Ann Arbor (Informed Comment) - Jeffrey Beyer and Stephen Gitonga of the UN Development Program present an overview of Saudi...
Saudi Arabia is accelerating its transition to renewable energy in a bid to generate half of its electricity from non-fossil sources by 2030, according to an analysis by UN Development Program representatives Jeffrey Beyer and Stephen Gitonga. The country currently has more than 10 gigawatts of green energy operational on its grid, with an additional 33 gigawatts in development. To reach its five-year goal, the kingdom plans to add 20 gigawatts of renewable capacity annually, marking an unprecedented rate of solar power deployment.
The energy shift is driven by economic factors within the kingdom, where power generation relies on domestic fossil gas for 62 percent of its output and petroleum for 38 percent. With national energy demand climbing 10 percent every year, domestic power production resulted in an $11 billion loss in a recent year due to government subsidies. Replacing internal fossil fuel consumption with cheaper solar and wind power allows the nation to export its oil and gas reserves abroad for higher profit margins.
To backstop intermittent power generation, Saudi Arabia has deployed 2 gigawatts of battery storage, with 5.5 gigawatts under construction and plans to double its energy storage footprint by 2030. Infrastructure costs have dropped significantly, leading major domestic power developer ACWA Power to confirm that local renewable projects no longer require government subsidies. Mohammed Abu Nyan of ACWA Power credited Chinese technological advances for these cost reductions, while also stating his belief that artificial intelligence and large language models will eventually help double clean energy production capacity.
International partnerships are anchoring several multi-gigawatt installations currently under development. Near Riyadh, Chinese manufacturer Goldwind—working alongside a consortium featuring the Saudi Public Investment Fund and state oil firm Aramco—is building a 3-gigawatt wind farm scheduled for completion in early 2028. The facility will feature turbines engineered specifically to withstand extreme summer temperatures exceeding 122 degrees Fahrenheit. Nearby in Dawadmi, a South Korean KEPCO-led consortium is developing a 1.5-gigawatt wind project that has set a global record for the lowest wind generation costs.
Solar projects are achieving similar cost milestones in the region. The 1.4-gigawatt Najran Solar Project, being constructed in southwestern Saudi Arabia alongside UAE firm Masdar, is set to deliver electricity at approximately one U.S. cent per kilowatt-hour. This marks the second-lowest solar power price globally, behind another facility located within the kingdom. Overall, Saudi Arabia currently has seven major renewable development projects underway, representing an investment of over $8 billion aimed at delivering 15 gigawatts of capacity.
Originally reported by Informed Comment on Nov 1, 2025.
