Saudi Arabia Renewable Energy Market Analysis and Investment Opportunities, 2025-2034: Private-Sector Involvement Fuels Saudi Renewable Energy Growth - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Saudi Arabia Renewable Energy Market Growth Analysis - Market Size, Share, Forecast Trends and Outlook Report (2025-2034)" has been added to ResearchAndMarkets.com's offering.

The Saudi Arabia renewable energy market, initially sized at 1.55 Gigawatt in 2024, is expected to expand significantly, reaching a volume of 59.42 Gigawatt by 2034. This 44% CAGR is primarily driven by increased public-private partnerships (PPPs) boosting foreign investment and large-scale implementation of solar, wind, and hydrogen projects. Moreover, initiatives like Saudi Vision 2030 aim for a 50% power production from renewable resources by 2030, diversifying away from oil dependency.

Key drivers for this market growth include Saudi Arabia's considerable solar and wind resources, an advantageous geographic position, and robust government-backed green initiatives, exemplified by the NEOM City and Al-Faisaliah Solar Plant projects. The country's dedication to green energy is further evidenced in ventures like the NEOM Green Hydrogen Project, which leverages local resources to produce cleaner energy solutions.

Key Market Trends and Developments

Significant market trends include the advancement of energy storage technologies and smart grid implementation, along with private and international cooperation. Saudi Arabia is emerging as a global leader in green hydrogen, fostering new opportunities through projects like the NEOM Green Hydrogen Project by ACWA Power and Air Products. The drive towards solar power investments is underscored by key projects like the Sakaka PV Solar Plant, which aims to harness the region's abundant sunlight.

Recent Highlights

In December 2024, new solar projects such as Ar Rass II, Al Sadawai IPP, and Amaala were initiated under Saudi Vision 2030. Additionally, a 25-year PPA was signed for the Rabigh 2 solar power project. ACWA Power's investment in Uzbekistan's energy transition underscores the regional expansion capability. As of December 2023, Saudi Arabia reported a 300% rise in renewable capacity since the Saudi Green Initiative began.

Challenges and Restraints:

• High initial investments for infrastructure like solar farms and wind turbines pose financial barriers.
• Intermittency of solar and wind energy demands advanced energy storage solutions and grid stability measures.
• Evolving policy frameworks could affect long-term investment confidence.

Despite these challenges, the market is buoyed by plunging technology costs and government incentives, aiding the Kingdom's transformation to a leader in solar and wind energy. By investing in large-scale projects such as the Dumat Al Jandal wind farm and through partnerships with firms like Siemens Gamesa and First Solar, Saudi Arabia is poised to further strengthen its renewable energy sector.

Industry Overview

The sector is characterized by a mix of market leaders, including ACWA Power and EDF RE Group, and innovative startups focusing on cutting-edge solutions in energy storage and efficiency. Opportunities abound in grid stabilization through energy storage technologies and novel solutions for desalination plants using renewable power, indicating a promising trajectory for sectoral growth and sustainability.

Companies Featured:

• JinkoSolar Holding Co. Ltd.
• EDF RE Group
• Engie SA
• ACWA Power
• Alfanar Group
• The Abu Dhabi National Energy Company, PJSC (Masdar)
• Mowah Company
• Solar Arabia Limited
• Abdul Latif Jameel IPR Company Limited
• Aljoaib Holdings
• Enar Renewables

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