Saudi Arabia the Solar Energy Empire

Picture Credit: Power Technology

Saudi Arabia is witnessing an extraordinary surge in solar energy development, transforming its desert landscape with large-scale solar farms like Al Shuaibah 2. Located about 60 miles south of Jeddah, this solar farm boasts over 2 gigawatts of capacity, powering roughly 350,000 homes. However, even bigger solar projects are already underway, reflecting the kingdom’s ambitious commitment to generating 50% of its electricity from renewable sources by 2030.

This rapid expansion is striking given Saudi Arabia’s historical reliance on oil, which has long shaped its economy and global influence. Yet the economics of solar power make it an appealing choice: declining costs of Chinese-made photovoltaic panels and batteries have made solar energy highly competitive and increasingly flexible.

Saudi Arabia benefits particularly from abundant sunlight, vast available land, and proximity to major cities, which reduce grid connection expenses. Saudi Arabia’s renewable energy push goes beyond climate concerns, it aims to free more oil for export by replacing domestic oil-fired electricity generation with cleaner alternatives. This strategy aligns with the country’s Vision 2030 economic diversification plan, emphasizing renewables and natural gas. Despite these advances, some experts caution that Saudi Arabia's targets may still fall short of global climate needs.

Renewables accounted for only about 2% of domestic electricity in 2024, and large-scale renewable deployment must accelerate further to meet the 2030 goal. Nonetheless, the kingdom’s solar ambitions send a powerful signal that even major oil producers recognize renewables as an essential part of the energy future.

Saudi Arabia’s clean energy growth contrasts sharply with slowing renewables efforts in places like the US. It exemplifies a pragmatic "all of the above" energy approach—embracing solar and wind alongside fossil fuels—while shaping its strategy in international climate discussions. The world will closely watch how Saudi Arabia balances its global oil role with its growing investment in renewable energy.