Localization important in Saudi renewable energy sector, says minister

Prince Abdulaziz bin Salman, Saudi Minister of Energy

Prince Abdulaziz bin Salman, Saudi Minister of Energy, said localization is very important in the renewable energy sector and may be more important than the supply sector.

During the Budget Forum 2022, held on Dec. 13, the minister indicated that the Kingdom's goals in this sector go beyond covering local needs.

The minister added that every government entity has a role in the renewable energy sector, noting that the Ministry of Energy is working with the Public Investment Fund (PIF) and ACWA Power as partners in this field.

The arrangements are based on allocating 70% of the renewable energy projects for economic growth. In addition, the auxiliary infrastructure and the projects that manufacture renewable energy products are available.

The ministry is working in cooperation with the Ministry of Industry, the Local Content and Government Procurement Authority and Saudi Arabian Mining Co. (Maaden), in order not to be exposed to the materials needed by the renewable energy industry.

The ministry will manufacture solar panels and have industries or develop the mining sector so that it can benefit from the Kingdom's resources, the minister said.

He added that there is a tendency with Maaden to have a subsidiary specialized in looking for additional mining resources so the sector's supply chains would not be impacted.