Saudi Arabia must invest hundreds of billions of dollars in energy by 2030 to meet its plan

Saudi Arabia will have to invest hundreds of billions of dollars in renewable energy and gas-fired power generation this decade to meet its generation capacity targets. Acwa Power chief executive Marco Arcelli said this today in an interview with Bloomberg at an investment conference.

Meeting the plan will require building power plants using renewable sources such as wind and solar energy, with a capacity of 60 to 80 gigawatts (GW), as well as gas-fired power plants with a capacity of 30 GW, Arcelli said. The company has been tasked with helping develop 70 percent of Saudi Arabia’s renewable energy needs. It plans to expand in Central Asia, China and at home in Saudi Arabia, Arcelli added.

The company intends to begin operations in China by 2030. A possible slowdown in the country’s economic growth presents a major opportunity for companies such as Acwa that are entering China and investing in its infrastructure, Arcelli said.

Acwa Power plans to build several green hydrogen production plants, including an $8.5 billion site (roughly CZK 196 billion) in Neom, a newly built city on the northwestern coast of the oil kingdom. Green hydrogen is produced using renewable electricity and is considered a clean alternative to natural gas in industries such as steelmaking and the chemical industry.

Under its economic plan, Riyadh is building new industries to create jobs and reduce the economy’s dependence on oil. The strategy also involves attracting investment from around the world.