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Saudi Arabia Wind Power Market set to lead the Middle East, driven by Vision 2030 renewables goals, REPDO tenders, and PIF backing, adding 6.2GW wind capacity by 2028 alongside solar PV diversification.

Key Points

It is the emerging national segment leading Middle East wind growth, targeting 6.2GW by 2028 under Vision 2030 policies.

✅ Adds 6.2GW, 46% of regional wind capacity by 2028

✅ REPDO tenders and PIF funding underpin pipeline

✅ Targets: 16GW wind, 40GW solar under Vision 2030

Saudi Arabia will become a regional heavyweight in the Middle East's wind power market adding over 6GW in the next 10 years, according to new research by Wood Mackenzie Power & Renewables.

The report – 'Middle East Wind Power Market Outlook, 2019-2028’ – said developers will build 6.2GW of wind capacity in the country or 46% of the region’s total wind capacity additions between 2019 and 2028.

Wood Mackenzie Power & Renewables senior analyst Sohaib Malik said: “The integration of renewables in Vision 2030’s objectives underlines strong political commitment within Saudi Arabia.

“The level of Saudi ambition for wind and solar PV varies significantly, despite the cost parity between both technologies during the first round of tenders in 2018.”

Saudi Arabia has set a 16GW target for wind by 2030 and 40GW for solar, plans to solicit 60 GW of clean energy over the next decade, Wood Mackenzie added.

“Moving forward, the Renewable Energy Project Development Office will award 850MW of wind capacity in 2019, which is expected to be commissioned in 2021-2022, and increase the local content requirement in future tendering rounds,” Malik said.

However, Saudi Arabia will fall short of its current 2030 renewables target, despite growth projections and regional leadership, the report said.

Some 70% of the renewables capacity target is to be supported by the Public Investment Fund (PIF), the Saudi sovereign wealth fund, while the remaining capacity is to be awarded through REPDO.

“A central concern is the PIF’s lack of track record in the renewables sector and its limited in-house sectoral expertise,” said Malik

“REPDO, on the other hand, completed two renewables request for proposals after pre-developing the sites,” he said.

PIF is estimated to have $230bn of assets – targeted to reach $2 trillion under Vision 2030 – driven by investments in a variety of sectors ranging from electric vehicles to public infrastructure, Wood Mackenzie said.

“There is little doubt about the fund’s financial muscle, however, its past investment strategy focused on established firms in traditional industries,” Malik added.

“Aspirations to develop a value chain for wind and PV technologies locally is a different ball game and requires the PIF to acquire new capabilities for effective oversight of these ventures,” he said.

The report noted that regional volatility is expected to remain, with strong positive growth, driven by Jordan and Iran in 2018 expected to reverse in 2019, and policy shifts, as in Canada’s scaled-back projections, can influence outcomes.

Post-2020 Wood Mackenzie Power & Renewables sees regional demand returning to steady growth as global renewables set more records elsewhere.

“In 2018, developers added 185MW and 63MW of wind capacity in Jordan and Iran, respectively, compared to 53MW of capacity across the entire region in 2017, following a record year for renewables in 2016,” said Malik.

“The completion of the 89MW Al Fujeij and the 86MW Al Rajef projects in 2018 indicates that Jordan has 375MW of the region’s operational 675MW wind capacity.

“Iran followed with 278MW of installed capacity at the end of 2018. A slowdown in 2019 is expected, as project development activity softens in Iran.

“Additionally, delays in awarding the 400MW Dumat Al Jandal project in Saudi Arabia will limit annual capacity additions to 184MW.”

He added that a maturing project pipeline in the region supports the 2020-2021 outlook, even as wind power grew despite Covid-19 globally.

“Saudi Arabian demand serves as the foundation for regional demand. Regional demand diversification is also occurring, with Lebanon set to add 200-400MW to its existing permitted capacity pipeline of 202MW in 2019,” he said

“These developments pave the way for the addition of 2GW of wind capacity between 2019 and 2021.”

Wood Mackenzie Power & Renewables added that the outlook for solar in the region is “much more positive” than wind.

“Compared to only 6GW of wind power capacity, developers will add 53GW of PV capacity through 2024,” said Malik.

He added: “Solar PV, supported by trends such as China’s rapid PV growth in 2016, has become a natural choice for many countries in the region, which is endowed with world class solar energy resources.

“The increased focus on solar energy is demonstrated by ambitious PV targets across the region.”

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Ontario Electricity Relief outlines an extended disconnect moratorium, potential time-of-use price changes, and Ontario Energy Board oversight to support residential customers facing COVID-19 hardship and bill payment challenges during the emergency in Ontario.

Key Points

Plan to extend disconnect moratorium and weigh time-of-use price relief for residential customers during COVID-19.

✅ Extends winter disconnect ban by 3 months

✅ Considers time-of-use price adjustments

✅ Requires Ontario Energy Board approval

The Ontario government is preparing to announce electricity relief for residential electricity users struggling because of the COVID-19 emergency, according to sources.

Sources close to those discussions say a decision has been made to lengthen the existing five-month disconnect moratorium by an additional three months.

Separately, Hydro One's relief fund has offered support to its customers during the pandemic.

News releases about the moratorium extension are currently being drafted and are expected to be released shortly, as the pandemic has reduced electricity usage across Ontario.

Electricity utilities in Ontario are currently prohibited from disconnecting residential customers for non-payment during the winter ban period from November 15 to April 30.

The province is also looking at providing further relief by adjusting time-of-use prices, such as off-peak electricity rates, which are designed to encourage shifting of energy use away from periods of high total consumption to periods of low demand.

For businesses, the province has provided stable electricity pricing to support industrial and commercial operations.

But that would require Ontario Energy Board approval and no decision has been finalized, our sources advise.

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UK Energy Price Cap aims to protect consumers on gas and electricity bills, tackling Big Six overcharging on default and standard variable tariffs, with Ofgem and MPs pushing urgent reforms to the broken market.

Key Points

A temporary absolute limit on default energy tariffs to shield consumers from overcharging on gas and electricity bills.

✅ Caps standard variable and default tariffs to protect loyalty.

✅ Targets Big Six pricing; oversight by Ofgem and BEIS MPs.

✅ Aims for winter protection while maintaining competition.

MPs are calling for a cap on the price of gas and electricity, with questions over the expected cost of a UK price cap amid fears consumers are being ripped off.

The Business, Energy and Industrial Strategy (BEIS) Select Committee says the Big Six energy companies have been overcharging for years.

MPs on the committee backed plans for a temporary absolute cap, noting debates over EU gas price cap strategies to fix what they called a "broken" energy market.

Labour's Rachel Reeves, who chairs the committee, said: "The energy market is broken. Energy is an essential good and yet millions of customers are ripped off for staying loyal to their energy provider.

"An energy price cap is now necessary and the Government must act urgently to ensure it is in place to protect customers next winter.

"The Big Six energy companies might whine and wail about the introduction of a price cap but they've been overcharging their customers on default and SVTs (standard variable tariffs) for years and their recent feeble efforts to move consumers off these tariffs has only served to highlight the need for this intervention."

The Committee also criticised Ofgem for failing to protect customers, especially the most vulnerable.

Draft legislation for an absolute cap on energy tariffs was published by the Government last year, and later developments like the Energy Security Bill have kept reform on the agenda.

But Business Secretary Greg Clark refused to guarantee that the flagship plans would be in place by next winter, despite warnings about high winter energy costs for households.

Committee members said there was a "clear lack of will" on the part of the Big Six to do what was necessary, including exploring decoupling gas and electricity prices, to deal with pricing problems.

A report from the committee found that customers are paying £1.4bn a year more than they should be under the current system.

Around 12 million households are stuck on poor-value tariffs, according to the report.

National assistance charity Citizens Advice said "loyal and vulnerable" customers had been "ripped off" for too long.

Chief executive Gillian Guy said: "An absolute cap, as recommended by the committee, is crucial to securing protection for the largest number of customers while continuing to provide competition in the market. This should apply to all default tariffs."

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U.S. Energy Dominance envisions deregulation, oil and gas growth, LNG exports, pipelines, and geopolitical leverage, while facing OPEC pricing power, infrastructure bottlenecks, climate policy pressures, and accelerating renewables in global markets.

Key Points

U.S. policy to grow fossil fuel output and exports via deregulation, bolstering energy security, geopolitical influence.

✅ Deregulation to expand drilling, pipelines, and export capacity

✅ Exposed to OPEC pricing, global shocks, and cost competitiveness

✅ Faces infrastructure, ESG finance, and renewables transition risks

Former President Donald Trump has consistently advocated for “energy dominance” as a cornerstone of his energy policy. In his vision, the United States would leverage its abundant natural resources to achieve energy self-sufficiency, flood global markets with cheap energy, and undercut competitors like Russia and OPEC nations. However, while the rhetoric resonates with many Americans, particularly those in energy-producing states, the pursuit of energy dominance faces significant real-world challenges that could limit its feasibility and impact.

The Energy Dominance Vision

Trump’s energy dominance strategy revolves around deregulation, increased domestic production of oil and gas, and the rollback of climate-oriented restrictions. During his presidency, he emphasized opening federal lands to drilling, accelerating the approval of pipelines, and, through an executive order, boosting uranium and nuclear energy initiatives, as well as withdrawing from international agreements like the Paris Climate Accord. The goal was not only to meet domestic energy demands but also to establish the U.S. as a major exporter of fossil fuels, thereby reducing reliance on foreign energy sources.

This approach gained traction during Trump’s first term, with the U.S. achieving record levels of oil and natural gas production. Energy exports surged, making the U.S. a net energy exporter for the first time in decades. Yet, critics argue that this policy prioritizes short-term economic gains over long-term sustainability, while supporters believe it provides a roadmap for energy security and geopolitical leverage.

Market Realities

The energy market is complex, influenced by factors beyond the control of any single administration, with energy crisis impacts often cascading across sectors. While the U.S. has significant reserves of oil and gas, the global market sets prices. Even if the U.S. ramps up production, it cannot insulate itself entirely from price shocks caused by geopolitical instability, OPEC production cuts, or natural disasters.

For instance, despite record production in the late 2010s, American consumers faced volatile gasoline prices during an energy crisis driven by $5 gas and external factors like tensions in the Middle East and fluctuating global demand. Additionally, the cost of production in the U.S. is often higher than in countries with more easily accessible reserves, such as Saudi Arabia. This limits the competitive advantage of U.S. energy producers in global markets.

Infrastructure and Environmental Concerns

A major obstacle to achieving energy dominance is infrastructure. Expanding oil and gas production requires investments in pipelines, export terminals, and refineries. However, these projects often face delays due to regulatory hurdles, legal challenges, and public opposition. High-profile pipeline projects like Keystone XL and Dakota Access have become battlegrounds between industry proponents and environmental activists, and cross-border dynamics such as support for Canadian energy projects amid tariff threats further complicate permitting, highlighting the difficulty of reconciling energy expansion with environmental and community concerns.

Moreover, the transition to cleaner energy sources is accelerating globally, with many countries committing to net-zero emissions targets. This trend could reduce the demand for fossil fuels in the long run, potentially leaving U.S. producers with stranded assets if global markets shift more quickly than anticipated.

Geopolitical Implications

Trump’s energy dominance strategy also hinges on the belief that U.S. energy exports can weaken adversaries like Russia and Iran. While increased American exports of liquefied natural gas (LNG) to Europe have reduced the continent’s reliance on Russian gas, achieving total energy independence for allies is a monumental task. Europe’s energy infrastructure, designed for pipeline imports from Russia, cannot be overhauled overnight to accommodate LNG shipments.

Additionally, the influence of major producers like Saudi Arabia and the OPEC+ alliance remains significant, even as shifts in U.S. policy affect neighbors; in Canada, some viewed Biden as better for the energy sector than alternatives. These countries can adjust production levels to influence prices, sometimes undercutting U.S. efforts to expand its market share.

The Renewable Energy Challenge

The growing focus on renewable energy adds another layer of complexity. Solar, wind, and battery storage technologies are becoming increasingly cost-competitive with fossil fuels. Many U.S. states and private companies are investing heavily in clean energy to align with consumer preferences and global trends, amid arguments that stepping away from fossil fuels can bolster national security. This shift could dampen the domestic demand for oil and gas, challenging the long-term viability of Trump’s energy dominance agenda.

Moreover, international pressure to address climate change could limit the expansion of fossil fuel infrastructure. Financial institutions and investors are increasingly reluctant to fund projects perceived as environmentally harmful, further constraining growth in the sector.

While Trump’s call for U.S. energy dominance taps into a desire for economic growth and energy security, it faces numerous challenges. Global market dynamics, infrastructure bottlenecks, environmental concerns, and the transition to renewable energy all pose significant barriers to achieving the ambitious vision.

For the U.S. to navigate these challenges effectively, a balanced approach that incorporates both traditional energy sources and investments in clean energy is likely needed. Striking this balance will require careful policymaking that considers not just immediate economic gains but also long-term sustainability and global competitiveness.

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Negative Electricity Prices in France signal oversupply from wind and solar, stressing the wholesale market and grid. Better storage, demand response, and interconnections help balance renewables and stabilize prices today.

Key Points

They occur when renewable output exceeds demand, pushing power prices below zero as excess energy strains the grid.

✅ Driven by wind and solar surges with low demand

✅ Challenges thermal plants; erodes margins at negative prices

✅ Needs storage, demand response, and cross-border interties

France has recently experienced an unusual and unprecedented situation in its electricity market: negative electricity prices. This development, driven by a significant influx of renewable energy sources, highlights the evolving dynamics of energy markets as countries increasingly rely on clean energy technologies. The phenomenon of negative pricing reflects both the opportunities and renewable curtailment challenges associated with the integration of renewable energy into national grids.

Negative electricity prices occur when the supply of electricity exceeds demand to such an extent that producers are willing to pay consumers to take the excess energy off their hands. This situation typically arises during periods of high renewable energy generation coupled with low energy demand. In France, this has been driven primarily by a surge in wind and solar power production, which has overwhelmed the grid and created an oversupply of electricity.

The recent surge in renewable energy generation can be attributed to a combination of favorable weather conditions and increased capacity from new renewable energy installations. France has been investing heavily in wind and solar energy as part of its commitment to reducing greenhouse gas emissions and transitioning towards a more sustainable energy system, in line with renewables surpassing fossil fuels in Europe in recent years. While these investments are essential for achieving long-term climate goals, they have also led to challenges in managing energy supply and demand in the short term.

One of the key factors contributing to the negative prices is the variability of renewable energy sources. Wind and solar power are intermittent by nature, meaning their output can fluctuate significantly depending on weather conditions, with solar reshaping price patterns in Northern Europe as deployment grows. During times of high wind or intense sunshine, the electricity generated can far exceed the immediate demand, leading to an oversupply. When the grid is unable to store or export this excess energy, prices can drop below zero as producers seek to offload the surplus.

The impact of negative prices on the energy market is multifaceted. For consumers, negative prices can lead to lower energy costs as wholesale electricity prices fall during oversupply, and even potential credits or payments from energy providers. This can be a welcome relief for households and businesses facing high energy bills. However, negative prices can also create financial challenges for energy producers, particularly those relying on conventional power generation methods. Fossil fuel and nuclear power plants, which have higher operating costs, may struggle to compete when prices are negative, potentially affecting their profitability and operational stability.

The phenomenon also underscores the need for enhanced energy storage and grid management solutions. Excess energy generated from renewable sources needs to be stored or redirected to maintain grid stability and avoid negative pricing situations. Advances in battery storage technology, such as France's largest battery storage platform, and improvements in grid infrastructure are essential to addressing these challenges and optimizing the integration of renewable energy into the grid. By developing more efficient storage solutions and expanding grid capacity, France can better manage fluctuations in renewable energy production and reduce the likelihood of negative prices.

France's experience with negative electricity prices is part of a broader trend observed in other countries with high levels of renewable energy penetration. Similar situations have occurred in Germany, where solar plus storage is now cheaper than conventional power, the United States, and other regions where renewable energy capacity is rapidly expanding. These instances highlight the growing pains associated with transitioning to a cleaner energy system and the need for innovative solutions to balance supply and demand.

The French government and energy regulators are closely monitoring the situation and exploring measures to mitigate the impact of negative prices. Policy adjustments, market reforms, and investments in energy infrastructure are all potential strategies to address the challenges posed by high renewable energy generation. Additionally, encouraging the development of flexible demand response programs and enhancing grid interconnections with neighboring countries can help manage excess energy and stabilize prices.

In the long term, the rise of renewable energy and the occurrence of negative prices represent a positive development for the energy transition. They indicate progress towards cleaner energy sources and a more sustainable energy system. However, managing the associated challenges is crucial for ensuring that the transition is smooth and economically viable for all stakeholders involved.

In conclusion, the recent instance of negative electricity prices in France highlights the complexities of integrating renewable energy into the national grid. While the phenomenon reflects the success of France’s efforts to expand its renewable energy capacity, it also underscores the need for advanced grid management and storage solutions. As the country continues to navigate the transition to a more sustainable energy system, addressing these challenges will be essential for maintaining a stable and efficient energy market. The experience serves as a valuable lesson for other nations undergoing similar transitions and reinforces the importance of innovation and adaptability in the evolving energy landscape.

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Renewable Electricity Generation is accelerating the shift from fossil fuels, as wind, solar, and hydro boost the electric power sector, lowering emissions and overtaking nuclear while displacing coal and natural gas in the U.S. grid.

Key Points

Renewable electricity generation is power from non-fossil sources like wind, solar, and hydro to cut emissions.

✅ Driven by wind, solar, and hydro adoption

✅ Reduces fossil fuel dependence and emissions

✅ Increasing share in the electric power sector

The transition to electric vehicles is largely driven by a need to reduce our reliance on fossil fuels and reduce emissions associated with burning fossil fuels, while declining US electricity use also shapes demand trends in the power sector. In 2021, 40% of the electricity produced by the electric power sector was derived from non-fossil fuel sources.

Since 2007, the increase in non-fossil fuel sources has been largely driven by “Other Renewables” which is predominantly wind and solar. This has resulted in renewables (including hydroelectric) overtaking nuclear power’s share of electricity generation in 2021 for the first time since 1984. An increasing share of electricity generation from renewables has also led to a declining share of electricity from fossil fuel sources like coal, natural gas, and petroleum, with renewables poised to eclipse coal globally as deployment accelerates.

Includes net generation of electricity from the electric power sector only, and monthly totals can fluctuate, as seen when January power generation jumped on a year-over-year basis.

Net generation of electricity is gross generation less the electrical energy consumed at the generating station(s) for station service or auxiliaries, and the projected mix of sources is sensitive to policies and natural gas prices over time. Electricity for pumping at pumped-storage plants is considered electricity for station service and is deducted from gross generation.

“Natural Gas” includes blast furnace gas and other manufactured and waste gases derived from fossil fuels, while in the UK wind generation exceeded coal for the first time in 2016.

“Other Renewables” includes wood, waste, geo-thermal, solar and wind resources among others.

“Other” category includes batteries, chemicals, hydrogen, pitch, purchased steam, sulfur, miscellaneous technologies, and, beginning in 2001, non-renewable waste (municipal solid waste from non-biogenic sources, and tire-derived fuels), noting that trends vary by country, with UK low-carbon generation stalling in 2019.

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