Saudi Arabia Renewable Energy Market Growth Analysis - Market Size, Share, Forecast Trends and Outlook Report (2025-2034)

The Saudi Arabia renewable energy market was volume at 1.55 Gigawatt in 2024. The industry is expected to grow at a CAGR of 44.00% during the forecast period of 2025-2034. An increase in public-private partnerships (PPPs) is primarily boosting the market. PPPs ensure cooperation between governments and the private sector, enhancing the acceleration of renewable energy projects, foreign direct investment, and ensuring the successful implementation of large-scale efforts on solar and wind, including hydrogen. In turn, all these factors have resulted in the market attaining a volume of 59.42 Gigawatt by 2034.

Saudi Arabia renewable energy Market Overview

The Saudi Arabia renewable energy market is emerging at a fast pace due to increased efforts toward diversifying the energy resource mix and mitigating dependence on oil. The country’s Vision 2030 plan aims to increase the number of renewables in the energy mix, targeting 50% production of its power from renewable sources by 2030. Moreover, factors like the country's large solar and wind resources, favorable geographic location, and government-supported efforts including green initiatives are all collectively driving the market growth. Other examples of the commitment to clean energy growth include large-scale renewable energy projects. Such examples consist of investments in NEOM City and the Al-Faisaliah Solar Plant.

Key market trends include increased private-sector participation in renewable energy projects, international cooperation, and developments in energy storage technologies. Saudi Arabia is also trying to export renewable energy through green hydrogen, which is gaining popularity as a potential worldwide fuel alternative. The increased emphasis on smart grid technologies and energy efficiency contributes to the market's growth. The Saudi Arabia renewable energy market leaders include ACWA Power, First Solar, and Siemens Gamesa, which increase the adoption of renewable energy. These companies leveraging government incentives and the region's natural resources to penetrate the fast-developing market with solar, wind, and energy storage solutions.

Saudi Arabia Renewable Energy Market Growth

The rising integration of solar power into urban development projects is driving the renewable energy market in Saudi Arabia. NEOM and King Salman Park have already been conceived and designed by large-scale urban development in respect of the energy component as well as with Vision 2030 as part of government effort, as cities of sustainable energy use with emphasis on renewable energy for its construction. Besides fulfilling the electrical demands of these nascent metropolitan areas, solar power is being applied to develop infrastructure such as solar-powered buildings, smart networks, and energy-efficient transportation systems. The involvement of solar energy in these high-profile projects simply underlines Saudi Arabia's intention to stay ahead of the renewable energy game while at the same time ensuring that it is sustainable and achieves energy independence.

Moreover, Saudi Arabia is investing highly in green hydrogen, creating several growth opportunities in the renewable energy market. The country aims at being the center for the production of green hydrogen by utilizing the abundantly available solar and wind resources that can generate clean hydrogen through electrolysis. For example, the NEOM Green Hydrogen Project undertaken between ACWA Power and Air Products, generates millions of tons per year of hydrogen. This specialty is well-suited for the country's objective to diversify its energy exports, which focusses on future-ready, environmentally friendly technologies.

Key Trends and Recent Developments

Major trends influencing the Saudi Arabia renewable energy market are the increase in solar power investments, rising development in green technology, growing adoption of energy storage technologies, and private sector involvement and international cooperation.

December 2024

Saudi firms in Saudi Arabia established seven new solar power projects as part of Saudi Vision 2030. These initiatives will diversify the economy and minimise dependency on fossil fuels, demonstrating the reliability of renewable energy sources. These projects include Ar Rass II Solar Power Plant, Al Sadawai IPP Solar Power Plant, Amaala Solar Power Plant, among many more.

December 2024

TotalEnergies and Saudi developer Aljomaih Energy and Water Company (AEW) have signed a 25-year Power Purchase Agreement (PPA) with Saudi Power Procurement Company (SPPC) for Rabigh 2, a 300 MW solar power project.

December 2024

ACWA Power, the Saudi utility behemoth, has launched three renewable projects in Uzbekistan, including wind, solar, and battery storage, representing a $3 billion investment in the country's energy transition.

December 2023

Saudi Arabia claims 300% growth in installed renewables capacity, with 43.9 million trees planted since the inception of Saudi Green Initiative.

Increase in Solar Power Investments

The Saudi Arabia renewable energy market is witnessing increasing investment in solar power, as the country has some of the world's highest solar potential. The government is focusing on large-scale projects like the $5 billion Sakaka PV Solar Plant, which will generate more than 600 MW of electricity. This tendency is fueled by an abundance of sunlight and favorable geographical conditions. The Kingdom aims to become a worldwide leader in solar energy, and its projects like NEOM and King Salman Park engage with solar technology while trying to include it in its sustainable urban design efforts.

Green Hydrogen Development

Green hydrogen is being generated from Saudi Arabia as a global leader, aiming to use renewable energy to manufacture hydrogen through water electrolysis. Due to its ample sunshine and windy climate, the country is an appropriate location for the production of hydrogen, hence accelerating major growth of the Saudi Arabia renewable energy market. The most relevant example is NEOM Green Hydrogen Project by Air Products and ACWA Power that aims to reach a daily 650 tons by 2026. Saudi Arabia ranks top in exportation of green hydrogen and thus will lead the new wave of global energy change.

Growing Adoption of Energy Storage Technologies

The rising adoption of energy storage technologies is one major trend driving the Saudi Arabia renewable energy market. These are gaining traction in the country as intermittent renewable energy sources such as solar and wind become more widely used. Saudi Arabia is looking into new ways to store energy for when demand exceeds supply. ACWA Power's Red Sea project is an example, with the goal of developing a 500 MW storage facility alongside solar and wind power plants. The improvement of the storage technologies will have the positive effects of enhancing grid stability and making renewable energy output more reliable, thus supporting integration into the whole energy policy of the Kingdom.

Private Sector Involvement and International Cooperations

Private sector involvement in the Saudi Arabia renewable energy market is growing rapidly and most of these are led by local and foreign companies through initiating and developing renewable energy projects. This is facilitated by government incentives and regulatory frameworks targeting international investment. One of the most prominent is ACWA Power, which has been involved in several renewable energy projects, such as the Shuaibah Solar Plant. International agreements with companies like Siemens Gamesa and First Solar are particularly significant to the growth of the Kingdom's renewable energy sector, bringing advanced technologies and expertise to the market.

Opportunities in Saudi Arabia Renewable Energy Market

The increasing demand for grid stabilization energy storage technologies presents ample opportunities in the Saudi Arabia renewable energy market. As investment in solar and wind power increases, their integration will require controlling the variable nature of these resources. Companies specializing in battery storage technologies or pumped-storage hydropower can take advantage of this trend. Projects like ACWA Power's Red Sea energy storage seek to incorporate storage systems alongside renewable energy sources. As Saudi Arabia is gaining momentum on renewable energy, it will look forward to innovatively scaled-up storage technologies that could gain sizably in the near future. This means integrating desalination technologies into the mix.

Saudi Arabia produces a massive quantity of desalinated water globally, and they have a rising need for the increasing amounts of renewable energy that are needed to power those facilities. This can be in the form of desalination plants with the inclusion of solar and wind power, hence reducing their reliance on fossil fuels. The firms offering novel solutions, for example, the provision of desalination systems through solar energy, can exploit this growing sector, boosting the Saudia Arabia renewable energy market revenues. Projects such as Al Khobar Solar Desalination Plant depict a harmonious relation between renewable energy and water production, offering companies a realistic niche.

Saudi Arabia Renewable Energy Market Restraints

• The large-scale infrastructure necessary for renewable energy projects, such as solar farms and wind turbines, necessitates a hefty upfront investment, which may be a hurdle for some investors. This factor significantly limits the Saudia Arabia renewable energy market growth.
• Solar and wind energy are intermittent and require efficient energy storage technologies and grid stability measures, providing issues in ensuring a steady power supply.
• While the government is dedicated to boosting the renewable energy market growth in Saudia Arabia, changing rules and policy frameworks may raise concerns about long-term investments in this particular field.

Saudi Arabia Renewable Energy Market Trends

Vision 2030 initiatives are majorly shaping up the Saudi Arabia renewable energy market dynamics. The government-imposed strategy that aims to reduce the country’s exceeding reliance on oil while broadening the entire energy portfolio. As a part of that process, the Saudi government is promoting investment in some of the renewable energies including solar, wind to bringing around 50% of its own energy from renewables by 2030. The incentives and favorable conditions initiated by the government are encouraging more companies to participate in this sector, driving further renewable energy demand.

Another significant driver of the Saudi Arabia renewable energy market is the lowered costs of renewable energy technologies, especially related to those related solar and wind energies. The costs of technology have been declining over the last decade by up to one-third in solar photovoltaic and wind turbines for achieving economy on a project level. Moreover, the Arabian Peninsula presents ideal temperature for solar and wind energy. Therefore, as this trend accelerates, and with new government-assessed projects into the sector, new opportunities are opening up in this market. This will not only boost the sector, even meeting the country's clean energy policy objective.

Saudi Arabia Renewable Energy Industry Segmentation

“Saudi Arabia Renewable Energy Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Solar
• Wind
• Others

Market Breakup by End Use

• Residential
• Commercial
• Industrial

Saudi Arabia Renewable Energy Market Share

Market Insights by Type

According to the Saudi Arabia renewable energy market analysis, the kingdom has initiated significant projects aimed at harnessing wind power. The Dumat Al Jandal wind farm, located in the Al Jouf region, stands as the first utility-scale wind project in Saudi Arabia. Developed by a consortium led by EDF Renewables and Masdar, this project symbolises the country's commitment to diversifying its energy mix. The Dumat al-Jandal wind farm stands as the largest in the region, comprising 99 wind turbines. Each turbine has the capacity to generate electricity capable of powering approximately 70,000 households within the Kingdom of Saudi Arabia, as reported by the Saudi Arabia-based Al Arabiya.

Analysis by End Use

The steadily developing commercial clean energy generation is expected to significantly influence the Saudi Arabia renewable energy market share in the coming years. Commercial renewable energy in Saudi Arabia has been advancing, primarily driven by the government's commitment to diversifying its energy mix and reducing dependency on fossil fuels. The country has implemented regulatory reforms and frameworks to encourage private sector participation in the renewable energy market. This includes setting clear renewable energy targets, establishing favorable policies, and offering incentives to attract commercial investments in the sector.

Competitive Landscape

Major Saudi Arabia renewable energy market players are concentrating on large-scale solar, wind, and hydrogen initiatives. Whereas other local Saudi Arabia renewable energy market companies are benefitting from government subsidies, diversify energy sources, and contribute to the Kingdom's Vision 2030. They are also looking at energy storage and smart grid technology to help with environmental goals.

JinkoSolar Holding Co. Ltd.

Founded in 2006, headquartered in Shanghai, China, JinkoSolar is one of the largest and most innovative solar module manufacturers globally. They specialise in the production of high-quality solar panels and have a significant global presence. The company focuses on research, development, and manufacturing of solar products and solar projects, aiming to provide affordable and sustainable clean energy solutions.

EDF RE Group

EDF RE Group, established in 2004, is a subsidiary of Électricité de France (EDF), a global leader in renewable energy. EDF RE focuses on developing, constructing, and operating renewable energy projects, including wind, solar, and storage solutions. The company has a diverse portfolio of renewable projects across several countries and is committed to sustainable energy generation and reducing carbon emissions.

Engie SA

Engie SA is a multinational utility company that has a strong presence in renewable energy. The company involved in various aspects of the energy sector, including electricity generation, natural gas, and energy services, was founded in 2008. Engie has been transitioning towards cleaner energy sources, investing in wind, solar, hydroelectric, and other renewable projects while also emphasizing energy efficiency and sustainable solutions for their customers.

ACWA Power

ACWA Power, established in 2004, is a company well-renowned for driving large-scale solar, wind, and water desalination projects. The company is committed to sustainable energy. It plays a critical role in boosting the Kingdom's Vision 2030 goals towards a cleaner, diversified energy market.

Other major players in the market are Alfanar Group, The Abu Dhabi National Energy Company, PJSC (Masdar), Mowah Company, Solar Arabia Limited, Abdul Latif Jameel IPR Company Limited, Aljoaib Holdings, Enar Renewables, among others.

Innovative Saudi Arabia Renewable Energy Market Startups

Startups in the Saudi Arabia renewable energy market are focusing on long-term energy solutions like solar panel efficiency, energy storage systems, and green hydrogen manufacturing. They intend to use sophisticated technologies such as AI and IoT to optimize smart grids and lower the cost of implementing renewable energy.

Abu Dhabi Future Energy

Abu Dhabi Future Energy is a pioneering renewable energy startup in the Middle East. The company specializes in solar, wind, and clean technologies, by developing innovative infrastructure projects to reduce carbon footprints and drive green innovation.

Naqaa Solutions

Naqaa Solutions is another firm that focuses on sustainable energy solutions. Naqaa creates sustainable systems that maximize resource consumption by focusing on water and energy saving technology. The company is dedicated to advancing solar power, waste-to-energy solutions, and energy-efficient infrastructure in support of Saudi Arabia's sustainable energy goals.