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Press Dossier    By Date   18/04/2024 Renewable energy continues to gain momentum in Saudi Arabia, says report

Arab News, Thu, Apr 18, 2024 | Shawwal 9, 1445

​​Renewable energy continues to gain momentum in Saudi Arabia, says report

Saudi Arabia: Saudi Arabia could achieve its 2030 renewable target of 130 gigawatts by strengthening existing green policies and ensuring their effective implementation, a new study showed.  

According to a report by the data consulting company GlobalData, the growth of renewable energy sources in Saudi Arabia has gained pace recently as the Kingdom eyes ensuring a secure power supply for the future.

The London-based firm highlighted that the country has made significant strides in its sustainability journey, with the Kingdom adding 2.1 GW of renewable power capacity since 2022. 

“Introduced in 2016, the Saudi Arabia Vision 2030 had an initial target of deploying 9.5 GW of green energy by 2030. Since inception, it has undergone many revisions, with the latest being made in 2023, revising the target to 130 GW of renewable power capacity by 2030,” said GlobalData.  

It added: “With the strengthening of policies, a consistent call for competitive auctions, and other financial measures, the Kingdom can meet its 2030 renewable energy target.”  

The report added that the abundance of sunlight and wind resources makes solar and wind power the key renewable technologies for the Kingdom in the future.  

According to GlobalData, Saudi Arabia’s renewable power capacity has increased at a compound annual growth rate of 82.4 percent from 0.02 GW to 3 GW from 2015 to 2023.  

In 2023, solar energy constituted 82.6 percent of the total green power capacity of Saudi Arabia, followed by onshore wind accounting for nearly 14.1 percent and thermal accounting for 3.1 percent share.  

The report also revealed that the share of renewable power capacity in Saudi Arabia’s total energy mix is estimated to reach 35.4 percent in 2035 from 3.2 percent in 2023.  

“With persistent efforts by the policymakers and strict policy implementation, the Kingdom has a good chance of reaching close to its set target. As per the expected trend, the country would add over 20 GW every year making its target plausible,” added the report.  

Speaking at the Future Minerals Forum in January, Saudi Arabia’s Minister of Economy and Planning Faisal Al-Ibrahim had expressed his confidence that the Kingdom would derive 50 percent of its energy needs from renewable sources by 2030.  

“This is the time to try to think sustainably and environmentally without affecting certain local communities,” said the minister at the time.  

In March, a report by the International Renewable Energy Agency said that renewable energy capacity in the Middle East reached 35.54 GW by the end of 2023, with Saudi Arabia accounting for 2.68 GW. 

In the same month, Saudi Arabia launched the Green Finance Framework aimed at enhancing public and private participation in climate financing.  

The initiative launched by the Ministry of Finance is expected to help the Kingdom achieve its net-zero targets by 2060, along with reducing emissions through a circular carbon economy, the Saudi Press Agency reported.

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