The Kingdom of Saudi Arabia is on track to fulfill its ambitious objective of reaching 130 gigawatts in renewable energy capacity by the year 2030, provided that it continues to fortify its green initiatives and secure their rigorous execution, as indicated by a recent analysis.
A study by analytics firm GlobalData reveals that Saudi Arabia’s renewable energy sector is picking up speed, with the nation’s focus sharpened on a future-proof and resilient power supply.
The country has made commendable progress in its quest for sustainability, successfully integrating an additional 2.1 GW to its renewable energy capacity since 2022.
Introduced in 2016, the Saudi Arabia Vision 2030 initially aimed for 9.5 GW of green energy by 2030. Following several updates, the most recent in 2023, the target has been escalated to 130 GW,
GlobalData stated.
The report suggests that with reinforced policies, ongoing competitive bidding processes, and other financial strategies, achieving the 2030 renewable energy target is within the Kingdom’s reach.
Saudi Arabia’s abundant solar and wind resources are identified as the primary technologies to drive the nation’s renewable energy expansion in the future.
From 2015 to 2023, Saudi Arabia’s renewable power capacity surged at a compound annual growth rate of 82.4 percent, escalating from 0.02 GW to 3 GW, according to GlobalData’s findings.
In 2023, the vast majority of the Kingdom’s green power, 82.6 percent, was generated from solar energy, with onshore wind energy contributing nearly 14.1 percent, and thermal energy comprising a 3.1 percent share.
The proportion of renewable power in Saudi Arabia’s total energy mix is projected to leap from 3.2 percent in 2023 to 35.4 percent by 2035.
With diligent efforts from policymakers and stringent policy enforcement, the Kingdom stands a solid chance of nearly meeting its established goal. The anticipated trajectory suggests an addition of over 20 GW annually, marking the target as achievable,
detailed the report.
At the Future Minerals Forum in January, Faisal Al-Ibrahim, the Saudi Minister of Economy and Planning, voiced his optimism regarding the Kingdom sourcing half of its energy from renewables by 2030.
This is the time to try to think sustainably and environmentally without affecting certain local communities,
remarked the minister.
As per a March report by the International Renewable Energy Agency, the Middle East’s renewable energy capacity hit 35.54 GW by the end of 2023, with Saudi Arabia contributing 2.68 GW to this total.
In the same vein, the Kingdom unveiled the Green Finance Framework in March, aiming to bolster public and private stakeholder engagement in climate finance.
This initiative, launched by the Ministry of Finance, is anticipated to aid Saudi Arabia in reaching its net-zero ambitions by 2060 and in minimizing emissions through a circular carbon economy, as reported by the Saudi Press Agency.