Saudi Arabia aims for net zero, but Korean solar panel makers reap near-zero

Saudi Arabia is rapidly expanding its solar power capabilities using its oil wealth, but Korean solar manufacturers face challenges in capitalizing on this growth due to the dominance of cheaper Chinese panels in the global market. Consequently, Korean companies are focusing on the United States, where policies aimed at reducing dependence on Chinese supply chains are opening up new opportunities.

The Saudi government plans to produce 50 percent of its electricity from renewable sources like solar by 2030 and reach net-zero emissions by 2060, as reported by Arab News.

In July, three Saudi firms, including ACWA Power, which is partially owned by the nation's sovereign wealth fund, announced a $8.3 billion investment in 15 gigawatts of renewable energy projects.

ACWA Power CEO Marco Arcelli called the agreement "a significant milestone in Saudi Arabia's strategic vision for a more resilient and sustainable energy landscape."

The kingdom's approach is clear: Replace domestically used oil with inexpensive solar power and increase crude oil exports. According to Citi analyst Oliver Conner in the Wall Street Journal, Saudi Arabia produces one-third of its electricity from oil, effectively sacrificing $20 billion in annual crude exports, which he describes as “hideously inefficient.”