Renewable energy costs won’t get cheaper anytime soon, says Saudi expert

Renewable energy costs won’t get cheaper anytime soon, says Saudi expert

SINGAPORE — Renewable energy costs will not become cheaper anytime soon, cautioned the head of a Riyadh-based think tank at the 15th Singapore International Energy Week (SIEW).

Fahad Alajlan, President of King Abdullah Petroleum Studies and Research Center (KAPSARC), was speaking during a panel discussion, titled “Mobilizing Greener Financing for Energy Infrastructure,” in Singapore on Tuesday.

Alajlan emphasized that the higher renewable energy costs must be addressed to adjust the public’s understanding.

The comments by Alajlan highlight the need for more clarity and better governmental policies to inform the public about energy misconceptions.

“The idea that renewable energy sources have the lowest costs has been widely disseminated, and the public may believe that energy costs will decrease in the next two to three years. That is not going to happen and if we don't communicate this clearly, the public might have an adverse reaction when things don't go as planned,” Alajlan said.

Even though the costs of clean energy technology have been decreasing due to economies of scale, a combination of rising demand, disrupted supply chains and limited supply of raw materials threaten cost cuts. The cost surges are also influenced by the concentration of several minerals and metals in only a few nations. The