Saudi Arabia Power Generation Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Saudi Arabia Power Generation Market is segmented by Power Generation (Thermal and Renewables) and Power Transmission and Distribution (T&D). The report offers the market size and forecasts in installed capacity (gigawatts) for all the above segments except power transmission and distribution.

Saudi Arabia Power Market Size

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Saudi Arabia Power Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Volume (2024) 87.81 gigawatt
Market Volume (2029) 116.41 gigawatt
CAGR (2024 - 2029) 5.80 %
Market Concentration Low

Major Players

Saudi Arabia Power Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Saudi Arabia Power Market Analysis

The Saudi Arabia Power Market size is estimated at 87.81 gigawatt in 2024, and is expected to reach 116.41 gigawatt by 2029, growing at a CAGR of 5.80% during the forecast period (2024-2029).

  • 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.
Saudi Arabia Power Market - Power Generation Mix

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.
Saudi Arabia Power Market - Renewable Energy Installed Capacity

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

  1. MARAFIQ Power And Water Utility Company For Jubail And Yanbu (MARAFIQ)

  2. ACWA Power Co

  3. Saudi Electricity Company (SEC) SJSC

  4. Arabian Electrical Transmission Line Construction Company (AETCON)

  5. Nour Energy (ASTRA Group)

*Disclaimer: Major Players sorted in no particular order

Saudi Arabia Power Market Concentration
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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 Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

  2. 2. EXECUTIVE SUMMARY

  3. 3. RESEARCH METHODOLOGY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Power Generation Mix, 2022

    3. 4.3 Power Generation Installed Capacity and Forecast in GW, until 2028

    4. 4.4 Electricity Generation and Consumption Forecast in Terawatt-Hours (TWh), till 2028

    5. 4.5 Recent Trends and Developments

    6. 4.6 Government Policies and Regulations

    7. 4.7 Market Dynamics

      1. 4.7.1 Drivers

        1. 4.7.1.1 Increasing Diversification of Energy Sources from Oil and Gas to Cleaner Energy Sources

        2. 4.7.1.2 Supportive Government Policies for Increasing Renewable Power Capacity

      2. 4.7.2 Restraints

        1. 4.7.2.1 The Unstable Geopolitics of the Country

    8. 4.8 Supply Chain Analysis

    9. 4.9 PESTLE Analysis

  5. 5. MARKET SEGEMENTATION

    1. 5.1 Power Generation

      1. 5.1.1 Thermal

      2. 5.1.2 Renewables

    2. 5.2 Power Transmission and Distribution (T&D)

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 ACWA Power Co.

      2. 6.3.2 Masdar Abu Dhabi Future Energy Co.

      3. 6.3.3 Electricite de France SA (EDF)

      4. 6.3.4 Saudi Electricity Company (SEC) SJSC

      5. 6.3.5 MARAFIQ Power and Water Utility Company for Jubail and Yanbu (MARAFIQ)

      6. 6.3.6 Engie SA

      7. 6.3.7 Doosan Heavy Industries & Construction Co. Ltd

      8. 6.3.8 Shandong Electric Power Construction Corporation III (SEPCO III)

      9. 6.3.9 Arabian Electrical Transmission Line Construction Company ( AETCON )

      10. 6.3.10 Nour Energy (ASTRA Group)

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Privatization of the Power Sector in the Country

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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

The Saudi Arabia Power Market size is expected to reach 87.81 gigawatt in 2024 and grow at a CAGR of 5.80% to reach 116.41 gigawatt by 2029.

In 2024, the Saudi Arabia Power Market size is expected to reach 87.81 gigawatt.

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.

In 2023, the Saudi Arabia Power Market size was estimated at 83 gigawatt. The report covers the Saudi Arabia Power Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Power Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

The major challenges facing the Saudi Arabia Power Market are a) Transitioning from fossil fuels to renewable energy b) Grid integration of variable renewable sources c) Ensuring energy security, managing high per capita power consumption, and balancing supply and demand dynamic

Saudi Arabia Power Generation Industry Report

The Saudi Arabia power market is undergoing significant growth and transformation, underscored by a strategic pivot towards renewable energy sources like solar and wind power, 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. For detailed statistics, market share, size, and revenue growth rate, refer to industry reports by Mordor Intelligence™, which provide a market forecast outlook and historical overview, available as a free report PDF download.

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Saudi Arabia Power Generation Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)