• 3 minutes 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 6 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 11 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 14 minutes Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 2 hours Shale Oil Fiasco
  • 8 hours USA v China. Which is 'best'?
  • 3 hours Everything you think you know about economics is WRONG!
  • 8 hours Wallstreet's "acid test" for Democrat Presidential candidate to receive their financial support . . . Support "Carried Interest"
  • 4 hours My interview on PDVSA Petrocaribe and corruption
  • 18 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 9 hours Quotes from the Widowmaker
  • 1 day True Confessions of a Billionaire
  • 8 hours Global Debt Worries. How Will This End?
  • 15 hours Petroleum Industry Domain Names
This Australian Billionaire Just Saved A Solar Farm

This Australian Billionaire Just Saved A Solar Farm

Billionaire Andrew Forrest is looking…

Tesla’s Largest Competitor Is Hidden In Plain Sight

Tesla’s Largest Competitor Is Hidden In Plain Sight

Tesla’s biggest competitor isn’t producing…

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

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
Download on the App Store Get it on Google Play