Saudi Arabia Solar Industry:

Country Focus Report

2017
Contents
Solar Energy Beyond 2017 and Vision 2030 3
The role of REPDO in promoting Saudi Arabian solar 5
Preface 7
Change of Direction 8
Subsidy Reform 10
Commercial & Industrial Applications 12
Residential Applications 14
Q&A with Tariq Alghaziri, Senior Vice President, Riyad Bank 15
Q&A with George Antonopoulos, CEO, HAACO Industrial Division 16
Worlds first solar-powered desal plant 17
New Developments
Expansion of transmission network 18
SASO adopts new IEC standards 19
Dust-resistant solar glass at KACST 19
The case for distributed solar in Saudi Arabia 20
Q&A with Iain McCulloch, Director, KAUST Solar Center 22
Made in KSA 24
ACWA Power 25
AEC-KACO 25
Afandi Group 25
Desert Technologies 26
Green Gulf 26
King Abdulaziz City for Science and Technology 26
Taqnia Energy 27
Saudi Electricity Company 27
Q&A with Dr. Raed Bkayrat, Vice President of Business Development
for the Middle East, First Solar 28
References 30
Solar Energy Beyond 2017
and Vision 2030
The Saudi Arabia Solar Industry Association (SASIA) is pleased to publish this
country focus report in support of the Saudi Arabia Vision 2030 and National
Transformation Plan (NTP). Founded in 2011, SASIA encourages cooperation
between stakeholders to make Saudi Arabia a leader in solar energy
development. The Kingdom has the unique opportunity to become one of the
most energy advantaged countries in the world.
The 2011 Chatham House report titled
Burning Oil to Keep Cool - The Hidden
Energy Crisis in Saudi Arabia stated that
Saudi Arabias place in the world oil market
is threatened by unrestrained domestic fuel
consumption. In an economy dominated by
fossil fuels and dependent on the export
of oil, current patterns of energy demand
are not only wasting valuable resources
and causing excessive pollution, but
also rendering the country vulnerable to
economic and social crises.
The report foreshadowed the inevitable
economic and social challenges we
see unfolding today in Saudi Arabia. As
outlined in the Chatham House analysis,
Saudi Arabia and the region face specific
challenges including reversing a history of
low energy prices and vested interests in
low prices; managing the transition to higher
prices, especially for low-income groups;
making energy conservation policy coherent
and effective, given the vertical structure
of government and lack of channels for
societal feedback; and convincing the
public that such measures are necessary
when oil and gas reserves are so abundant.
Country Focus Report 2017
In November 2016, Browning Rockwell,
founder of SASIA, described Saudi Arabia
as the big multiplier for the region.
Speaking to The New York Times, he said
that if the Saudis can figure out how to
make it work in their country, they can
drive development of solar energy in other
markets.
The first of these markets would be the
Middle East and North Africa region,
which is home to 5.5 percent of the worlds
population, boasts 3.3 percent of its GDP,
and accounts for 48 percent of global
energy subsidies. Regional governments
now have the political will to curtail
domestic energy subsidies and allow real
market conditions to drive solar energy
development.
Saudi Arabias recently announced Vision
2030 and the NTP clearly outline ambitious
renewable energy goals under the King
Salman Renewable Energy Initiative. In line
with the goals of Vision 2030, SASIA will
continue to bring the local and international
industries together, transforming the vast
solar potential of Saudi Arabia into a
commercially viable solution for the regions
growing electricity demand.
Browning Rockwell
Founder and Special Advisor
Saudi Arabia Solar Industry Association
(SASIA)
In Association with the Solar GCC Alliance
Browning Rockwell has worked in the
GCC/MENA region for more than a quarter
century. He is the founder of the Saudi
Arabia Solar Industry Association (SASIA),
and Solar GCC Alliance, which publishes
theMENA Solar Brief, a monthly e-newsletter
covering solar energy development in the
GCC/MENA region.
3
 The role of REPDO in
promoting Saudi Arabian solar
SASIA policy brief, April 2017

Executive summary Situation analysis

The Kingdom of Saudi Arabia is blessed with
abundant sources of energy. As the country looks
to the future, one of its key tasks is to diversify its
generation base to ensure the most valuable source,
fossil fuel, is reserved for export and for boosting
the nations balance of payments. This means
embarking on a major program of renewable energy
infrastructure investment. The plan is ambitious,
but the timing is right: solar and wind are now both
highly competitive in price and are seen as solid
asset classes with significant investment potential.
The challenge for the country is to ensure significant
new renewable generation capacity is installed in an
orderly fashion while satisfying the requirements of
a diverse set of stakeholders, from corporate entities
with established interests to officials with clear
policy objectives. An important figure in this process
will be the Renewable Energy Project Development
Office (REPDO), recently created under the
auspices of the Kingdom of Saudi Arabias Ministry
of Energy, Industry and Minerals (MEIM) and led by
Turki Al-Shehri.
This paper analyzes the role of REPDO in
coordinating efforts to create a stable, long-term
renewable energy market in Saudi Arabia, and
concludes the Offices potential to act as a mediator
and controller will have a positive impact on the
evolution of solar power in the nation.
Saudi Arabia has confirmed a request for proposals
for 700 MW of solar and wind power will go live on
April 17, 2017, following a request for qualification
(RFQ) process launched on February 20.1 The RFQ
process is expected to close in July 2017, with
the first round of projects due to be awarded in
September 2017.2
The National Renewable Energy Program (NREP)
targets 9.5 GW of renewable energy by 2023, in
support of Saudi Arabias Vision 2030, with an
interim target of 3.45 GW of renewable power
capacity by 2020 under the National Transformation
Program.3 The creation of a completely new,
renewables-based industry represents a significant
opportunity for Saudi Arabia.
Besides fulfilling a core requirement to reduce
internal consumption of valuable fossil fuel reserves,
it is expected that the NREP could attract significant
foreign investment and serve as a motor for job
creation and industrial diversification, among other
potential benefits. At the same time, however,
successful development of the market will depend
on consolidating and coordinating the efforts of
numerous stakeholders, including:
The Saudi National Oil Company (Saudi Aramco).
The King Abdullah City for Atomic and Renewable
Energy (KA-CARE).
The Saudi Electricity Company (SEC).
The King Abdullah Centre for Science and
Technology (KACST).
The Electricity and Co-Generation Regulatory
Authority (ECRA).
The King Abdullah Petroleum Studies and
Research Centre (KAPSARC).

1 Saudi Arabia Ministry of Energy, Industry and Mineral Resources

press release, February 1, 2017: Saudi Energy Minister Confirms
Kingdoms First National Renewable Energy Program RFQ to be
issued on February 20th.
2 Ibid.
3 Ibid.
4 Ibid.

4 Saudi Arabia Solar Industry

 The role of REPDO
During the announcement of the RFQ, His
Excellency Khalid Al-Falih, Minister of Energy,
Industry and Mineral Resources, also announced
the development of a unit responsible for the
delivery and execution of the NREP. REPDO,
which sits within the Ministry, will drive deployment
of renewable energy across the Kingdom, and
is an important step towards our sustainability
and economic goals, accelerating our economic
transformation process and securing our long-term
prosperity, Al-Falih said.4
REPDO has a dedicated team assuming overall
responsibility for the execution and delivery of
the program, ensuring it adheres to global best
practices in line with the Kingdoms desire to
create an attractive ecosystem for investors. The
creation of a specific office for renewable energy
development is an unusual step that SASIA believes
forms part of efforts to show the NREP is a serious,
realistic and achievable program.
Speaking to SASIA, Al-Shehri said: We have
carefully recalibrated our diversification approach
to ensure we are able to make measureable and
systematic progress in the early stages, with a view
to accelerating the speed of deployment once the
program is operational.
Conclusion
SASIA views the establishment of REPDO as a
highly positive move in the development of Saudi
Arabias solar market. As part of MEIM, the office
will have significant authority to mediate between
the various actors involved in the market, and at that
same time will have a massive incentive to push the
NREP forward as that is the point of its existence.
Perhaps most significantly, at a time when foreign
investors are being courted as a fundamental
ingredient with the NREP, REPDO has the potential
to act as a valuable one-stop-shop that can simplify
affairs for the investment community.
Further information
Saudi Arabia Solar Industries Association (SASIA)
P.O. Box 365241, Riyadh 11393
Kingdom of Saudi Arabia
Email: info@saudi-sia.com
Website: www.saudi-sia.com
Twitter@SASIASolar

Al-Shehri also noted how the NREP was now

seen as a strategic priority for the Kingdom. Our
leadership has recognized the need to meaningfully
and rapidly transition our economy to secure long-
term prosperity for our people, he said.

Country Focus Report 2017 5

 EMPOWERING SOLAR
DEVELOPMENT AND
COLLABORATION IN
THE GCC REGION -
We encourage business,
government, and academic
institutions in affiliate nations
and the international community
to join us in our efforts to make
the solar potential of the MENA
region a reality.

6 Saudi Arabia Solar Industry

Preface
Since its establishment in 2011, the Saudi
Arabia Solar Industry Association (SASIA)
has made remarkable contributions to
the kingdoms solar industry, facilitating
communication and enabling partnerships
between the government and private sector,
as well as promoting the development of
the countrys large-scale renewable energy
program. We are confident that with the
support of all our stakeholders, SASIA will
accelerate its momentum towards Vision
2030 objectives, whilst continuing to provide
a reliable platform for international institutions
to engage with the local market.

Abdulmohsin Mohammad Al Shoaibi, Dr. Amin Al-Yaquob,

Chairman, SASIA Executive Director, SASIA

Country Focus Report 2017 7

 Change of Direction

The re-emergence of Saudi Arabias renewable energy program in 2016

marked a new starting point for the worlds largest oil exporter. Following
a sharp drop in oil prices that started in mid-2014 and a budget deficit
that reached almost $100 billion in 2015, a historic decision was taken to
restructure the economy.
In May 2016, the Ministry of Petroleum and At the start of February 2017, the Ministry
Mineral Resources was renamed Ministry of Energy announced that the kingdoms
of Energy, Industry and Mineral Resources, first NREP request for qualification (RFQ)
and Khaled al-Falih, former minister of would be issued on February 20, 2017.
health and chairman of Saudi Aramco, was The Ministry also said that the request for
appointed as the new minister of energy. proposals (RFP) for 700 MW of solar and
Other changes saw the water and electricity wind power would be issued on April 17,
ministry broken up, with the water portfolio 2017. The RFQ is expected to close in July
added to a new environment, water and 2017, with the first round of projects due to
agriculture ministry, and the management of be awarded in September 2017.
electricity incorporated into the new energy
ministry. Renewable Energy Target Year
The government had already set the wheels Capacity
in motion about a month prior to these 0.7 GW 2018
announcements. when Deputy Crown Prince
1.2 GW 2019
Mohammed bin Salman launched Vision
2030 on April 25, 2016. Under this long-term 1.7 GW 2020
strategy, Saudi Arabia will install 9.5 GW of 1.8 GW 2021
renewable energy capacity by 2023 and
localise a considerable part of the value
2.1 GW 2022
chain. 2.1 GW 2023
The preliminary schedule for
This new capacity will be introduced as part
the 9.5 GW tender as shared
of the National Renewable Energy Program with audience at the Saudi
(NREP), which targets 9.5 GW of renewable Arabia Smart Grid Conference
in December 2016
energy by 2023 with an interim target
of 3.45 GW by 2020 under the National
The sites selected for round one include
Transformation Program.
Sakaka, in the Al Jouf province where the
Saudi Arabia estimates that the renewable 300 MW of solar will be developed, and
energy programme will cost $30 to $50 Midyan, in the Tabuk province, for the 400
billion by 2023, Khalid al-Falih, Minister of MW of wind power. While the first 700 MW
Energy, Industry and Mineral Resources said is going to be limited to solar PV and wind,
at the World Future Energy Summit 2017. subsequent rounds are anticipated to also
include concentrated solar power and
waste-to-energy.

8 Saudi Arabia Solar Industry

 Moreover, Japans Sumitomo Mitsui Banking
Corporation has been appointed as financial
advisor and will provide overall management
of the advisory function throughout the
tender process. International law firm
DLA Piper will provide legal counsel while
Fichtner Group will supply engineering and
technical advisory services. Bravo Solutions
are the e-procurement service provider.

The kingdom has already succeeded in

reducing the budget deficit from SAR367
billion ($97.8bn) in 2015 to SAR297 billion
($79bn) in 2016, and expects to bring
it down to zero by 2020. The improved
finances will allow the government to
increase spending in 2017 to about $237.3
billion from the originally projected $223.9
billion.

It is also worth noting that the delay in

Global Horizontal Irradiation
in Saudi Arabia
Source: Solar GIS, 2013
The ministry is currently establishing a
new unit Renewable Energy Project
Development Office (REPDO) to be
responsible for the delivery and execution
of the NREP. REPDO will report to a new
renewable energy steering committee,
chaired by the Minister of Energy,
and comprising heads of the various
stakeholders involved in energy research,
regulation and predevelopment in the
country.
launching the 2013 program worked to
Saudi Arabias advantage as PVs levelized
cost of electricity has considerably fallen
since then. The latest record-low bid of
$2.99 cents/kWh was received by Dubai
Electricity and Water Authority in June 2016
for its 800 MW PV project. The tariff was
proposed by a Masdar-led consortium,
which subsequently won the tender.
Today, global installed solar PV capacity has
reached 321 GW in 2016, from 2.4 GW in
2007, according to GTM Research.

These stakehoers include the King Abdullah

City for Atomic and Renewable Energy
(K.A.CARE), Electricity and Cogeneration
Regulatory Authority (ECRA), the Saudi
Electricity Company (SEC), and Saudi
Aramco.

Abstract from Vision 2030:

Among our commitments: A Renewable Energy Market

Even though we have an impressive natural potential for solar and wind power, and our local energy
consumption will increase three fold by 2030, we still lack a competitive renewable energy sector at present.
To build up the sector, we have set ourselves an initial target of generating 9.5 gigawatts of renewable energy.
We will also seek to localize a significant portion of the renewable energy value chain in the Saudi economy,
including research and development, and manufacturing, among other stages.

From inputs such as silica and petrochemicals, to the extensive expertise of our leading Saudi companies in
the production of different forms of energy, we have all the raw ingredients for success. We will put this into
practice with the forthcoming launch of the King Salman Renewable Energy Initiative. We will review the legal
and regulatory framework that allows the private sector to buy and invest in the renewable energy sector. To
localize the industry and produce the necessary skill-sets, we will also encourage public-private partnerships.
Finally, we will guarantee the competitiveness of renewable energy through the gradual liberalization of the
fuels market.

Country Focus Report 2017 9

 Subsidy Reform
One of the most important commitments made by Saudi Arabia
in Vision 2030 was a pledge to guarantee the competitiveness of
renewable energy by gradually liberalizing the fuel market and
engaging the private sector. These measures will not only grant
renewable technologies a level-playing field with conventional power
generation, but should also help increase non-oil revenues for the
government.

In December 2015, the cabinet approved hikes for gasoline

prices, electricity, water, diesel and kerosene tariffs. After
remaining unchanged for the last 15 years, the new
electricity tariffs affected nearly a quarter of Saudi Electricity
Company subscribers, mainly commercial and industrial
users.

For commercial customers using 4,001 to 8,000 kWh, the

tariff has doubled from 12 halala/kWh to 24 halala/kWh
($0.03 to $0.06/kWh), while those using more than 8,000
kWh now pay 30 halala/kWh ($0.07/kWh) (SEC, 2017).

For industrial customers, the tariff has increased from

12 halala/kWh to 18 halala/kWh ($0.03 to 0.05/kWh).
Nevertheless, the most crucial step will be the removal of
subsidies from residential users, which make up 50% of
total subsidy cost, according to Hamed Alsaggaf, executive
director of independent power projects and renewable
energy at SEC.

Other
4%

Industrial
20%
Kingdom-wide distribution
of consumption by
consumption type

Source: ECRA, 2014

Residential
49%
Government
13%

Commercial
15%

10 Saudi Arabia Solar Industry

Country Focus Report 2017 11
 Commercial &
Industrial Applications
Over the next three years, Saudi Arabia plans to reduce water and electricity
subsidies by about $53.3 billion. This measure should increase the countrys
non-oil revenue to $141.3 billion by 2020, more than triple the current figure
(Arab News, 2016). The tariff reforms are expected to have a long-term
positive impact on the kingdoms energy usage levels, obliging businesses
and industrial operations to become more aware of their energy footprint.

Saudia Dairy and Foodstuff Company
(SADAFCO) for instance has started to
utilize a solar PV-diesel hybrid system that
can deliver 40% of the facilitys daytime
energy requirements. The project was
completed in December 2016 and is
expected to result in cost savings from the
reduced diesel consumption.
While the solar project only affects
SADAFCOs Riyadh Regional Distribution
Centre, it will provide the company with
a framework and key insights on the
possibilities of a wider implementation
across some of its other locations, said
Wout Matthijs, CEO of SADAFCO. The
Jeddah-based group operates sales and
distribution depots in 24 locations across
the kingdom as well as Qatar, Bahrain,
Jordan and Kuwait.

Other industrial firms could take a similar

route in the wake of subsidy reforms.
Riyadh-based Almarai for example, one of
the worlds largest vertically integrated dairy
companies, had to increase its spending
by SAR500 million ($133.3m) in 2016 due
to rising energy costs and crop-growing
restrictions (Khaleej Times, 2016). All dairy
companies will be affected by the new rule,
which requires Saudi agriculture firms to
phase out local feed cultivation owing to the
scarcity of water. This leaves them with no
option but to import their fodder needs.

Costing SAR2 million ($533,297), the

SADAFCOs project operates
high performance thin film PV
modules from First Solar, Inc.
Source: Saudi Gazette, 2016
system uses thin-film PV modules from First
Solar, which can deliver more energy than
conventional crystalline silicon panels in
hot and dusty weather, according to the
U.S. based manufacturer. The solar unit
generates 226kW of power and combines it
with output from existing diesel generators.

12 Saudi Arabia Solar Industry

 FAS Energy will
install rooftop
solar systems on
its 14 shopping
malls in Saudi
Arabia

Meanwhile, the commercial sector could
similarly achieve considerable savings
through solar installations and energy
efficiency measures. Commercial users
should adopt solar regardless of their
business activity, because theyre paying
the highest tariff for electricity. We heard
that the tariffs might increase again to 56
halala, which is 14-15 US cents/kWh. If this
happens, solar will be the only way, said
Eng. Sabri Asfour, chief executive of Riyadh-
based FAS Energy (pictured left).
We already took the decision to install
rooftop solar systems on all our shopping
malls in Saudi Arabia and their car parks.
We have around 18 malls, said Asfour,
adding that the solar systems will have a
total installed capacity of about 100 MW.
We have around 1,500 engineers who have
experience in everything from design to
construction to site management.
FAS Energy is the renewable energy
development arm of Saudi retail
conglomerate Fawaz Al Hokair Group.
The company intended to participate in
K.A.CAREs 2013 programme but then
shifted its focus to other markets, including
Algeria, Egypt, Jordan, Morocco, and
Pakistan.
In its home market, FAS Energy is now
gearing up for new activity and has
established an energy audit division which
already received hundreds of requests
from the private and public sectors. Were
moving forward with this division, because
you cannot install a solar system as a
business or decide on the capacity you
need without having full details of your
consumption and expenses.
While there are plenty of opportunities for
industrial and commercial applications, the
larger share of solar tenders is anticipated
to come from the government in the form of
Build-Operate-Transfer IPP projects.
We expect utility-scale projects to come
from the newly established Ministry of
Energy, Industry and Mineral Resources
as well as leading stakeholders such as
SEC, Aramco, and K.A.CARE. Each of these
entities have their own tasks which have
been assigned to them by the ministry. They
are working as one team, they have a vision
and schedule, and theyre following it. I
believe bigtime in whats going on in Saudi
Arabia, said Asfour.

We signed our first PPA in Egypt for a

50 MW PV plant in round and we have a
chance in round two as well for another 50
MW, Asfour noted. We also participated
in the bid to develop the 200 MW West
Nile solar project and signed an MOU to
develop 2,000 MW of PV capacity with the
government of Egypt.

Country Focus Report 2017 13

 Residential
Applications
Unlike many countries in the Gulf region, Saudi Arabias urban
population is expanding horizontally and thus residential solar
applications may not be as financially viable as they are in other
markets.

Amr Khamis, technical manager at Green

Gulf, (pictured below), similarly noted that
rooftop applications in the kingdom may
not be viable because most of the power
goes to air conditioning. About 80% of the
electricity bill here goes towards A/C, which
will not be covered by solar rooftop systems.
So it doesnt make sense to install rooftop
PV over houses as they do in Europe.
We expect to see more utility-scale solar
projects because the government has plenty
of land in the desert, said Khamis.

We were seriously considering having PV

on the roofs of residential units, but in the
end, we opted against this and went with
having good-quality insulation because we
didnt feel the returns made it viable. A lot
of it had to do with maintaining solar panels
in a desert environment, said Thierry Paret,
FAIA, director at large at the American
Institute of Architects (AIA) and founding
president of AIA Middle East (pictured
above).

In our case, there were 300 townhouses,

and thats a lot of roofs to keep clean. It
means you need to have people coming in
once or twice a week and climbing onto the
roofs to clean them, noted Paret, who is also
the lead architect for the engineering and
project management group at King Abdullah
University of Science and Technology
(KAUST).
On commercial buildings, this might be
easier to deal with because they are usually
smaller areas, but with large-scale projects it
becomes somewhat onerous in terms of the
resources required to clean the panels, he
added.
According to Asfour, high-rise residential
buildings are not common in Saudi Arabia
because residents generally prefer to live
in villas or two-to-three-storey buildings.
Therefore, he expects the lions share of
solar projects to be utility scale, followed by
commercial and industrial installations.
Meanwhile, some developers are concerned
that Saudi Arabia may approach renewable
energy in the same way as conventional
power generation.
Solar and wind energy are relatively simple
installations that can be completed in short
periods, said Paschal Phelan, chairman of
South Africa-based Phelan Energy Group
(PEG). Saudi utilities, however, have
limited experience in such procurement
and could, as many other countries have
done, approach it from the perspective of
traditional fossil-fuel electricity procurement.
PEG, through its subsidiary Solar Capital,
has built the largest solar farm in the
southern hemisphere the 175MW PV
facility in De Aar, South Africa with an
investment of $315 million. The company
has also established partnerships with
leading family industrial business in the
kingdom.

14 Saudi Arabia Solar Industry

Q&A
with Tariq Alghaziri, Senior Vice President at Riyad Bank

Tariq joined Riyad Bank in 2002. Since becoming part

of the Corporate Finance Department in 2008, he has
been active in financing and advising in respect of some
of the kingdoms largest industrial projects including the
GCCs first alumina refinery, and the largest petrochemical
facility ever built in a single phase. His work has involved
sourcing debt finance from Saudi and non-Saudi banks,
negotiations with export credit agencies, and the
innovative use of sukuk finance for greenfield projects.
Here, he shares his outlook for solar project financing in
the kingdom.

SASIA: Which financing models do you think
will be used to fund solar projects in Saudi
Arabia?
Tariq Alghaziri: Currently, the financing model
follows recourse financing due to the limited
numbers of renewable projects. However, the
kingdom is well established in terms of project
financing and non-recourse financing. In the future,
it is expected that PPP and non-recourse financing
will be the dominant financing model for solar
projects. This is of course subject to development
and maturity of the solar industry in the kingdom.
SASIA: Do you expect to see greater
involvement from local or international banks?
Tariq Alghaziri: Local banks will support project
financing as it has been experienced in the past
several years. Nevertheless, and due to the
limited experience of local banks, such banks
will prefer to have the participation of reputable
international banks that have strong experience
in solar project financing. The financing might
start with international banks leading the market
but eventually local banks will have a bigger
involvement. The legal environment, proper due
diligence, and acceptable contracts including PPA
are mandatory to attract the both type of banks.
SASIA: What advice would you give to
developers participating in the upcoming solar
tenders?
Tariq Alghaziri: Risks and mitigants are part of
the required due diligence for any transaction.
In order to attract financing, a well-structured
transaction with outstanding sponsors in addition
to an acceptable technology and contractual
arrangement are expected. Project financing is
a well-established market in Saudi Arabia and
follows international standards. Banks will apply
international guidelines to maintain the required
credit risk and establish a well-organized market
precedent.
As a result, risk transfer and distribution of risks
should be defined and satisfactory to all project
participants which include developer, financiers,
offtakers, contractor, sponsors, regulator, and O&M
provider. It would be also advisable to approach
financers to find out their views, concerns or
comments as part of the developers assessment.

Country Focus Report 2017 15

 Q&A
with George Antonopoulos, CEO, HAACO Industrial Division

A subsidiary of multifaceted conglomerate

Haji Abdullah Alireza & Co., HAACO Industrial
Division specializes in renewable energy power
generation, water treatment solutions, utilities
operation & maintenance, among other services.
The Saudi developer and EPC contractor
plans to participate in the countrys renewable
energy tender programme in partnership with
international firms.

SASIA: How do you envision KSA achieving its target of

10 GW of renewable energy by 2023?
George Antonopoulos: Saudi Arabia must accelerate the
offerings of renewable energy opportunities to the private
sector if it is to maintain its ambitions of achieving 10
GW by 2023. HAACO is closely following the kingdoms
developments and is keen to participate in the upcoming
tenders jointly with international players.

SASIA: From a developers point of view, how easy will it

be to secure solar-project financing from banks in Saudi
Arabia?
George Antonopoulos: Depending on the size of the project,
local financial institutions have indicated their readiness to
support the governments efforts in renewable energy.

SASIA: Do you see a future for concentrated solar power

in Saudi Arabia?
George Antonopoulos: CSP is a complex process yet to be
fully developed. Given the recent pricing achievements with
PV, our preference as developers is for PV opportunities.

16 Saudi Arabia Solar Industry

Worlds first solar-
powered desal plant
As the worlds largest producer of
desalinated water, Saudi Arabia burns
enormous quantities of oil to sustain this
production, using about 300,000 barrels of
crude oil equivalent a day (Balch, 2014).
With a staggeringly high water consumption
rate of around 300 litres per capita per day,
the kingdom is now on a mission to boost
sustainable water production and curb
skyrocketing demand (Al-Sughair, 2016).
The Al Khafji project directly reflects these
efforts. Slated for completion in August
2017, the solar PV-powered desalination
facility will produce 60,000 cubic metres of
water per day, enough to supply about Al
Khafjis 190,000 residents.
Country Focus Report 2017
According to Eng. Saad Alqahtani, PV
modules production plant manager at
KACST, the water will be delivered through
an energy offset. A 48 MW PV plant will
feed the reverse osmosis desalination plant
during the day, and the surplus power will
be exported to grid to be consumed once
again during the night.
The project is valued $130 million and is
being developed by a joint venture between
Spains Abengoa and Advanced Water
Technologies (AWT), the commercial arm of
KACST and a subsidiary of Taqnia.
17
 New
Developments

SECs
transmission Expansion of transmission network
network
covers nearly Saudi Electricity Company (SEC) SEC has expanded the electricity SEC is also coordinating efforts
99% of the has been continuously expanding transmission network by as within the Gulf Cooperation
kingdom
the transmission network to keep much as 136% between 2000 Council to link the power grids
pace with the increasing power and 2016, increasing the of its member states to meet
demand. According to Hamed number of substations by 88% peak loads in summer (Export.
Alsaggaf, executive director of and transformers by 191%. The gov, 2016). At the same time, the
independent power projects and transmission network currently company is looking at exporting
renewable energy at SEC, peak covers nearly 99% of the excess capacity in off-peak
load demand in the kingdom is kingdom, according to Eng. Laith months to other Gulf countries, as
growing at 7 to 9% per year, and Al-Bassam, CEO of National Grid well as Egypt through a 3 GW link
in 2016 soared by 10.2% to 62.5 SA, a subsidiary of SEC. and eventually Europe.
GW.
Nevertheless, SECs Five-Year
In the last 15 years, we have Plan (2016-2020) will see the
trebled our demand and in the company add another 34,000
next 15 it could double again, to circular kilometres of transmission
122 GW, Alsaggaf said during lines and 370 transformation
the WFES in January 2017. If stations.
we continue to use fossil fuels to
reach this demand, our export of
oil will be at risk since the rate of
oil consumption in Saudi Arabia
is 4% greater than our rate of oil
produce increase.
23,582

23,938

26,272

27,847

29,913

31,240

34,953

38,000

41,200

45,661

48,367

51,939

53,864

56,547

62.260
21,673

Development of Peak Load

(MW) during 2000 2015

Source: SEC 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

18 Saudi Arabia Solar Industry

New
Developments
SASO adopts new IEC standards
The Saudi Standards, Quality and Metrology Organization
(SASO) plays an important role in defining electric,
safety standards for solar projects in the kingdom. The
organisations Certificate of Conformity is required for all PV
modules imported into Saudi Arabia.
In 2016, SASO adopted the IEC 61215 Crystalline Silicone
Terrestrial PV Modules-Design Qualification and Type
Approval and the IEC 61646 Thin-Film Terrestrial PV
Modules-Design Qualification and Type Approval. These
standards include the examination of all parameters which
are responsible for the ageing of PV modules and describe
the qualification tests based on the artificial load of the
materials (TV InterCert, 2012).
SASO officials have also signed technical cooperation
agreements with Saudi Aramco and SEC in 2016 to
collaborate on energy efficiency and consumption
rationalization programs, and to exchange experiences
in the development and management of engineering
standards.
Country Focus Report 2017
Dust-resistant solar glass at KACST
One of the oldest organisations in Saudi Arabia, King
Abdulaziz City for Science and Technology (KACST) in
Riyadh built the first CPV power plant in the world in 1979
with 350 kW/h capacity and 160 dual trackers to feed three
villages.
Since then, KACST experts have conducted numerous R&D
projects and identified high temperature, high ultraviolet
irradiation and dust accumulation on PV modules surface
as the top three challenges to solar system efficiency in the
kingdom.
KACST has studied these issues and found effective
solutions to minimize the impacts of these problems and
improve PV system efficiency, Eng. Saad Alqahtani, PV
modules production plant manager at KACST said. For
instance, we are working on a new type of solar glass
with dust-repellent properties by using a nano-coating
technology, and so far, it has shown encouraging results.
19
 The case for distributed solar
in Saudi Arabia
Executive summary
After some hesitation, the Kingdom of
Saudi Arabia is preparing to join the
renewable revolution sweeping energy
markets worldwide. The plan for an
initial 700 MW of renewable capacity,
including 300 MW of solar, represents a
major statement of intent and a clarion
call for foreign investors. Perhaps for
obvious reasons, Saudi Arabia has
opted to focus on large-scale projects
for its first forays into solar power.
However, if the intention is to create
a lasting industry that delivers the
maximum benefit to the Kingdom, it is
important not to ignore the potential
of distributed generation. In fact,
as an analysis in this paper shows,
distributed generation has the potential
to increase the level of retained
investment by up to around a third,
compared to an equal capital invested
in utility-scale projects, while at the
same time delivering up to more than
three times as much money for job
creation.
Figure 1: labor costs as a proportion of total investment
for different solar projects (source: SASIA).
20
Introduction
In March 2017, the Saudi Energy
Ministry confirmed plans for a
renewable energy tender comprising
300 MW of solar and 400 MW of wind
power, to take effect in the second half
of the year. This will be followed by
similar tenders in 2018 and 2019, as
part of a wider plan to install 3.45 GW
of renewable capacity by 2020 and 9.5
GW by 2023.
The renewable energy program, which
to begin with will require up to $50
billion in investment, is understood
to be aimed at reducing domestic
consumption of crude so that more oil
can be exported. To this end it makes
sense to initially focus on large-scale
projects that can deliver high volumes
of renewable energy cost effectively.
However, SASIA understands that there
could be significant value in using the
renewable energy program to create
additional wealth for Saudi Arabia, both
in terms of retained investment and job
creation.
The financial case for
distributed generation
Solar energy is usually deployed at
three levels of scale:
Utility-scale, which is typically in the
multi-megawatt range and connects
directly to the grid.
Commercial and industrial (C&I),
which can range in capacity
from double-digit kilowatts up to
multi-megawatts and is typically
connected to business premises.
Residential, which is usually below
10 kW and serves single households.
The C&I and residential segments
are both referred to as distributed
generation because they are located
at the edges of the grid. Because
distributed generation does not enjoy
the economies of scale seen in utility-
scale projects, it is generally more
capital-intensive.
An analysis by SASIA shows that
while a USD$393 million investment
could yield 300 MW of utility-scale
solar capacity in Saudi Arabia, the
same amount of money invested in
distributed generation would only
deliver between 195 MW and 132 MW.
However, the same analysis shows that
distributed generation would result in
a much higher retention of investment.
This is mainly because distributed
generation installations are much
more labor-intensive than utility-scale
projects (see figure 1).
Specifically, while labor costs only
account for 6% of capital investment
in utility-scale Saudi solar projects,
in distributed generation this rises to
between 20% and 27%. This means a
greater proportion of capital investment
remains in the market, as opposed to
being spent on materials and goods
sourced abroad (see figure 2).
Saudi Arabia Solar Industry

Further reasons for
distributed generation
As discussed above, distributed
generation has the potential to become
a significant source of employment
in Saudi Arabia. For comparison, in
the US, which has a mature yet still
growing renewable energy market,
the solar industry accounted for one
in every 50 new jobs in 2016.1 Of
these, 69% were in distributed solar
rather than utility-scale projects.2 And
in addition to this core benefit, there
are four other significant advantages
of distributed generation that Saudi
Arabian policy makers should
consider:
While utility-scale plants can only
usually be financed and built
by large (often multinational)
corporations, distributed generation
has the potential to support a thriving
ecosystem of small-to-medium
enterprises and entrepreneurs,
boosting the local economy.
1 The Solar Foundation: National Solar Jobs Census, 2016.
2 Ibid.
Country Focus Report 2017
Since a significant proportion of
distributed generation is often
consumed at source, adding
rooftop solar will allow Saudi Arabia
to increase renewable energy
capacity without having to make
costly upgrades to the electricity
transmission and distribution
network.
Distributed generation is expected
to be particularly advantageous to
commercial and industrial concerns
that currently face high energy bills.
By replacing grid consumption with
solar, these companies will face
lower costs and be able to operate
more competitively.
Compared to utility-scale projects,
distributed generation has a much
greater need for balance-of-plant
equipment that can be served
through local manufacturing, helping
Saudi Arabia to quickly develop a
solar supply chain of its own.
Figure 2: retained
investment for different
solar projects (source:
SASIA).
Conclusion
There are many compelling arguments
why Saudi Arabia should consider
deploying distributed solar, not least
because the widespread adoption
of utility-scale projects will likely
require costly upgrades to the nations
electricity transmission and distribution
network. Purely from a job creation and
wealth retention point of view, however,
SASIA recommends that Saudi Arabian
policy makers should seek to widen the
current scope of solar energy adoption
to include a substantial proportion of
distributed resources.
Further information
Saudi Arabia Solar Industries
Association (SASIA)
P.O. Box 365241, Riyadh 11393
Kingdom of Saudi Arabia
Email: info@saudi-sia.com
Website: www.saudi-sia.com
Twitter@SASIASolar
21
 Q&A
with Iain McCulloch, Professor of Chemical Science
and Director of KAUST Solar Center

The flexibility, reasonably- SASIA: What role will KAUST

costed, scalability, combined play to facilitate deployment
with the high insolation in the of this capacity?
Kingdom make solar energy Iain McCulloch: KAUST will be
attractive in the next six years. an innovation opportunity for
The rapidly dropping price both solar companies and start-
of solar panels (20% drop for ups. For existing companies,
every doubling of cumulative KAUST can support research
shipped volume) makes this in areas where the Kingdom
option even more compelling. has the opportunity to play a
K.A.CARE forecast that solar leadership role, both regionally
power, including PV and CSP, or globally; for start-ups,
SASIA: How do you envision
will account for the majority of KAUST can leverage in-house
Saudi Arabia generating 10
renewable energy in the future. expertise for emerging research
GW of renewable energy by
2023? Solar-to-fuel conversion opportunities and provide the
could also be made part of capability required for rapid
Iain McCulloch: Although
this picture, perhaps as an growth. KAUST can support
renewable energy
opportunity for the Kingdom to diverse types of businesses
diversification is imperative,
take business initiatives and with strategic R&D strengths
solar energy will undoubtedly
and expertise, and will also
account for the majority of future establish itself as a leader in
a sector that has not already pursue innovative solar PV
renewable power installation.
technology solutions.
Wind power does have several been propelled by others.
advantages like cleanness and Specifically: PV-driven solar-to-
job creation, however, high fuel conversion can probably
initial investment and limited site be perceived as a sensible
choices make wind power hard way of mitigating intermittency
to scale up. issues, while bringing PV to the
forefront.

Advanced Thin Film and

Thermal Laboratories at
KAUST Solar Center

Source: KAUST

22 Saudi Arabia Solar Industry

 Devices Fabrication and
Characterization Laboratory at
KAUST Solar Center

Source: KAUST

SASIA: Which applications
do you foresee solar energy
being used for in Saudi Arabia
over the coming years?
Iain McCulloch: It is
conceivable that a desirable
application of solar energy
will be feed-in tariffs (FIT).
Countries such as Germany
attribute massive solar success
to well-designed FIT systems.
If, as is the case in Germany,
support for a transition away
from conventional and towards
renewable energy is strong,
the use of well-designed FITs
is likely to be competitive to
alternative regulatory support
mechanisms, especially during
the early phases of renewable
technology development.
On the premise of FIT, the
importance of technologies
related to grid system will
become significant. To design
a good FIT system, more
scientists and engineers will
work on macro or microgrid
technologies. Given the
experience of solar in well-
developed countries, the
importance of FIT and grid
technologies will show their
significance in the following few
years.
SASIA: In your opinion, how
could CSP fit in with the PV
expansion?
Iain McCulloch: CSP cannot
compete with PV, in terms of
cost. Moreover, thanks to the
already mentioned steady rate
of cost reduction of PV, it seems
very unlikely it will ever catch
up with PV. This situation is also
reflected in the market, where
CSP represents less than 2% of
the globally installed capacity of
solar electricity plants.
Despite this unfavourable
situation, it may be meaningful
to have a certain capacity of
CSP, as it may help overcome
the intermittency associated
with PV (molten salts can store
their energy overnight).
SASIA: Which components
could initially be produced
within the kingdom?
Iain McCulloch: It is easier
for us to contemplate which
technologies can initially be
invented for application within
the kingdom. The development
of technologies will be
focused on the stability and
sustainability of solar cells in
desert environment.
Some techniques are proven
to be stable and sustainable
in a desert environment:
silicon heterojunction
technology provides high-
temperature tolerance, with
very high performance, and
facilitates drastically bifacial
module design; self-cleaning
thermoplastic coatings
decrease cleaning cost.
Customer-based technologies
give local producers potentially
disruptive properties. By
focusing on these niche
technologies, the kingdom can
extend technological strength
to less harsh conditions, and
eventually catch up with global
solar companies.

The 160 MW
Noor I CSP
project in
Ouarazate,
Morocco

Country Focus Report 2017 23

 Made in KSA
Saudi Arabia has emphasized in Vision 2030 that it intends to
localize a significant portion of the renewable energy value chain,
including research and development, and manufacturing, among
other stages. This will be achieved through direct investments and
public-private partnerships.
More recently, Khalid Al Falih confirmed
that the renewables sector was going
to be based on a localisation pathway
and that the ministry of energy would
require all bidders to invest in the
supply chain of goods and services to
the kingdom.
The localization of the industry
will have to be encouraged by the
government by providing incentives
and partnering up with global
manufacturers, said Thierry Paret,
FAIA, director at large at the American
Institute of Architects (AIA), founding
president of AIA Middle East, and
lead architect for the engineering and
project management group at KAUST.
Siemens is setting up a wind turbine
rotor blade factory in Tangier and
I believe the long-term plan is for
Morocco to become a supplier for
North Africa. Saudi Arabia could look
24
at something similar for the Middle PV components, mainly for the first
East and become a leader in this stage of the value chain. While a
field, which would also generate jobs, few companies plan to cater to the
suggested Paret. second stage in the future, there are
concerns over Chinas cheap prices.
Iain McCulloch, professor of Chemical
Eng. Sabri Asfour, chief executive of
Science and director of KAUST Solar
Fas Energy notes that the levelized
Center, believes that servitization will
cost of electricity is the main factor in
be the key for local PV manufacturers
competitiveness and this cost largely
to succeed. As customers expect
depends on the technology as PV
additional benefits and long lasting
components account for 36% to 50%
relationships, more manufacturers add
of project costs.
service contracts to their product sales.
Based on our studies, it is not
In this case, although foreign
attractive to build PV factories in Saudi
manufacturers start earlier, local
Arabia right now because competition
manufacturers have distinct
with China will be intense. If the [Saudi]
advantages of understanding the Saudi
government can reach an agreement
market. By utilizing servitization, local
such as the one concluded between
PV manufacturers can create value for
China and Europe on PV imports, or
customers, which help to lock in long-
if they impose a 20% local content
term relationships, said McCulloch.
requirement, that could spur local
At present, the kingdom has a manufacturing activity.
limited manufacturing capacity for
Saudi Arabia Solar Industry
Made in KSA

ACWA Power
ACWA Power is a remarkable example of how Saudi capabilities can
set benchmarks for the global solar industry. With a renewable energy
portfolio exceeding 1 GW comprising 10 projects across four countries, the
company has been a pioneer in pushing the limits of competition in wind,
PV and CSP.

Renewable energy can provide approximately 40% of electricity in Saudi

Arabia and there are fiscally sound ways to achieve this, said Paddy
Padmanathan, president and CEO of ACWA Power. Using a model that
ACWA has articulated over many years, developers and offtakers can set
new tariff benchmarks and shore up capital at this important juncture, he
affirmed.

One of ACWA Powers most aggressive bids was for the 200 MW PV project
in Dubai, which it secured at a tariff of 5.84 US cents/kWh a record at the
time. In January 2017, the company bid 5.91 US cents/kWh for Risha the
lowest tariff ever presented for a PV project in Jordan and subsequently
won the tender.

AEC-KACO
A four-year long collaboration between Saudi Arabias Advanced
Electronics Company (AEC) and Germanys KACO New Energy resulted
in the launch of the countrys first PV inverter line in September 2015. The
facility has a production capacity of 2,000 units or 1 GW per year and can
produce inverters ranging from 20 kW to 2 MW in capacity. While AEC will
own the Shams PV inverter line, KACO will provide O&M services for local
customers. The companies also concluded localisation and technology
transfer agreements.

Al-Afandi Group
Through its subsidiary Afandi Solar, Saudi conglomerate Afandi Group
plans to open a solar panel factory in Yanbu by 2017 and has signed a
property contract with the Royal Commission for Jubail and Yanbu (RCJY).
Covering 55,000 square-metres, the factory will feature an integrated
production line utilising American, French and Swiss technologies to build
solar panels from scratch.

The facility is set to become the largest in the Middle East, with an initial
production capacity of 120 MW per year, or the equivalent of 450,000
panels, before being expanded to 1 GW. RCJY itself is working with
K.A.CARE to assess the feasibility of a 50 MW PV power plant at Yanbu
Industrial City.

Country Focus Report 2017 25

 Made in KSA
Desert Technologies
Desert Technologies is an investment manager, developer and EPC
contractor for large-scale renewable energy projects and is involved with
projects in Jordan and Egypt. To secure a competitive advantage through
local content incentives, the company acquired a 75 MW crystalline silicon
assembly line and a 20MW amorphous silicon manufacturing line in 2014
and installed them at its headquarters in Jeddah.

Green Gulf
Al-Khobar-based Green Gulf is currently in the process of constructing
a solar PV manufacturing facility in the Red Sea port of Yanbu, western
Saudi Arabia. The company began its activity after the announcement
of K.A.CAREs previous programme and specifically, the local content
stipulations.

Were going to manufacture solar wafers and modules; were aiming for
750 MW of wafer and 200 MW of module capacity, said Amr Khamis,
chief technical officer at Green Gulf. Although the company slowed down
construction lately due to the lack of project activity, it will speed up again
once the market starts picking up.

With only polysilicon under production in Jubail, PV developers in Saudi

Arabia will most likely have to import components for the initial projects.
In the long-term however, the kingdom should capitalise on its assets and
become a manufacturing hub. According to Khamis, land in Saudi Arabia
is cheap, electricity is not expensive compared to other markets, and
manpower is affordable.

If the 10 GW really starts to get implemented, it will push everyone to look

at producing locally. We also heard there will be an advantage of around
10% for local suppliers but this has yet to be officially confirmed, said
Khamis.

Creating a module line is not difficult but solar wafers take time and require
a big investment. Today, with five or six million euros you can start a module
line, but for wafers you need around 50 million euros. Investors want to see
a mature market before they put in large amounts of money.

King Abdulaziz City for Science

and Technology (KACST)
King Abdulaziz City for Science and Technology (KACST) in Riyadh built the
first PV module assembly line in the kingdom in 2010 with a small annual
capacity that has today reached 100 MW. Operated by Saudi engineers,
the fully automated line is capable of producing multi and mono-crystalline
modules and has supplied Al Khafji water desalination project with about 40
MW of PV modules.

According to Eng. Saad Alqahtani, PV modules production plant manager

at KACST, the organisation has succeeded at localizing 40% of PV module
raw materials in the kingdom and cooperated with local manufacturers who
offered high quality products and competitive prices.

Our local PV industry market should not compete with Chinese products.
It is necessary to protect the local PV industry and ensure it is not affected
should instability occur in the international supply chain, Alqahtani
suggested.

26 Saudi Arabia Solar Industry

Made in KSA
Saudi Electricity Company
In 2016, Saudi Electricity Company (SEC) concluded multiple agreements
with European manufacturers, including Alstom Grid, EDF, Siemens and
AFL Telecommunications, with the aim of localizing electrical industries.
Several of these companies plan to construct factories in Saudi Arabia and
have agreed to open institutes to train Saudi youth on the operation and
maintenance of high-and ultra-voltage equipment.

SEC has taken a more active role in solar energy development in recent
years. In 2016, it invited expressions of interest for two 50 MW solar IPP
projects to be located in Al-Jouf and Rafha north of the kingdom. In
addition, it is collaborating with KACST and Taqnia Energy to build the 50
MW Layla PV plant in the city of Aflaj.

SEC is involved in the generation, transmission and distribution of electricity

to more than 8.3 million customers in Saudi Arabia. And with a market
capitalization of SAR81.4 billion ($21.7bn) as of June 2016, the company is
the largest utility in the MENA region.

Taqnia Energy
A subsidiary of the Saudi Technology Development and Investment
Company, which is owned by the Public Investment Fund, Taqnia Energy
was founded in 2014 to develop and invest in bankable, technology-
focused energy business opportunities. The company evaluates potential
investments through various criteria.

Its very important that they are feasible and can contribute to the
kingdoms economy, said Wail Bamhair, senior business development
manager at Taqnia Energy (pictured left). The intangible investment is a
way to build local expertise, transfer know-how and potentially create new
jobs.

Through the Layla project, the first IPP solar PV project in Saudi Arabia,
Taqnia Energy is going to provide a clean source of energy to Al-Aflaj
area, which will help build a sustainable future for the kingdom using local
competencies, Bamhair said.

Taqnia Energy is currently building a PV manufacturing facility in Taif

using polycrystalline technology and plans to reach an annual production
capacity of 500 MW. Although the project may involve international experts,
Bamhair believes there is sufficient local expertise to complete the project.

Its not just about manufacturing and investing, its also about looking at the
countrys capabilities and facilities and maximizing their use, he said.

Country Focus Report 2017 27

 Q&A
with Dr. Raed Bkayrat, Vice President of Business Development
for the Middle East, First Solar

SASIA: How is First Solar involved with the Saudi

market?
Raed Bkayrat: First Solar has consistently engaged with the
Saudi market for several years. We have established and
maintained important relationships, based on knowledge
sharing, with our partners and stakeholders there. A good
example is our work with KAUST, which we partnered with to
perform outdoor testing of modules.

And while the market has only just started to ramp up, we
already have two pilot commercial and industrial projects
in place: the first is a PV plant that powers groundwater
extraction and distribution operations at an organic farm
owned by the Al Watania Agriculture Company. In the
second pilot, we worked with Saudi-based National Solar
Systems Company to deploy a carport solar power plant
for the Saudia Dairy and Foodstuff Company (SADAFCO) in
Riyadh.

SASIA: How do you envision Saudi Arabia reaching its

target of 10 GW of renewable energy by 2023?

Raed Bkayrat: First, Saudi Arabia should take a consultative

approach on its renewable energy policy framework by
leaning on capable, credible industry partners to share their
expertise. This will help the country avoid the steep learning
curve that other markets have faced. Second, it should
engage with lenders and financiers. It will be particularly
important for banks and lenders based in the country to
better understand the solar energy industry, ensuring that
theyre comfortable with providing competitive financing for
the program.

And finally, the kingdom should consider focusing on

the use of solar energy for specific energy-intensive
applications. For instance, it could provide long-term solar
energy targets for certain, energy-intensive industrial
sectors such as cement, steel, and petrochemical
manufacturing.

The kingdoms use of diesel generation in off-grid areas,

also offers opportunities to introduce hybrid solar-diesel
applications. And the desalination sector, which is extremely
energy intensive, could, quite feasibly, move towards the
use of Reverse Osmosis technology which can easily be
powered by solar PV technology.We have a tremendous
amount of experience in all these areas and would welcome
the opportunity to share our expertise with Saudi Arabia.

28 Saudi Arabia Solar Industry

The 13MW first phase of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai
SASIA: Which applications do you foresee solar energy
being used for in KSA?
Raed Bkayrat: The LCOE from solar PV is getting to levels
where it is being competitive with subsidized oil and gas
power generation. This is opening a slew of applications
that span from supporting district cooling to sea water
desalination to hybrid power plants and supporting oil and
gas operations. This is the tip of the ice berg as we see it in
Saudi and the solar market will continue to expand to levels
that will even exceed anyone expectations simply driven
by economics and maturity in storage technology that will
eventually lead to solar PV plants being treated on bar as a
conventional power plant except for the massive reduction
in carbon footprint, which we urgently need
Country Focus Report 2017
SASIA: Saudi Arabias high dust levels are still cited as
a major challenge to solar PV systems. How does First
Solar deal with this?
Raed Bkayrat: Given the availability of high-performance
technologies with better spectral response, the argument
about dust is a dated one. Of course, if developers opt to
build projects with conventional crystalline silicon modules
they will need to deal with challenges associated with that
technology operating in typical, high dust, high humidity
conditions that we see in Saudi Arabia and around the Gulf
region.
First Solar has over 70MW installed across the region,
with a further 200MW due to be installed this year. All
our data points to the fact that our technology performs
above expectations in the region and that our dry-cleaning
regimen is sufficient to ensure optimal plant performance.
To go into more detail, we maintain a very low average
soiling loss figures on the 13MW first phase of the
Mohammed bin Rashid Al Maktoum Solar Park in Dubai,
which has been operational since October 2013, and
has not used any water for cleaning up to this point. Dry
cleaning is a must for this region and silicon module
suppliers will need to deal with it being a must and develop
the right coatings for the glass that will not abrade under dry
cleaning routines. This is currently not the case with silicon
modules and is only possible with non-coated modules.
29
 References
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www.arabnews.com/saudi-arabia/news/879801

Balch, O. (2016). Is solar-powered desalination answer to water independence for California?

www.theguardian.com/sustainable-business/solar-power-california-water

Electricity & Cogeneration Regulatory Authority. (2014). Activities and Achievements of the Authority in 2014.
www.ecra.gov.sa/en-us/MediaCenter/DocLib2/Lists/SubCategory_Library/ECRA%20Annual%20Report%202014%20En.pdf

Export.gov. (2016). Saudi Arabia Energy.

www.export.gov/article?id=Saudi-Arabia-Energy

Khaleej Times. (2016). ME industry giants told go green to counter rising energy costs.
www.khaleejtimes.com/business/local/me-industry-giants-told-go-green-to-counter-rising-energy-costs

International Renewable Energy Agency. (2016). The Power to Change: Solar and Wind Cost Reduction Potential to 2025.
www.irena.org/DocumentDownloads/Publications/IRENA_Power_to_Change_2016.pdf

Poyry. (2016). A country in transformation: three areas to reform the electricity sector of Saudi Arabia.
www.poyry.com/sites/default/files/media/related_material/pov0030_ksa_web.pdf

Reuters. (2016). Saudis cut huge budget deficit, to loosen purse strings in 2017.
www.reuters.com/article/us-saudi-economy-budget-idUSKBN14B1GL

Saudi Electricity Company. (2017). Consumption Tariff.

www.se.com.sa/en-us/customers/Pages/TariffRates.aspx

Saudi Gazette. (2016). SADAFCOs solar project in Riyadh starts operation.

www.saudigazette.com.sa/business/sadafcos-solar-project-riyadh-starts-operation/

TV InterCert. (2012). IEC 61215 - IEC 61646.

www.tuv-intercert.org/en/our-services/product/renewable-energy/solar-energy/iec-61215-iec-61646.html#.WIyVAPl97IU

30 Saudi Arabia Solar Industry

 In support of

SASIA is a non-governmental organization dedicated

to helping Saudi Arabia achieve its vast solar potential.
Supporter and Country Focus Report sponsor.
www.saudi-sia.com

Offering a complete range of solar engineering, project

management, business development, professional
certification, and other consulting services.
www.darsolar.com

Specialized in providing technical, operational,

investment and logistic consultancies and services
in the renewable energy and cleantech sectors.
www.globaltatweer.com

Country Focus Report 2017 31

 Saudi Arabia Solar Industry:
Country Focus Report
2017

Dr. Amin Al-Yaquob, Executive Director

Saudi Arabia Solar Industries Association (SASIA)
P.O. Box 365241, Riyadh 11393
Kingdom of Saudi Arabia
Tel: 966 54 718 8810
Email: amin@saudi-sia.com
Web: www.saudi-sia.com
32 Saudi Arabia Solar Industry