Saudi Arabia Embraces Energy Choices with Viability as Key Factor

Riyadh: During the World Economic Forum special meeting in Riyadh, Prince Abdulaziz bin Salman, the Energy Minister of Saudi Arabia, stated that the Kingdom is open to various energy choices as long as the economics behind them are viable. He emphasized that Saudi Arabia believes that the world will continue to require every source of energy, ranging from hydrocarbons to nuclear energy and synthetic fuels.

Prince Abdulaziz highlighted the collaboration between the energy sector, the Saudi Arabian sovereign wealth fund PIF, and the oil and gas giant Aramco, as well as international partnerships with countries like Germany, France, Italy, and others. The aim is to develop a feasible business model for clean energy sources, particularly focusing on the lack of clarity regarding policies, incentives, and the pace of technology development, which pose challenges to the faster adoption of alternative energy sources.

Saudi Arabia, known as one of the leading producers and exporters of oil, has made significant commitments to combat climate change. The country has pledged to achieve net-zero emissions by 2060 and aims to generate 50 percent of its electricity from renewable energy sources by 2030. However, instead of a phase-out strategy that completely eliminates carbon-intensive fuels, Saudi Arabia has opted for a phase-down strategy that gradually reduces their usage in the mid to long term.

The primary concerns addressed by Saudi Arabia include energy security, accessibility, and affordability, should they decide to follow a phase-out path. These factors play a crucial role in determining the viability and sustainability of alternative energy sources.

Prince Abdulaziz's remarks demonstrate Saudi Arabia's willingness to explore diverse energy options while ensuring a balance between economic feasibility and sustainable development. The Kingdom acknowledges the global demand for energy and strives to play a role in shaping a greener future.