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Fuel-price reform to achieve climate and energy policy goals in Saudi Arabia: A multiple-scenario analysis

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  • Groissböck, Markus
  • Pickl, Matthias J.

Abstract

Saudi Arabia experiences annual growth of 6% in its power demand. Generation expansion has been driven by low domestic retail fuel prices leading to a power generation mix based on fossil fuels only. In light of current climate change discussions, this research assesses future generation expansion under different potential fuel-price reforms by an enhanced OSeMOSYS model. Results demonstrate that domestic retail fuel price levels >20% [>60%] of expected international wholesale fuel prices1 are necessary to minimize emissions when considering emissions penalties [without pricing for emissions]. By 2030 renewables can reach 70% penetration by capacity and 30% by energy.

Suggested Citation

  • Groissböck, Markus & Pickl, Matthias J., 2018. "Fuel-price reform to achieve climate and energy policy goals in Saudi Arabia: A multiple-scenario analysis," Utilities Policy, Elsevier, vol. 50(C), pages 1-12.
    • Handle: RePEc:eee:juipol:v:50:y:2018:i:c:p:1-12
    DOI: 10.1016/j.jup.2017.12.004
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