Fuel-price reform to achieve climate and energy policy goals in Saudi Arabia: A multiple-scenario analysis
Markus Groissböck and
Matthias J. Pickl
Utilities Policy, 2018, vol. 50, issue C, 1-12
Saudi Arabia experiences annual growth of 6% in its power demand. Generation expansion has been driven by low domestic retail fuel prices leading to a power generation mix based on fossil fuels only. In light of current climate change discussions, this research assesses future generation expansion under different potential fuel-price reforms by an enhanced OSeMOSYS model. Results demonstrate that domestic retail fuel price levels >20% [>60%] of expected international wholesale fuel prices1 are necessary to minimize emissions when considering emissions penalties [without pricing for emissions]. By 2030 renewables can reach 70% penetration by capacity and 30% by energy.
Keywords: Saudi Arabia; Fuel-price reform; Climate change (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:50:y:2018:i:c:p:1-12
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