Saudi Arabia, traditionally associated with oil production, is rapidly transitioning to solar energy, marking a significant shift towards renewable energy. The Kingdom aims to meet 50% of its electricity needs through renewable sources by 2030, with solar power playing a central role in this transformation.
This shift is driven by both environmental considerations and economic factors. Solar energy, once expensive, has now become one of the cheapest and quickest energy sources to deploy, making it an appealing option for Saudi Arabia’s growing electricity demand.
The Wall Street Journal reported that Key projects like the 1.5GW Sudair Solar Project, spearheaded by ACWA Power, are transforming the country’s energy landscape. By 2024, Saudi Arabia’s solar capacity rose to 4,340 MW from 2,585 MW in 2023, with numerous other projects under construction. Major global players such as TotalEnergies and EDF are involved, while ACWA Power and Aramco Power’s $8.3 billion initiative will deliver 15GW of solar and wind power.
Saudi Arabia has set an ambitious target of 130GW of renewable energy capacity by 2030, with a mix of solar and wind. This aligns with the Kingdom’s Vision 2030, which focuses on economic diversification. The falling cost of solar panels, especially from China, has made solar energy economically attractive, further supported by record-low auction prices. This shift aims to reduce reliance on oil for electricity generation, saving Saudi Arabia an estimated $20 billion annually in lost export revenue.
Despite challenges such as extreme desert heat and dust, which affect panel efficiency, Saudi Arabia is committed to this energy transformation. The government is funding large-scale projects, enacting supportive policies, and fostering public-private partnerships, ensuring that solar is central to its energy future.
This transformation marks Saudi Arabia’s pivot from being the world’s oil capital to becoming a global leader in solar energy, with the aim of reshaping the region’s energy dynamics.
