ISLAMABAD: In a strategic departure from its oil-dominated past, Saudi Arabia is rapidly emerging as a global solar energy powerhouse, carpeting its vast deserts with panels to meet soaring power demand and preserve crude for export.
Driven by both environmental and economic imperatives, the Kingdom aims to generate 50 per cent of its electricity from renewables by 2030. Flagship projects, including the 1.5GW Sudair Solar Plant led by ACWA Power and backed by the Public Investment Fund (PIF), highlight the scale of its ambition. Installed solar capacity surged to 4,340MW in 2024, up from 2,585MW in 2023, with multi-billion-dollar ventures involving ACWA, Aramco Power, TotalEnergies, and EDF already underway.
Saudi Arabia’s long-term goal is to reach 130GW of renewable capacity by 2030, making solar a cheaper alternative to oil-fired power, which costs the country an estimated \$20 billion annually in lost export revenue. Record-low auction tariffs — under 1.3 cents per kilowatt-hour — underscore solar’s economic advantage.
Challenges remain, including desert conditions and the need for advanced storage and grid upgrades. Yet, under Vision 2030, Riyadh views renewables as central to economic diversification, fostering public-private partnerships, local manufacturing, and workforce development. The Kingdom, once synonymous with oil, is now reshaping its energy identity with sunlight at its core.
Story by Khalid Mustafa