China proposes $50tn global RE network..Saudi Arabia to set up $2tn mega-fund for post oil era
The company running China’s power grid is proposing a $50 trillion global electricity network to tackle pollution and climate change. If it goes ahead the network would use advanced renewable solar and wind technology and be operating by 2050.
Beijing’s network will be the world’s biggest infrastructure project, if given the green light. The State Grid has already signed a memorandum of understanding with the Russian energy grid Rosseti, Korea’s Electric Power and SoftBank Group of Japan.
According to State Grid’s Chairman Liu Zhenya, the planet is facing“three major challenges”, which are energy scarcity, environmental pollution and climate change.
Liu added that smart grids, ultra-high voltage (UHV) grids and clean energy are the only way to a green, low carbon, economical, efficient and open energy system with sustainable supply.
Liu also said the global network could boost the share of clean energy to 80 percent of global consumption, displacing fossil fuels as the main energy source.
“China is already the biggest country in the world for wind, solar power generation and also UHV grids. And has scale, so we can learn many things from China’s success. Also, by interconnecting, we can help each other on supply and demand,”SoftBank CEO Masayoshi Son told the Global Times.
“It’s a brilliant plan. It might encounter difficulties during construction but it’s possible,” Xue Jiancong, spokesperson for China Merchants New Energy Group, a leading renewable energy company, told NBC News.
The major barriers for the project “are institutional, not technical,” former US energy official David Sandalow told the Wall Street Journal. “It’s an open question whether national governments will be open to such a revolutionary idea,” he added.
The world’s largest crude exporter Saudi Arabia plans to create a huge sovereign wealth fund for the country’s most prized assets to prepare for a post oil era, said Deputy Crown Prince Mohammed bin Salman as cited by Bloomberg.
The Public Investment Fund (PIF) will eventually control more than $2 trillion and help the kingdom to shift from oil which has seen falling prices strain Saudi Arabia’s finances.
According to the Prince, the wealth fund already holds stakes in companies like Saudi Basic Industries (the world’s second-biggest chemicals manufacturer), and National Commercial Bank (the kingdom’s largest lender).
“Undoubtedly, it will be the largest fund on Earth,” said the prince.“This will happen as soon as Aramco goes public.”
As part of the new strategy, Riyadh plans to sell shares of state-owned energy company Saudi Aramco and transform it into an industrial conglomerate. The sale of the company is planned by 2018 or even a year earlier.
“IPOing Aramco and transferring its shares to PIF will technically make investment the source of Saudi government revenue, not oil,” the prince said in an interview at the royal compound in Riyadh on Thursday. “What is left now is to diversify investments. So within 20 years, we will be an economy or state that doesn’t depend mainly on oil.”
as we noted a few months ago..aramco will be floated..
“Undoubtedly, it will be the largest fund on Earth,” said the prince.”
when you talk in trillions then you are really talking sizable amounts of money..and we have to follow it..
“The State Grid has already signed a memorandum of understanding with the Russian energy grid Rosseti, Korea’s Electric Power and SoftBank Group of Japan.”