Interview: Marco Arcelli, CEO, ACWA Power
In what ways can renewable energy projects contribute to economic diversification efforts?
MARCO ARCELLI: Renewable energy projects can significantly enhance Saudi Arabia’s economic diversification under Vision 2030 by bolstering decarbonisation and encouraging private sector participation. These projects drive large-scale renewable energy construction, creating opportunities for local suppliers. This, in turn, can generate substantial employment opportunities. In 2023 alone, renewable energy operations created 30,000 jobs in Saudi Arabia. There are plans to expand operations, aiming to generate 200,000 jobs within the Kingdom by 2030. Additionally, Saudi Arabia’s strategic position and low energy costs make it an attractive centre for local supply and export, positioning the Kingdom as a leader in greenshoring.
Renewable energy supports the sustainable development of industrial segments such as water desalination, mining and manufacturing by leveraging cost-effective and efficient technologies. For example, the Kingdom has driven solar photovoltaic (PV) power costs to the lowest values globally, and large-scale green ammonia projects demonstrate leadership in new technologies, which can be applied to industrial applications and large-scale developments.
Decarbonising the water desalination industry is essential in regions with high water demand. Solar power is increasingly used, covering up to one-third of the energy needs of hybrid solar-desalination setups, lowering carbon emissions and tariffs. For instance, a 100% sustainable off-grid solution has been implemented at Red Sea Global, using 400 MW of solar PV, 1.3 GWh of battery storage and green fuel engines to power all utilities, including water desalination plants entirely run on renewable energy. Additionally, the firstever conversion of a desalination plant from energy-intensive multi-stage flash technology to highly efficient reverse osmosis technology is under way, showcasing a commitment to sustainable industrial development.
How can the private sector accelerate the development and adoption of renewable energy?
ARCELLI: Private sector integration is essential for advancing the transition to renewable energy. The Kingdom is implementing policies that support private companies, including international investors, fostering growth and innovation, and accelerating the adoption of renewable technologies and local manufacturing of critical components. The private sector plays a crucial role in this transition by accelerating technological advancement and investment, serving as key energy transition players both domestically and internationally.
The involvement of public entities in acquiring stakes in these companies exemplifies the fruitful cooperation between the private and public sectors. Government policies can support these contributions by providing a favourable investment climate, offering incentives for renewable energy projects, and ensuring a stable regulatory environment. By fostering public-private partnerships, the Kingdom can accelerate the development and adoption of renewable energy.
To what extent are technology and infrastructure key to sustainable energy and utility services?
ARCELLI: Addressing climate change must utilise all available capabilities. New technology is essential for improving energy efficiency, reducing costs and lowering carbon emissions. This involves scouting for the best technologies to serve Saudi Arabia and the world. Partnerships with technology suppliers, universities and research institutions are crucial for developing and piloting innovative technology in leading Saudi research centres before implementing it in practical applications. For instance, a partnership with Water Global Access has developed hydraulic-injection desalination technology, which promises greater energy efficiency than reverse osmosis desalination. Additionally, the Red Sea Global project has demonstrated that 100% renewables-powered utilities are feasible on a large scale.
Read More from OBG
