1.3 Institutions Responsible for Environmental Policies
1.3.3 Institutions Responsible for Renewable Energy
Creating a viable and attractive investment climate for developing renewable energy requires a thorough review of laws, regulations and procedures in that regard. It also requires the offering of subsidies and incentives to producers and consumers, and to motivate researchers and research institutions. This involves restructuring cur- rent institutions or establishing new ones that should be entrusted with these tasks.
In this regard, the Electricity Cogeneration and Regulatory Authority (ECRA) in Saudi Arabia had prepared a plan in 2010 to develop renewable energy resources for utilization in electricity production and water desalination. The plan included determination of execution bodies that would be responsible for plan implementa- tion with regard to two main programmes.
The first programme relates to generation mechanism which requires the private sector to build power generation stations from renewable energy resources, while the government commits to buying the electricity for 8 years from 2013 to 2020.
The purchasing budget ranges from 3 to 15 billion riyals annually and could rise with an increase in generation capacity and number of stations.
The second programme deals with consumer preparation to use renewable en- ergy products. It deals with providing subsidies to the service providers to enable them to buy, fix and maintain equipment used in producing energy from renewable sources and replacing equipment for consumers.
The plan tasks the following bodies with the responsibility for executing such programmes:
15 1.3 Institutions Responsible for Environmental Policies in Saudi Arabia
1. Renewable Energy Purchasing Management: a new department to be established within the Saudi Electricity Company (SEC) to conduct all energy procurement procedures.
2. The Saudi Office for Renewable Energy: a body that determines the targeted percentage of renewable energy utilization in total power generation.
3. The Academic Council of Renewable Energy: to handle the research activities and prepare conferences and workshops. This is currently taken care of by King Abdulaziz City for Science and Technology (KACST), so there is no need to establish a new institution to perform this function.
4. ECRA issues all licences for renewable energy projects, supervises purchasing processes and protects consumers and producers’ rights.
5. Technical and Vocational Training Cooperation: prepares training programmes in the field of energy utilization efficiency.
The current ongoing institutions for renewable energy are:
1. King Abdullah Petroleum Studies and Research Centre (KAPSARC) 2. King Abdullah University of Science and Technology (KAUST) 3. King Abdullah City for Atomic and Renewable Energy (KACARE) 4. King Abdulaziz City for Science and Technology (KACST)
The first three institutions are actively engaged in academic research on renew- able energy while KACST and Saudi Aramco are conducting pilot projects on the practical implementation of renewable energy strategies but these projects are not performed under a national strategy.
The KAPSARC was established in Riyadh in July 2007 by King Abdullah to conduct collaborative research on critical energy challenges facing both the King- dom of Saudi Arabia and the world. KAPSARC is an independent non-profit insti- tution that focuses on research in energy economics, policy, technology and the en- vironment. Its mission, as published on its website,6 is ‘To push forward the insight and understanding of energy challenges and opportunities, both domestically and globally, through high caliber research in energy economics, policy, technology, and the environment, and to advance the knowledge of efficient and sustainable en- ergy production and consumption to create future value and prosperity for human- ity’. Because of the global outreach of its research activities, the Center considers itself as an international outfit that happens to be in Saudi Arabia rather than a Saudi centre that talks to the world. Hence, it strives to produce viable, responsible energy thinking and strategies throughout the globe.
The KAUST, located in Thuwal, north of the commercial city of Jeddah, was established in 2008 with the aim of advancing science and technology through col- laborative research with a view to facilitating industrial development and diversifi- cation of the Saudi economy. KAUST has a three-part mission7:
6 http://www.kapsarc.org.
7 http://www.kaust.edu.sa.
16 1 Environmental Challenges, Regulations and Institutions in Saudi Arabia
• Research at KAUST—both basic and goal oriented—is dedicated to advancing science and technology of regional and global impact. Research excellence in- spires teaching and the training of future leaders in science and technology.
• Research and education at KAUST energize innovation and enterprise to support knowledge-based economic diversification.
• Through the synergy of science and technology, and innovation and enterprise, KAUST is a catalyst for transforming people’s lives.
K.A.CARE, located in Riyadh, was created by a Royal Decree on 17 April 2010 with a mandate to contribute to Saudi Arabia’s sustainable development by meet- ing the Kingdom’s future electricity demand. With renewable energy at its core, K.A.CARE is taking advantage of the Kingdom’s abundant natural resources, such as high solar intensity and promising wind and geothermal resources, coupled with atomic energy, to help transition the Kingdom to a balanced energy mix, thereby strengthening Saudi Arabia’s ability to meet future international demand for en- ergy.8 Shaped by science and research and brought to life through technology de- velopment and industry partnerships, the Kingdom is building a new generation of sustainable power production capabilities that harness renewable and atomic energy to create a reliable, long-term supply of electricity. The acquisition of technology to build an important new economic sector focused on renewable energy will create new business and job opportunities for Saudi citizens, and thereby help to diversify the economy, improve quality of life and make Saudi Arabia a world leader in re- newable energy.
KACST is an independent scientific organization administratively reporting to King Abdullah, who is also the prime minister of Saudi Arabia. KACST serves as both a Saudi-Arabian national science agency and Saudi Arabia’s national labora- tories. The science agency function involves science and technology policymaking, data collection and funding of external research and services such as the patent office.
The main responsibilities of KACST include the following9:
• Proposing a national policy for the development of science and technology and developing strategies and plans for implementing the strategies
• Coordinating with government agencies, scientific institutions and research cen- tres in the Kingdom to enhance research and exchange information and expertise
• Conducting applied research and providing advice to the government on science and technology matters
• Supporting scientific research and technology development
• Fostering national innovation and technology transfer between research insti- tutes and the industry
• Fostering international cooperation in science and technology
8 http://www.energy.gov.sa/default.htm.
9 http://www.kacst.edu.sa.
17 1.3 Institutions Responsible for Environmental Policies in Saudi Arabia
The institutions listed earlier perform important research and analytical work but they lack clear national strategy of collaboration among themselves and between them and the private sector to commercialize their products or utilize their research in developing the private sector products and directions in the ecological and energy segments. Thus, in order to have a vital role to attract the private sector to take an active role in clean technology investments that would address the plethora of envi- ronmental challenges in the Kingdom, there is a need to restructure and strengthen these institutions, link them to execution entities and provide them with access to financing. There is also the need to review and revamp the General Law of the En- vironment and the bylaws to accommodate new updates and ongoing developments and to foster collaborations between research institutions, including universities, KACST and KAUST.