Update on Investments in the Renewable Energy Sector in the Kingdom of Saudi Arabia

Analysis

The demand for electricity across the Middle East is increasing rapidly and is predicted to have doubled by 2020. As a result a number of GCC countries are investing in alternative energy sources as sustainable ways of coping with increased demand.

In the Kingdom of Saudi Arabia (KSA) demand is set to increase to levels that significantly exceed current installed generation capacity. Furthermore, there is a desire to reduce the reliance on domestically produced oil and gas which could be exported if not used for power generation. It has been recently reported that the country expects to be 100% reliant on renewable energy sources within the next few decades.

In order to achieve this ambitious target, a number of renewable energy projects are already underway in the KSA with more in the pipeline. The current focus is on the nuclear and solar power sectors but there are also plans to utilise wind and geothermal energy. These new renewable power generation facilities will gradually replace the diesel and gas power stations currently prevalent in the KSA.

Timeline-recent developments in Saudi renewable energy sector

2007