• 19 hours Shell Oil Trading Head Steps Down After 29 Years
  • 23 hours Higher Oil Prices Reduce North American Oil Bankruptcies
  • 1 day Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 1 day $1.6 Billion Canadian-US Hydropower Project Approved
  • 1 day Venezuela Officially In Default
  • 1 day Iran Prepares To Export LNG To Boost Trade Relations
  • 1 day Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 2 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 2 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 2 days Rosneft Announces Completion Of World’s Longest Well
  • 2 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 2 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 2 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 2 days Santos Admits It Rejected $7.2B Takeover Bid
  • 3 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 3 days Africa’s Richest Woman Fired From Sonangol
  • 3 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 3 days Russian Hackers Target British Energy Industry
  • 3 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 3 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 3 days Lower Oil Prices Benefit European Refiners
  • 3 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 4 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 4 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 4 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 4 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 4 days OPEC To Recruit New Members To Fight Market Imbalance
  • 4 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 5 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 5 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 5 days GE Considers Selling Baker Hughes Assets
  • 5 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 5 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 5 days Aramco To List Shares In Hong Kong ‘For Sure’
  • 5 days BP CEO Sees Venezuela As Oil’s Wildcard
  • 5 days Iran Denies Involvement In Bahrain Oil Pipeline Blast
  • 8 days The Oil Rig Drilling 10 Miles Under The Sea
  • 8 days Baghdad Agrees To Ship Kirkuk Oil To Iran
  • 8 days Another Group Joins Niger Delta Avengers’ Ceasefire Boycott
  • 8 days Italy Looks To Phase Out Coal-Fired Electricity By 2025
5 Hot Stocks In Today’s Most Competitive Markets

5 Hot Stocks In Today’s Most Competitive Markets

Cryptos, cannabis, cybersecurity and cobalt…

James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

Saudi Arabia to Build $640 Million Solar Power Plant in City of Makkah

Saudi Arabia to Build $640 Million Solar Power Plant in City of Makkah

Last month Citigroup released a report that Saudi Arabia, the world’s largest exporter of crude oil, could actually become a net importer by 2030 if its domestic consumption continues to grow at current rates.

Currently the Arab kingdom consumes all of the natural gas it produces and a quarter of its total oil (three million barrels per day), and that demand is growing by eight percent each year.

In order to avoid this fate, and maintain the vast revenue that it earns from exporting oil around the world, Saudi Arabia is embarking on various renewable energy projects. One of those is a giant solar power plant to be built in the city of Makkah.

The solar plant will cost around $640 million and have a capacity of nearly 100MW. Al-Eqtisadiah, a Saudi Arabian daily newspaper, commented that the project is intended to meet the growing power demands in the region, and believe that once up and running it could save the city around $587 million off its annual electricity bill.

Osama bin Fadl Al-Bar, the mayor of Makkah, told Al-Eqtisadiah that “the project will be established on an area of about 2m sqm. About 20 international consortiums consisting of about 100 companies will compete for the execution of the project.”

RELATED: What Impact does Oil have on the Syrian Civil War?

Al-Bar said that the first bids will be accepted during the first week of 2013, and that depending on the success of the whole venture, other municipalities around the country may develop their own solar strategy, which could potentially save the kingdom up to eight million barrels of oil a day.

By. James Burgess of Oilprice.com



Join the discussion | Back to homepage

Leave a comment
  • Alfred on October 06 2012 said:
    The roi of the project is probably due to the amount of sun available(desert) versus other regions of the world.
  • David Rushton on October 05 2012 said:
    If these numbers are accurate - a $640 million investment - will pay for itself in a little over a year (annual savings of around $580m). That is an almost unheard of roi. Solar power is about to explode I think...
  • ymah on October 05 2012 said:
    It is about time for the Kingdom of Saudi Arabia to invest its resources in renewable energy rather than continue providing lib service for their desire to do so. A large project like this one will surely place the kingdom at the forefront in Solar Energy Projects. Saudi Arabia should sponsor innovation and growth of Solar and Wind generated electric power.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News