THE LAW FIRM OF HAZIM AL MADANI ATTORNEYS AND LEGAL CONSULTANTS
Power Supply System Approval in the Kingdom of Saudi Arabia
The approval of the power supply system in Saudi Arabia is a crucial and vital matter in meeting the needs of its residents, industries, and the economy as a whole. The Kingdom faces various energy challenges, including diversifying energy sources, reliance on fossil fuels, and environmental conservation commitments. In this article, we’ll delve into the power supply system approval in Saudi Arabia and its crucial role in meeting energy needs and achieving sustainable development.
Saudi Arabia is a leading global producer of oil and natural gas. However, there has been a clear shift towards diversifying energy sources in recent years. This is partly due to the environmental and climatic challenges facing the world, and Saudi Arabia’s commitment to reducing harmful emissions and promoting the use of renewable energy.
In this context, Saudi Arabia has received international praise for its initiatives aimed at developing renewable energy and launched Vision 2030, a comprehensive roadmap to achieve sustainable development in all sectors, including energy. This vision includes increasing the renewable portion of the energy mix, enhancing energy efficiency, and developing energy infrastructure.
Several major projects have been implemented in Saudi Arabia to achieve renewable energy goals. For example, the “Neom City” project was launched, a future city on the Red Sea coast in Saudi Arabia, aiming to be a fully sustainable smart city, heavily reliant on renewable energy and artificial intelligence technology. Neom is planned to be powered by diverse energy sources, including solar, wind, and hydrogen energy, contributing to diversifying energy sources and reducing Saudi Arabia’s dependence on fossil fuels.
In addition, Saudi Arabia has developed large-scale solar power plants in different regions of the country. These plants generate electricity using sunlight, reducing harmful greenhouse gas emissions, and wind projects have been implemented in some coastal areas to harness wind power for electricity generation.
Energy efficiency is also a fundamental part of the Kingdom’s overall energy strategy, where measures have been taken to improve energy consumption efficiency in various sectors, including industrial, commercial, and residential sectors.
We will refer to the most important modern system adopted by the ministry to elevate energy, which is the approval of the energy supply system and anyone who acts to others without a ministry license is subject to a fine of up to 20 million riyals, and the primary goal of issuing this system is as follows:
We will refer to the most important modern system adopted by the ministry to elevate energy, which is the approval of the energy supply system and anyone who acts to others without a ministry license is subject to a fine of up to 20 million riyals, and the primary goal of issuing this system is as follows:
- Regulate energy allocation to its consumers in fields such as electricity production, crude oil refining, petrochemical production, water desalination, industry, mining, agriculture, construction, communications, transportation, logistical services, and others.
- Regulate licenses for natural gas activities and their liquids and activities related to hydrogen. This is according to the text of the second article of the energy supply Law."