⁸

The International Renewable Energy Agency (IRENA) estimated that the total installed solar capacity in the Kingdom of Saudi Arabia was 2535.374 MW in 2023.

IRENA also estimated that concentrated solar power installed in the kingdom was 50 MW in 2023.

Saudi Arabia aims to produce 40 GW of electricity through photovoltaics and 2.7 GW of electricity through concentrated solar power by 2030.⁹

• Solar Energy: Saudi Arabia achieved a global record low LCOE of $0.0104 /kWh. ¹⁰
• Wind Energy: Saudi Arabia has achieved a new world record low cost of electricity production from wind power: ¹¹
  • AlGat project: 1.56558 cents/kWh
  • Wa’ad Alshamal project: 1.70187 cents/kWh

⁸

In 2023, Saudi Arabia’s energy mix remains heavily reliant on fossil fuels. Oil accounts for 47,204.71 MW (51.49%) of the total installed electricity capacity, while natural gas contributes 41,485.66 MW (45.25%). Renewable energy sources, including solar, wind, and concentrated solar power, constitute a combined capacity of 2988.374 MW, representing 3.26% of the total capacity.

Technology	Installed Capacity (MW)	Percentage (%)
Oil	47204.71	51.49
Natural gas	41485.66	45.25
On-grid Solar PV	2535.374	2.77
Onshore wind energy	403	0.44
Concentrated solar power	50	0.05

Projected Renewable Energy:

Saudi Arabia’s goal is to have 50% of its power generated from renewable sources by 2030. Saudi Arabia has also set a goal to reach net zero greenhouse gas emissions by 2060.¹²

Saudi Arabia aims to produce 58.7 GW of renewable energy by 2030, using solar PV (40 GW), wind (16 GW), and concentrated solar power (2.7 GW). ⁹

Low values of SAIDI(1.98) and SAIFI(1.56) indices indicate that power outages are less common in the Kingdom of Saudi Arabia, so electricity is available for 24 hours.⁶⁷

In case of a Power outage, the electricity service provider has to compensate the consumers with financial amounts ranging from 26.63 USD to 133 USD depending upon the duration of the power outage.¹³

The General Authority for Statistics in Saudi Arabia (GASTAT) estimated that 2.01% of houses in Saudi Arabia use solar energy in 2021. ¹⁴

GASTAT also estimated that 52 % of the households in the kingdom wish to use Photovoltaic energy.  ¹⁴

Based on the 2022 Census data ¹⁵ indicating 4.2 million houses, this  2.01% percentage suggests an estimated 84,420 houses have access to solar energy.

¹⁶¹⁷

 Installed: Global Energy Monitor estimated that 9 solar PV plants were operational in Saudi Arabia until December 2023.

Projected: Global Energy Monitor estimated that 17 solar PV farms were under construction 4 were in the pre-construction phase and 3 more were announced to build in Saudi Arabia until December 2023.

Current: Data related to Total off-grid PV installations installation in Saudi Arabia is not available.

Projected: Sungrow partners with Larsen & Toubro to supply 165MW of PV inverters and 160MW/760MWh for an off-grid energy storage system for Saudi Arabia’s AMAALA project. ¹⁸

Current: IRENA estimated that the Total On-grid Solar Capacity installed in Saudi Arabia was 2.5 GW in 2023.⁸

Projected: Under the Vision 2030, Saudi Arabia aims to produce 40 GW of On-Grid electricity through photovoltaics by 2030.⁹

• The average monthly salary of a photovoltaic installer in Saudi Arabia is 2,606 USD.¹⁹
• The average monthly salary of a Solar Energy Systems Engineer in Saudi Arabia is 4,226 USD. ²⁰

As of Monday, December 30, 2024, Saudi Arabia has a population of 34,261,080. Saudi Arabia’s Population density is 16 people per kilometer square.²¹

Estimate for Factory Rent: The average monthly rent for a warehouse in Saudi Arabia is 6.31 USD /m²/month. ²²

Industrial Electricity Rates: ²³

• For industries having consumption of less than 6000 kWh, average electricity Tariffs are 0.0405 USD/ kWh.
• For industries categorized under heavy consumption, average electricity tariffs are 0.0486 USD /kWh.

Water Costs: ²⁴

The average prices for different types of water for industries are as follows:

• Drinking water: $1.74/m³
• Renewable water: $0.74/m³
• Wastewater: $0.86/m³

Key Components of Administrative Costs

Salaries and Wages:

• The average monthly salary of a photovoltaic installer in Saudi Arabia is 2,606 USD.¹⁹
• The average monthly salary of a Solar Energy Systems Engineer in Saudi Arabia is 4,226 USD. ²⁰

Rent for Office Space: The average monthly rent for an office space in Saudi Arabia is 96 USD /m²/month.²⁵

Insurance:  Statista estimated that In 2024, the average person spends about US$500 on insurance in Saudi Arabia. ²⁶

⁴

• Total installed electricity generation capacity: 91.678 GW in 2023. ⁸
• Total generation: 422.9 TWh in 2023.
• Per capita Electricity Generation: 11,445 kWh in 2023.
• Generation mix:

The total electricity production in Saudi Arabia in 2023 was 422.87 TWh, with gas contributing the largest share at 265.04 TWh (62.68%), followed by oil at 152.05 TWh (35.96%). Solar energy provides a modest 4.32 TWh (1.02%), while wind accounts for 1.45 TWh (0.34%).

Source	Energy (TWh)	Percentage (%)
Gas	265.04	62.68%
Oil	152.05	35.96%
Solar	4.32	1.02%
Wind	1.45	0.34%

Leading players: The electricity sector in Saudi Arabia is dominated by several key players, each contributing significantly to the country’s power infrastructure and energy transition. 

State-Owned Utilities:

• Saudi Electricity Company (SEC): Controls Generation, Transmission and Distribution of electricity. ²⁷
• Saudi Power Procurement Company (SPPC): Power Procurement from IPPs. ²⁸

Key Regulators and Procurement: The Water & Electricity Regulatory Authority (WERA) regulates the sector, and Saudi Power Procurement Company (SPPC) is now the principal buyer of electricity, including independent producers. ²⁹

Transmission & Distribution

The electricity transmission network of the Kingdom of Saudi Arabia spans 95,132 circuit kilometers of lines, encompassing 1,233 substations and 3,940 transformers. ³⁰

The transmission network grew at a CAGR of 2.7% between 2018 and 2022, with significant growth at the 230 kV and 380 kV levels. ³¹

Regional Connections ³¹³²

Saudi Arabia is actively pursuing electricity transmission ties with neighboring countries:

• GCC Interconnection: Connected since 2012 through a power grid managed by the Gulf Cooperation Council Interconnection Authority (GCCIA)
• Egypt Interconnector: A 3 GW HVDC link project is underway, involving the construction of converter stations and transmission lines
• Other Planned Connections: Projects are in various stages of planning and development with countries like Iraq, India, and Jordan.

Major power plants

Saudi Arabia’s energy mix remains heavily reliant on fossil fuels. Oil accounts for 47,204.71 MW (51.49%) of the total installed electricity capacity.⁸

Thermal Power Plants:

The top 5 thermal power plants operating in Saudi Arabia are as follows: ³³

Shoaiba Power Plant

• Location: Makkah
• Capacity: 5,600 MW
• Commissioned: 2012
• Ownership: Saudi Electricity Company (SEC)

Ghazlan Power Plant

• Location: Eastern Province
• Capacity: 4,128 MW
• Commissioned: 1980
• Ownership: Saudi Electricity Company (SEC)

Qurayyah IPP Power Project

• Location: Eastern Province
• Capacity: 3,927 MW
• Commissioned: 2014
• Ownership: Jointly owned by MENA Infrastructure Fund, Samsung C&T, Saudi Electricity Company, and ACWA Power

Jazan Refinery IGCC Power Plant

• Location: Jazan
• Capacity: 3,800 MW
• Commissioned: 2020
• Ownership: Developed by a consortium including Saudi Arabian Oil Company and Air Products and Chemicals

Qurayyah Combined Cycle Power Plant

• Location: Qurayyah
• Capacity: 3,230 MW
• Commissioned: 2013
• Ownership: Saudi Electricity Company (SEC)

Nuclear Energy: ³⁴

World Nuclear News reported that Saudi Arabia has established the Nuclear Energy Holding Company to act as the country’s nuclear developer. Saudi Arabia initially plans to build two 1.4 GW nuclear reactors to increase nuclear capacity to 17 GW by 2040.

Renewable Energy sources

Saudi Arabia is investing in wind and solar energy due to their abundance in the Kingdom.

Wind energy

Dumat Al Jandal Wind Farm: ³⁵

Dumat Al Jandal is the first and largest wind farm in Saudi Arabia, located in the Al Jouf region, approximately 900 km north of Riyadh.

• Capacity: 400 MW
• Turbines: 99 Vestas V150-4.2 MW turbines
• Investment: Approximately $500 million
• Operational Since: Full-scale operations began in 2022, with initial power generation starting in August 2021

Future Wind Projects ³⁶

These future wind projects are part of a broader strategy to achieve a total of 16 GW from wind energy by 2030, contributing to a target of 50% renewable energy.

• Yanbu Wind Farm: Planned capacity of 700 MW, located in Al Madinah.
• Al-Ghat Wind Farm: Proposed capacity of 600 MW, situated in Riyadh.
• Waad Al Shamal Wind Farm: Expected capacity of 500 MW, located in the Northern Borders region.

SASO (Saudi Standards, Metrology and Quality Organization) Certification: ³⁷³⁸

• Mandatory for all solar panels imported or manufactured in Saudi Arabia to obtain certification from SASO.
• The regulatory framework references IEC standards, including IEC 61215, IEC 61646, and IEC 61730-1/2
• Compliance with ISO 9000 and ISO 14001 standards is also required for PV module certification.
• The SASO mandates the use of the PQ Mark for solar panels to demonstrate compliance with Saudi Arabian standards and ensure product quality and safety.

• Saudi Arabia is heavily investing in solar energy as part of its Vision 2030 plan to diversify its economy and reduce its reliance on fossil fuels. ³⁹
• The National Renewable Energy Program (NREP) is a key driver of solar energy development in Saudi Arabia. It has launched several large-scale solar projects
• The Ministry of Industry and Mineral Resources announced tax exemptions and other facilities for companies involved in the production of electricity and renewable energy. ⁴⁰
• In November 2024, Desert Technologies announced a $200 million investment in a new solar panel manufacturing plant in Jeddah. ⁴¹
• The Saudi Public Investment Fund (PIF) is heavily involved in funding solar projects in the kingdom. ⁴²

Sudair Solar PV Project: ⁴³

• Location: Sudair Industrial City.
• Capacity: 1,500 MW.
• Significance: Will provide electricity to about 185,000 households including.
• Commissioned: partially commissioned in 2023.

Sakaka Solar PV Park

• Capacity: 405 MW
• Location: Al Jouf
• Commissioned: 2020
• Significance: This was the first utility-scale renewable project under the National Renewable Energy Program (NREP) and has achieved a levelized cost of energy at $0.023 per kWh, providing power for approximately 55,000 homes.

Rabigh Solar PV Park

• Capacity: 400 MW
• Location: Makkah
• Commissioned: 2023
• Impact: Expected to power over 45,000 households, this project was developed through a partnership between Marubeni and Al Jomaih Energy and Water.

Jubail 3A IWP Solar PV Park

• Capacity: 45.75 MW
• Location: Eastern Province
• Commissioned: 2023
• Functionality: Primarily a water desalination plant, it meets about 20% of its energy needs through solar power.

Haradh Solar PV Park

• Capacity: 30 MW
• Location: Eastern Province
• Commissioned: 2021
• Environmental Benefit: Offsets approximately 53,000 tons of CO2 emissions annually.

Al Kharj Solar PV Park

• Capacity: 15 MW
• Location: Al Riyadh
• Commissioned: 2019.

Projected Solar Projects:

The top 7 solar projects that will contribute to Saudi Arabia’s goal of achieving 58.7 GW of renewable energy capacity by 2030 are as follows: ⁴⁴

Ar Rass II Solar Power Plant

• Location: Al-Qassim
• Capacity: 2 GW
• Stage: Planning Estimated Cost: 2 Billion USD
• Investors: PIF (Public Investment Fund), Badeel, and ACWA Power
• Developer: ACWA Power Company
• Technology: Ground-mounted solar farm
• Expected Start of Construction: 2025
• Expected Commercial Operation: 2026
• Power Purchase Agreement: 25-year PPA with Saudi Power Procurement Company (SPPC)

Al Sadawi IPP Solar Power Plant

• Location: Al Sadawi, Easter Province
• Capacity: 2 GW
• Stage: Pre-qualification/Pretender
• Cost: 3 Billion USD
• Developer: Saudi Renewable Energy Company (SREC)
• Technology: Monocrystalline PV panels covering 500 hectares
• Expected Start of Construction: 2024
• Expected Commercial Operation: 2025
• Power Purchase Agreement: 25-year PPA with Saudi Electricity Company (SEC)

Saad II Solar Power Plant

• Location: Saad, Central Province
• Capacity: 1.12 GW
• Stage: Planning
• Estimated Cost: 1.5 Billion USD
• Developer: ACWA Power
• Technology: Ground-mounted solar PV project
• Expected Start of Construction: 2025
• Expected Commercial Operation: 2026

Al Masa’a IPP Solar Power Plant

• Location: Hail Province, Riyadh
• Capacity: 1 GW
• Stage: Pre-qualification/Pre-tender
• Estimated Cost: 1.5 Billion USD
• Developer: Saudi Power Procurement Company (SPPC)
• Technology: Bifacial solar technology
• Expected Start of Construction: 2025
• Expected Commercial Operation: 2026

Al Henakiyah 2 Solar Power Plant

• Location: Al Henakiyah region, Madinah Province
• Capacity: 400 MW
• Stage: Pre-qualification/Pre-tender
• Estimated: 6 Billion USD
• Developer: Saudi Gulf Projects
• Technology: Ground-mounted solar PV project
• Expected of Construction: 2025
• Expected Commercial Operation: 2027
• Bidders: JinkoSolar Holding Co. LtCanadian Inc., First Solar Inc., Sunrun Inc., and Enphase Energy Inc.

Tabarjal Solar Power Plant

• Location: Al-Jouf Province
• Capacity: 400 MW
• Stage: Planning
• Estimated Cost: 520 million USD
• Developer: Jinko Power Technology, Ltd
• Technology: Bifacial solar panel technology
• Start of Construction: 2025 Expected Commercial Operation: 2026
• Power Purchase Agreement: 25-year PPA with Saudi Power Proc Company (SPPC)

Amaala Solar Power Plant

• Location: Red Sea Coast
• Capacity: 250 MW
• Stage: Contract award
• Estimated Cost: 375 million USD
• Developer: EDF and Masdar consortium
• Technology: Solar power plant with 700 MWh battery storage system
• Expected Commercial Operation: 2026

ACWA Power:

ACWA Power is a Saudi Arabian company that develops, constructs and operates power generation and desalination, including solar power plants. They have a portfolio of 30 GW of power capacity globally.

Website: www.acwapower.com

Saudi Aramco Energy Ventures

Saudi Aramco Energy Ventures is a subsidiary of Saudi Aramco, the state-owned oil company of Saudi Arabia. They invest in and partner with companies that develop innovative energy technologies, including solar energy. Some of their achievements include:

• Investing in several solar energy startups and companies, including SunPower and Glass Point Solar.
• Partnering with the National Renewable Energy Laboratory (NREL) to develop new solar energy technologies.

Website: www.saudiaramcoventures.com

SunPower

SunPower is a global solar energy company that designs, manufactures, and delivers solar panels and solar power systems. They have a presence in Saudi Arabia, providing solar solutions for residential, commercial, and utility-scale projects. Some of their notable achievements include:

• Holding the record for the highest efficiency solar panel on the market, with an efficiency rate of 24.1%
• Partnering with the Saudi Ministry of Energy to develop the 200 MW Sakaka solar project, one of the largest solar projects in Saudi Arabia.

Website: www.sunpower.com

Trina Solar

Trina Solar is a Chinese solar panel manufacturer with a global presence, including in Saudi Arabia. They design, manufacture, and deliver solar panels and solar power systems for residential, commercial, and utility-scale projects. Some of their notable achievements include:

• Partnering with the Saudi Ministry of Energy to develop the 300 MW Rabigh solar project, one of the largest solar projects in Saudi Arabia.

Website: www.trinasolar.com

Jinko Solar

Jinko Solar is a Chinese solar panel manufacturer with a global presence, including in Saudi Arabia. They design, manufacture, and deliver solar panels and solar power systems for residential, commercial, and utility-scale projects. Some of their notable achievements include:

• Partnering with the Saudi Ministry of Energy to develop the 400 MW Jeddah solar project, one of the largest solar projects in Saudi Arabia.

Website: www.jinkosolar.com

Desert Technologies

Desert Technologies is a Saudi Arabian company that specializes in the design, installation, and maintenance of solar power systems for residential, commercial, and industrial clients. Some of their notable achievements include:

• Installing over 10 MW of solar power systems in Saudi Arabia.
• Providing solar solutions for several high-profile clients, including the Saudi Ministry of Energy and the King Abdullah University of Science and Technology.
• Partnering with the Saudi Ministry of Energy to develop the 5 MW KAUST solar project, one of the largest solar projects in Saudi Arabia.

Website: www.desert-technologies.com

Alfanar

Alfanar is a Saudi Arabian company that provides engineering, procurement, and construction (EPC) services for solar power projects, in addition to manufacturing solar panels and other renewable energy solutions. Some of their notable achievements include:

• Completing several large-scale solar projects in Saudi Arabia, including a 10 MW solar farm in Riyadh.
• Partnering with the Saudi Ministry of Energy to develop the 50 MW Qurrayyah solar project, one of the largest solar projects in Saudi Arabia.

Website: www.alfanar.com

NESMA Renewables

NESMA Develops, finances, constructs, owns, and operates renewable energy projects, with a focus on solar PV and wind power.

Website: https://nesmarenewables.com/