The National Renewable Energy Program (NREP) is a program that aims to maximize and improve the share of renewable energy sources in the Kingdom of Saudi Arabia by increasing
With utilities and renewables one of PIF''s 13 strategic sectors, the Fund is focused on unlocking the capabilities of promising sectors and enabling the private sector to enhance
In November 2022, ACWA Power and the Water and Electricity Holding Company (Badeel) entered into an agreement to construct the world''s largest single-site solar power plant in Al
Although the Saudi government aims to source half of its energy from renewables by 2030, experts say the most immediate driver of commercial solar investment is the 2018
Saudi Arabia''s big businesses are embracing solar power as they seek to save on energy costs after the government eliminated electricity subsidies in the world''s largest oil
With utilities and renewables one of PIF''s 13 strategic sectors, the Fund is focused on unlocking the capabilities of promising sectors and enabling the private sector to enhance
The demand for Chinese photovoltaic products is rising as Saudi Arabia accelerates its energy transition. Despite the benefits of decreasing solar costs, experts
OverviewSolar projectsHistoryTypes of solar powerGovernment policyPublic responseFuture
• The Sakaka solar plant is located in Sakaka City, Saudi Arabia. Construction on the project began in November 2018 and the project finished in November 2019. The plant produces roughly 900 GWh of electricity per year, which mitigated the release of 600,000 tons of carbon dioxide. Additionally, Sakaka powers over 75,000 homes. • Conergy is a Germany-based solar energy company that wanted to branch out into the Saudi Arabian market. Conergy believes that Saudi
The growth trajectory of Saudi Arabia''s solar market is significantly fueled by substantial government support. Key incentives include financial backing and tax breaks
Several industry insiders pointed out that while promoting sustainable development is a long-term goal, the gradual removal of energy subsidies is a significant economic driver for
Saudi Arabia''s big businesses are embracing solar power as they seek to save on energy costs after the government eliminated electricity subsidies in the world''s largest oil
The gradual removal of subsidies and the high costs of fuel amid Opec+ output cuts are encouraging more businesses to install their own solar systems in order to save money,
Although the Saudi government aims to source half of its energy from renewables by 2030, experts say the most immediate driver of
Saudi Arabia''s big businesses are embracing solar power as they seek to save on energy costs after the government eliminated electricity
Saudi Arabia had about 500 megawatts of renewable electricity capacity in 2020, but targets 60 gigawatts, most of which would come from solar photovoltaics and concentrated solar power, by 2030.
Saudi companies that are part of multinational groups such as Ikea and GSK have deployed solar power at the encouragement of their parent companies, which have sustainability goals. Meeting such expectations has also been a factor for other Saudi groups, including logistics and transport businesses, that have links to western markets.
But experts say the critical factor driving recent solar take-up may be the phasing out of energy subsidies that began in 2018 as part of wider economic reforms, which included the rollout of large-scale renewable projects. “We invested in solar and actually it’s paying back,” said Mazen Fakeeh, president of Fakeeh Care Group.
Chinese investments have played a key role in lowering solar costs. Roughly one-third of $21.6 billion in greenfield FDI from China into Saudi Arabia since 2021 has gone to clean technologies, including solar components. But the biggest shift has come from within.
ACWA Power, a leader in the energy transition and a company in which PIF owns a stake, PIF-owned Badeel, and SAPCO, a wholly owned subsidiary of Aramco, will jointly own the solar projects – Haden, Muwayh and Al Khushaybi.
