Saudi Arabia Renewable Energy Market: Clean Power Expansion, Investment Momentum & Outlook

According to IMARC Group's latest research publication, Saudi Arabia renewable energy market size reached 2.09 Gigawatt in 2025. The market is projected to reach 40.42 Gigawatt by 2034, exhibiting a growth rate of 35.07% during 2026-2034.

How AI is Reshaping the Future of Saudi Arabia Renewable Energy Market

• Smart Grid Automation: AI-powered control systems optimize energy distribution across Saudi Arabia's grid, with 32% automation achieved and targeting 40% by end of 2025, reducing outages and enhancing renewable integration for solar and wind fluctuations.
• Advanced Energy Forecasting: Machine learning algorithms predict solar generation through big data analytics, as demonstrated by ACWA Power and Saudi Aramco's photovoltaic forecasting system, enhancing grid stability and optimizing energy distribution across microgrids nationwide.
• Predictive Maintenance Solutions: AI monitoring systems track performance of solar panels and wind turbines in real-time, identifying efficiency drops and potential failures before they occur, reducing maintenance costs and maximizing energy output across utility-scale installations.
• Digital Twin Technology: Virtual replicas of power plants enable operators to simulate renewable energy integration scenarios, predict maintenance needs, and optimize processes without disrupting physical operations, supporting the Kingdom's massive 130 GW capacity expansion.
• Demand Response Optimization: Intelligent metering and AI-driven demand management systems balance electricity consumption patterns, improving system stability and enabling seamless integration of variable renewable sources into the national grid infrastructure.

How Vision 2030 is Revolutionizing Saudi Arabia Renewable Energy Industry

Vision 2030 is fundamentally transforming Saudi Arabia's energy landscape through unprecedented investments and strategic partnerships. The government recently signed power purchase agreements worth $8.3 billion for 15,000 MW of new capacity (12,000 MW solar and 3,000 MW wind), bringing operations online between late 2027 and early 2028. The Public Investment Fund commits to developing 70% of the Kingdom's renewable target, with projects totaling 28.6 GW and investments exceeding $17 billion already underway. The National Renewable Energy Program has tendered 64 GW of capacity by end of 2025, with 43.2 GW signed and 12.3 GW already grid-connected. Major initiatives include the world's largest green hydrogen facility at NEOM—an $8.4 billion project producing 600 tonnes daily of carbon-free hydrogen from 4 GW of dedicated solar and wind power. The Ministry of Energy is establishing nine advanced control centers by 2026 for real-time grid management, while achieving globally competitive electricity costs—Dawadmi Wind set a world record for lowest wind power cost, and Najran Solar achieved the second-lowest solar cost globally at 1.04 US cents per kWh.

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Saudi Arabia Renewable Energy Market Trends & Drivers:

The market is surging through massive utility-scale solar deployments across the Kingdom's vast desert landscapes. Saudi Arabia entered the top 10 global markets for annual new solar installations in 2025, with over 70 GW projected by 2030 according to industry analysts. Recent project awards demonstrate this momentum: a $2.4 billion investment for 4,500 MW across five projects, including the Dawadmi Wind Energy Project and Najran Solar Energy Project achieving record-low global costs. The 2.6 GW Al Shuaibah solar plant near Jeddah powers approximately 350,000 homes, while the 1,425 MW Al Kahfah facility in Eastern Province supplies 400,000 homes. ACWA Power's domestic portfolio has expanded to 21 projects totaling over 34 GW, with global renewable capacity surpassing 51.9 GW. Major developers including PowerChina, Larsen & Toubro, and EDF Renewables are executing EPC contracts, with installations employing advanced technologies like Nextracker's smart solar systems and thyssenkrupp electrolyzers to maximize efficiency and minimize environmental impact across utility-scale deployments.

Green hydrogen production is emerging as a cornerstone of Saudi Arabia's clean energy strategy and export ambitions. The NEOM Green Hydrogen Company has reached over 90% construction completion on the world's largest green hydrogen facility, with 257 wind turbines generating 1.6 GW and a solar farm covering the size of Manhattan producing 2.2 GW. The $8.4 billion project secured financing from 23 international lenders and has signed a 30-year exclusive off-take agreement with Air Products for all green ammonia produced—up to 1.2 million tonnes annually for export to global markets. First ammonia shipments are scheduled for 2027, with the facility expected to save 5 million metric tonnes of CO2 emissions yearly. The installation of critical equipment including hydrogen storage vessels, electrolyzers, cold boxes, and dedicated transmission grids demonstrates rapid progress. NEOM's integration with ENOWA ensures zero brine discharge by converting desalination waste into exportable industrial salts, supporting circular economy principles while positioning Saudi Arabia as a hydrogen superpower in the emerging global market.

Private sector participation and technological innovation are accelerating renewable deployment through competitive partnerships and advanced solutions. The 32% smart grid automation achieved across Saudi Arabia's electricity distribution network—targeting 40% by year-end—enables seamless renewable integration. Smart metering systems covering 11 million units and AI-powered grid management enhance reliability while facilitating the transition from fossil fuels. The Kingdom's favorable geography provides solar irradiance exceeding 2,200 kWh per square meter annually, while coastal regions along the Red Sea and Arabian Gulf offer consistent wind corridors ideal for large-scale generation. Local manufacturing capabilities are expanding, with JinkoSolar planning a $1 billion N-type solar cell facility in Saudi Arabia targeting 10 GW annual capacity by early 2026. Antaisolar partnered with Bahra Electric to establish solar mounting system production in Jeddah specifically for utility-scale projects. Government incentives including tax breaks, subsidies, and streamlined regulatory frameworks attract both domestic leaders like ACWA Power and international giants including Masdar, securing competitive project financing and driving operational excellence across the expanding renewable ecosystem.

Saudi Arabia Renewable Energy Market Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

• Solar
• Wind
• Others

Regional Insights:

• Western Region
• Northern and Central Region
• Eastern Region
• Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

• ACWA Power
• Alfanar Group
• EDF Renewables
• ENGIE Middle East
• Masdar

Recent News and Developments in Saudi Arabia Renewable Energy Market

• February 2025: ACWA Power and Saudi Aramco signed two major agreements to advance renewable energy innovation, including development of an advanced photovoltaic energy forecasting system using big data analytics and machine learning to enhance solar power predictions and grid stability.
• May 2025: Marubeni Corporation and Ajlan & Bros obtained Power Purchase Agreements with Saudi Power Procurement Company for two major wind energy projects, expanding the Kingdom's wind generation capacity as part of the National Renewable Energy Programme.
• July 2025: ACWA Power, Badeel, and Saudi Aramco Power Company signed agreements for seven new projects with 15,000 MW combined capacity (12,000 MW solar, 3,000 MW wind) representing $8.3 billion investment, scheduled for operation between late 2027 and early 2028.
• August 2025: China Energy Engineering won a $972 million EPC contract for the 2 GW Haden solar PV plant in western Saudi Arabia, expected to generate approximately 6,355,382 MWh annually for the national grid upon completion.
• October 2025: Saudi Arabia awarded 4,500 MW of renewable energy projects worth $2.4 billion in the sixth phase of the National Renewable Energy Program, including the Dawadmi Wind Energy Project achieving a world record for lowest wind power cost.

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