Government Legislation's Influence on Clean Energy Integration: A Legal Analysis of Challenges and Opportunities for Corporations in Saudi Arabia and the UK Clean Energy Sectors.
No Thumbnail Available
Date
2025
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
University of Westminster
Abstract
1. Introduction
The study has provided a comparative study on the Legal Frameworks prevalent in Saudi Arabia and the UK considering the challenges faced by the corporations dealing with clean energy. It is by the year 2030 that the UK intends to accomplish the aim of producing “about half of its electricity using renewable energy sources, with the remaining 50% to be generated from gas” taking into account the point that it is beyond the testament of the commitment to sustainability for Saudi Arabia. As per the principles of the International Energy Agency (IEA), "Saudi’s electricity generation mix is still dominated by natural gas (58.4%) and oil (41.3%)” with around 0.3% found being “sourced from renewables, the majority of which is generated by solar photovoltaic (PV) facilities” .
The Ten Point Plan for the Green Industrial Revolution, an initiative of the UK has been illustrated in Figure 1 below for harnessing the potential of nature to absorb carbon through the establishment of new National Parks, as well as the Areas of Outstanding Natural Beauty, thereby founding superior biodiversity-related havens, concentrating on the 2030’s goal of safeguarding the 30% of England’s countryside. Besides, “the Climate Change Act sets legally binding targets to reduce carbon dioxide emissions in the UK by at least 80% by 2050, from 1990 levels” , which has become the Parliament’s Act in the year 2008.
1.1. Research Purpose and Objectives
The main purpose of conducting this research is to provide a comparison between the clean energy regulations of Saudi Arabia and the UK. In this context, it considers exploring the impact that Saudi Arabia's accession has on the World Trade Organization taking into account the clean energy sector, encompassing the manner, in which national legislation can be influenced by international trade commitments, thereby supporting the sector’s growth over the years. Considerably, the research objectives that have been formulated for being discussed in the study are as follows:
1. Analyse Government Legislation: Examine how government legislation influences the integration of clean energy in the corporate sectors of Saudi Arabia and the United Kingdom.
2. Identify Challenges and Opportunities: Identify the key legal challenges and opportunities that corporations face when complying with clean energy regulations in both regions.
3. Compare Regulatory Frameworks: Provide a comparative analysis of the clean energy regulatory frameworks in Saudi Arabia and the UK, highlighting similarities and differences.
4. Assess Impact on Corporations: Evaluate the impact of these legislative measures on corporate strategies and operations related to clean energy adoption.
5. Recommend Best Practices: Suggest best practices and actionable insights for policymakers and corporate stakeholders to enhance the effectiveness of legal frameworks and promote sustainable corporate growth in the clean energy sector.
1.2. Research Questions
The completion of the study can contribute to the addressing of the main research question as provided below:
• What are the key similarities and differences between the clean energy regulatory frameworks in Saudi Arabia and the UK?
For addressing the main question, the below-listed sub-questions also need to be duly addressed:
• How does government legislation impact the integration of clean energy in the corporate sectors of Saudi Arabia?
• What are the primary legal challenges and opportunities for corporations complying with clean energy regulations in Saudi Arabia?
• How do these legislative measures affect corporate strategies and operations related to clean energy adoption in both regions?
• What best practices can be recommended to policymakers and corporate stakeholders to improve legal compliance and promote a robust clean energy sector in Saudi Arabia
Description
Research Background
For the attainment of the research aim and objectives, it is first of all important to understand the different terminologies associated with Clean Energy Legislation, the definitions for the different concepts have thus been outlined herein for setting up an apt foundation for the study. Renewable Energy can be defined as the “energy derived from natural sources that are replenished at a higher rate than they are consumed” with some of the common ones being solar, wind, and geothermal energy. Although the terms ‘Renewable Energy' and 'Green Energy' are used interchangeably there exists a significant difference between the two and that is Green Energy can be produced from a particular source and with the application of a specific method, which by no means can be harmful to the natural environment. It can hence be stated that all renewable energy sources cannot be considered as green energy but the majority of the sources of green energy are found to be renewable in nature ; . One of the most common types of renewable energy is the Solar Energy and Wind Energy with the former found to be generated from Sun and the latter directly from the air. In this context, Solar energy is found to be “created by nuclear fusion that takes place in the sun” and is indeed “necessary for life on Earth, and can be harvested for human uses such as electricity” . On the other hand, wind energy generation is primarily associated with kinetic energy, i.e., the energy evolving from motion. To understand wind energy more aptly, it can be stated that a "wind turbine takes the kinetic energy of wind and turns it into electrical energy” . Another important concept to be discussed throughout the study is Carbon Emission, which refers to the carbon compounds getting released into the atmosphere in the forms of methane (CH4) and carbon dioxide (CO2) contributing to the trapping of heat into the atmosphere and in turn leading to the occurrence of global warming as the foremost outcome . To provide a detailed discussion on Clean Energy Integration, knowing about the Hydrogen Economy is of great significance and it can be defined as “a vision of an energy delivery infrastructure based on hydrogen as a carbon-free energy carrier” .
A multifaceted global movement encompasses a state of transition taking place towards renewable energy, as well as sustainability. It is further driven by the factors of reducing greenhouse gas emissions, identifying the urgent need for combating climate change, and promoting environmental conservation. One of the several trends that contributes to the restructuring of the energy landscape universally is the renewable technologies’ economic viability, which can be inferred from the dramatic improvement brought about in the solar, as well as wind power’s competitiveness from the year 2010 to 2020. The electricity expenses incurred from utility-scale solar Photovoltaics (PV) had fallen by 85% with a reduction in Concentrating Solar Power (CSP) by 68% followed by a fall in the onshore wind and offshore wind by 56% and 48% respectively. It can further be inferred that “up to 800 gigawatts (GW) of existing coal-fired capacity could be economically replaced by new renewables capacity, saving the electricity system up to USD 32 billion per year and reducing carbon-dioxide (CO2) emissions by up to 3 gigatonnes (Gt) CO2” . Rapidly growing usage of renewable energy technologies is another trend indicating the global shift towards sustainability. It can be understood from the point that wind energy production has risen globally from 0.5 petawatt-hours (PWh) (2011) to 4.8 PWh (2021) with the world found to be harnessing 2.7 PWh of solar energy in the year 2021 from 2009 showing an increase by 4,660%. Contextually, “the shift to renewable energy picked up speed in 2022, contributing to a 107 gigawatt (GW) global surge, making up 90% of new power capacity, fossil fuels included. In 2023, this is expected to surpass 440 GW, matching India's total power capacity. By 2024, the International Energy Agency (IEA) predicts, driven mostly by solar PV technology advances, this growth will equal the combined power capacities of China and the US” . Therefore, it can be stated that shifts have not by any means taken place automatically but necessitate the need for making continuous investment in the domains of training, as well as re-skilling so that workers can be prepared for taking up the required roles and playing their parts efficiently in the sectors dealing with renewable energy resources.
Keywords
LAW, Saudi Arabia, United Kingdom, Oil, clean power, Clean Energy Sectors, Legal, renewable energy