Saudi Arabia and the UAE leading the region’s renewable energy charge: S&P Global Ratings

Saudi Arabia and the UAE leading the region’s renewable energy charge: S&P Global Ratings

RIYADH: Saudi Arabia and the UAE are leading the region’s fight against climate change by producing 90 percent of the Gulf’s renewable energy, according to S&P Global Ratings.

The US-based agency said that by the end of 2021, installed solar capacity in the two countries surged from 165 megawatts in 2016 to three gigawatts.

This increase helped fuel the renewable energy growth, with the UAE responsible for 77 percent of the output in 2021.

According to the report, Saudi Arabia and the UAE intend to continue making investments in the renewables sector.

“We believe plans to establish a renewables sector could help them in their efforts to achieve their climate goals,” it added.

The ratings agency highlighted the work of the government’s of the two countries, and said: “The UAE and Saudi Arabia have both established public-private partnership frameworks, making project finance an obvious choice for funding deployment.

“As energy transition in the region progresses, we expect to see more renewables projects tapping the capital markets for financing, including a growing number of solar PV projects.

“In our global portfolio of solar PV projects, the key credit qualities include the timing of and budget for maintenance, availability, and good management of solar panel degradation.”

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