Initiated in 2016, Saudi Arabia’s Vision 2030 represented a major strategic turning point to reduce the kingdom’s dependence on oil by diversifying its economy and, in particular, its energy mix. Initially, the plan called for the deployment of 9.5 GW of renewable energy by 2030. However, in view of the growing demand for energy and the imperatives of sustainable development, the target has been significantly revised to 130 GW by 2023. This ambitious revision reflects not only a desire for energy transition, but also alignment with global targets for reducing carbon emissions.
Current development of renewable capacities
By the end of 2023, Saudi Arabia already had more than 8 GW of renewable energy projects under construction. This rapid development is the direct result of several projects awarded via competitive auctions over the past eighteen months. In addition, a further 13 GW are under development, marking significant progress towards the new targets. These projects cover a range of technologies, including solar photovoltaics and wind power, with solar power predominating due to the region’s abundant sunshine.
Accelerating growth in renewable capacity
According to GlobalData, since 2022, Saudi Arabia has added 2.1 GW of renewable capacity, a 300% increase on the cumulative addition of 700 MW during the previous decade. This acceleration is partly due to the kingdom’s goal of achieving carbon neutrality by 2060, requiring the annual addition of 20 GW of renewable capacity to reach 130 GW by 2030. This strategy is supported by increased investment in renewable technologies and a strong government policy encouraging private and international investment.
Impacts and long-term forecasts
Between 2015 and 2023, renewable power capacity in Saudi Arabia grew at a compound annual growth rate (CAGR) of 82.4%, from 0.02 GW to 3 GW. This impressive rate is set to continue with a CAGR of 40.1% between 2023 and 2030, reaching a planned capacity of 31.5 GW in 2030 and an estimated 63.1 GW in 2035. The continued efforts of political decision-makers and the strict implementation of policies give the kingdom a good chance of meeting or even exceeding its targets.
Saudi Arabia’s commitment to renewable energy is more robust than ever, with significant progress being made towards the ambitious target of 130 GW of renewable capacity by 2030. By aligning its energy policies with its environmental and sustainable development objectives, the kingdom is positioning itself not only as a regional but also as a global leader in the energy transition.
