Efficiency of Regulation of the Renewable Energy Sector in Saudi Arabia
Abstract
Saudi Arabia is one of the largest energy producers and consumers in the world. Although it began using renewable energy in the early year 2012, there was no full legislation in this sector. It was not until 2016 that the government adopted Vision 2030. This has played and influential role in promoting energy transition, resulting in Saudi becoming one of the most significant countries with regard to renewable energy investment. However, there are no strict or effective legal regulations governing the renewable energy market in Saudi Arabia. To address this issue, this paper first identifies and analyses the primary challenges that have impeded progress towards investment in renewable energy in Saudi Arabia. It then clarifies the most important laws regulating the energy sector in Saudi Arabia and compares these with the Kingdom of Sweden, which has been one of the first countries to move towards clean energy use. To help the government protect renewable energy investments, cases in Spain will be analysed as their experience will be invaluable when Saudi Arabia establishes its own legal framework. Although regulations relating to renewable energy in Saudi Arabia are in the initial stage of development and require numerous adjustments, the government may adopt more than one regulation according to its needs and the nature of renewable energy sources. Whatever these policies, they must be independent, clear and flexible to maintain investment in this sector.