Even in Saudi Arabia, Renewable Power Is Cheaper Than Fossil Fuels

  • Kingdom is looking to lower electricity costs using wind farms
  • Renewable power sources are set to push oil out of Saudi grid
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Saudi Arabia signed deals to buy electricity from two large-scale wind farms that are cheaper than natural gas plants, as it aims to rapidly transition to a bigger share of renewables in the power grid.

The state-run Saudi Power Procurement Co. this week said it had agreed to purchase power at record-low prices from the wind projects to be developed in the kingdom by Japan’s Marubeni Corp. A combination of state backing and strong wind conditions in the country will help make the green power plants cheaper than fossil fuel alternatives, the head of the Saudi company said.