By 2025, Saudi Arabia had installed around 13 GW of renewable energy capacity; GlobalData estimates it could reach about 74.2 GW by 2030
To meet the 130 GW target under Vision 2030, it would need to add more than 23 GW annually
Rising power demand, reliance on thermal generation, and regional geopolitical risks could affect investment decisions, according to the analysts
GlobalData says Saudi Arabia’s total renewable energy capacity is expected to reach about 74.2 GW by 2030. This would fall short of the 130 GW target set under Saudi Vision 2030, with only around 13 GW installed by 2025. By 2040, the country aims for solar and nuclear power to account for more than half of its power supply.
To achieve the 130 GW target, GlobalData analysts believe Saudi Arabia will need to install more than 23 GW annually. In comparison, the General Authority for Statistics counted 3.75 GW of new solar PV capacity addition in 2024 (see Saudi Arabia Installed 3.75 GW New Solar Capacity In 2024).
While Saudi Arabia is self-sufficient in meeting its electricity requirements with its large oil reserves, which it also exports, GlobalData points out that it is unable to export natural gas since all of it is required internally.
Rising electricity demand in Saudi Arabia, driven by economic growth and population expansion, has increased the country’s reliance on oil for power generation. The country’s water desalination plants require a large amount of electricity, produced by burning oil. This leaves less oil for export, which is a key source of national revenue.
To address this challenge, the government has been working to increase the share of non-oil energy sources in its power mix, explains GlobalData Power Analyst Attaurrahman Ojindaram Saibasan. Yet the efforts need more push, he stressed.
In October 2025, the country concluded Phase 6 of the National Renewable Energy Program (NREP) auction round, awarding 4.5 GW of solar and wind energy capacity. It also launched Round 7 for 5.3 GW capacity (see Saudi Arabia Awards 4.5 GW Wind & Solar PV Capacity).
Analysts believe that, given its strategic geographic position, solar energy can be an asset. Under Vision 2030, Saudi Arabia targets adding 12 GW of solar PV and 3 GW of wind energy by 2028; however, investor interest is much higher. In July 2025, its Saudi Power Procurement Company (SPPC) signed 7 new power purchase agreements (PPAs) for 15 GW capacity, including 12 GW of solar PV (see SPPC Inks 15 GW Renewable Energy Deals In Saudi Arabia).
“Despite having support mechanisms such as net metering and renewable auctions, the country has not done enough to bolster its renewable capacity in line with its targets,” adds Saibasan. “Although the auctions have been fairly successful, the government needs to focus on establishing more purchase power agreements (PPAs) for large-scale renewable power plants.”
Saibasan said the country’s heavy dependence on thermal power has slowed the growth of renewable energy despite having strong financial resources. The planned conversion of the cancelled NEOM project into an AI and data center hub could significantly increase electricity demand and support renewable power projects.
“However, the escalation of war in the Middle East may become a key challenge for making investment decisions. Policy makers need to overcome this challenge in order to achieve the country’s renewable target,” added Saibasan.
In a 2024 analysis, Goldman Sachs had said that Saudi Arabia is expected to allocate $235 billion in funding by 2030 to boost its clean energy sector as it pursues economic diversification away from oil. It said the government has raised the solar energy target for 2030 from 58.7 GW to between 100 GW and 130 GW (see Saudi Arabia Expected To Invest $235 Billion CapEx In Clean Energy By 2030).