Why 2017 Could See A Renewable Energy Boom In The Middle East
Enel has also launched a deal with Saudi Electricity Co. to aid in Saudi Arabia’s goal of creating 10 gigawatts of renewable capacity by 2023. Jordan recently announced a plan to auction off four solar projects and two wind projects by the end of the year, totaling 300 megawatts of power. Jordan hopes to achieve 20 percent dependence on renewables by 2020 or approximately 1,600 megawatts. These projects are becoming increasingly popular along the equator especially in the Middle East. Countries such as Saudi Arabia and the United Arab Emirates are traditionally known to be empires of crude but with costs for solar at an all time low oil companies may have to move aside.
Enel formed a subsidiary in 2008 named Enel Green Power to facilitate all of their business in renewable energy. Enel reabsorbed their subsidiary at the beginning of April last year hinting at the parent company becoming more holistically focused on renewables. Enel’s stock has grown nearly 9 percent since the beginning of December. As the company accepts future projects, investors can expect its value to continue rising. Saudi Electric Co. is the main source of Saudi Arabia’s power making them a valuable partner to Enel. The two partner companies will likely profit in unison.