KAPSARC – Inexpensive Renewable Electricity Enables Saudi Arabia’s Fuel Price Reforms

The main theme of the document is fuel price reforms in Saudi Arabia and the role of inexpensive renewable electricity in these reforms.

Key findings include that without the availability and cost reduction of renewable energy technologies, the reforms would have been more costly for Saudi Arabia. In particular, solar photovoltaic technologies have made the reforms more feasible. The use of renewable technologies reduces the future need for natural gas, which in turn leads to lower natural gas prices and a 30% average reduction in the marginal cost of electricity generation.