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Saudi Arabia launches a new initiative to boost renewable energy projects to cut back its crude oil used as per the Industry and Mineral Resources Ministry. The Ministry would also give tax exemptions and other incentives to the companies which will produce renewable energy.
“This initiative is intended to enable those companies to benefit from the numerous incentives and facilities offered to industrial establishments in the Kingdom, mainly tax exemptions for power and renewable energy projects,” the Ministry said.
The initiative will boost the capabilities of companies to increase the production of power and support the Vision 2030 of the kingdom to generate 50% of electricity from renewable energy sources.
Saudi Arabia also plans to issue fresh tenders to generate 15,000 MWs capacity of electricity with the renewable energy projects in 2022 and 2023 said Energy Minister Prince Abdul Aziz bin Salman of the kingdom.
Recently, ACWA Power and the Saudi Power Procurement Company (SPPC) signed a power purchase agreement (PPA) to develop the 700 MW Ar Rass solar photovoltaic independent power plant (IPP) in Saudi Arabia’s Al Qassim province.