Saudi open to alternate energy sources if economics are viable: Energy minister

Saudi Arabia is open to choices in energy provided that the economics are viable, the Kingdom’s energy minister said on Sunday.

Speaking at the World Economic Forum special meeting in Riyadh, Prince Abdulaziz bin Salman said that Saudi Arabia continues to “believe that the world will require every source of energy,” from hydrocarbons to nuclear energy and synthetic fuels.

The minister clarified that the energy sector was working on a national level with the wealth fund PIF, oil and gas giant Aramco, and internationally with Germany, France, Italy, and other countries to build a feasible business model for clean energy sources.

The “lack of clarity” on the policies, incentives and rate of technology development are among challenges that could hinder a faster adoption of alternative energy sources.

Saudi Arabia, one of the leading producers and exporters of oil, is among those countries who have pledged a net-zero target by 2060 with aims to generate 50 percent of its electricity from renewable energy sources by 2030.

It has maintained a phase-down strategy for fossil fuels over a phase-out strategy that could end the use of carbon-intensive fuels in the mid to long term future.

Energy security, accessibility and affordability are among the primary concerns if the phase-out path is chosen.

Prince Abdulaziz said the Kingdom supported the COP28 deal struck in Dubai last year which allows countries the space to decide for themselves on suitable pathways to transition to cleaner sources of energy.

Acknowledging hat the “energy challenge is so big,” the Saudi minister iterated that “being environmentally conscious is a humanistic duty.”