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Saudi Wealth Fund Slashes $8 Billion In Megaproject Values Amid Oil Price Woes
The Saudi Private Investment Fund has written down $8 billion from the value of the Saudi state’s megaprojects over the past year as they struggle to move forward amid budget overruns combined with weaker oil prices.
According to a Financial Times report that cited an unnamed source, Saudi Arabia’s sovereign wealth fund’s investments in projects, including the smart city Neom, at the end of 2024 were worth the equivalent of $56 billion. This was down by 12.4% from the previous year, the report said. “There were impairments to certain projects primarily relating to global economic market conditions, changes to operational plans and increases in budgeted costs,” the unnamed source told the Financial Times. Last month, the media reported that the Saudi government was reassessing the scope and timeline of the $500-billion Neom project aimed at diversifying the Saudi economy away from crude oil. Per those reports, the reassessment was launched in response to deepening financial strain across the kingdom’s Vision 2030 infrastructure program. The move comes amid mounting vendor arrears and a liquidity crunch that has prompted an urgent reallocation of energy-sector capital and personnel. It is these megaprojects that make Saudi Arabia’s breakeven oil price so high—quite a bit higher than current oil prices. Because of this price environment, economists earlier this year warned that the kingdom would have to reduce its spending plans by more than what Riyadh planned for this year, which was a 3.7% reduction in spending. “A sharper and sustained fall in the oil price would require a deeper retrenchment in government spending to contain the size of the shortfall and the building in government debt,” Monica Malik, the chief economist of Abu Dhabi Commercial Bank, told the Financial Times at the time. “There would also likely be some further adjustment and recalibration to the off-budget investment plans,” she added. Source: Oilprice.comThe Gambia: Gov’t Targets Universal Electricity Access By 2026
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Source: https://energynewsafrica.com Nigeria: TCN Hosts Power Sector Communications Team
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India Braces For Power Price Hikes As Nuclear Plant Undergoes Maintenance
India could see spikes in power prices in the coming weeks as supply will be constrained and procurement costs will rise with the shutdown of a unit at the country’s largest nuclear power plant for maintenance.
India has now shut the 1-GW Unit 1 at the Kudankulam nuclear power plant in the southern state of Tamil Nadu, Reuters quoted a notice by the Central Electricity Authority. The maintenance is expected to last just over two months, potentially tightening the supply of electricity in southern India and leading to higher supply costs. The Tamil Nadu Distribution and Generation Company may need to use additional supply on the power market if demand outstrips supply, a senior official at the state company told Reuters. The neighboring state of Kerala, west of Tamil Nadu, has said that its own peak-hour deficit of around 600 MW in August 2025 may worsen due to the scheduled refuelling outage of the Kudankulam Nuclear Power Plant in Tamil Nadu. “The refuelling of Kudankulam Nuclear Power Plant may also results in increase of electricity demand from neighbouring states like Tamil Nadu, who may enter the market, leading to further price spikes and constrained availability,” the Kerala State Electricity Board Limited (KSEBL) said in a petition in July with the Kerala State Electricity Regulatory Commission (KSERC). KSEBL was seeking approval to enter into short-term power procurement deals for the peak hours of August 2025 “for meeting energy shortage.” The Kerala company was seeking permission to enter short-term procurement deals with TATA Power Trading Company Limited and Greenko Energies Private Limited for the peak power procurement this month. The Kerala Electricity Regulatory Commission allowed the short-term emergency power deals, but warned that tariffs could spike. Currently, India relies on coal to meet more than half of its power demand, but it plans to boost its nuclear power-generating capacity from 9 GW now to as much as 100 GW by 2047. Source: Oilprice.com

