Friday, 20 October 2017 04:58 GMT
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Saudi - Energy subsidies major challenge for Gulf states

(MENAFN - Arab News) Saudi Arabia is considered the biggest country that supports energy prices among GCC states with the value reaching SR228.7 billion ($61 billion) in 2011, according to a report from the Diplomatic Center for Strategic Studies. The report, carried by local media, said the GCC states supported the costs of energy and electricity by more than $100 billion, where the Kingdom supported energy prices by about $61 billion, UAE $22 billion, Kuwait $13 billion and Qatar $6 billion. The GCC states have taken extensive efforts to reduce energy consumption, taking place in several areas during the past years. The Gulf states need to take advantage of the experiences of developed foreign countries in the field, the report said. It said the GCC states are facing several challenges in developing renewable energy as the possibility of development of clean energy in electricity generation is seen as a difficult process. It said conventional energy is still the best option at the present time. It suggested that exploitation of clean energy (solar-winds) requires greater efforts because in views of the massive price differences between the generation of electricity from renewable energy and conventional sources. The report said the rate of electricity produced by renewable energy in the Kingdom will reach 27 percent of total energy by 2020. It said the process of identifying the optimum technology for Saudi conditions requires scientific research lasting up to three years. Referring to the impact of GCC support policies on energy sector, the study stated: "Consumption, which is backed by hundreds of billions, has become a worry for those countries. Government entities started demanding a review of subsidies. The budgets can then be exploited in the production of a variety of sources of energy."
Saudi - Energy subsidies major challenge for Gulf states