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Saudi Companies Turn to Solar to Blunt Rising Power Price Risk

  • Government expected to roll back subsidies on energy prices
  • Nation set record for world’s cheapest solar power on Oct. 3
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Photographer: SeongJoon Cho/Bloomberg
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Saudi companies are looking to solar electricity to hedge the risk of rising power prices if energy subsidies are cut, according to one of the Kingdom’s biggest plant developers.

“Everybody is very convinced that electricity prices are going to be reformed over the next three years,’’ ACWA Power International Chief Executive Officer Paddy Padmanathan said in an interview in Paris. “That means only one thing: that tariffs are going to go up.’’