Throughout 2011, Europe continued to expand its solar power generating capacity, with countries like Germany, Spain, and Italy still leading the race. The United States has caught on too, as Hawaii and California among other states explore the economic and environmental aspects of solar power.
The movement towards using solar energy sources has also moved to the Middle East. New solar plants and solar-powered desalination plants have been built or started, amid signs that Saudi Arabia may be looking at energy alternatives. Long the domain where oil was always king, in fact, oil production in Saudi Arabia has declined in recent years; the first signs of this were seen in 2005. The output of light sweet crude oil peaked and has been on the decline; production figures for other types of oil may have peaked as well, based on data from Goldman Sachs.
While analysts continue to disagree on when or whether the peak of oil production has been reached, others make predictions about solar energy usage and export. An international energy consulting company, AT Kearney, predicted that the Middle East could undergo a solar boom in the next decade, with as many as 100,000 jobs created annually and billions of dollars a year invested. With power demand in the Kingdom rising faster than current supply infrastructure can support, Saudi Arabian electricity regulators have set a goal of making solar the source of 10% of the Kingdom’s power by 2020. Although not remarkable by world standards, that the oil-based Saudi government and economy would set such a goal may be a sign that the country’s leaders are finally beginning to look beyond petroleum in setting the country’s economic agenda.
A solar plant on Farasan Island was built by Saudi Electricity and a Japanese energy company owned by Saudi Arabian Oil. The power station is already connected to the power grid as of October 2011, and Saudi Arabia has shown further willingness to work with other countries in its solar power efforts. The Kingdom went into a joint venture with South Korea to build a factory that makes the solar cell material polysilicon. A $1 billion facility will be constructed by KCC Corp., an engineering firm from South Korea, Saudi Mutajadedah Energy Co., and Hyundai Engineering Co. The collaboration even resulted in the formation of joint venture firm, Polysilicon Technology Company.
Another recent development is Japanese firm Showa Shell Sekiyu’s announcement that its subsidiary, Showa Shell Solar, and Saudi Aramco have joined forces to collaborate. The collaboration will be the force behind the construction of a 10 megawatt solar plant in Saudi Arabia. This is just one of a set of corporate alliances that indicate the Kingdom is serious about expanding its solar power interests, both internally and in becoming integrated with world supply and demand.
Goldman Sachs, a major world financial company, predicts that Saudi Arabia will soon experience an oil supply shortage. According to the predictions of some analysts, the manufacturing and business activities taking place could result in the kingdom becoming a world leader in solar. While oil reserves eventually run out, and various predictions have been made over the years about when the world’s oil will diminish, solar energy can never disappear, especially in a vast open desert. Large corporations now admit that the oil reserves and associated wealth in Saudi Arabia are finite. It appears that the Kingdom’s solar energy efforts are well underway. Vast amounts of wealth, and a demand to seek cleaner power, may be fueling the drive to create the largest solar producer and exporter worldwide in just a few short years.
Sources
- A1SaudiArabia.com: Showa Shell Solar Aramco to build solar power plant
- Green Prophet: Saudi Arabia to Replace Oil with Sun Power for Desalination Plants
- Green Prophet: Could Saudi Arabia Become the Saudi Arabia of Solar?
- Theenergycollective: Goldman Sachs: Saudi Arabia Will Fail To Meet Oil Demand By 2012
