The continued rise of electricity demand in Saudi Arabia means that power generation must expand. Conventional generation is a major cause of environmental pollution and negatively impacts human health through greenhouse gas emissions. It is therefore essential that an alternative method of generation is found that preserves the environment and health and would support existing conventional generation during peak hours. Saudi Arabia is geographically suitable because it is located in the so-called sun belt, which has led it to become one of the largest solar energy producers. Solar energy is a serious competitor to conventional generation when the indirect costs of fossil fuels are included. Thus, processing sunlight via photovoltaic cells is an important method of generating clean energy. This article proves that the cost of solar energy will be less than the cost of fossil fuel energy if the cost of the environmental and health damages is taken into account.
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