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Saudi Arabia’s Solar Energy Revolution

Vision 2030 Drives Massive Investments in Renewable Energy

by Huda Marshad
March 4, 2025
in Energy
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Saudi Arabia is making significant progress in renewable energy, especially in solar power, as part of its Vision 2030. The Kingdom aims for 50% of its electricity to come from renewable sources by the decade’s end. To achieve this, it has committed 705 billion riyals (around 188 billion US dollars) to accelerate growth in the sector, as reported by the Associated Press.

In 2023, the Saudi Power Procurement Company launched the qualification process for four major solar projects totaling 3,700 MW. These include:

  • Al-Sadawi Project in the Eastern Province (2,000 MW)
  • Al-Massaa Project in Hail (1,000 MW)
  • Al-Hanakiya Project in Medina (400 MW)
  • Rabigh Project in Makkah (300 MW)

These projects are expected to significantly cut carbon emissions, equivalent to removing 80,000 cars from the roads annually.

The Sudair Solar PV Plant, a standout project, recently reached an operational capacity of 1,125 MW, aiming for 1,500 MW. It is one of the world’s largest single-contracted solar plants, boasting one of the lowest global costs for solar PV electricity at 1.239 US cents/kWh. This plant will power about 185,000 homes and cut emissions by 2.9 million tons annually.

Saudi Arabia is also focusing on boosting local industry within the renewable sector. On December 20, 2023, seven agreements were signed to enhance domestic capabilities, aiming to integrate Saudi graduates and boost local manufacturing in solar panels and wind infrastructure. However, local manufacturers face competition from international firms, particularly from China.

In addition to solar, the Kingdom is investing in green hydrogen. The Neom Green Hydrogen Project integrates 2.2 GW of solar energy with wind power and battery storage, supporting global carbon reduction efforts and establishing Saudi Arabia as a leader in sustainable energy.

To meet its ambitious target of 40 GW of solar capacity by 2030, with only 19 GW in the pipeline, Saudi Arabia must install an average of 5.5 GW annually. Companies like ACWA Power and Masdar are pivotal in bridging this gap, ensuring the Kingdom remains a leader in the global renewable energy transition.

Tags: green hydrogenRenewable EnergySaudi ArabiaSolar PowerVision 2030
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