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[womfalcs3]

...on oil going forward.

Saudi Arabia raised energy prices in 2016, but it is looking for more raises in the future. Chatham House in the UK released a paper in 2011 that was cleverly titled, “Burning oil to keep cool”; about 60% of electricity is currently generated using oil.

In this vein, a recent paper explores three alternative electricity pricing options for households in Saudi Arabia. The authors analyze the impact of fuel and electricity price reforms on the power utilities and households. The most interesting piece of insight for me is that the constraint imposed on the Saudi economy by limited domestic natural gas supply is alleviated as a result of raising electricity prices. Of course, the local scarcity of gas could also be mitigated through imports, but this is a political decision that is not addressed in the analysis.

Saudi Aramco also plans to double natural gas production by 2025 compared to 2015, which will have huge implications on the fuel mix and pollutant emissions in the kingdom. More gas in the future will displace domestic oil use. Lower demand for electricity as a result of higher prices could also signal reduced emissions and burning of oil. This, with the planned 9.5 GW of renewable power generation by 2023.

 

[DrROBschiz]

You would think Solar would be prime energy source in the desert

Just need a way to mitigate sandblasting from wind storms

 

[womfalcs3]

You would think Solar would be prime energy source in the desert

Just need a way to mitigate sandblasting from wind storms

The low prices of fossil fuels there have made using them less expensive than solar.

 

[milanbaros]

You would think Solar would be prime energy source in the desert

Just need a way to mitigate sandblasting from wind storms

I think the average cost of producing oil in some of the oil fields in SA is $5 a barrel though.

 

[7aged]

You would think Solar would be prime energy source in the desert

Just need a way to mitigate sandblasting from wind storms

Many reasons why Saudi is behind on solar.
The main ones are the incentive regimes (tariff, offtake agreements, consumer installation subsidies etc..) are non-existent.
The different agencies tasked with investing in renewables have gone after different technologies (one pushed CSP, another PV, etc..)
Basically it's an incoherent mess.

Not helped also that not all the country is well suited for solar due to dust/sand issues. Convincing people to invest in a solar farm in Tabuk is harder than one in Riyadh.

The low prices of fossil fuels there have made using them less expensive than solar.

You ignore the opportunity cost of not selling it at the open market.

 

[womfalcs3]

Many reasons why Saudi is behind on solar.
The main ones are the incentive regimes (tariff, offtake agreements, consumer installation subsidies etc..) are non-existent.
The different agencies tasked with investing in renewables have gone after different technologies (one pushed CSP, another PV, etc..)
Basically it's an incoherent mess.

Not helped also that not all the country is well suited for solar due to dust/sand issues. Convincing people to invest in a solar farm in Tabuk is harder than one in Riyadh.



You ignore the opportunity cost of not selling it at the open market.

A barrel of oil not consumed domestically isn't necissarly exported. You would throw the market off balance and cause the prices to fall.

And with oil offered to utilities at 6.35 $/barrel now, they would not more expensive PV.

 

[Kthulhu]

Well at least gas is better than oil, so it's a start.