Solar Costs Will Rise for Many Years, Says Saudi Arabia’s ACWA – EQ Mag Pro
Soaring inflation and higher interest rates mean that costs for solar-power projects will rise for the next five to seven years, according to Saudi Arabia’s biggest renewable energy company.
“Five years, I hope,” Paddy Padmanathan, chief executive officer of ACWA Power Co., said in an interview at the Future Investment Initiative conference in Riyadh. “Costs are going to go up. It’s immediate. Technology driving down costs won’t happen as fast as inflation and interest rates are pushing prices up.”
Still, renewables “are cheaper and will continue to be cheaper” than most fossil fuels, he said.
ACWA, which generates power and desalinates seawater in Saudi Arabia, has no intention of slowing its expansion plans, Padmanathan said.
Saudi Arabia to Start Building Green Hydrogen Plant in Neom
The government has said ACWA will help develop 70% of Saudi renewable energy projects. It is the main local partner in a $5 billion project to produce green hydrogen at the new city of Neom in the north west of the kingdom.
ACWA’s shares have soared almost 220% since they were listed in Riyadh in October last year. The stock now trades at 177.8 riyals, valuing the company at $34.6 billion.
Source: bloomberg
