Abstract: In this paper, we present a technical and an economic
assessment of several sources of renewable energy in Saudi Arabia;
mainly solar, wind, hydro and biomass. We analyze the
environmental and climatic conditions in relation to these sources
and give an overview of some of the existing clean energy
technologies. Using standardized cost and efficiency data, we carry
out a cost benefit analysis to understand the economic factors
influencing the sustainability of energy production from renewable
sources in light of the energy cost and demand in the Saudi market.
Finally, we take a look at the Saudi petroleum industry and the
existing sources of conventional energy and assess the potential of
building a successful market for renewable energy under the
constraints imposed by the flow of subsidized cheap oil. We show
that while some renewable energy resources are well suited for
distributed or grid connected generation in the kingdom, their
viability is greatly undercut by the well developed and well
capitalized oil industry.