Saudi Arabia Scales Back Renewable Energy Goal to Favor Gas

[DemMomma4Sanders]

Source: Bloomburg

Saudi Arabia is curtailing renewable-power targets as the world’s biggest oil exporter plans to use more natural gas, backing away from goals set when crude prices were about triple their current level, according to Energy Minister Khalid Al-Falih.
The kingdom aims to have power generation from renewable resources like the sun make up 10 percent of the energy mix, a reduction from an earlier target of 50 percent, Al-Falih said in Jeddah, Saudi Arabia. Al-Falih provided new details of the country’s solar power program as he joined other ministers to announce parts of a plan adopted by the cabinet on Monday to overhaul the country’s economy.
“Our energy mix has shifted more toward gas, so the need for high targets from renewable sources isn’t there any more,” Al-Falih said. “The previous target of 50 percent from renewable sources was an initial target and it was built on high oil prices” near $150 a barrel, he said.

Read more: http://www.bloomberg.com/news/articles/2016-06-07/saudi-arabia-scales-back-renewable-energy-target-to-favor-gas

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[Kelvin Mace]

1. A Saudi buy into solar power

would have signaled the move away from oil as a fuel, which would have maintained lower prices over the long haul. Since the domestic situation is deteriorating, the Saudis have to do what they can to increase prices, and that means solar must be discouraged at all costs.