Saudi Arabia’s Clean Energy Goals

Saudi Arabia is expanding its clean energy portfolio and this shift is turning into the core focus of its long-term energy strategy to diversify resources beyond oil, thus adding to the revenue line.

The kingdom is among the world’s top 10 investors in renewable energy for the first time in 2025 as it pushes ahead with plans to expand the share of renewables to 50% of its total energy use. Investments in renewable energy projects in this largest Arab economy leapt by nearly 70% year-on-year to peak at around $34 billion in 2025.

Saudi Arabia Renewable Energy market size in 2026 is estimated at 15.06 GW, with 2031 projections showing 75.68 GW, growing at 38.12% CAGR over 2026-2031, according to the Mordor Intelligence report. This highlights the kingdom’s fastest-growing power segment and underscores its Vision 2030 decarbonization goals.

The kingdom's National Renewable Energy Programme (NREP) is driving this transition forward through multi-gigawatt solar and wind independent power producer (IPP) projects. Programs are split between the Ministry of Energy, the Renewable Energy Project Development Office, and the Public Investment Fund, with the Saudi Power Procurement Company (SPPC) acting as the principal off-taker.

The country’s operated renewable energy capacity increased 88% to 12,313 MW by the end of 2025, following the addition of five new solar energy projects during the year, according to the Renewable Energy Statistics 2025 report released by the General Authority for Statistics (GASTAT).

The SPPC plans to award approximately 14 GW of new renewable energy capacity this year. By the end of 2025, Saudi Arabia had tendered a cumulative 64 GW of renewable capacity, with 20.6 GW tendered in 2025 alone.

Saudi Arabia is implementing renewable with battery storage as a core element of grid upgrades and operational reliability, particularly to stabilize renewable-heavy networks. The kingdom targets 48 GWh by 2030. Battery energy storage projects totalling 30 GWh are in the pipeline, with 8 GWh already connected.

The Bisha project is the largest single-phase battery energy storage system in the world at 2.6 GWh. The world’s largest Red Sea Global’s 1.2 GWh off-grid battery system powers the luxury resort complex entirely from renewable energy with battery backup.

Saudi Arabia is investing billions of dollars in green hydrogen with its rapidly growing use in shipping fuel, industrial feedstock, power storage, and the decarbonization of heavy industry. The kingdom aims to produce 1.2 million tons of green hydrogen derivatives annually and supply up to 10% of global demand by 2030.

The $8.4 billion NEOM Green Hydrogen Project, commercial operations targeted for 2027, is one of the world’s largest green hydrogen production facilities. The project combines 2.2 GW of solar and 1.6 GW of wind with an electrolysis package that will produce 600 tonnes of green hydrogen daily, converted into green ammonia for export.

It is worth noting how the kingdom is building an industrial ecosystem in clean energy and positioning itself as a potential leader in the global energy transition.

Editor