
to large extent transformation policy will be implemented by Saudi Arabia on its land.

4.1.3 Some problems that are hampering growth of shifting to renewable source of energy
Institutional barrier
Currently, there are two regulatory authorities that are governing solar energy related
projects. These two regulatory institutes are King Abullah city for atomic and Renewable energy
(KA-CARE) and other institute is Electricity and co-generation regulatory authority (ECRA).
There are lot of confusion regarding operations of these institutes. It seems that functions of
these two departments is overlapped. Apart from this there is confusion related to the authority
that is relating to the there authorities. Thus, uncertainty about regulatory framework is the one
of the main barrier that is affecting growth of renewable energy section of energy sector in Saudi
Arabia.
4.1.4 Infrastructure barriers
This is one of the important barrier that is faced by the Saudi Arabia. In solar energy
power projects there are different power grids and they are interrelated to each other. The main
problem that a nation facing is that it does not have required technical know how and technology
to interconnect different grids. Technical difficulties faced by the nation are related to the power
system, electricity generation, transmission and distribution of same. It is well known fact that
grid interconnection play a vital role in the processing of transformation of solar in to utility
scale project. In the absence of grid connection power that is generated from the solar energy
sources cannot be distributed (San Cristóbal, 2011). Hence, this is the big technical barrier due
to which nation delays its solar project of 109 billion USD for eight years.
4.1.5 Financial barriers
Less availability of finance is the one of the main reason which is responsible for slow
growth of renewable energy projects in Saudi Arabia. There is high capital cost in the mentioned
nation. On other hand, the domestic market that is related to the development of solar or
renewable energy is largely unexplored. Private investors thinks that there is huge risk in the
relevant sector and due to this reason less investors are making investment in the sector. Due to
this reason scarcity of fund is faced in Saudi Arabia.

4.1.6 Economic barrier
It is one of the most important point that is hampering growth of renewable energy
industry in the Saudi Arabia. The main problem that nation facing is that cost of electricity
generation and acquisition of technology is very high in case of solar power. It can be said that
cost of generating energy from solar power is very higher than other alternatives that comes in
nonrenewable category (Hafez. and Bhattacharya, 2012). This is the reason due to which Saudi
government wants to develop its technology base which will be cheaper and substantially will
reduce cost of electricity generation from solar plates. Cost of solar projects is high because for
same large number of equipment needs to purchase. If some of them are imported then there cost
is very high because there are limited number of companies that are producing such kind of
equipment. The only solution of this problem is that Saudi Arabia must focusing on developing
this equipment on its land. This will reduce cost of solar projects. Moreover, nation must carry
out research and development projects to make technology cheaper. By doing these two things
cost of solar energy projects can be reduced to great extent.

4.2 Case study analysis on Iran
In order to understand impact of transformation in energy policy and its impact on Iran in
future time period it is necessary to understand past conditions and current scenario of energy in
the mentioned nation. It can be seen that Iran is the second largest producer of oil after Saudi
Arabia. Its produce 3.5 million barrels per day and cover 5% of total oil output across the globe.
Apart from this, it also has 812 trillion cubic feet natural gas reserves inside its land. It can be
said that Iran have sufficient amount of resources and there is huge amount of reserve which is
unexplored till the date. Crude oil is basically used to generate electricity in Iran. In Iran about
32.5 Giga watts (GW) electricity is produced. The 87% of same is produced from thermal
natural gas fired power plants.
Apart from this, there are small sized nuclear reactor plants in Iran which are used to
develop nuclear energy in the nation. It is well known fact that 80% of revenue comes in Iran
from export of oil and gas to foreign nations. Thus, small part of energy is covered by nuclear
power. There are plenty amounts of nonrenewable resources in the Iran and this makes it the
largest oil producer in the world. The logistic industry in Iran is well developed and other
industries also increasing at rapid rate in terms of size and growth rate. This is scenario of
energy sector of Iran. Due to exploration of natural resource at rapid pace nonrenewable fuels
depleted at fast rate in the Iran. Apart from this concentration of carbon dioxide also get
increased in Iran. This create new challenge for mentioned nation and it became necessary for
the country to work out on alternatives that help in controlling level of carbon dioxide in
surrounding environment. Iran have lots of potential to generate renewable energy but its
government never focus on same (Solar energy and its future role in India and Iran, 2016).
Now, Iran government set target to control consumption of fossil fuels to generate energy.
There are different environment conditions in different parts of Iran and due to this
reason various types of renewable energy can be produced in the mentioned nation. Iran under
its transformation policy decide to shift to solar energy. This is because its land receives average
solar radiation of 19 Mega joules per square meter. It can be seen that in central part of Iran
there is heavy concentration of radiation. It has been observed that the radiation level varies in
Iran by 2.8 kWh/M2 in south Iran. Along with this, variation of 5.4 kWh/M2 is observed in
central regions. It is clear from the fact that big difference does not come in the concentration of
radiation in the various parts of Iran. As, per researches conducted earlier it is identified that in

Iran there are at least 2900 hours per year. By considering all these factors Iran government
decides to establish its first photo-voltaic solar energy plant. In this regard installations were
made in central part of Iran in Yazd in 1993 (Lund and et.al., 2010). It can be said that nation
decides to establish its plant very early in comparison to Saudi Arabia. After, 1993 in many
areas of Iran solar plants were established. However, this does not mean that solar power plants
are very popular in Iran. The main reason is that cost of generating energy from solar plant is
very high. It costs about 3400 USD/ KW and in order to reduce this cost solar energy project is
combined with thermal power plant to produce power.
This was scenario of costing of solar energy and conditions that exist in Iran in relation
to these energies. The big problem that Iran face is that there is higher emission of greenhouse
gases in the surrounding environment. Due to exploration of oil and gas at a higher level
concentration of greenhouse gases increased in the Iran. This create serious problem for the
nation. On other hand, currently there are substantial amounts of nonrenewable resources in the
Iran but after some years its production capacity will reduce to great extent. The main problem is
that oil alone cover 80% of exports and rapidly other industries cannot be developed in the
nation. Thus, only option that left in front of Iran is to keep more oil for export and to meet
domestic energy needs by using renewable sources (Nehrir and et.al., 2011). Hence, these were
some main reasons due to which Iran focused on generating energy from solar power plants.
It is clear that such kind of projects will put positive impact on Iran. This is because oil is
prepared from fossil fuels underground. From past years huge amount of crude oil is already
extracted from the land. It will not available always to Iran. Production of renewable energy will
reduce dependency of Iran on crude oil. It is known to everyone that due to decline in oil price
heavy decline is observed in the earned amount of revenue or reserves. Thus, production of more
and more renewable energy will lead to low production of oil. Hence, there will be less cost of
unsold oil and production. If there will be less production of oil then fewer pollutants will be
released in natural environment. This will prevent further harm to natural environment and
concentration of carbon dioxide will also reduce. In case of sharp elevation in demand of oil
nation will be able to export high quantity of same to foreign nations. Hence, it can be said that
there will be positive impact of transformation policy in energy on Iran.
There are some problems that are hampering growth of renewable energy sector in Iran.
The one big problem is that there are less number of scientists in the Iran who have sound

knowledge of solar technology (Yang and et.al., 2011). Hence, nation is not able speed up its
R&D projects in relation to development of the cheapest technology. The second big problem is
that there is less awareness among the people about the positive aspects of use of renewable
energy. Hence, Iran government is receiving less cooperation from people. Public is giving due
importance to higher cost of project and they think that same is not viable for nation. There are
less availability of funds for carrying out solar energy projects in Iran. There is heavy risk in
these project and it is the reason due to which investors are abstaining from making investment.
There is absence of legislative support and management due to which growth rate of solar
projects become low in Iran. The fourth big loophole in these projects is that there is no proper
plan that is followed for executing them. Hence, these are some barriers that are hampering
growth of renewable energy in Iran. Iran government is however committed towards its solar
energy projects and this is proved from the fact that in past years many of them were completed
in Iran. Hence, it is clear that in future many new projects will be commenced in Iran in relation
to renewable source of energy.
4.3What does renewable energy mean for future of OPEC?
Renewable energy is emerging as alternative of traditional sources of power. Renewable
energy have great importance for the OPEC nations. This is because there are many nations like
India in which there is scarcity of energy and they are making huge import of oil from nations
like Iran. If nations like India will be self-sufficient in renewable sources of energy then they
will reduce import of oil and this will badly affect the revenue of the OPEC Nations. It can be
said that all nations of OPEC earn substantial amount of revenue from export of oil. Hence, it is
very important to take some steps that maintain demand for oil in such kind of nations. If OPEC
Nations will focus on meeting their needs by producing more and more renewable energy than
they will be able to make available more oil to these nations (San Cristóbal, 2011). Moreover,
elevation in crude oil price is one of the main factor that motivates nations like India and China
to generate more and more renewable energy. In case if price of crude oil will be reduced then
they will like to generate more energy by using crude oil instead of renewable source of energy
whose cost is already high. Hence, entire result will be that crude oil will be remain major
source of income for OPEC Nations in future time period. Condition of natural environment is
not good in OPEC nations because operations that are performed during exploration of crude oil
emanate heavy amount of carbon dioxide which is increasing concentration of greenhouse gases

in the relevant nations. Thus, generation of energy by renewable sources will help OPEC nations
to overcome this problem. It can be said that renewable sources of energy will provide both
economic and environmental benefits to the OPEC Nations.
4.4 OPEC economic policy for or against renewable energy
OPEC Nations economic policy are in favor of renewable sources of energy but in most
of the nations that belongs to this cartel make a very low amount of investment in renewable
energy. Saudi Arabia and Iran are one of the two nations of OPEC that are making moderate
investment on solar projects. However, Saudi Arabia delay its solar project of 109 billion USD
because it wants to develop cheaper and most advanced technology. There is commitment of
OPEC Nations towards their promise to control emanation of harmful pollutants. But the steps
that they are taking for generating renewable energy are executing at ground level at a very slow
pace which is a matter of concern. In past years total value of renewable energy sector increases
from 1 billion USD to 12 billion USD which shows good performance.
Lots of things need to be done and it is very important that member nations boost
investment in renewable energy projects. This is because India alone makes an investment of 13
billion USD which is higher than entire OPEC Nations. Targets are set by the member nations
for specific time frame regarding generation of clean energy. There are some issues that are
collectively faced by all OPEC Nations and good plan and tactical support is needed to handle
these issues in legitimate way. Finally, it can be said that economic policies of these nations are
not against renewable source of energy but step by step efforts needs to be made that speed up
production of power that is produced for natural sources.
4.5 Conclusion of analysis section
It is concluded that transformation policy is followed by Saudi Arabia and Iran but it is
implementing at slow rate due to less public support. This thing is evidenced from literature
review and data analysis section. It is also concluded that implementation of transformation
policy will control further damage to environment. Apart from this, it will also help these
nations in maintaining their leadership in market. This is also evidenced from different sources
that are mentioned in literature review section.

DISCUSSION
It is clear from the above discussion that Saudi Arabia government is fully committed
towards its transition policy of energy. There are good climatic conditions which are congenial
for generating solar energy. The main problem is high cost of technology. Instead, there are
number of benefits of solar energy and other renewable sources but its cost is high which is
preventing Saudi Arabia from commissioning of solar energy projects on its land. It can be said
that decision of Saudi government to carry out R&D projects on development of technology
related to solar energy is appropriate. This is because abundant amount of crude oil present in
the nation. It is sufficient because with the available quantity domestic as well as foreign needs
are easily meet in current time period. By using earned foreign revenue R&D project can be
financed easily. Thus, there will be huge availability of fund for such project. It is possible that
technology get developed in 5 years. The only loss of this decision will be that level of carbon
dioxide will further increase in Saudi Arabia. This is one side on which Saudi government
decide to work but no steps are taken on removing barriers. There are two agencies that are
regulating energy projects or industry of Saudi Arabia. There is not clear difference or
assignment of roles and responsibility among these two agencies. As a results activities get
overlapped and delay happened in decision making. This is also one of the main reason due to
which solar project get delayed. This does not mean that mentioned nation government is not
committed towards solar projects. The main issue is that it is not working on those areas where
due attention from its side is required. Apart from this lack of project finance is another problem
that is creating a big hindrance in achievement of targets. Hence, it can be said that there is a
need to address these issues as soon as possible.
Iran is one of the largest oil producer in the world and it is focusing on renewable
sources of energy. Its focus is mainly on solar energy and in this regard it is already carrying out
multiple projects. The main problem Iran facing is that there is no public support for solar power
projects and cost of same is also high. Nation can carry out research and development activity
but it does not have right people who have broad knowledge about relevant technology. Hence,
it is very difficult for Iran to develop the cheapest technology for generating solar energy. Lack
of finance is another problem that is faced by the Iran. So, it can be said that Iran is operating
various solar energy projects but there are lot of problems due to which it is not possible for the
nation to produce substantial energy from sun radiations. There is need to address these issues

carefully because if these issues will not be addressed in proper manner then there will be slow
growth rate of generation of renewable energy in Iran. First of all Iran government needs to
address these issues in proper manner. This is because till the time these issues will not be
addressed in proper way there will always be slow growth of renewable energy in Iran. It can be
said on the basis of discussion that there are lots of similarities between Saudi Arabia and Iran in
terms of problems they are facing in operation of solar projects. Both nations need to clearly
determine their regulatory authorities roles and responsibility. This is because if same will not be
determined then regulatory authorities will not get proper direction in which they need to work.
Moreover, there decisions related to projects will not be in specific direction. Thus, there is need
to build some boundaries and within same regulatory authorities will operate. The aims and
objectives for these authorities will be clearly determined more specifically. This will prevent
overlapping of functions and will make certain the scope within which these authorities need to
operate.
Lack of clear division of roles and responsibilities is the one of main mistake that
governments of both nations Saudi Arabia and Iran made. When, any decision is taken by
government the main challenging factor is to decide that which authority will implement same at
ground level. Sometimes these bodies' comes in front of each other which promote clash among
them and lead to slow implementation of solar projects. This is the main ground on the basis of
which both these nations’ governments are often criticized. Investment is made at slow rate in
the solar projects and it is not good for Iran and Saudi Arabia. These nations have capability to
generate huge power by using sun light. India alone is making investment equivalent to amount
spend by Arabic nations on their solar power projects. Hence, both these nations can by signing
an agreement with India can obtain technology know how and can reduce cost of solar projects
to some extent.
Conclusion on discussion section
On the basis of this section is concluded it is very important to determine roles and
responsibilities of regulatory bodies so that solar projects can be implemented at ground level
without any delay. Both nations are fully committed towards generating renewable energy but
transformation in energy is happening at slow pace in these two nations.

CONCLUSION AND RECOMMENDATION
Conclusion
On the basis of above discussion it is concluded that Saudi Arabia is one of the largest oil
exporting nation. Its large portion of revenue comes from oil export. With passage of time oil
production is increasing and due to this reason natural resources are reducing rapidly in the
nation. Thus, the main strategy of Saudi government is to meet its domestic needs from energy
that is generated by using renewable sources of energy like sun light and wind etc. Its focus is on
solar energy. In future time period there will be scarcity of oil and in that case also Saudi Arabia
will be able to export oil to nations across the globe.
Environment is another factor which is promoting use of renewable source of energy in
the nation. It is well known fact that in Saudi Arabia alone 1 million barrels are consumed per
day and due to this reason pollution increased in the mentioned nation. Environment means
surrounding conditions in which people, plant and animal survive. Pollution is badly affecting
surrounding conditions and people are suffering from many diseases. Hence, it becomes
important for the nation to maintain stiff control on emanation of pollutants from sites. This can
be done only by reducing production of oil. In order to do this Saudi Arabia government decided
to produce renewable energy by establishing solar plants. It can be said that transformation
policy is prepared in right direction.
It can be said that in future time period there will be positive impact of renewable energy
projects on the nation. Moreover, these projects will give two dimensional benefits to the firm.
Due to successful operation of these projects there will be availability of crude for export,
natural environment will damage less in future and dependency on crude oil will reduce for
economic growth (Hafez and Bhattacharya, 2012). Hence, it can be said that there are number of
benefits that this project will give to the nation. However, there is slow growth rate of generation
of renewable energy and to some extent it is a matter of concern for the firm.
It is well known fact that in Saudi Arabia there is very high temperature and due to this
reason there are heavy amounts of radiation in the relevant geographic area. There are ample
opportunities to generate solar energy. However, cost of same is also very high and it is very
difficult to earn profit in solar projects. This is the main reason due to which private investors
are abstaining from making investment in solar projects. This is acting as big hindrance factor
due to which Saudi government is not able to achieve its target.

There are two regulatory authorities in the Saudi Arabia and the big problem is that for
both there is no clear set of rules. Scope of these authorities is not determined and due to this
reason duplication of activities happened. There is absence of clear set of authorities and
responsibilities for both bodies. Due to this reason delay happens in execution of solar projects.
It can be said that is the one of the main factor that is playing a major role in slowing down
progress of solar energy projects.
In case of Iran also there are number of problems and scarcity of funds is one of them. It
is identified that investment is coming from foreign nations but there is very low relative to
domestic investment. This is matter of concern for Iran as it is clear from the facts that since
1995 it is making efforts to generate solar energy and it makes lots of work in this area.
Unfortunately, due to low investment and higher cost mentioned nation is not able elevate power
generation by solar energy by big percentage. Hence, it can be said that Iran government needs
to make the best efforts to achieve its targets.
There are number of projects related to solar energy that are operating in Iran. In this
regard number of solar panels were installed in rural areas of Iran. This program is continue till
the date in the mentioned nation. Growth rate of this project is low and it is matter of concern for
the country. Lack of appropriate scientists may be one of the main factor responsible for slow
growth. Apart from this, lack of sufficient finance is also another reason due to which these
projects are running at slow pace. Thus, these issues need to be addressed in proper manner to
accelerate growth of renewable energy in Iran.
Consistent harm to natural environment is one of the main concern of Iran government.
With passage of time concentration of carbon dioxide increases in surrounding conditions. This
make air polluted and in order to prevent harm to natural environment government decide to
commence renewable energy project. It is well known fact that release of pollutants in case of
operations that are performed in relation to solar energy does not happen. Thus, it can be said
that there is no threat to the natural environment from solar projects.
Oil export was another factor that motivate the Iran government to shift its attention to
the renewable energy. The focus of Iran is to remain major exporter of oil in gulf area especially
when world will face problem scarcity of oil. If it happened then Iran will meet its needs through
solar energy and other sort of renewable energy. On other hand, it will export more and more oil
to the foreign nations and will earn huge amount of revenue. This strategy acts as motivating

factor for the Iran to commence projects on renewable sources of energy. Same policy is
followed by Saudi Arabia with similar motive.
The main problem that Iran faced is that it does not have workforce that have technical
knowledge on solar technology. As a result, it is facing big problem in developing cheaper
technology that will be used for generating solar energy. Apart from this the knowledge level of
scientists on solar technology is also not good and due to this reason Iran ambition to generate
more and more electricity from solar energy is not achieved. Iran needs to work a lot in this
direction and in this regard first of all it needs to give training to its scientists. This will enhance
knowledge level of scientists and they will be able to develop cheaper technology which will be
used to generate solar energy in the country. Finally, it is concluded that there are number of
challenges that are commonly faced by Saudi Arabia and Iran. Both needs to evaluate their
conditions and accordingly needs to formulate strategies that will enable them to exploit all
available opportunities. It can be said that there are ample opportunities in renewable energy for
both nations.
Recommendation
On the basis of above discussion it is recommended that there is heavy need to develop
current technology base that cost of generation of power from solar energy can be reduced to
great extent. This will make project more viable. In this regard both oil producing nations can
allocate separate fund. Apart from this, they can carry out research projects in collaboration with
other nation. This will increase both nation's scientist’s knowledge related to technology. Hence,
by carrying out research projects in sharing cost of same will be reduce to great extent. On other
hand, technology will also develop in few years. Thus, it can be said that by doing so Saudi
Arabia and Iran can get well developed technology which will reduce project cost and make
project viable.
The second recommendation is that both nations needs to improve lots of things in there
regulatory bodies. In case of Saudi Arabia one of regulatory body can be eliminated or same can
be made liable to perform some specific functions of main regulatory body. In case of both
nations it is very important to make sure that boundaries of operation and authority are
determined for departments. This will clearly outline the scope within which regulatory body
needs to work. Rights and responsibilities of regulatory body must also established so that
operations can be performed smoothly and delay does not happen in planning and execution of

projects. Governments also needs to prepare targets up to specific year and must laid down
action plan that they will follow to achieve specific objective. By doing this government can
identify the hindrance that may come in existence in future time period. This will help firm in
addressing issues on time and in proper manner.

REFLECTION
This research study is carried on transformation policies that are followed by Saudi Arabia
and Iran in relation to renewable sources of energy. During this project I learn lots of things.
This is because I does not have much knowledge about oil and gas industry and renewable
sources of energy. I start study number of things from start and come to know about the
potential of oil and gas industry of Saudi Arab and Iran. Along with this I also review renewable
energy related policies of the nation. This enhance my knowledge base in terms of factors which
motivate both oil producing nations to adopt renewable energy. I identified that there are
multiple factors that affects nation preference in relation to generation of energy from renewable
sources. Present study clearly reflects that nations on the basis of outlook of future time period
decided that they will remain stick to the traditional sources of energy or will shift to renewable
energy. Scarcity of oil is one of the main factor that is motivating nations to focus on renewable
sources of energy. Apart from this, consistent increase in pollution and elevation in global
warming is another reason which is motivating nations to generate energy by making use of
renewable sources. Hence, it can be said that I get lots of knowledge from this research study.
This research improve my research skills. I came to know about the way in which cast studies
are analyzed to derive specific things. The main thing that I learn from this project that learning
never comes to end and it is a process that will remain continue. It is proved from the fact that
Iran is a nuclear state and it is able to develop relevant energy. Then also it is focusing on solar
energy to meet its needs. It can be said that this study help in my personal development.

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