Saudi Arabia Solar Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Saudi Arabian Solar Energy Market is segmented by Type (Solar Photovoltaic (PV) and Concentrated Solar Energy (CSP)).

Market Snapshot

Saudi Arabia Solar Energy Market  - Market Summary
Study Period: 2019-2027
Base Year: 2021
CAGR: >10 %

Need a report that reflects how COVID-19 has impacted this market and its growth?

Market Overview

The Saudi Arabian solar energy market is expected to record a CAGR of more than 10% during the forecast period, 2022-2027. The COVID-19 outbreak in Q1 2020 witnessed a negative impact in terms of reducing the oil production by 3.1 million barrels per day (b/d) as part of the OPEC agreement that began in April 2020. However, the solar energy sector supply chains were impacted, and solar energy projects were delayed.​ Factors such as supportive government policies and increasing efforts to meet power demand using solar energy and decreased dependency on fossils are expected to be the significant contributors to drive the market. However, the increasing adoption of alternate clean power sources, such as wind, and the availability of fossil fuels are expected to restrain the growth of the solar energy market during the forecast period.

  • The solar photovoltaic (PV) segment is expected to dominate the market during the forecast period. Owing to increasing solar PV installation Y-o-Y.
  • Saudi Arabia's National Renewable Energy Program aims to achieve 40 GW of solar energy installed capacity by 2030. This is expected to create significant opportunities for the market in the near future.
  • Upcoming and ongoing projects of solar energy to achieve the country's renewable energy target are expected to drive the Saudi Arabian solar energy market during the forecast period.

Scope of the report

The Saudi Arabian solar energy market report includes:

Report scope can be customized per your requirements. Click here.

Key Market Trends

Solar Photovoltaic (PV) Type Expected to Dominate the Market

  • Saudi Arabia has a distinct geographical and climatic location that makes utilizing renewable energy sources, especially solar energy sources, economically attractive, supporting Saudi efforts to diversify the domestic energy mix.
  • The solar PV segment is expected to have the largest market share during the forecast period, owing to declining costs of solar modules and the versatility of these systems for various applications, like electricity generation and water heating.
  • The National Renewable Energy Program (NREP) is a strategic initiative launched as part of Vision 2030, which aims to increase Saudi's share of solar PV installed capacity. This is expected to witness significant growth during the forecast period.
  • However, the country has witnessed significant developments and initiatives in the renewable energy sector, especially solar. In 2020, the total renewable energy capacity of Saudi Arabia was about 412 MW, and the solar photovoltaic (PV) alone added about 359 MW, which is equal to more than 87% of the country's total renewable energy capacity. ​
  • Moreover, in April 2020, the Ministry of Energy issued the "Request for Proposals" (RFP) for round three, 'Category B'. Round three comprises four solar PV projects with a combined generation capacity of 1,200 megawatts (MW). The projects are located on four sites in the central region of Saudi Arabia.
  • In April 2021, ACWA Power inaugurated the 300 MW Sakaka PV IPP, the country's first utility-scale renewable energy project, at an investment cost of SAR 1.2 billion. The project was awarded to ACWA Power at a record-breaking tariff of USD 2.3417 cents/kWh (8.781 halalas/kWh).​
  • Therefore, owing to the above factors, the solar photovoltaic (PV) segment is expected to dominate the market during the forecast period.
Saudi Arabia Solar Energy Market - Solar Photovoltaic (PV) Installed Capacity

Upcoming and Ongoing Solar Projects Expected to Drive the Market

  • In Saudi Arabia, the solar energy installed capacity growth can be attributed to the National Renewable Energy Program, which had a target of installing 35 renewable projects with 58.7 GW of installed capacity by 2030.
  • The installed solar energy capacity for Saudi Arabia in 2020 was 409 MW, and it is expected to increase in the coming years. Also, the solar energy installed capacity in Saudi Arabia accounts for more than 98% share of the total renewable energy mix.
  • In April 2021, Larsen & Toubro (L&T) commenced construction of the 300 MW Jeddah Solar PV Power Plant in Saudi Arabia. The turnkey EPC order was received from the consortium of Masdar, EDF Renewables, and Nesma Company. The operation of this plant is expected to begin by the end of 2022.
  • Also, in April 2021, the crown prince of Saudi Arabia revealed that seven new solar power projects had been signed across Saudi Arabia. In addition to Sakaka and Dumat Al-Jandal projects, these seven planned solar plants are expected to produce more than 3,600 MW, which is expected to power more than 600,000 homes and reduce more than 7 million tons of greenhouse emissions.​
  • Furthermore, in October 2021, Saudi Arabia's Ministry of Energy announced the list of bids received from developers to participate in the country's third phase of renewable energy projects. The third phase includes four solar photovoltaic projects, with a total capacity of 1.2 GW. The third phase includes 120 MW Wadi Ad Dawasir and 80 MW Layla solar projects, 700 MW Ar Rass and 300 MW Saad solar projects.
  • Therefore, owing to the above points, the upcoming and ongoing solar projects are expected to drive the solar energy market during the forecast period.
Saudi Arabia Renewable Energy Market - Solar Energy Installed Capacity

Competitive Landscape

The Saudi Arabian solar energy market is moderately fragmented. The key players in the market include ACWA Power Company, Alfanar Group, Abu Dhabi Future Energy Company (Masdar), EDF Renewables, and Saudi Electricity Company.

Major Players

  1. Alfanar Group

  2. Abu Dhabi Future Energy Company (Masdar)

  3. EDF Renewables

  4. Saudi Electricity Company

  5. ACWA Power Company

Market Concentration - Saudi Arabia Solar Energy Market.PNG

Recent Developments

  • In April 2021, ACWA Power inaugurated the 300 MW Sakaka PV IPP, the country's first utility-scale renewable energy project, at an investment cost of SAR 1.2 billion. The project was awarded to ACWA Power at a record-breaking tariff of USD 2.3417 cents/kWh (8.781 halalas/kWh).​
  • In October 2021, Saudi Arabia's Ministry of Energy announced the list of bids received from developers to participate in the country's third phase of renewable energy projects. The third phase includes four solar photovoltaic projects, with a total capacity of 1.2 GW. The third phase includes 120 MW Wadi Ad Dawasir and 80 MW Layla solar projects, and 700 MW Ar Rass and 300 MW Saad solar projects.

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 Solar Energy Installed Capacity and Forecast in MW, till 2027

    3. 4.3 Renewable Energy Mix, 2020

    4. 4.4 Recent Trends and Developments

    5. 4.5 Government Policies and Regulations

    6. 4.6 Market Dynamics

      1. 4.6.1 Drivers

      2. 4.6.2 Restraints

    7. 4.7 Supply Chain Analysis

    8. 4.8 PESTLE Analysis

  5. 5. MARKET SEGMENTATION - BY TYPE

    1. 5.1 Solar Photovoltaic (PV)

    2. 5.2 Concentrated Solar Power (CSP)

  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 Company

      2. 6.3.2 Alfanar Group

      3. 6.3.3 Abu Dhabi Future Energy Company (Masdar)

      4. 6.3.4 EDF Renewables

      5. 6.3.5 Saudi Electricity Company

      6. 6.3.6 Engie SA

      7. 6.3.7 JinkoSolar Holding Co. Ltd

      8. 6.3.8 Enel SpA

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

**Subject to Availability
You can also purchase parts of this report. Do you want to check out a section wise price list?

Frequently Asked Questions

The Saudi Arabia Solar Energy Market market is studied from 2019 - 2027.

The Saudi Arabia Solar Energy Market is growing at a CAGR of >10% over the next 5 years.

Alfanar Group, Abu Dhabi Future Energy Company (Masdar), EDF Renewables, Saudi Electricity Company, ACWA Power Company are the major companies operating in Saudi Arabia Solar Energy Market.

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please enter a valid email id!

Please enter a valid message!