FC701 Extended Project Report: Solar Energy Importance in Saudi Arabia

This report investigates the significance of solar energy in Saudi Arabia, focusing on its potential to address the growing demand for electricity and reduce reliance on fossil fuels. It highlights Saudi Arabia's geographical advantages, including high solar radiation levels, and discusses the economic and environmental benefits of solar power. The report analyzes the challenges associated with transitioning to solar energy, such as high initial costs and technological hurdles, while also exploring the opportunities for investment and development in the sector. It compares the costs of solar energy with conventional energy sources, considering indirect costs related to health and environmental impacts. The report concludes by emphasizing the importance of solar energy for Saudi Arabia's sustainable future, offering a pathway towards a cleaner, more diversified energy portfolio and reduced carbon emissions. The report also delves into the current energy consumption patterns and challenges faced by Saudi Arabia's existing energy system, including the impact of fossil fuels on the environment and public health. The study also touches upon the economics of solar energy and the potential for cost reduction, alongside indirect costs of conventional production.

IMPORTANCE OF SOLAR ENERGY IN SAUDI ARABIA
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Abstract
The ever rising demand for electricity in Saudi Arabia insinuates there has to be an expansion in
generation of power. The tradition methods of production of power have been established to be a
single major source of environmental pollution and having negative impacts on human health via
emission of greenhouse gases. It is thus important that an alternative generation method is
established which conservative of environment as well as health beings is being supportive of
available conventional production during the peak hours. Saudi Arabia is suitable in
geographical terms as it is situated in Sun Belt that has resulted in it being one of greatest
producers of solar energy. Solar energy is significant competitor to conventional production
when the indirect fossil fuel costs are inclusive hence sunlight processing through photovoltaic
cells is integral method in production of clean energy. This article looks at the importance of
solar energy in context of Saudi Arabia by offering a proof that cost of solar energy would be
lower than fossil fuel energy considering damages on health and environment.
Keywords: solar energy, photovoltaic cells, Sun Belt, solar radiation

Introduction
There has been a tremendous growth in economy of Saudi Arabia over the last few decades
mainly as a result of rich as well as accessible endowments of natural gas and oil. Saudi Arabia
has been established to be the country with the highest GDP level of all the Gulf Cooperation
Council but has as well be found to be the highest emitter of carbon dioxide with proof
projecting an further increase in dependence of gas and oil for generation of power. As per the
prevailing projections, the local power demand in Saudi Arabia will rise to about 120GW by the
end of 2028 which is equivalent to about 8.5 million barrels of oil per day (Almasoud and
Gandayh, 2015).
This is posing a major risk for Saudi Arabia with regard to maintaining its place in Organization
of Petroleum Exporting Countries as one of major suppliers for numerous international nations.
It is believed by experts that country has surpasses its peak rates of oil production and there tends
to be a greater incentive in finding new, clean as well as renewable resources of energy that may
be used for the future (Alabbas and Nyangon, 2016). The desert climate of Saudi Arabia as well
as the high heat exposure levels renders it a potential huge hub for the production of solar
energy. The rich gulf state has the financial resources, manpower as well as the climate to
support the solar plants that are all usable in complimenting the initiative.
Saudi Arabia has the largest economy in Gulf Cooperation Council and having an economic
growth perceived to mainly depend on non-renewable source of energy and hence an urgent need
for the country to exploit alternative energy sources (Demirbas et al., 2017). Experts and
researchers as well propose that Saudi Arabia has the potential of emerging the most competitive
region for manufacturing photovoltaic solar energy. It was reported by European Commission

Institute for Energy that 0.3 per cent of light that falls on Middle East and Sahara would be
adequate for the entire Europe.
Of all the six Gulf Cooperation Council countries, Saudi Arabia has been established to be
among the biggest markets representing most of projects for photovoltaic markets and is
anticipated to result in region being a solar expansion hub (Almaraashi, 2017). The current prices
of electricity in Saudi Arabia are also set to be less than the long-marginal costs and from
perspective of customer there is minimal economic incentive to use electricity in a manner that is
more efficient or conserve the electricity.
On another hand, in spite of having all needed resources, some of main economies are illustrated
limited commitment to reduction of levels of emission of carbon resulting in significant pollution
which lead to different diseases. The initiatives of Saudi Arabia towards green power exports
would not be beneficial to participating nations from energy production but as well strengthen
the local skills besides employment. Uses of solar energy within Saudi Arabia have been on rise
beginning 1960 with systematic as well as major study and development work towards
development of technologies for solar energy having been started by King Abdulaziz City for
Science and technology way back in 1977 (Ramli, Hiendro and Al-Turki, 2016).
Opportunities for solar energy development of in Saudi Arabia
Saudi Arabia currently possesses huge regions of empty space which is major component of
harvesting solar energy besides availability of high direct normal irradiation levels that are
needed in production of solar energy. There are two primary techniques used in collection of
solar energy: photovoltaic cells which often cover expansive regions and experience technical
challenges under very high ambient temperature that come with the heat collected from

concentrated solar rays. This results in obstacle for use of photovoltaic cells in Saudi Arabia.
Another dominant technique adopted in harvesting of solar energy in Saudi Arabia is
concentrated solar power plants.
The technique needs less space in comparison with photovoltaic cell and may be quite effective
in places that have high direct normal irradiation for example Saudi Arabia. High ambient
temperatures and dust are as well a major concern with this kind of infrastructure even though
ways of overcoming such challenges are undergoing development. A research carried out to
evaluate effect of use of solar energy for desalination of water compared with the conventional
production of power suing fossil fuels in Saudi Arabia is as demonstrated in figure below (Saleh,
2017).
The research concluded 1.5 billion dollars saving in case solar thermal energy was adopted in
producing power for the water desalination plants as compared with water plants powered by
fossil fuels (Yilbas, 2019). An investment in such projects would be essential in easing the
dependence on gas oil for the production of electricity when at the moment Saudi Arabia
consumes all the production of natural gas in generation of electricity.
Figure 1: Large Scale Multi-Purpose Power & Water Production Plant

The pure dependence of Saudi Arabia on fossil fuels in production of power is demonstrated in
figure 2 below
Figure 2: Dependence of Saudi Arabia on fossil fuels in production of power
An investment in solar energy has the potential of reducing gas and oil dependency by Saudi
Arabia besides relieving part of pressure on such resource in supply energy used in production of
electricity and was as desalination and petrochemical plants (Mas’ud et al., 2018).
In spite of enormous opportunity cost associated with the generation of solar energy, Saudi
Arabia has come up with a long term investment plant that will see to tune of US $110 billon
spent in solar energy sector (Salam and Khan, 2018). A great chunk of annual revenues of Saudi
Arabia are generated from oil thus a diversification of energy portfolio would be important in
preservation of oil revenue.
By virtue that Saudi Arabia is one of leading countries in per capital user of energy around the
globe tends to pose a major challenge. This begs the question on efficiency of local energy

consumption among the local inhabitants. High subsides of energy might be among the reasons
attributed to inefficient consumption of energy
Challenges of existing energy system
Saudi Arabia is estimated to be covering 2,149,690 km2 of land which is almost half the size of
European Union and has two major seasons: winter and summer with more than 85 per cent of
population of entire country residing in cities and towns. Saudi Arabia has the second largest oil
reserves with an estimation of about 268.3 billion barrels which is almost 20 per cent of total
proven conventional oil reserves of world. As per the British Petroleum Statistical Review of
World energy, Saudi Arabia was found to be second in largest world holder of proven oil
reserves accounting for 15.9 per cent of cumulative and sixth largest holder for reserves of
natural oil (Awan, Zubair and Abokhalil, 2018). The country was the second largest produce in
2015 of oil in world producing to tune of 11.7 million barrels each day.
The consumption of power in Saudi Arabia is more than thrice the world average and has seen an
exponential ground to compound annual growth rate of 6 per cent over the last half a decade. The
most recent statistical data demonstrates a significant growth rate with regard to domestic
consumption with a yearly growth of 14.8 per cent. The sector of housing in Saudi Arabia has
been found to be one of major consumer of electricity having 70 per cent consumption of
cumulative energy since most of structures do not have insulation.
Generation of electricity in Saudi Arabia results in major environmental implications among
them effects on water, land, air ad climate (Al-Maamary, Kazem and Chaichan, 2016). Saudi
Arabia was the world’s ninth greatest emitter of carbon dioxide as per the data released in 2012
accounting for 2.8 per cent of cumulative global emissions. As a result of huge dependence on

fossil fuels, production of heat and electricity contributes to 56.34 per cent of internal carbon
dioxide emissions within country. Despite the government effects in diversifying its economy by
close of 2015, the petroleum sector still represents about 80 per cent of budget revenues, 90 per
cent of earnings from exports as well as 45per cent of GDP. The existing supply of energy is
purely dependent on fossil fuels having no input from renewable energy sources even though the
country has the longest sunshine hours as well as highest solar radiation intensity globally (Zell
et al., 2015).
Solar energy economics
The costs of solar energy have reduced from about 90 ¢/ kWh where it was in 1980 to about 20¢/
kWh currently. The current photovoltaic cells cost with the US is in range of 20 ¢/ kWh to 25¢/
kWh and figures are anticipated to decrease to between 5¢/ kWh and 10¢/ kWh by year 2015.
The mean overall cost of one unit of generation of conventional electricity in Saudi Arabia in
2008 when supported by the government was about SR 0.15 (AlYahya and Irfan, 2016). The
cumulative cost of generation of power for a given Gulf Cooperation Council utility is 12¢/ kWh
that is equivalent to SR 0.45.
A single ton of petroleum has been found to be equivalent to 5.84 barrels and might provide
about 11,630 kWh of traditionally generated power. It is expected that world oil prices would
rise from $65 to about $90 for every barrel by 2015 and $110 for every barrel by 2020. This
insinuates the cost of production of electricity from sources of conventional production would
decrease quite rapidly. The cost of production of power from renewable sources would tend to be
less expensive in comparison with production from fossil fuels taking into consideration hidden
costs including public health and environmental costs (Alnaser and Alnaser, 2020).

Economics of solar energy tend to be at their best in places having high solar radiation factors.
Any comparison made between solar energy and conventional energy must be inclusive of
indirect costs associated with conventional energy that are often dimensioned by indirect factors
among them heath as well as environmental impacts (Baras et al., 2012). Table 1 provides a
summary of indirect costs fcr every kWh of conventional production.
Table 1: Indirect conventional production
Health and environmental issues
One of basic conditions needed for the presentation of human health is unpolluted air despite the
fact that air pollution has remained danger to health of the public globally. The conventional
electricity production industry is the major contributor to emisions of dangerous gases that are
pollutant to environment. Fuels of low quality and generation techniques typical in Saudi Arabia
for instance crude oil having high contents of sulphur in power plants having neglible emission
controls have been found to emit a range of pollutants resulting in public health issues
(Mokheimer, Dabwan and Habib, 2017).
Conventional power plants release greenhouse gases including sulphur dioxide, carbon dioxide
and oxides of nitrogen which are the major accelerators of global warming. With a contribution
percentage of 56 per cent, Saudi Arabia tops Gulf Cooperation Council countries in emissions of
carbon dioxide ranking 14 globally for emission of carbon dioxide. Future use of conventional

production would enhance the levels of carbon dioxide emisions in Saudi Arabia relative to
expansion of existing capacities for generation (Ibarra et al., 2017). Power plants would thus
have a major role to play in reduction of such emisions via adoption of alternative production of
electricity for instance photovoltaic power.
Geographical & meteorological issues
The region between latitudes 40⁰N and 40⁰S is known as the sun belt and Saudi Arabia has been
found to be lying within this region, between 31⁰N and 17.5⁰N making it conveniently situated
in sun belt and hence being opportunistic of solar energy. During selection of appropriate sites
for erection of photovoltaic power plants, insulation tends to be a major consideration (Dasari et
al., 2019). The mean solar radiation in Saudi Arabia varies in range of 7.004kWh/m2 and
4.479kWh/m2 with higher values of solar radiation being noted in most of parts located in
southern region. The figure below demonstrates the ten leading locations of solar radiation
intensity.
Meteorological data including hours of sunshine, ambient temperature, solar radiation, amount of
cloud cover as well as relative humidity are integral in estimation of mean global solar radiation.
Sunshine duration varies from 9.5 hours/day to 7.5 hours/day with the mean daily sunshine
duration being about 8.90 hours/day.
Photovoltaic cell charges values of solar energy to electricity at low temperatures and maximum
power that is available when the temperatures are lower tend to be higher than amount when the
temperatures are higher. Hence, impact at high operating temperature is reduced output power
(Alabdulkarem and Abdulghani, 2019). The presence of dust on surfaces influence performance
of photovoltaic modules as accumulation of dust alters I/V characteristics of photovoltaic cells as

factor of amount of accumulated dust for every unit’s area of surface of module. It is hence
recommended that photovoltaic modules be maintained clean to maintain maximum efficiency of
photovoltaic power plants.
Figure 3: Saudi Arabia annual solar insulation
Challenges and barriers for Saudi Arabia solar energy development
Numerous researchers have noted the challenges alongside barriers that need to be dealt with to
make the project of solar energy a success in business context of Saudi Arabia. In spite of
previously partly successful experiments, arguments are still on that photovoltaic panels are not
able to tolerate the Saudi Arabia’s desert harshness. There is no data associated with
development of solar energy as there are only a handful of completed and documented solar
energy projects (Kassem, Al-Haddad and Komljenovic, 2017). Still, the unavailability of
economically competitive privatisation, engineering efficiencies, consumption markets as well as
government policies from perspective of techno-engineering. There are no suitable business
environment and business policies. Saudi Arabia should be raised by manifolds for handling the
current state of solar as well as wind energy to demonstrate a practical competing effect. The

well-developed oil industry and infrastructure of Saudi Arabia bearing decades of huge
investments and services and energy of every type are to a great extent subsidized. This makes
the creation of a business environment aimed at promoting solar energy a hurdle before the
policy makers (El-Husseini et al., 2010).
The prevailing strategies as well as policies for the development of renewable energy in Saudi
Arabia deserve bring on board new legislation, provision of incentive for investments, the
signing of new and viable international treatises which target energy production and coming up
with guidelines for conservation of energy (Alfaraidy and Sulieman, 2019).
There is no immediate attention and pressure that is aimed at securing and seeking alternative
energy sources that would making Saudi Arabia less concerned with investing in non-
conventional energy. Relatively high amounts of oil export that is sold by Saudi Arabia to global
might have a negative effect on oil price and hence would offset the possible gains from
renewable energy. At current rates of production as per the former minister for oil in Saudi
Arabia, the Saudi oil reserves available at moment are able to last for approximately 80 years and
business situation demonstrates limited concern for securities of energy through the adoption of
renewables in Saudi Arabia (Siouti and Ali, 2019). The mentality of strong trader from
conventional Arab culture discourages innovation with focus being on short term financial gains
that are devoid of long term perspective for possible gains from entrepreneurship and R&D.
Another barrier is with regard to public resistance of high voltage line to all-long distance grid
projects. Photovoltaic cells are limited to sunny days only nevertheless; concentrated solar power
that tends to be slightly more expensive is able to offer storage for electricity.

The localization of workforce, concern of saudization as well as lack of both trained and skilled
workforce is yet another concern that calls for an attention to see solar project successful. In as
much as the government not has adopted numerous steps in upgrading the skills of its population
as well as talent development, among the government key performance indicators is serving the
objectives of Vision 2030. Globally, the sector of solar energy has been one of surest sources of
gainful employment absorbing about 3725 million people in 2015 (Al Garni and Awasthi, 2017).
Conclusion
The report has extensively comprehensively expanded on importance of adoption of solar energy
in generation of electricity using photovoltaic cells and concentrated solar power specifically in
Saudi Arabia. The environmental as well as heath impacts, issues with geographical location
besides the economics of solar energy have been considered. It has been demonstrated that air
pollution accounts for a significant portion of danger to public health globally and generation of
electricity using fossil fuels is major stakeholder in emission of harmful gases that pollute the
environment.
A check on greenhouse gas emissions would be fundamental in reducing environmental pollution
besides saving expenditures on pubic health care. Still, cost of solar energy has been
demonstrated to be less than fossil fuels when indirect as well as direct costs including health and
environmental costs are included. The use of solar applications including photovoltaic cells and
concentrated solar power is recommended as the least expensive and best means of availing basic
services of energy in Saudi Arabia. This may be promoted through offering solar home systems
to give power for the purposes of indoor lighting alongside other direct current appliances.

Photovoltaic cells may be adopted or lighting mostly for homes as well as community buildings.
Solar cooling systems might be encouraged mainly for commercial applications. Chances are
that solar power plants may be developed that may supply off grid power for the communities
dwelling in deserts.

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