Russia and Saudi Arabia are Interested in the Development of Renewable Energy Sector

4 october 2017 | Ekonomika Segodnya

"Russia and Saudi Arabia are interested not only in acquisition of modern oil extraction and refining technologies, but also in the development of renewable power industry," an Analytical Center expert, Mr. Alexander Kurdin told Ekonomika segodnya.

Alexander Kurdin
Alexander Kurdin
Department for Fuel and Energy Sector

According to Russia’s Minister of Energy Mr. Alexander Novak, Russia and Saudi Arabia will establish a joint fund of $1 billion for energy investments. A final agreement on the fund will be reached after Saudi King's visit to Moscow this week. The countries are also working on other agreements that will be announced later.

"First, both Saudi Arabia and Russia are interested in the development of modern oil extraction and refining technologies," Mr. Kurdin thinks. "The most developed countries have gone far enough in this regard, but our countries also have some experience and innovative potential in this area." Making investments in this area would be quite interesting for both countries. "Moreover, Saudi Arabia and Russia are committed to modernize their oil refining sectors and have significant plans in this regard," the Expert stresses.

"The second area, which would be interesting to both countries, assumes investments in the development of power industry, especially renewable energy sector," Mr. Kurdin believes. "Although its share in Russia is still insignificant, and plans are not very extensive, the potential to obtain modern technologies remains unchanged. Activity of solar energy sector companies seems to be the most interesting direction. We have good technological grounds here," he believes.

According to Mr. Kurdin, Saudi Arabia is also trying to develop alternative renewable energy sector to be able to export more fossil fuels. "Countries usually use renewable energy sector to cover domestic needs, so we have no competitors in this area in the international market, still there are opportunities for cooperation, especially technological", the expert explained.

According to Mr. Kurdin, the main direction of possible joint investments is high-tech projects in the field of oil extraction and refining, as well as renewable energy sector. "With regard to the fund size of $1 billion, it seems to be significant. Surely, this money is not sufficient to finance industries, but it is possible to implement several large projects. Considering the fact that of special interest ate high-tech pilot projects rather than industrial enterprises, such amount of financing is sufficient," Mr. Kurdin believes.

Source: Ekonomika segodnya