Saudi Arabia has announced its plans to generate 9.5GW of electricity from renewable sources by 2030, as part of its plans to reduce dependence on oil revenue.
While no specific quotas have been announced for solar and wind energy, the new policy aims at localizing the manufacturing and R&D in renewable energy.
Approved by the Saudi Cabinet, the new economic roadmap includes many goals and reform strategies for the long-term economic growth of the country.
Saudi Arabia Deputy Crown Mohammed bin Salman said: "We are determined to reinforce and diversify the capabilities of our economy, turning our key strengths into enabling tools for a fully diversified future."
The steps include reductions in subsidies, launch of a sovereign wealth fund, opening state-owned oil company Saudi Aramco to private investment through a partial initial public offering (IPO), and initiating reforms in several industries including tourism and defense.
Speaking in an interview with Saudi-owned Al-Arabiya news channel, Salman said that a stake of less than 5% in Saudi Aramco will be sold through an IPO for more than $2 trillion.
Saudi Aramco board of directors chairman Khalid Al-Falih said: "Saudi Vision 2030 is a pioneering and game-changing plan that will enable sustained economic growth, diversification and job creation to benefit the Kingdom and its citizens for generations to come.
"Accelerating reforms across key economic sectors, privatization of key industries and the creation of a globally competitive small- and medium-sized Enterprise sector are essential to delivering Saudi Vision 2030."
Image: Saudi Arabia has set new renewable energy target in order to reduce its reliance on oil revenue. Photo: courtesy of Apricum GmbH.