The Kingdom of Saudi Arabia's (KSA) Solar Energy cluster is one of five industrial clusters targeted for development in its Industrial Clusters program (IC). In this plan, KSA plans to develop:
In the area of solar energy production, Saudi Arabia benefits from intense solar irradiation of up to 7kWh/m2 per day, and minimal cloud cover. Covering 2 million sq km, KSA also has vast areas of flat land ready for development and well away from population centres.
Saudi Arabia requires large amounts of electricity to produce 24% of the world's desalinated water, mainly for human consumption but also for agriculture and industry. KSA's demand for water is rising by 3.3% a year.
On a wider level, Saudi Arabia's economy is growing by 5%-6% a year, buoyed by its rapidly expanding industrial and service sectors.
As a result, Saudi Arabia's annual electricity consumption of 204,200 GWh is increasing by 4.7% a year. Electricity demand is expected to grow by 200% between 2009 and 2032.
By 2020 up to 10% of KSA's electricity is projected to come from renewable sources, almost all of this solar. With installed solar capacity expected to grow to 8-10 GW over this period, employment in the solar sector is forecast to rise to 3,000 by 2013 and 50,000 by 2020.
In addition to these opportunities, Saudi Arabia offers investors the stable, pro-business environment, natural resources, raw materials and expertise required.
KSA's readily available inputs include:
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