Saudi Arabia has sharply accelerated its energy transition in 2025 by contracting a record 24.4 gigawatts (GW) of new power capacity. According to the Saudi Power Procurement Company (SPPC), the Kingdom signed 15 power purchase agreements (PPAs) during the year, covering a mix of gas-fired and renewable energy projects. The large-scale procurement reflects the country’s push to strengthen energy security while expanding clean power generation.
The new agreements include major combined-cycle gas turbine plants as well as solar and wind projects. Among the key projects is the Hajar gas-fired plant, which will add significant capacity to the national grid. On the renewable side, two large solar photovoltaic projects, Humaij and Bisha, each with a capacity of 3,000 megawatts (MW), stand out as flagship developments. These projects are among the largest solar installations contracted in the region.
Wind energy also recorded strong growth in 2025. The 2,000 MW Starah wind project and the 1,500 MW Dawadmi wind project were awarded during the year. The Dawadmi project achieved a levelized tariff of $0.0133 per kilowatt-hour, which SPPC described as a new global benchmark for low-cost wind power generation. The record-low tariff highlights the Kingdom’s ability to attract competitive bids and reduce renewable energy costs.
In addition to these large projects, several other multi-gigawatt solar plants were secured. These include the Khulis solar project and the twin Afif plants. Smaller projects in Yanbu, Samtah, and Ad Darb were also contracted, ensuring that new power infrastructure is spread across different regions of the country. This broad geographic distribution supports grid stability and regional development.
By the end of 2025, Saudi Arabia had tendered a cumulative 64 GW of renewable energy capacity. The expansion is part of the Ministry of Energy’s Vision 2030 strategy, which aims to have renewable sources account for 50% of the country’s electricity generation mix by the end of the decade.
The rapid addition of both gas and renewable capacity shows a balanced approach. High-efficiency gas plants are being developed alongside large solar and wind projects to ensure reliable power supply. At the same time, the Kingdom is reducing its dependence on liquid fuels and moving toward a more diversified and environmentally friendly energy mix. Through these large-scale investments, Saudi Arabia is strengthening its position in the global energy transition while meeting the rising electricity demand of its growing economy.
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