Saudi Arabia has reportedly delayed a target to invest the equivalent of £72bn in a major expansion of renewable energy capacity by eight years, fuelling fears the kingdom could yet become a net oil importer.

 

According to various reports, Hashim Yamani, president of the King Abdullah City for Atomic and Renewable Energy, told journalists Tuesday the Saudi government will not meet its target to produce one third of its electricity from wind, geothermal, and nuclear by 2032.

 

Instead, the target is now likely to be put back to 2040, Yamani said, citing delays in deciding which clean technologies to use.

 

The government had intended to boost its use of renewables in order to reduce its domestic oil demand and protect its position as one of the world's leading oil exporters. A report last year forecast the country could become an oil importer by 2030 if it fails to address high levels of domestic demand.

 

The country currently has to use its own oil to provide power to its booming population, and officials have previously argued that they would rather export oil and run more of the country's economy on renewables.

 

However, with oil prices currently at a five-year low, and the oil cartel OPEC determined not to cut production, many onlookers will be wondering if the slump in the oil price has prompted a rethink of the country's renewables strategy.