Solar Energy in Saudi Arabia Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Saudi Arabia Solar Power Market is Segmented by Type (Solar Photovoltaic (PV) and Concentrated Solar Energy (CSP)). The report offers the market size and forecasts for Saudi Arabia's solar energy in installed capacity (MW) for all the above segments.

Saudi Arabia Solar Energy Market Size

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Saudi Arabia Solar Energy Market  - Market Summary
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Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR > 51.00 %
Market Concentration Medium

Major Players

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*Disclaimer: Major Players sorted in no particular order

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Saudi Arabia Solar Energy Market Analysis

The Saudi Arabian solar energy market is expected to reach 1,028 MW by the end of the current year, and it is projected to register a CAGR of 51% during the forecast period.

Although the COVID-19 pandemic affected the market studied in 2020, it has been recovering and reached pre-pandemic levels. Over the forecast period, factors such as supportive government policies, increasing efforts to meet power demand using solar energy, and decreased fossil-fuel dependency are expected to drive the market's growth. 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.

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.

Saudi Arabia Solar Energy Market Trends

This section covers the major market trends shaping the Saudi Arabia Solar Energy Market according to our research experts:

Solar Photovoltaic (PV) Type Expected to Dominate the Market

The distinct geographical and climatic location of Saudi Arabia 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 hold the largest market share during the forecast period, owing to the declining costs of solar modules and the versatility of these systems for various applications, like electricity generation and water heating.

In 2021, the Saudi Green Initiative reinforced the country's commitment to increase the share of renewable energy to 50% of its primary energy mix while producing the other 50% from natural gas by 2030. Under Vision 2030, more than 40 GW of solar photovoltaic (PV) capacity and 2.7 GW of concentrated solar power (CSP) capacity are expected to be developed in the country by 2030. The Renewable Energy Project Development Office (REPDO) within the Ministry of Energy, established in 2017, is responsible for delivering on the goals of the National Renewable Energy Program (NREP) in line with Vision 2030. According to the International Renewable Energy Agency (IRENA), Saudi Arabia's total solar installed capacity stood at 14 MW in 2012, which rose to 439 MW at the end of 2021. Solar PV has been the most significant share in total solar energy capacity, with 389 MW in the country, accounting for more than 88% of the total solar energy.

In September 2022, Saudi Power Procurement Co. launched five projects to generate electricity as part of the fourth phase of the Ministry of Energy's National Renewable Energy Program. Three of these projects are wind, and two are solar energy-based projects. The two solar energy projects in Al Hinakiyahand Tabarjalwould have a capacity of about 1,100 MW and 400 MW, respectively. In March 2022, Saudi Arabia awarded solar power projects with a total capacity of 1 GW. Under this project, the Saudi Power Procurement Company signed a 25-year power purchase agreement for a 700 MW plant with Ar RassSolar Energy Company. The project is expected to be valued at about USD 450 million. The company also signed the second agreement for a 300 MW solar plant. The contract was awarded to Jinko Power, a Chinese solar company. The project is expected to be inbuilt in the Saad region in Riyadh at the cost of USD 213 million.

With such upcoming and large-scale projects and increasing government initiatives, the solar PV segment is expected to grow 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 2021 was 439 MW, and it is expected to increase during the forecast period. The solar energy installed capacity in Saudi Arabia accounts for more than 98% of the total renewable energy mix.

In September 2022, a tender was launched by the Saudi Power Procurement Company (SPPC) for the deployment of 3.3 GW of renewable energy capacity. The Saudi authorities intend to build three wind power plants with a combined capacity of 1.8 GW and two solar parks with a combined capacity of 1.5 GW. One of the two solar plants is expected to have an installed capacity of 1.1 GW and be constructed in Al Hanakia, Medina province, in west-central Saudi Arabia. A 400 MW solar plant will be constructed in Tabarjal, a town in the northern part of the country. In line with the National Renewable Energy Program (NREP), the tender is the fourth in a series of renewable energy procurement schemes.

In August 2022, Clenergysecured an order to develop Solar PV and provided a 44 MW PV-ezRacksolar installation solution for ACWA Power's 3A Independent Seawater Desalination Project in Jubail, Saudi Arabia. This project utilizes PV-ezRack SolarTerraceMAC, a magnesium, aluminum, and zinc-coated steel ground mounting system. In August 2022, a joint venture between TotalEnergies, AltaaqaAlternative Solutions, and King Abdullah Economic City (KAEC) entered into an agreement to develop a hybrid solar farm at KAEC. A strategic plan for the city calls for the development of 25,000 solar panels (ground-mounted motorized systems) with a capacity of 12.5 megawatts peak (MWp).

Therefore, due to the above-mentioned factors, the upcoming and ongoing solar projects are expected to drive the solar energy market's growth during the forecast period.

Saudi Arabia Renewable Energy Market - Solar Energy Installed Capacity

Saudi Arabia Solar Energy Industry Overview

The Saudi Arabian solar energy market is moderately fragmented. Some of the major players in the market (in no particular order) are ACWA Power Company, Alfanar Group, Abu Dhabi Future Energy Company (Masdar), EDF Renewables, and Saudi Electricity Company.

Saudi Arabia Solar Energy Market Leaders

  1. Alfanar Group

  2. Abu Dhabi Future Energy Company (Masdar)

  3. EDF Renewables

  4. Saudi Electricity Company

  5. ACWA Power Company

*Disclaimer: Major Players sorted in no particular order

Market Concentration - Saudi Arabia Solar Energy Market.PNG
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Saudi Arabia Solar Energy Market News

In June 2022, China Energy Engineering Group, Guangdong Power Engineering Company (GPEC) awarded the LONGia module supply contract for the 400 MW (DC) Rabigh Solar PV IPP project in Saudi Arabia. LONGiHi-MO 5(72C) solar modules are expected to be installed in this solar PV project under construction. The project site is located in Rabigh Industrial City in the western Makkah Province of the country, approximately 150 kilometers west of Jeddah.

In March 2022, under the third round of Saudi Arabia's National Renewable Energy Programme(NREP), a contract was awarded to China-based Jinko Power to develop the 300MW Saad photovoltaic (PV) solar project. As part of the competitive tendering process, Jinko Power and Jinko Power Dhafra Holding signed a 25-year power purchase agreement (PPA) with Saudi Power Procurement Company (SPPC). The consortium submitted a tariff of SAR 5.56255/kWh for the project.

Saudi Arabia Solar Energy 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 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
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Saudi Arabia Solar Energy Industry Segmentation

Solar energy is a type of renewable energy where solar panels are used to generate electricity. Solar panels deployed on rooftops or mounted on the grounds are utilized effectively by energy consumers. 

Saudi Arabia's solar energy market is segmented by type into solar photovoltaic (PV) and concentrated solar energy (CSP). For each segment, the market sizing and forecasts have been done based on the installed capacity (MW).

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Saudi Arabia Solar Energy Market Research FAQs

The Saudi Arabia Solar Energy Market is projected to register a CAGR of greater than 51% during the forecast period (2024-2029)

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

The report covers the Saudi Arabia Solar Energy Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Solar Energy Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Solar Energy in Saudi Arabia Industry Report

Statistics for the 2024 Solar Energy in Saudi Arabia market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Solar Energy in Saudi Arabia analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Solar Energy in Saudi Arabia Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)