| Study Period | 2020 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Volume (2025) | 92.90 gigawatt |
| Market Volume (2030) | 123.16 gigawatt |
| CAGR | 5.80 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Saudi Arabia Power Market Analysis
The Saudi Arabia Power Market size is estimated at 92.90 gigawatt in 2025, and is expected to reach 123.16 gigawatt by 2030, at a CAGR of 5.8% during the forecast period (2025-2030).
- Over the medium term, factors, such as increasing diversification of energy sources from oil and gas to cleaner energy sources, such as solar, wind, and bioenergy, are expected to drive the Saudi Arabian power market, along with supportive government policies leading to the development of renewable energy capacity during the forecast period.
- On the other hand, the unstable geopolitics of the region is expected to act as a restraint for the market's growth.
- Nevertheless, privatization of the power sector is expected to provide a significant opportunity. If the government capitalizes on this opening, it is likely to help with substantial investments needed to reform the power sector and provide the country with the expertise required to generate renewable energy at lower costs.
Saudi Arabia Power Market Trends
Thermal Power Source to Dominate the Market
- The thermal sources for the country include crude oil and natural gas. In 2021, 355 terawatt-hours (TWh) of electricity was produced from conventional thermal, which accounted for 99% of the total electricity generated in the country.
- The country's power generation is highly dependent on hydrocarbons. At the end of 2021, the country had 10.95 bcm of crude oil production and was second after Venezuela. The country's total natural gas reserves were 117.3 bcm in the same year.
- In recent years, the country saw an increase in electricity from gas-fired power plants, while the country experienced a downfall in power generation from crude oil. This transition was seen due to the country's global movement shifting to cleaner energy sources of energy. In 2021, electricity from oil was 139.9 TWh, while power from natural gas was 215.9 TWh.
- Further, an increase in GDP (Gross Domestic Product) is generally correlated with an increase in electricity consumption. Economic development and electricity consumption are strongly correlated. In Saudi Arabia, electricity demand tends to increase as economic growth occurs. This is primarily because economic activities such as manufacturing, industrial processes, and services require electricity to function. Electricity is required to power machinery, equipment, and infrastructure as industries expand and new businesses emerge. According to General Authority of Statistics, in 2022, GDP of Saudi Arabia reached SAR 4155.56 billion, with growth of 27.58% from the previous year.
- In January 2022, Dhuruma Electricity Company completed the refinancing of USD 1.2 billion for its gas-fired PP11 power plant in Saudi Arabia. PP11 is a 1,730 MW combined-cycle gas-fired power plant near Dhuruma, about 135 km west of Riyadh. The refinancing of the plant ensures the long-term viability of the plant being a reliable thermal power producer in Saudi Arabia.
- Therefore, owing to the abovementioned factors, the thermal power segment will likely dominate the Saudi Arabian power market during the forecast period.
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Development of the Renewable Energy Sector to Drive the Market
- The country witnessed a sharp rise in its renewable energy capacity in 2022, mainly driven by the increasing focus on environmental concerns. The total renewable energy installed capacity in 2022 was 443 MW. The country aims to build a renewable energy capacity of 58.7 GW by 2030.
- One of the driving reasons for renewables to increase at such a rate in the country is its plan to reduce oil and gas usage in power generation.
- Saudi Arabia is naturally endowed with renewable energy sources, particularly solar. The solar irradiation in the country is 250 w/m2, which is above the average irradiation of high-potential solar areas globally of 100-200 w/m2.
- The Saudi Arabian Government also encourages many of its large-scale state-owned enterprises to invest in its renewable energy sector. The King Abdullah Petroleum Studies and Research Center (KAPSARC) currently operates a solar energy project with a capacity of 5 MW, comprising over 12,000 panels and covering 55,000 square meters. At the same time, Saudi Aramco also operates a 10.5 MW PV carport system, the world's largest car-park shade, covering 198,350 sq. m and using over 126,000 solar panels. These are the first privately-owned PV projects in the country and are expected to encourage other large corporations to take up private renewable energy projects to reduce emissions and achieve the national target.
- Therefore, owing to the above points, the increasing renewable energy installations and investments in the country are expected to drive the Saudi Arabian power market during the forecast period.
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Saudi Arabia Power Industry Overview
The Saudi Arabian Power Market is fragmented. Some of the major players operating in this market (in no particular order) include ACWA Power Co., Saudi Electricity Company (SEC) SJSC, MARAFIQ Power and Water Utility Company for Jubail and Yanbu (MARAFIQ), Arabian Electrical Transmission Line Construction Company (AETCON), and Nour Energy (ASTRA Group), among others.
Saudi Arabia Power Market Leaders
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MARAFIQ Power And Water Utility Company For Jubail And Yanbu (MARAFIQ)
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ACWA Power Co
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Saudi Electricity Company (SEC) SJSC
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Arabian Electrical Transmission Line Construction Company (AETCON)
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Nour Energy (ASTRA Group)
- *Disclaimer: Major Players sorted in no particular order
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Saudi Arabia Power Market News
- November 2022: ACWA Power signed an agreement with Water and Electricity Holding Company (Badeel) to build the world's largest single-site solar-power plant in Al Shuaibah, Mecca province. The plant was projected to have a generation capacity of 2,060 MW and commissioned in 2025.
- December 2022: The development of 10 new renewable energy projects was announced by Saudi Arabia. According to reports, the new renewable energy projects aimed to increase the power produced by solar and wind sources while lowering the usage of fossil fuels, particularly oil, to produce electricity. The announced renewable energy projects would have a combined power generation capacity of 7 GW. The Kingdom of Saudi Arabia's General Authority of Statistics reports that the nation intends to produce a staggering 15.1 TWh of renewable energy by 2024.
Saudi Arabia Power Industry Segmentation
The Power Market includes generating electricity using various methods, among which the most widely used are thermal and renewable energy sources. The Saudi Arabian power market is segmented by power generation and power transmission and distribution (T&D). By power generation, the market is segmented into thermal and renewables. For each segment except power transmission and distribution, the market sizing and forecasts have been done based on installed capacity (gigawatts).
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Saudi Arabia Power Market Research FAQs
How big is the Saudi Arabia Power Market?
The Saudi Arabia Power Market size is expected to reach 92.90 gigawatt in 2025 and grow at a CAGR of 5.80% to reach 123.16 gigawatt by 2030.
What is the current Saudi Arabia Power Market size?
In 2025, the Saudi Arabia Power Market size is expected to reach 92.90 gigawatt.
Who are the key players in Saudi Arabia Power Market?
MARAFIQ Power And Water Utility Company For Jubail And Yanbu (MARAFIQ), ACWA Power Co, Saudi Electricity Company (SEC) SJSC, Arabian Electrical Transmission Line Construction Company (AETCON) and Nour Energy (ASTRA Group) are the major companies operating in the Saudi Arabia Power Market.
What years does this Saudi Arabia Power Market cover, and what was the market size in 2024?
In 2024, the Saudi Arabia Power Market size was estimated at 87.51 gigawatt. The report covers the Saudi Arabia Power Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Saudi Arabia Power Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Saudi Arabia Power Generation Industry Report
The Saudi Arabia power generation market is undergoing significant growth and transformation, with a strategic pivot towards renewable energy sources like solar and wind power. This shift is supported by government initiatives aimed at diminishing reliance on fossil fuels and fostering sustainable energy generation. The market segmentation includes thermal, hydro, renewable, and other generation sources, with renewables expected to see rapid growth due to the nation's rich natural resources and supportive policies.
Regionally, the analysis spans the Northern and Central Region, Western Region, Eastern Region, and Southern Region, each playing a pivotal role in the dynamics of the power sector in Saudi Arabia. The evolving competitive landscape features various players enhancing the power sector's development, crucial for economic development and environmental stewardship.
Saudi energy companies' market share is a key component of the Saudi power market overview, indicating the significant role of major players in the market's future. The focus on diversifying the energy mix and boosting power generation infrastructure is set to propel the market forward.
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The growth rate in the Saudi Arabia power generation market is expected to be significant, driven by industry analysis and market data. Industry information, industry outlook, industry reports, industry research, industry sales, industry size, industry statistics, and industry trends are crucial for understanding the market dynamics. The market forecast, market growth, market leaders, market outlook, market overview, market predictions, market review, market segmentation, market value, report example, report pdf, and research companies provide comprehensive insights into the market's future trajectory.
