Accelerating Saudi Arabia’s Renewable Power: 300% Growth Forecast By 2030–Report
2024-04-22 16:37

Saudi Arabia is intensifying its efforts to expand share of non-oil fuels in response to rising power demand and a desire to diversify its energy mix. Initiated in 2016, the Saudi Arabia Vision 2030 initially aimed to deploy 9.5GW of green energy by 2030. However, subsequent revisions, including the latest in 2023, have raised the target to 130GW of renewable power capacity by the same year. With enhanced policies, calls for competitive auctions, and financial measures, Saudi Arabia is poised to achieve its ambitious renewable energy objective by 2030, according to GlobalData.

GlobalData’s latest report, “Saudi Arabia Power Market Size, Trends, Regulations, Competitive Landscape and Forecast, 2024-2035,”indicates that renewable power projects under construction in Saudi Arabia surpassed 8GW by the end of 2023, largely due to several projects awarded through 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, notes, “Since 2022, the country has added 2.1GW of renewable power capacity, marking 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 aimed to add 20GW of renewable power capacity annually to reach 130GW by 2030.”

Between 2015 and 2023, renewable power capacity in Saudi Arabia surged at a compound annual growth rate (CAGR) of 82.4%, from 0.02GW to 3GW. Solar PV dominated the renewable power capacity landscape in 2023, accounting for 82.6%, followed by onshore wind at nearly 14.1%, and solar thermal at 3.1%.

The share of renewable power capacity in Saudi Arabia’s total capacity mix is projected to soar to 35.4% in 2035 from 3.2% in 2023, with an estimated share of 6.9% by 2030. Renewable power capacity is expected to grow at a CAGR of 40.1% during 2023–2030, reaching 31.5 GW by 2030 and 63.1 GW by 2035. With sustained efforts by policymakers and rigorous policy implementation, Saudi Arabia stands a strong chance of nearing its set target. The country could potentially add over 20GW annually, making its target achievable.

Sarmah concludes,“The recent acceleration of renewable power growth in Saudi Arabia is driven by the country’s strategy to diversify its energy sources to ensure long-term supply security. With increasing power demand, Saudi Arabia aims to optimize its fossil fuel reserves instead of solely relying on exports. Abundant solar radiation and wind resources position solar and wind power as the primary renewable energy technologies of focus.”


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