The Saudi renewable energy sector’s promising future is built on a robust regulatory framework that coincides with initiatives that will allow it to flourish over the long-term. The creation of the NREP and the implementation of initiatives under the REPDO has provided needed clarity for domestic and international players, U.S.-Saudi Business Council stated.
The ambitious plans by the government to grow its renewable energy mix will be spearheaded by multiple entities. As previously mentioned, the NREP through REPDO will deliver on the Kingdom’s broad Vision 2030 objectives. Additional entities that will be instrumental to the success of the sector include the King Abdullah City for Atomic and Renewable Energy (KA-Care), ECRA, and the Saudi Electricity Company
(SEC). These entities will work together to advance the Kingdom’s renewable energy research, measurement, data acquisition, regulation, predevelopment, and tendering. Furthermore, this past April witnessed the launch of the Supreme Committee for Energy Mix Affairs, for Electricity Production and Enabling Renewable Energy. The committee, headed by H.R.H. Prince Mohammed bin Salman, is responsible for coordinating renewable project execution between government sectors, streamlining the
pre-construction phases of such projects to expedite the development of the Kingdom’s ambitious 9.4GW renewables target for 2024.
Many initiatives have already begun and projects already under execution, the Kingdom faces challenges in meeting its short to medium-term goals. According to IRENA’s Renewable Capacity Statistics 2020 report, Saudi Arabia renewable energy capacity has grown from 2 MW in 2010 to 397MW
in 2019.
In order to achieve it medium to long-term renewable energy objectives, the Kingdom must prioritize the sector within its budgetary planning and allow for continued foreign investment attraction.
According to their estimates, Saudi Arabia’s total renewable energy capacity will grow to 5.3 GW by 2030, accounting for 7 percent of the Kingdom’s total electricity output of 102 GW. Solar power is forecasted to account for 77 percent of all renewables by 2030.
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