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Development of Feed-in Tariff for PV in the Kingdom of Saudi Arabia

Author

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  • Wonsuk Ko

    (Department of Electrical Engineering, Faculty of Engineering, King Saud University, Riyadh 11461, Saudi Arabia)

  • Essam Al-Ammar

    (Department of Electrical Engineering, Faculty of Engineering, King Saud University, Riyadh 11461, Saudi Arabia)

  • Mohammad Almahmeed

    (Department of Electrical Engineering, Faculty of Engineering, King Saud University, Riyadh 11461, Saudi Arabia)

Abstract

Feed-in tariff (FIT) is the most commonly used strategy worldwide for promoting renewable energy. The FIT strategy mainly consists of three key elements—certain admission to the grid, long-term contracts (10 to 20 years), and reimbursement levels that are founded on the prices of renewable energy production. The most common renewable energy in the Kingdom of Saudi Arabia (KSA) is solar energy, and it can be incorporated into the main grid through a favorable feed-in tariff that will attract investment. This paper aims to review the FIT rates in Germany and the United States, then the design of FIT in these countries to study the results, which helps to determine the most appropriate FIT in the KSA for different regions with regard to investment costs, household electricity consumption, compatibility with the existing grid, period required for return on assets, and long-term benefits. This study will also explain the importance of interest rates for residential investors and the challenge created by the recent tariff increase to 0.18 SAR/kWh. Saudi Arabia has the advantage of being able to use this information to assess the best approach to the economic and environmental impacts of FIT.

Suggested Citation

  • Wonsuk Ko & Essam Al-Ammar & Mohammad Almahmeed, 2019. "Development of Feed-in Tariff for PV in the Kingdom of Saudi Arabia," Energies, MDPI, vol. 12(15), pages 1-12, July.
    • Handle: RePEc:gam:jeners:v:12:y:2019:i:15:p:2898-:d:252346
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    References listed on IDEAS

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    1. Butler, Lucy & Neuhoff, Karsten, 2008. "Comparison of feed-in tariff, quota and auction mechanisms to support wind power development," Renewable Energy, Elsevier, vol. 33(8), pages 1854-1867.
    2. Hepbasli, Arif & Alsuhaibani, Zeyad, 2011. "A key review on present status and future directions of solar energy studies and applications in Saudi Arabia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 5021-5050.
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    Cited by:

    1. Abdulsalam S. Alghamdi, 2019. "Potential for Rooftop-Mounted PV Power Generation to Meet Domestic Electrical Demand in Saudi Arabia: Case Study of a Villa in Jeddah," Energies, MDPI, vol. 12(23), pages 1-29, November.
    2. Sultan Al-Shammari & Wonsuk Ko & Essam A. Al Ammar & Majed A. Alotaibi & Hyeong-Jin Choi, 2021. "Optimal Decision-Making in Photovoltaic System Selection in Saudi Arabia," Energies, MDPI, vol. 14(2), pages 1-18, January.
    3. Mohammad AlHashmi & Gyan Chhipi-Shrestha & Kh Md. Nahiduzzaman & Kasun Hewage & Rehan Sadiq, 2021. "Framework for Developing a Low-Carbon Energy Demand in Residential Buildings Using Community-Government Partnership: An Application in Saudi Arabia," Energies, MDPI, vol. 14(16), pages 1-36, August.
    4. Abdulrahman AlKassem & Azeddine Draou & Abdullah Alamri & Hisham Alharbi, 2022. "Design Analysis of an Optimal Microgrid System for the Integration of Renewable Energy Sources at a University Campus," Sustainability, MDPI, vol. 14(7), pages 1-20, March.
    5. Abdullah Shaher & Saad Alqahtani & Ali Garada & Liana Cipcigan, 2023. "Rooftop Solar Photovoltaic in Saudi Arabia to Supply Electricity Demand in Localised Urban Areas: A Study of the City of Abha," Energies, MDPI, vol. 16(11), pages 1-24, May.
    6. Imad Hassan & Ibrahim Alhamrouni & Nurul Hanis Azhan, 2023. "A CRITIC–TOPSIS Multi-Criteria Decision-Making Approach for Optimum Site Selection for Solar PV Farm," Energies, MDPI, vol. 16(10), pages 1-26, May.
    7. Agnieszka Hajdukiewicz & Bożena Pera, 2020. "International Trade Disputes over Renewable Energy—the Case of the Solar Photovoltaic Sector," Energies, MDPI, vol. 13(2), pages 1-23, January.

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