The Kingdom of Saudi Arabia, traditionally known as a global behemoth in the oil sector, is making significant strides towards a greener energy landscape. The Saudi Arabia renewable energy market is in the ascendancy, propelled by favorable government policies and a strategic vision to diminish reliance on fossil fuels. This article explores the burgeoning renewable energy market in Saudi Arabia, spotlighting solar and wind energy as the frontrunners in this green evolution.

Saudi Arabia’s renewable energy market is poised for robust growth with a forecasted Compound Annual Growth Rate (CAGR) of more than 13% from 2022 to 2027. The key driving factors for this growth trajectory include favorable government policies and a strategic pivot toward reducing dependency on fossil fuels​ 1​

Solar Energy: The Bright Spot

Saudi Arabia is banking heavily on solar energy to power its renewable energy ambitions. The government’s revised targets aim to significantly increase the renewable share in its energy mix. The ambitious Vision 2030 aims to generate 50% of domestic power from green sources by 2030. Under this vision, Saudi Arabia plans to develop 40 GW of solar photovoltaic (PV) capacity and 2.7 GW of concentrated solar power (CSP) capacity by 2030 ​1​.

In recent developments, the 30 MW Haradh solar farm went online in November 2021, delivering electricity to the National Agricultural Development Co. under a 25-year power purchase agreement. Furthermore, in August 2021, ACWA Power reached a financial close on the 1.5 GW Sudair solar photovoltaic power plant, marking a significant milestone in Saudi Arabia’s solar energy journey. Additionally, Saudi Arabia launched the third round of its renewable energy program in early 2020, aiming to add a total of 1.2 gigawatts of solar photovoltaic power capacity to the grid ​1​.

Wind Energy: Catching the Breeze

Saudi Arabia’s geographical location, particularly in regions like the Red Sea coast and the northern area, offers abundant wind resources, making wind energy a significant player in the country’s renewable energy narrative. The nation’s drive to diversify its energy mix is gaining momentum, with a target of achieving 50% renewable energy by 2030, as highlighted by Yasir Al-Rumayyan, Governor of the Public Investment Fund (PIF), at an international investment conference in Riyadh​ 2​. 

While solar energy has been the primary focus, substantial wind resources are an integral part of this renewable energy drive. The Saudi Green Initiative (SGI) further emphasizes the importance of wind energy in combating climate change and improving the quality of life for future generations​ 3​. 

Pioneering Green Hydrogen

Saudi Arabia is also positioning itself as a key player in the green hydrogen market. More than 1000 projects, with nearly 800 set to be commissioned by 2030, requiring a whopping $320 billion in investment have been announced globally. With its strategic Vision 2030, Saudi Arabia aims to account for a significant chunk of this emerging market, striving to become the world’s largest green hydrogen producer​ 4 ​.

The Role of Infoquest

For stakeholders keen on delving deeper into the renewable energy market in Saudi Arabia, Infoquest serves as a gateway to invaluable insights and connections. By facilitating interactions with executives and subject matter experts at leading companies in the region, Infoquest empowers individuals and organizations to better understand the renewable energy market dynamics in Saudi Arabia, thereby aiding informed decision-making

Conclusion

Saudi Arabia’s renewable energy market is at an inflection point, with the government’s supportive policies and significant investments in solar and wind energy propelling the market towards a sustainable future. The country’s strategic pivot from being an oil-centric economy to embracing renewable energy exemplifies a broader global trend towards sustainability and offers a blueprint for other oil-dependent nations eyeing a greener future. Infoquest is your go-to resource for exploring the renewable energy landscape in Saudi Arabia further. Reach out to us to explore how Infoquest can support your information needs in this vibrant and evolving market.

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