Saudis’ green energy investment targets Europe

It’s quite a change of direction: from the world’s second largest supplier of oil and notoriously obstructive force in climate talks to the big league of renewable energy. But that’s what Saudi Arabia is set to become as it announces a $100bn investment in solar power.

The oil-rich state plans to be in a position to export solar energy within 15 years. And with recent improvements to its power grids, it could be in a position to supply electricity to Europe as well as its neighbours.

But the Saudis haven’t become environmentalists. Their decision to go green is pragmatic and most likely borne out of panic at their dwindling oil reserves. The wealthy gulf state consumes so much fossil fuel, it’s estimated that without serious intervention it could become a net importer of fuel within 20 years.

Which is exactly why their decision to invest in renewable energy is so timely. As solar power expert Danny Kennedy explains:

“The reality is that solar power has come of age and is now a bankable technology. attracting the likes of Buffett and Google, and KKR and Blackstone, and Walmart and MetLife, because it garners double-digit returns on investment. Smart money and the Saudis know solar works; why don’t we?”