moody’s low oil electricity demand drives saudi arabia’s renewables plans
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

Moody’s: Low oil, electricity demand drives Saudi Arabia’s renewables plans

Arab Today, arab today

Arab Today, arab today Moody’s: Low oil, electricity demand drives Saudi Arabia’s renewables plans

Saudi government opened an auction for 700 (MW) of renewable energy capacity
London/Frankfurt - Arab Today

Saudi Arabia’s renewable energy market is set for growth, supported by an abundant solar resource, land availability, an A-rated sovereign credit, and strong economic and strategic logic, said a report issued by Moody’s Investors Service.
“The government of Saudi Arabia’s plans are motivated by a desire to diversify the energy mix and take advantage of the compelling economics of renewables, especially solar, in the country,” said Christopher Bredholt, a Moody’s vice president and senior analyst.
According to the report, electricity demand is increasing due to economic and demographic growth, and highly energy-intensive industrialization programs.
As government finances come under pressure in the low oil price environment, the Kingdom is seeking to reduce subsidies for oil consumption and encourage clean generation technologies, it added.
The report said that the Saudi renewable plans would help reduce the share of the public sector in the economy and leverage project finance opportunities for lenders — both sukuk and non-sukuk.
However, credit challenges include a relatively untested regulatory framework for renewables; the lack of total cost recovery for the state utility Saudi Electricity Company (SEC); operating in the desert environment, which can impair plant efficiency; and a relatively undeveloped local supply chain given the lack of installed renewables capacity.
In February 2017, the government opened an auction for 700 megawatts (MW) of renewable energy capacity, a step toward meeting its strategic targets of generating 9.5 gigawatts (GW) by 2030.
Renewable energy activity in Saudi Arabia to date has been fairly minimal and the market is likely to develop only gradually as market participants get acquainted with new procurement procedures and the supply chain adjusts its expectations.
Trust Certificates
Moody’s Investors Service also assigned a provisional program rating of (P)A1 to the global Trust Certificate Issuance Program established by the Saudi government.
KSA Sukuk Limited, a special purpose vehicle incorporated in the Cayman Islands and wholly owned by the Saudi government, will issue Trust Certificates under the program. The payment obligations associated with these certificates are direct obligations of the government, and the program rating mirrors the government’s long-term issuer rating of A1.
Moody’s expects to assign definitive rating(s) to Trust Certificates issued under the program upon closing of the issuance and review of the terms of the final transaction documents. Moody’s also notes that its program rating does not express an opinion on the structure’s compliance with Shariah law.

Source: Arab News

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

moody’s low oil electricity demand drives saudi arabia’s renewables plans moody’s low oil electricity demand drives saudi arabia’s renewables plans

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

moody’s low oil electricity demand drives saudi arabia’s renewables plans moody’s low oil electricity demand drives saudi arabia’s renewables plans

 



GMT 10:10 2017 Thursday ,09 February

3 Important Elements You Have to Consider

GMT 04:03 2017 Monday ,24 April

Bella Hadid ‘dying’ to visit Palestine

GMT 19:25 2016 Wednesday ,25 May

The Brooklyn Desk by Oeuf NYC

GMT 07:49 2018 Friday ,05 January

2 Russian servicemen killed

GMT 07:58 2018 Monday ,01 January

Italy orders N. Korea's envoy to leave

GMT 08:45 2017 Wednesday ,20 December

US military imagines war without GPS

GMT 17:26 2017 Sunday ,17 December

Putin thanks Trump for help in foiling attack plot

GMT 22:19 2017 Monday ,16 October

Cairo-hosted Fatwa conf. new contribution

GMT 02:27 2016 Friday ,10 June

Video hints Japan abetting illegal ivory trade

GMT 07:04 2017 Wednesday ,19 April

1,883 Bahrainis found jobs in March

GMT 14:24 2016 Tuesday ,22 November

Citi and JPMorgan top list of ‘globally banks’

GMT 21:43 2017 Friday ,01 September

People question Nazaruddin`s repatriation expenses

GMT 09:41 2017 Wednesday ,19 April

OIC concerned over violence in Mali

GMT 01:30 2017 Friday ,27 October

May22/Jun21

GMT 05:38 2016 Friday ,30 December

Dubai Airports divert 13 flights due to heavy fog

GMT 11:38 2017 Saturday ,14 January

Mexico names new ambassador to US

GMT 12:03 2017 Wednesday ,22 March

Kuwait to mark World Water Day

GMT 15:00 2017 Wednesday ,27 September

HM King receives invitation from Egyptian President

GMT 02:45 2017 Tuesday ,05 December

President Bashir arrives in Chad

GMT 02:45 2017 Wednesday ,16 August

Turkmen President Visits Pakistan
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday