As one of the largest exporters of oil in the world, it may seem surprising that Saudi Arabia has now made a significant commitment to investing in renewable energies. This has largely been a result of falling oil prices and the acknowledgement that fossil fuels will one day run out. Given the country’s wealth, it could well be the case that using renewable energy will become the norm in a relatively short period of time. Here are some of the potential outcomes from this new drive.
Energy Market Shift
With Saudi Arabia now focusing its resources and money on developing its renewable energy industry, there will likely be many investment opportunities available to those looking for a stake. This will mark a major shift away from reliance on fossil fuels, and create a strong renewable energy market which the government will buy energy from.
From personal wealth investors using a CFD broker to major fund managers looking to directly buy shares in renewable energy companies, there will be many people looking to benefit from the new opportunities presented by the shift from fossil fuels to renewables. This should help to drive its overall growth and sustain it into the future.
Cleaner Energy
With the amount of bad press relating to global warming nowadays, the shift to renewable energy will no doubt be welcome news to the global community. Although Saudi Arabia will undoubtedly continue to sell oil for many years to come, the decision to invest in renewables presents a more positive, forward thinking image of the country.
It will also have a far more sustainable source of energy, and be able to provide power for the foreseeable future, whilst decreasing its greenhouse gas emissions overall.
Exports
Once Saudi Arabia’s renewable energy industry flourishes, it may well be the case that it has a surplus which it can sell to other countries. This could one day replace oil exports as a source of income for the country.
With battery technology advancing at rapid pace (largely due to the development of electronic cars), exporting power generated from renewable sources is becoming a greater possibility, so it could well be an effective replacement for oil when supplies begin to run out.
The investment in and development of a renewable energy industry in Saudi Arabia is sure to have a positive impact on the country in the years to come. Not only will it provide power to Saudi Arabian citizens, but it could also prove to be a source of income in the future, making it a potentially invaluable asset to the country.