Saudi Arabia Renewable Energy Market Size (2024 - 2029)

Saudi Arabia Renewable Energy Market Analysis

The Saudi Arabia Renewable Energy Market size is estimated at 8.33 gigawatt in 2024, and is expected to reach 23.74 gigawatt by 2029, growing at a CAGR of 23.30% during the forecast period (2024-2029).

Over the medium term, factors such as favorable government policies for the renewable energy sector are expected to drive the market.

On the other hand, as electricity demand proliferates, Saudi Arabia is likely to upgrade its energy production capabilities. As the country phases out older and more polluting diesel-fired generators, natural gas provides the perfect alternative for power generation. Due to this, as a part of Vision 2030, natural gas is expected to account for nearly 50% of the primary energy mix. Hence, the rising consumption of natural gas is expected to be a major factor restraining the growth of the country's renewable energy market.

Nevertheless, Saudi Arabia does not have a domestic power generation company with expertise in the renewable energy sector, but it has a very large potential for solar power generation. The privatization of the power industry has allowed foreign companies, particularly from China and Europe, who have substantial experience with solar energy, to develop solar power plants, hence creating ample opportunities for the market players in Saudi Arabia.

Saudi Arabia Renewable Energy Industry Segmentation

Renewable energy is the energy collected from renewable resources such as sunlight, wind, the movement of water, and geothermal heat that are naturally replenished.

Saudi Arabia's renewable energy market is segmented by type. By type, the market is segmented into solar, wind, and other types (hydro, biomass, etc.). For each segment, the market sizing and forecasts are done based on installed capacity (GW).