Saudi Arabia Wind Power Market: Sustainable Power, Policy Support & Growth Momentum

According to IMARC Group's latest research publication, Saudi Arabia wind power market size reached USD 873.45 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 1,369.48 Million by 2033, exhibiting a growth rate (CAGR) of 4.60% during 2025-2033.

How AI is Reshaping the Future of Saudi Arabia Wind Power Market

• Predictive Maintenance and Failure Prevention: AI-driven predictive maintenance analyzes sensor data and historical records to identify potential turbine failures before they occur, achieving 95% accuracy in predicting equipment issues. This technology reduces maintenance costs by 30% and cuts unplanned downtime by 35%, ensuring wind farms maintain consistent energy generation across Saudi Arabia's challenging desert environments.
• Operational Efficiency and Performance Optimization: Machine learning algorithms continuously monitor wind conditions and turbine performance, dynamically adjusting blade pitch angles and yaw positions in real-time to maximize energy capture. AI-optimized operational parameters improve overall energy output by 8.5% while reducing mechanical stress, extending turbine lifespan and reducing the cost of wind energy by up to 15%.
• Advanced Wind Forecasting and Grid Integration: AI systems analyze meteorological data, historical wind patterns, and atmospheric conditions to predict wind power generation with remarkable precision, reducing forecasting inaccuracies by approximately 50%. Deep learning models process wind speed, temperature, and pressure readings to enable accurate near-term and long-term predictions, helping grid operators balance supply and demand more effectively.
• Cost Reduction Through Intelligent Maintenance Scheduling: AI enables operators to shift from time-based maintenance to performance-based scheduling, focusing resources on critical issues rather than unnecessary routine checks. Operation and maintenance costs typically account for 19-25% of total lifecycle costs, with onshore wind farms spending USD 15-27 per kilowatt annually, making AI-driven optimization a significant economic advantage.
• Automated Inspection and Defect Detection: AI-powered drones equipped with high-resolution cameras and thermal imaging autonomously inspect wind turbines, using machine learning to identify cracks, corrosion, and component defects. These automated systems improve safety by reducing human exposure to hazardous conditions, accelerate inspection timelines, and lower maintenance costs while ensuring optimal turbine performance across remote Saudi wind farm locations.

How Vision 2030 is Revolutionizing Saudi Arabia Wind Power Industry

Saudi Arabia's Vision 2030 has positioned wind energy as a cornerstone of the Kingdom's renewable transformation. Under the National Renewable Energy Program, the Ministry of Energy and Saudi Power Procurement Company have issued structured tenders that delivered record-breaking results, including the 1,500 MW Dawadmi Wind IPP project achieving the world's lowest levelized cost of electricity from wind at 1.33 US cents per kilowatt-hour. The Kingdom has committed over $32 billion to renewable infrastructure, with 40 GW of the targeted 130 GW renewable capacity designated for wind power. Major projects like the 400 MW Dumat Al Jandal wind farm, the country's first utility-scale installation, and NEOM's planned 1.2 GW Gayal wind farm demonstrate the scale of development. The Public Investment Fund has announced three joint ventures to localize 75% of renewable energy equipment manufacturing, including wind turbine component production through partnerships with Envision Energy and other international firms. NEOM's Oxagon industrial city will launch wind turbine component factories, while training programs like the Saudi Electric Services Polytechnic partnership with Maersk Training will prepare over 3,000 workers for the renewable industry.

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Saudi Arabia Wind Power Market Trends & Drivers

The Saudi Arabia wind power market is experiencing transformational growth driven by aggressive government procurement strategies and unprecedented cost competitiveness. The National Renewable Energy Program's seventh round alone includes 5,300 MW of capacity across solar and wind projects, building on previous rounds that have already delivered 64 GW of tendered renewable capacity. The Dawadmi Wind IPP project's world-record low tariff of 1.33 US cents per kilowatt-hour demonstrates that Saudi wind power has achieved cost parity with traditional fossil fuels, making it economically attractive for both government planners and private investors. International consortiums comprising Korea Electric Power Corporation, Nesma Renewable Energy, Etihad Water and Electricity, EDF Renewables, Marubeni Corporation, Total Energies, Masdar, Engie, and Alfanar have been prequalified or awarded major projects, bringing global expertise and proven technology to the Kingdom's wind sector.

Grid modernization initiatives and transmission infrastructure improvements are removing critical technical barriers to wind integration. The Ministry of Energy's strategic partnership between SPARK Utilities and Saudi Electricity Project Development Company, formalized at the Saudi Smart Grid Conference, focuses on enhancing connectivity and modernizing infrastructure to handle variable renewable generation. With 30 GWh of battery energy storage systems tendered and 8 GWh already connected to the grid, Saudi Arabia is building the flexibility needed to accommodate intermittent wind power while maintaining grid stability. The Kingdom's phase-based renewable deployment plan targets 8 GW of utility-scale capacity in Phase I, with subsequent phases incorporating advanced energy storage and grid-scale solutions.

Localization strategies and workforce development programs are creating a sustainable foundation for long-term wind sector growth. The Public Investment Fund's joint ventures for manufacturing wind turbine components align with Vision 2030's goal of developing domestic industrial capabilities and reducing reliance on imported equipment. NEOM's Oxagon industrial city will house dedicated facilities for producing technical wind turbine components, creating employment opportunities and building local supply chain capacity. The training programs launched through partnerships between Saudi Electric Services Polytechnic and Maersk Training will prepare thousands of Saudi nationals for careers in wind turbine installation, operation, and maintenance, addressing potential skill gaps while supporting Saudization objectives. The government's allocation of 260 square kilometers specifically for wind farm development, combined with site suitability assessments identifying high-wind regions like Al-Jouf, Tabuk Province, and Red Sea coastal areas, demonstrates systematic planning for project deployment. Projects like NEOM's planned 1.2 GW Gayal wind farm spanning 164 square kilometers, Marubeni's 600 MW AlGhat project, and the 500 MW Wa'ad Alshamal development show the scale and geographic diversity of Saudi Arabia's wind pipeline.

Saudi Arabia Wind Power Market Industry Segmentation:

The report has segmented the market into the following categories:

Location Insights:

• Onshore
• Offshore

Regional Insights:

• Northern and Central Region
• Western 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.

Recent News and Developments in Saudi Arabia Wind Power Market

• July 2025: Saudi Arabia awarded $8.3 billion worth of 15,000 MW solar and wind energy projects through the National Renewable Energy Program, demonstrating the Kingdom's massive commitment to scaling renewable capacity and attracting international investment consortiums.
• October 2025: The Ministry of Energy awarded five renewable energy projects totaling 4,500 MW with investments exceeding SAR 9 billion ($2.4 billion). The 1,500 MW Dawadmi Wind IPP achieved a world record for the lowest cost of wind power generation at 1.33 US cents per kilowatt-hour, awarded to a consortium of KEPCO, Nesma Renewable Energy, and Etihad Water and Electricity.
• November 2024: The Saudi Power Procurement Company prequalified 11 global and regional developers including EDF Renouvelables, Total Energies, Masdar, Engie, and Alfanar for the 1,500 MW Dawadmi Wind IPP project as part of Round 6 of the National Renewable Energy Program, which reached 4,500 MW total capacity across wind and solar developments.
• November 2024: Saudi Arabia's budget for 2025 allocated 260 square kilometers for wind farm projects and launched the Integrated Energy Strategy to enhance energy market leadership, develop local content, increase supply security, and maximize financial benefits from renewable investments.

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