Saudi Arabia’s green agenda: renewables at home, oil abroad

Saudi Arabia’s green agenda: renewables at home, oil abroad

When Paddy Padmanathan first pitched the idea of introducing a sliver of renewable energy into Saudi Arabia’s electricity supply, the state utility gave him short shrift.

The chief executive of Riyadh-based energy firm ACWA Power recalls being politely told to “go away” in 2007 after it was pointed out that the supplier was receiving oil at a “very competitive price,” far cheaper than solar.

It was a predictable response in the world’s top crude exporter, which has for decades happily burnt billions of barrels of oil to fuel power plants, desalination units and industries at heavily subsidised rates. “The incentive was not there,” says the Anglo-Sri Lankan executive.

But 15 years on, he and ACWA are on the front lines of the Middle East’s most ambitious renewables programme as the energy-guzzling kingdom that is one of the planet’s top emitters of CO₂ promises to go greener and cleaner. Saudi Arabia last year set the target of having half its electricity generated by renewables by 2030.

That means raising the amount of power generated by solar and wind from less than 1 gigawatt to 58 gigawatts in just over seven years. ACWA, a state-affiliated company, is the lead vehicle developing renewable projects.

“Yes, it’s ambitious, [but]