According to Saudi daily Al Eqtisadiah, the development is intended to meet growing energy requirements in the municipality and shave about SAR 2.2 billion off the holy city’s electricity bill.

Mr Osama bin Fadl Al Bar Mayor of Makkah said that “The project will be established on an area of about 2 million square meters. About 20 international consortiums consisting of about 100 companies will compete for the execution of the project. The location of the development would be chosen by the successful contractor, which would purchase the piece of land and then return it to Makkah authorities at the contract’s close. Bids to build the project will open during the first week of next year.”

He said that depending on its success other municipalities in the Gulf’s most populous nation could develop their own solar energy strategy which could save the kingdom up to 8m barrels of oil per day by 2030.

A report published by Citigroup last month said that Saudi Arabia, the world’s largest exporter of crude oil, could become a net importer of oil by 2030 if domestic energy consumption continues to grow at its current rate.

Oil demand for use in domestic electricity consumption is currently rising by about 8% annually with around 3 meter barrels per day or a quarter of total output currently serving national energy requirements. All of Saudi Arabia’s natural gas, the kingdom's other natural resource is currently allocated for domestic consumption.

Source - Arabian Business.com

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