1. Introduction
The energy sector plays a dynamic part in any country’s development and, for the most part, in socio-economic activities. With impending oil prices and its major share in the electricity generation sector, countries with higher per capita power consumption are looking forward to opting for alternative energy sources to decrease the high utilization of fossil fuels in their power generation sector and scale up the utilization of renewable energy technologies (RETs), thereby to contribute to sustainable development and climate change objectives [
1].
Constantly increasing demand and penetration of RETs in distributed energy generators is shifting the structure of the conventional electric grid to a modern grid [
2]. In the first quarter of 2020, renewable energy use increased by 1.5% globally in all sectors, relative to the first quarter of 2019. However, almost a 3% increase in renewable energy electricity generation has been observed because of new solar PV (photovoltaic) and wind projects completed over the past year. Furthermore, in global electricity generation, during the first quarter of 2020, renewables shares jumped to 28% as compared to 26% in the first quarter of 2019. In
Figure 1, shares of renewable energy by technology in the first and second quarters of 2019 and 2020 are depicted [
3].
The Kingdom of Saudi Arabia (KSA) has recognized the importance of a diversified energy mix with the dissemination of renewable energy technologies for its long-term socio-economic success. Therefore, the country’s National Renewable Energy Program (NREP) and National Transformation Program (NTP) through the Ministry of Energy, Industry and Mineral Resources have developed a roadmap for the promotion and deployment of RETs to fulfill KSA’s electricity demand in the future. On 25 April 2016, KSA for the first time publicized the details of Vision 2030, in which 50% of their electricity from renewable sources was set as an initial target [
4].
On 7 June 2016, the Ministry of Energy, Industry and Mineral Resources announced that KSA revised Vision 2030 to cut down the renewable energy deployment target to 10% of power generation from renewables to its energy mix instead of the earlier 50%. The new planned targets were 3.45 GW for 2020 and 9.5 GW in 2023 [
5].
For achieving this revised target of 3.45 GW in 2020, in 2018, the Renewable Energy Project Development Office (REPDO) of KSA issued the request for proposal (RFP) for 300 MW grid-connected solar power plant commissioning the city of Sakaka [
6] and a 400 MW wind power plant in Dumat Al-Jandal [
7]. The request for proposals for 11 pre-developed solar PV projects was underway and scheduled to tender during 2019–2020 with a capacity of 2.225 GW, as depicted in
Figure 2.
On 9 January 2019, the Renewable Energy Project Development Office (REPDO) of Saudi Arabia, for a second time, revised the Vision 2030 targets. In the revised targets, a very high increase was set for RE targets, from 9.5 GW to 27.3 GW in 2023 and an overall target of 58.7 GW in 2030. Of this 58.7 GW, 40 GW are solar PV, 16 GW are wind and 2.7 GW are other RE sources by 2030 [
8], as shown in
Figure 3.
For effective dissemination of RETs, numerous RE policy instruments are formulated and publicized by different countries to accomplish their set targets [
9,
10]. Renewable portfolio standard is deliberated as an efficacious policy instrument used to nourish the augmented development of RETs in any country [
11] as shown in
Table 1. The RPS verdicts that not only independent power producers (IPPs) networks but also government-owned electricity generation companies shall generate a specific share or a percentage of their total electricity generation from renewable energies sources such as wind, solar PV, hydropower (mini and micro) and other available alternatives in their system.
As the Renewable portfolio standard is considered one of the successful RE policy instruments, it is opted by different states in the USA [
12,
13,
14], different countries in the EU [
15,
16], China [
17,
18,
19,
20] and many other countries for achieving their RE targets. RPS can be regulated with any RE policy according to a country’s targets/goals. For maximum effectiveness and impact of RPS, fundamental policy design principles are obligatory to follow.
Presently, the Kingdom of Saudi Arabia has an undeveloped RE market and several RE supporting policies are not yet developed, as shown in
Table 1, but KSA is learning from the American, European and Chinese practices. With respect to policy formulation and implementation, there are two approaches: one is decentralized, and the other is centralized. In the second approach, the local community and government bodies, NGOs, power generation companies, research scholars, etc., perform analyses to investigate and discuss basic problems, formulating policies while permitting market sovereignty to play its complete role in the process. However, in comparison to the first decentralized approach, the centralized approach pays more consideration to local sovereignty and lacks a general standpoint, resulting in a deficiency in consistency between policies and governance and indicating noteworthy unfairness. Fundamental for the renewable portfolio standard is the government’s realization of the renewable targets for green and sustainable energy development, which is only conceivable with the contribution of multiple partakers. This creates a multifaceted social networking connection, where conventional outdated investigation methods cannot deliver a comprehensive justification of such a dynamic and multifarious policy formulation process for a longer time.
Policy networks theory (PNT) has been used in different public policy development for a long time, and PNT use in renewable energy policy development has also been under greater consideration for the past 2 decades. In [
21], renewable energy promotion with consideration and recognition of climate issues is discussed. In the study, an analytical framework proposal was given the local development stakeholders to lead and increase the investment in the renewable energy sector particularly by focusing on the management of the relevant actors’ networks. Furthermore, in [
22], an idea to scale up the renewable energy development in the perspective of network theory on policy is floated. In their study, the network theory provided the understandings of the complexity of the policy networks for the successful development of renewable energy in the UK. Entrepreneurial innovation behavior enablers or disablers in renewable energy public policy’s institutional perspective and its network effects in the industry are investigated in [
23]. China’s renewable portfolio standards from the perspective of policy networks are proposed in [
24]. In their research, a huge increase in solar PV and wind energy installation in China is taken into consideration. In the perspective of PNT, the renewable portfolio is proposed for large-scale renewable energy integration, effectively promoting the targets of renewable energy development in China. Furthermore, the theoretical framework for the renewable energy deployment impact assessment on local sustainability is examined in [
25]. This study contributed to the development of an integrated theoretical framework, which allowed a detailed impact analysis of renewable energy on local sustainability.
For multifaceted policy formulation, PNT is used in different countries to develop their road map and to establish fruitful communication between multiple stakeholders involved in RPS policy formulation. In particular, PNT can be defined as a domain where government bodies and other participants are linked by a mutual interest or common means of dependency. The theory of PNT treats the RPS policy as the outcome of the collaboration and involvement of several partakers. RPS–PNT policy development practice is no longer limited to governmental bodies, so the weaknesses of conventional public policy in research could be evaded. The PNT theory highlighted the contribution, involvement and negotiation as well as common trust and teamwork between various partakers while giving acceptable consideration to the efficient policy development process and its characteristics.
Therefore, policy development and enactment following the policy networks theory are more applicable and reliable. Furthermore, PNT advocates for the legalization and democracy of multi-subjective interests in which legalization and democracy cannot be attained by modest guidelines but require common trust and common assistance among the networking partakers. Finally, in terms of a precise investigation process, network execution contains not only structural exploration but also stage investigation to ensure the precise process of policy enactment is appropriate, convincing and more practical. Established on these features, PNT offers an appropriate outline of investigation for research on KSA’s renewable portfolio standard development process and widens the research perspective to achieve the Vision 2030 RE targets.
In view of new electricity market reforms and clean energy campaigns in different countries, policy networks are technically established based on different partakers such as the central government and its associated institutions, local governments at all levels, research scholars and experts, electricity generation companies, power grid enterprises, trade associations and the media.
KSA has publicized its Vision 2030 revised targets with very high objectives explicitly for solar PV, aiming for 20 GW and 40 GW of electricity generation from solar PV injected into the national grid by 2023 and 2030, respectively [
26]. However, regulatory authorities in KSA are struggling to formulate the national renewable energy policies and other supporting instruments for effective RET deployment and the timely accomplishment of Vision 2030 targets in true spirit. Established on the PNT concept, this study investigates and assesses the institutional structure types and interactions of multiple stakeholders in KSA and presents a detailed discussion of partaker’s activities under policy networks theory for the RPS formulation roadmap. This paper could provide considerable support to KSA in the formulation of RPS policy with the consent of all the partakers in the country to achieve KSA’s Vision 2030 renewable energy targets.
1.1. RPS Literature Overview
Many countries such as the UK, USA, Denmark, China, etc., have set the targets to increase the penetration of renewable energy in their total electricity generation system at some percentage. These countries have successfully implemented the renewable portfolio standard for many years to achieve these goals by the target year, as given in
Table 2 and
Table A1 (attached in “
Appendix A”). Researchers have been investigating the RPS effectiveness, benefits, challenges and problems that arise during the formulation and implementation of RPS. In 2003, Wiser and Langniss showed an initial assessment of the renewable portfolio standard in Texas to examine its impact on the placement of RETs and observe the competition between power producers from RE resources [
24,
27]. Employment opportunities after the effective enactment of RPS in the RE sector with its economic benefits were discussed [
28]. Additionally, it is proved that after successful implementation of RPS in Texas (USA), CO
2 emission cost per ton was reduced by 11 US dollars [
29]. Furthermore, renewable portfolio standard applying cost-benefit analysis in different US states is deliberated in [
30,
31,
32]. Individual states’ renewable portfolio standard implementation years and their targets are given in
Table A1 attached in “
Appendix A”.
Effective enactment of the renewable portfolio standard depends on a country’s situation. Many in-depth research investigations have been concentrating on this concern. China’s RPS applicability in its power generation system with opportunities and challenges in RE policy implementation are debated in [
33]. Furthermore, a study on the RPS impact on Pakistan’s energy sector economy and its environmental effect is conducted in [
34].
For the effective accomplishment of the Kingdom of Saudi Arabia’s Vision 2030 RE targets in true spirit, it is imperative to formulate and disseminate the subsidiary RE policies timely. RPS is weighed as one of the most efficacious policy instruments that is used to foothold the augmented renewable energy technology development in any country. RPS is one of the efficacious policy instruments which is being opted by different states in the US [
12], EU countries [
15], China [
17,
18] and many other countries for successful deployment of RE and for achieving their RE targets successfully, as depicted in
Table 1.
RPS verdicts that independent power producers (IPPs) networks and national electricity generation companies shall produce a specific share or percentage of their total electricity generation by adding the share of RE in their electricity production using any type of renewable sources such as wind, solar or hydropower (mini and micro) [
35].
RPS is an RE policy instrument that can be easily planned and controlled with any RE policy, depending on the targets/goals and policy of countries and regions for maximum impact and effectiveness.
It can be seen in
Table 1 that more or less all of the leading countries have picked the RPS for achieving their RE targets. Contrarily, the Kingdom of Saudi Arabia has only RE policy and tendering in its RE portfolio. Thus, it is vital to investigate and assess the RPS formulation challenges for successful enactment in the world. Based on the assessments, a strawman RPS road map should be proposed to KSA for the efficacious placement of RE technologies and achieving the Vision 2030 targets.
1.2. Data Collection
A wide range of data containing certified documents and archival records were collected to support this study. In addition, KSA laws and regulations, literature and case study reports on the subject of RPS policy have been reviewed to learn about KSA’s internal conditions and external constraints that help shape the setting of the RPS policy roadmap. To develop a comprehensive data collection strategy, the ‘Good Practice Model’ comprising all the relevant policy areas was adopted. This data collection strategy is designed in two phases:
In the first phase of mapping, we planned to analyze the available data within KSA as well as outside it. For this purpose, we opted five steps for data collection and analyses, as depicted in
Figure 4.
In the second strategy phase, the outcomes of
Figure 4 are combined and developed into a comprehensive and coherent strategy by following the policy network theory in
Section 3 that can then be transferred into an action plan to be implemented accordingly.
In the Kingdom of Saudi Arabia, the former Electricity and Cogeneration Regulatory Authority (ECRA), now changed to the Water and Electricity Regulatory Authority (WERA), is a government body with the mandate to implement the electricity and water desalination rules and regulations in KSA with the support of other state and provincial institutions. In
Table 3, a list of current available policies and regulations on electricity generation, transmission and distribution in the Kingdom of Saudi Arabia is given, and in
Table 4, reviewed international policies and standards are given.
2. Theoretical Framework and Method
Initially, the policy networks theory was introduced in the 1950s in the United States (US). As a result of improved complexities and variation of the contemporary policy environment, PNT attracted the attention of policymakers and become the mainstream model for research in the policy formulation process for many other Western countries such as the UK, Germany and the Netherlands [
24]. Due to cultural and political infrastructure differences across the US and Europe and dissimilar viewpoints amongst the different countries’ research scholars on policy networks, PNT went through macro-and micro-progressive modifications and ultimately has three well-established dominant areas of policy networks study in the UK, EU and US.
In the United Kingdom, researchers take a meso-level perspective, whereby policy networks are observed as mediators of concern in revealing the association among government bodies and other stakeholders. US researchers, on the other hand, mainly emphasize the micro-level perspective of the association among several stakeholders, with research as the primary source, and government bodies consider it at the secondary level. Scholars in European countries, specifically the Netherlands and Germany, have a macro-level perspective approach for PNT, stressing collaboration amongst the government bodies and civil community. Although different institutes have diverse insights and explanations of policy networks, all are agreed on one point: that the policy formulation procedure is an uninterrupted communication process amongst stakeholders.
Presently, the well-known academic definition of policy networks is given by the British scholar Rhodes. Rhodes portrays the policy networks as “bunches of persons or multifaceted administrations linked with each other by means of dependencies and parted from the other bunches by a structural breakdown in the means of dependencies” [
36]. It summarizes all sorts of interactions amongst those involved in policy development. PNT has become an effective model for studying policy formulation practices. This paper shapes PNT as networks formed by government bodies and related independent partakers who are codependent by means of common resources and interests. Their association is diverse and dynamic. In PNT, Rhodes classifieds five network types built on their different combinations, numbers of partakers and deployment of resources. Ranging from loosely to highly integrated systems, these five classified network types are the policy and regulatory bodies networks, professional bodies networks, intergovernmental bodies networks, power producer networks and social networks, as presented in
Table 5.
The features of policy networks theory that are initially required to conduct the assessment and formulate the renewable portfolio standard are explained in detail below:
First, in PNT, various groups of partakers including utilities providers, government bodies, research scholars, the media and specialists are involved. These actors play different roles according to resources and scopes in networks.
Second, different partakers are contingent on each other. As an example, power producers need to completely understand policies and RPS targets to transform them into a successful investment plan, while regulatory and intergovernmental bodies networks want the feedback of power producer networks and other partakers.
Third, in the networks, there must be constant communication among the different partakers. Under renewable portfolio standard policy, partakers must cooperate continuously to safeguard the appropriate running of the market. These communications are not restricted to once or occasionally in the system.
In the perspective of KSA’s Vision 2030, renewable energy deployment and new electricity market reforms to formulate KSA’s renewable portfolio standard requires different partakers to coordinate and cooperate based on shared resources and interests. Relationships amongst the network bodies and partakers have an imperative influence on the partakers’ participation in the policy formulation process and the enactment of the RPS. To examine the relationships between different partakers under RPS in the Kingdom of Saudi Arabia, by using the PNT approach, this paper develops the framework for an appropriate communication system.
To form policy networks for renewable energy targets, this study first defines the network partakers with their scope, size and limitations. This all helps in the establishment of the foundation for research using the PNT methodology. However, these elements also cause challenges in the solicitation of the network theory method. In terms of renewable portfolio standard, this study examines the development of RPS to categorize the partakers and other basic factors, while taking into consideration KSA’s situations. According to Rhodes’ PNT classifications, KSA’s RPS policy network is divided into five major groups: policy and regulatory bodies networks, professional bodies networks, intergovernmental bodies networks, power producers networks and social networks.
Figure 5 shows the complete KSA RPS–PNT network with partakers.
RPS policy networks study commences with the classification of different network partakers followed by their position, role and discussions of each. To achieve RPS policy goals, this paper also inspects the particular network’s internal structure, which is an essential part of constant and stable communications amongst the different partakers, as well studies the relationship and structure of different networks within the RPS policy networks framework. Partakers’ official structures and affiliations can be re-adjusted with the governmental infrastructural changes to accumulate relevant knowledge. To achieve the stipulated policy aims, RPS policy networks require continuous modifications. Such modifications can affect the strategies and action plans of partakers in the networks and, as result, influence the RPS policy outcomes. The outline of communications amongst different networks can change from a decentralized system to a single or multi-center as well as an interdependent and long-term pattern. Different partakers in the networks cooperate and build collaboration with each other for the establishment and implementation of RPS.
4. Conclusions
Renewable portfolio standard is a policy instrument that has been successfully implemented in several European countries, individual US states, China, etc. Likewise, many other countries are in the process of designing RPS.
For the long-term and rapid development of the photovoltaic industry in KSA, RPS can play an important role. RPS formulation and analysis of the strategic communications amongst partakers could provide a vital reference and it would be valued both theoretically and in practice. There are several stakeholders in every process of RPS formulation and implementation phases. They interact with each other and exchange resources on different issues.
To better analyze the communication and interaction strategies throughout the whole process of RPS, this study developed a policy networks theory model for RPS formulation and split it into five classified network types, which are policy and regulatory bodies networks, professional bodies networks, intergovernmental bodies networks, power producers networks and social networks. By examining the network partakers, institutional structure and interactions, in this paper, we presented KSA’s overall systematic picture for RPS formulation. This study also defines major partakers’ roles in the RPS–PNT system and discusses their strategies, goals and interests.
RPS enactment will have a significant impact on major partakers’ decision-making behavior. In this study, PNT detailed analysis was conducted, which will provide a reference to major partakers in KSA’s electricity market and help them in optimal decision-making. The analyses of the communications amongst the major partakers in the RPS–PNT field would help in efficiently explain the hindrances in RPS formulation and enactment and to implement KSA’s Vision 2030 RE targets successfully in true spirit.
In this study, the policy networks theory provides information on the serious considerations in designing RPS. Therefore, it is too early to evaluate the successful formulation and implementation of RPS as a mechanism in the Kingdom of Saudi Arabia.
In addition, based on policy networks theory study to formulate the RPS for the Kingdom of Saudi Arabia, we propose some recommendations when implementing the RPS policy:
First, at the commencement of RPS enactment, partakers should continue interacting with each other to better understand the issues and barriers during the implementation of RPS.
Second, to encourage the development of the photovoltaic industry in KSA, partakers should consider increasing the RPS quota proportion appropriately to promote PV grid integration, reduce PV power curtailment and improve PV power utilization.
Third, to improve the efficacy of RPS policy in the Kingdom of Saudi Arabia, partakers should vigorously promote transformation in the existing power system infrastructure of KSA, establish a seamless competitive market and improve relative market mechanisms.