Saudi Arabia’s Renewable Energy Investment Reaches SAR 36.11 Billion As Capacity Surges 88%

Saudi Arabia significantly expanded its renewable energy infrastructure in 2025, with cumulative investment in operational renewable energy projects reaching SAR 36.11 billion ($9.64 billion) by the end of the year. According to data from the General Authority for Statistics (GASTAT), the Kingdom recorded strong growth in clean power capacity as new projects received major investments and entered commercial operation.

Projects commissioned during 2025 alone accounted for SAR 16.27 billion of the total investment, representing around 45 percent of cumulative spending on operational renewable energy projects. By the end of 2025, Saudi Arabia had 15 renewable energy developments in operation.

These projects increased the Kingdom’s total installed renewable energy capacity to 12,313 MW, marking an 88 percent rise from 2024 levels. Solar power was the main driver of this growth, with five major solar projects commissioned during the year adding a combined 5,762 MW to the national grid.

Several large-scale projects accounted for significant portions of the investment. The Al-Rass 2 project attracted the highest investment among operational renewable developments, with capital spending of SAR 5.52 billion. It was followed by the Al-Kahfa project, which received SAR 4.06 billion in investment.

GASTAT’s data also highlighted the cost competitiveness of the Kingdom’s renewable energy expansion. The weighted average production cost across operational renewable energy projects was reported at 6.60 Saudi halalas per kilowatt-hour. This reflects the growing role of large-scale renewable projects in providing cost-effective electricity as Saudi Arabia continues to diversify its energy mix.

The expansion is also increasing the reach of clean electricity across the country. According to GASTAT, the operational renewable energy projects are now capable of supplying electricity to approximately 2.1 million homes.

The rapid increase in renewable capacity and investment demonstrates Saudi Arabia’s accelerating energy transition. The commissioning of major solar projects during 2025 has significantly strengthened the Kingdom’s clean power infrastructure, while billions of riyals in investment are supporting the development of a more diversified and sustainable electricity system.

With additional renewable energy projects expected to come online in the coming years, Saudi Arabia is continuing to build momentum toward its long-term clean energy and sustainability objectives.