Saudi Arabia's electricity sector to see significant transformation by 2030
Al-Monitor subscribers
Gerald Kepes
President, Competitive Energy Strategies, LLC
Nov. 27, 2024
Electrification is instrumental to Saudi Arabia’s economic transformation envisioned in Vision 2030. Half of the development of this sector will be renewable power generation; the other half will be natural gas-fired. The oil sector, which provides over 1 million barrels per day (crude, fuel oil, diesel) in the peak summer months will be relieved of supporting the power sector and will mainly provide government revenues and continue to be the basis of financial valuations. The transformation of Saudi Arabia’s electrical system will drive development.
The National Renewable Energy Program (NREP) has an initial target of 58.7 gigawatt of grid-connected capacity (by 2030) and has aspirational targets of 100-130 GW by 2030. These targets are unlikely to be met. But what will happen is that by the start of the 2030s, Saudi Arabia will have an extensive national electric grid with a significant renewable contribution. This will allow it to advance economic development in critical parts of the country, notably the Red Sea region, and even export clean electricity.
