Saudi Arabia Renewable Energy - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The Saudi Arabia Renewable Energy market size in 2026 is estimated at 15.06 gigawatt, growing from 2025 value of 10.90 gigawatt with 2031 projections showing 75.68 gigawatt, growing at 38.12% CAGR over 2026-2031.

This highlights the Kingdom’s fastest-growing power segment and underscores its Vision 2030 decarbonization goals. Cost-competitive solar tariffs averaging USD 0.018/kWh, giga-project electricity needs, and rapidly growing green-hydrogen demand collectively reinforce long-term growth prospects. The National Renewable Energy Program’s 130 GW procurement pipeline, coupled with ambitious local-content mandates, anchors supply-chain investments and accelerates the localization of manufacturing. Rising industrial and commercial power purchases, regulatory support for corporate PPAs, and inland wind resource diversification further broaden the Saudi Arabian renewable energy market opportunity. Meanwhile, operational challenges such as dust-driven PV efficiency losses of 15-20% annually, grid congestion in high-solar regions, and abundant USD 1.25/MMBtu natural-gas supply temper near-term adoption.

Saudi Arabia Renewable Energy Market Trends and Insights

National Renewable Energy Program Drives Unprecedented Capacity Expansion

Round-based auctions under the National Renewable Energy Program issue predictable tenders that underpin the Saudi Arabian renewable energy market, with cumulative allocations expected to reach 17.1 GW by late 2025. Record-low tariffs below USD 0.018/kWh incentivize aggressive bidding and stimulate financing innovation. Local-content thresholds now exceed 35%, catalyzing the production of modules, inverters, and wind turbines inside the Kingdom. Project clustering in the Northern Borders and Tabuk regions exploits superior solar irradiance of 2,400 kWh/m² and 7.5 m/s hub-height winds, mitigating curtailment through geographic diversification. International IEC equipment standards ensure bankability, while streamlined permitting compresses development timelines to 24 months. The resulting visibility fortifies the Saudi Arabia renewable energy market outlook for equipment suppliers and investors alike.

Solar LCOE Competitiveness Reshapes Power-Generation Economics

Utility-scale PV costs breached the USD 0.018/kWh threshold in 2024, achieving parity with gas-fired generation even at subsidized feedstock prices. Scale economies from 1 GW-class projects, sub-4% interest-rate financing, and bifacial modules boost yields by 25-30%. Single-axis tracking maximizes daily output, mitigating dusk-period price cannibalization. Competitive LCOEs spur project oversubscription, with bids overshooting tendered capacity by threefold in Round 6. Nevertheless, USD 0.008-0.012/kWh in grid integration costs partially erode the savings. Integration spending stimulates storage adoption, opening new revenue channels within the Saudi Arabian renewable energy market for battery integrators and EPCs.

Natural Gas Price Advantage Creates Adoption Headwinds

Sub-USD 0.03/kWh gas generation costs preserve economic headroom over renewables, particularly during evening peaks. Dispatchable CCGT plants stabilize frequency as renewable penetration climbs, reinforcing gas’s strategic role. Vast 300 TCF proven reserves plus Jafurah basin additions sustain low tariffs until export economics improve. Carbon-neutrality pledges and prospective LNG revenues, however, weaken long-term price caps, gradually tipping the balance in favor of the Saudi Arabian renewable energy market.

Other drivers and restraints analyzed in the detailed report include:

• Giga-Projects Create Concentrated Renewable Demand Centers
• Green-Hydrogen Export Strategy Anchors Long-Term Renewable Demand
• Grid Infrastructure Constraints Limit Renewable Integration

Segment Analysis

Solar held 93.15% of the 2025 Saudi Arabia renewable energy market size, benefiting from unmatched irradiance and economies of scale. Massive 1 GW-plus PV blocks near Tabuk drive single-digit USD-cent tariffs while bifacial modules and trackers lift yields across desert terrains. Nonetheless, wind’s 81.7% CAGR projects a swift ascent as Vestas and Siemens Gamesa commission high-capacity turbines optimized for 45% capacity factors. The Dumat Al-Jandal plant validated wind viability at USD 0.0199/kWh, signaling price convergence with PV. Transmission-linked hybrid layouts enhance grid stability, smooth variable output, and reduce curtailment penalties in the Saudi Arabian renewable energy market. Hydropower’s 2.4 GW pumped-storage plans will provide peak shaving, while bioenergy and geothermal remain niche plays.

Solar’s rapid scale-up faces O&M headwinds in sand-laden provinces; wind encounters supply-chain bottlenecks until local nacelle and blade manufacturing matures. Emerging floating PV on desalination reservoirs and agrivoltaic arrays in irrigation districts diversify applications beyond utility-scale deserts. Grid-code updates enable hybrid solar-wind plants to share interconnection points, reducing capital expenditures and expediting permitting. Together, these trends reinforce a balanced generation mix underpinning long-term grid resilience within the Saudi Arabian renewable energy market.

The Saudi Arabia Renewable Energy Market Report is Segmented by Technology (Solar Energy, Wind Energy, Hydropower, Bioenergy, Geothermal, and Ocean Energy) and End-User (Utilities, Commercial and Industrial, and Residential). The Market Sizes and Forecasts are Provided in Terms of Installed Capacity (GW).

List of companies covered in this report:

• ACWA Power
• Masdar (Abu Dhabi Future Energy Co.)
• Engie SA
• EDF Renewables
• Alfanar Energy
• Nesma Holding
• Vestas Wind Systems
• Enel SpA
• Marubeni Corporation
• TotalEnergies SE
• Desert Technologies
• JinkoSolar
• First Solar
• Sumitomo Corp.
• Kepco KPS
• Siemens Gamesa
• GE Vernova
• ACWA-Masdar JV (Shuaibah PV)
• Al Jomaih Energy & Water
• Larsen & Toubro
• Hyundai Engineering & Construction

Additional benefits of purchasing this report:

• Access to the market estimate sheet (Excel format)
• 3 months of analyst support