Saudi Arabia is focusing on increasing the share of non-oil fuels to meet its increasing power demand and diversify its power mix. Introduced in 2016, the Saudi Arabia Vision 2030 had an initial target of deploying 9.5GW of green energy by 2030. Since inception, it has undergone many revisions, with the latest being made in 2023, revising the target to 130GW of renewable power capacity by 2030. With the strengthening of policies, a consistent call for competitive auctions, and other financial measures, the Kingdom can meet its 2030 renewable energy target, says GlobalData, a leading data and analytics company.

GlobalData’s latest report, “Saudi Arabia Power Market Size, Trends, Regulations, Competitive Landscape and Forecast, 2024-2035,” reveals that renewable power projects under construction in Saudi Arabia exceeded 8GW by the end of 2023, which is primarily due to several projects being awarded through the auctions in the past eighteen months. An additional 13GW of renewable power capacity in various stages of development is currently underway.

Sudeshna Sarmah, Power Analyst at GlobalData, comments: “Since 2022, the country has added 2.1GW of renewable power capacity. This is a 300% increase from the cumulative renewable capacity addition of 700MW during 2012-22. With its target of attaining carbon neutrality by 2060, the Kingdom has targeted adding 20GW of renewable power capacity annually to reach 130GW by 2030.”

During 2015–23, renewable power capacity in Saudi Arabia increased at a compound annual growth rate (CAGR) of 82.4% from 0.02GW to 3GW. In 2023, solar PV constituted 82.6% of the total renewable power capacity of the country, followed by onshore wind accounting for nearly 14.1% and solar thermal accounting for 3.1% share.

The share of renewable power capacity in Saudi Arabia’s total capacity mix is estimated to reach 35.4% in 2035 from 3.2% in 2023 with an estimated share of 6.9% in 2030. Renewable power capacity with its present pace is expected to increase at a CAGR of 40.1% during 2023–30 to reach 31.5GW by 2030 and is estimated to reach 63.1GW by 2035. With persistent efforts by the policymakers and strict policy implementation, the kingdom has a good chance of reaching close to its set target. As per the expected trend, the country would add over 20GW every year making its target plausible.

Sarmah concludes: “The growth of renewable power in Saudi Arabia has picked up pace recently because of the country’s policy to diversify its sources to ensure supply security in the long term. Due to the increasing power demand in Saudi Arabia, the country has been overutilizing its fossil fuel reserves instead of exporting them. An abundance of solar radiation and wind resources makes solar and wind power the key renewable technologies of focus.”