Saudi Arabia is poised to become the largest renewable energy market in the Middle East, given the enormous opportunity cost of the Kingdom’s massive subsidized domestic oil consumption. As much as 35% of the oil extracted by Saudi Arabia each year is sold for less than 4 US dollars a barrel to the Saudi Electrical Company and other utilities to produce energy. The government is still finalizing the structure of Saudi’s massive renewables program, expected to be over 1 GW a year. It is already clear that given the Kingdom’s focus on stimulating domestic industry and diversifying the economy, mean local content incentives will be the key driver of market share, as they were in the solar market in South Africa.
With the aim of securing a major competitive advantage through the local content incentives, DT has acquired a state-of-the-art 75 MW Reis Robotics crystalline silicon assembly line and a 20MW EPV Solar amorphous silicon manufacturing line, and have started installation in a factory building in South Jeddah.