Saudi Arabia Renewable Energy Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 8.33 gigawatt |
| Market Volume (2029) | 23.74 gigawatt |
| CAGR (2024 - 2029) | 23.30 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Saudi Arabia Renewable Energy Market Analysis
The Saudi Arabia Renewable Energy Market size is estimated at 8.33 gigawatt in 2024, and is expected to reach 23.74 gigawatt by 2029, growing at a CAGR of 23.30% during the forecast period (2024-2029).
Over the medium term, factors such as favorable government policies for the renewable energy sector are expected to drive the market.
On the other hand, as electricity demand proliferates, Saudi Arabia is likely to upgrade its energy production capabilities. As the country phases out older and more polluting diesel-fired generators, natural gas provides the perfect alternative for power generation. Due to this, as a part of Vision 2030, natural gas is expected to account for nearly 50% of the primary energy mix. Hence, the rising consumption of natural gas is expected to be a major factor restraining the growth of the country's renewable energy market.
Nevertheless, Saudi Arabia does not have a domestic power generation company with expertise in the renewable energy sector, but it has a very large potential for solar power generation. The privatization of the power industry has allowed foreign companies, particularly from China and Europe, who have substantial experience with solar energy, to develop solar power plants, hence creating ample opportunities for the market players in Saudi Arabia.
Saudi Arabia Renewable Energy Market Trends
Solar Energy to Dominate the Market
- Saudi Arabia is naturally endowed with renewable energy sources, particularly solar energy. The country lies in the middle of the "sun belt" and receives an average of 8.9 hr/day of sunshine and an average horizontal solar radiation of 5,600 Wh/m2. The solar irradiation in the country is 250 w/m2, which is above the average irradiation of high-potential solar areas globally of 100-200 w/m2. The country's capital, Riyadh, has an average of 3,230 sunshine hours yearly, which is the condition of the entire landscape. This creates a massive potential for solar power generation.鈥�
- Under Vision 2030, more than 35 solar and wind energy farms are expected to be developed in the country by 2030. The Renewable Energy Project Development Office (REPDO) within the Ministry of Energy, established in 2017, is responsible for delivering on the goals of the National Renewable Energy Program (NREP) in line with Vision 2030.
- The government of Saudi Arabia is actively working to scale renewable energy projects, where solar energy technology installation is expected to lead. The NREP plans to develop 40 GW of solar energy by 2030 out of 58.7 GW of renewable energy projects by 2030. Solar energy generation has witnessed an increasing trend in recent years. According to the International Renewable Energy Agency (IRENA), the country's solar energy installed capacity stood at 2,285 MW in 2023, about threefold higher than the previous year.
- The country has been actively developing its renewable energy capacity with many large-scale solar projects. For instance, in February 2024, The Saudi Power Procurement Company (SPPC) disclosed the qualified bidders for the fifth round of 3.7 GW solar projects under the National Renewable Energy Programme (NREP) in Saudi Arabia, including various significant renewables developers. Further, the SPPC announced that EDF Renouvelables, Masdar, Itochu Corporation, Total Energies Renewables, and Saudi Electricity Company were among the companies that won the bid.
- Hence, based on the factors mentioned above, the solar energy segment is expected to dominate the renewable energy market in Saudi Arabia during the forecast period.
Supportive Government Policies and Incentives Driving the Adoption of Renewable Energy
- To revitalize and diversify the economy and reduce overreliance on fossil fuel exports, the country鈥檚 government has decided to invest heavily in its Vision 2030, launched in 2016. Vision 2030 is a comprehensive strategic transformation roadmap consisting of financial, social, and environmental targets set by the Saudi government to invest and develop various nascent sectors, such as tourism and renewable energy, sustainably to improve the financial situation and the quality of life of the average Saudi citizen.
- Following its Vision 2030, the country has created several government-led schemes and plans to achieve its ambitious targets. It aims to reduce centralized control over different industrial sectors by encouraging private investments and fostering open competition in the market.
- To achieve this target, the country plans to install nearly 58.7 GW of renewable energy capacity by 2030. The sector is being developed as per the Kingdom鈥檚 ambitious National Renewable Energy Programme (NREP), developed by the Renewable Energy Project Development Office (REPDO), the clean energy arm of the Saudi Ministry of Energy, Industry, and Mineral Resources. REPDO would be responsible for realizing this ambitious target and overseeing the development of 30% of this target through competitive tendering. In comparison, the remaining 70% will be developed by the Saudi Government鈥檚 Public Investment Fund (PIF) through direct negotiation with developers.
- According to the International Renewable Energy Agency (IRENA), Saudi Arabia had a total renewable energy installed capacity of 2689 MW in 2023, about a threefold increase from the previous year.
- Such instances provide ample evidence that the Saudi government is working together at an institutional level to encourage the adoption of renewable sources and attract foreign investments in the domestic renewable energy market. The helpful government policies and economic incentives are expected to be one of the most significant factors driving the market during the forecast period.
Saudi Arabia Renewable Energy Industry Overview
The Saudi Arabian renewable energy market is moderately fragmented in nature. Some of the major players in the market (in no particular order) include ACWA Power, Alfanar Group, Abu Dhabi Future Energy Company (Masdar), Electricite de France SA, and Engie SA, among others.
Saudi Arabia Renewable Energy Market Leaders
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ACWA POWER
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Alfanar Group
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Abu Dhabi Future Energy Company (Masdar)
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Engie SA.
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Electricite de France SA
*Disclaimer: Major Players sorted in no particular order
Saudi Arabia Renewable Energy Market News
- July 2023: Saudi developer ACWA Power inked financing agreements with a group of investors to build two solar projects, Al Shuaibah 1 and Al Shuaibah 2, with estimated investments of USD 2.2 billion, which could likely help the renewable energy market to grow at a rapid pace.
- November 2023: The NEOM Green Hydrogen Company (NGHC) noted the receiving of wind turbines at the Port of NEOM. The NGHC鈥檚 Wind Garden would consist of approximately 250 wind turbines that would energize electricity to green hydrogen power plants in Saudi Arabia.
Saudi Arabia Renewable Energy Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Renewable Energy Mix, 2023
4.3 Renewable Energy Installed Capacity and Forecast in GW, till 2029
4.4 Recent Trends and Developments
4.5 Government Policies and Regulations
4.6 Market Dynamics
4.6.1 Market Drivers
4.6.1.1 Supportive Government Policies and Incentives
4.6.1.2 Rising Demand for Water and Renewable-Powered Desalination
4.6.2 Market Restraints
4.6.2.1 Rising Natural Gas Consumption for Power Generation
4.7 Supply Chain Analysis
4.8 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Solar
5.1.2 Wind
5.1.3 Other Types (Hydro, Biomass, etc.)
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 ACWA Power
6.3.2 Alfanar Energy
6.3.3 Abu Dhabi Future Energy Company (Masdar)
6.3.4 Electricite de France SA
6.3.5 Engie SA
6.3.6 Enel SpA
6.3.7 Vestas Wind Systems A/S
6.3.8 EDF Renewables
6.3.9 ABU DHABI FUTURE ENERGY COMPANY PJSC
6.3.10 Nesma Holding Co. Ltd
- *List Not Exhaustive
6.4 Market Ranking/Share Analysis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Development of Hybrid Renewable Energy Systems
Saudi Arabia Renewable Energy Industry Segmentation
Renewable energy is the energy collected from renewable resources such as sunlight, wind, the movement of water, and geothermal heat that are naturally replenished.
Saudi Arabia's renewable energy market is segmented by type. By type, the market is segmented into solar, wind, and other types (hydro, biomass, etc.). For each segment, the market sizing and forecasts are done based on installed capacity (GW).
| By Type | |
| Solar | |
| Wind | |
| Other Types (Hydro, Biomass, etc.) |
Saudi Arabia Renewable Energy Market Research Faqs
How big is the Saudi Arabia Renewable Energy Market?
The Saudi Arabia Renewable Energy Market size is expected to reach 8.33 gigawatt in 2024 and grow at a CAGR of 23.30% to reach 23.74 gigawatt by 2029.
What is the current Saudi Arabia Renewable Energy Market size?
In 2024, the Saudi Arabia Renewable Energy Market size is expected to reach 8.33 gigawatt.
Who are the key players in Saudi Arabia Renewable Energy Market?
ACWA POWER, Alfanar Group, Abu Dhabi Future Energy Company (Masdar), Engie SA. and Electricite de France SA are the major companies operating in the Saudi Arabia Renewable Energy Market.
What years does this Saudi Arabia Renewable Energy Market cover, and what was the market size in 2023?
In 2023, the Saudi Arabia Renewable Energy Market size was estimated at 6.39 gigawatt. The report covers the Saudi Arabia Renewable Energy Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Renewable Energy Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
How will the development of energy storage solutions impact the Saudi Arabia Renewable Energy Market?
Advancements in energy storage will enable better integration of renewable energy sources into the grid, addressing the issue of intermittency and allowing for more reliable renewable energy use. This will further accelerate Saudi Arabia Renewable Energy Market Growth.
Saudi Arabia Renewable Energy Industry Report
The Saudi Arabia renewable energy market is experiencing significant growth, driven by a strategic shift towards diversifying the energy mix and reducing reliance on fossil fuels. The renewable energy market size in Saudi Arabia is expanding, with solar energy dominating due to the country's abundant sunlight and vast desert areas ideal for large-scale solar projects. Wind energy is also gaining traction in regions with consistent and strong wind currents. The government's supportive policies, including long-term power purchase agreements and favorable land lease terms, are crucial in attracting investments and fostering market growth. Technological advancements are enhancing the efficiency and cost-effectiveness of renewable sources, making them competitive with traditional energy forms. This transition supports economic growth and energy independence, positioning Saudi Arabia as a key player in the global renewable energy sector. Renewable energy companies in Saudi Arabia are pivotal in developing and implementing these projects, contributing to the robust market growth. For detailed statistics, market share, size, and revenue growth rate, refer to 糖心vlog传媒鈩� Industry Reports, which include a market forecast outlook and historical overview. Get a sample of this industry analysis as a free report PDF download to understand the dynamics shaping this vibrant market.
