Saudi Arabia Renewable Energy Market Projected to Reach USD 18.30 Billion by 2035

Saudi Arabia’s renewable energy market is projected to grow from USD 6.51 billion in 2026 to USD 18.30 billion by 2035, registering a compound annual growth rate of 12.2 percent, according to Market Research Future.

The market was estimated at USD 5.80 billion in 2025, with growth being driven by Saudi Arabia’s Vision 2030, the National Renewable Energy Program (NREP), expanding utility scale projects and increasing private sector participation.

Saudi Arabia aims to generate 50 percent of its electricity from renewable sources by 2030. The Kingdom has a renewable energy project pipeline exceeding 33 GW, while annual tenders are targeting around 20 GW of new capacity.

Solar currently dominates the country’s renewable energy mix, accounting for approximately 87 percent of installed renewable capacity. Major projects include the 2.6 GW Al Shuaibah solar plant, 1.1 GW Al Henakiyah Solar PV Plant and 300 MW Sakaka PV project.

Wind is emerging as the fastest growing segment, supported by projects such as the 400 MW Dumat Al Jandal wind farm, 500 MW Wadi Al Shamal Wind Farm and 3 GW PIF5 wind projects. The report also highlights record low tariffs achieved by Saudi Arabia’s large scale renewable projects.

Concentrated Solar Power is forecast to expand at a 13.9 percent CAGR through 2035, supported by the integration of molten salt energy storage. Meanwhile, the commercial and industrial segment is expected to grow at a 15.1 percent CAGR as private sector power purchase agreements gain regulatory clarity.

Energy storage is also becoming an important component of Saudi Arabia’s renewable energy strategy. The Kingdom has launched 30 GWh of battery storage projects, with around 8 GWh already connected to the grid. A broader 5.5 GW/22 GWh BESS pipeline is also being developed, alongside a national target of 48 GWh of storage capacity by 2030.

The Kingdom is additionally developing green hydrogen capabilities, with projects linked to NEOM and the planned Yanbu Green Hydrogen Hub. These initiatives are expected to support Saudi Arabia’s ambitions to become a major producer and exporter of green hydrogen.

The report identifies ACWA Power, JinkoSolar, EDF Renewables, Engie, Solar Arabia, Alfanar Group, Masdar and SEPCO III among the key players in the market.

Saudi Arabia’s renewable energy expansion is supported by the NREP procurement framework and the Saudi Power Procurement Company, which serves as the offtaker for NREP projects. The government is also promoting renewable power procurement, energy efficiency and the displacement of liquid fuels with cleaner electricity.

However, the market faces challenges including high upfront investment requirements, grid integration complexities, energy storage costs and the transition from historically low energy prices.

The report expects opportunities in green hydrogen exports, local manufacturing of renewable energy equipment and batteries, large scale energy storage, renewable powered data centres and the electrification of transport and industry to support continued market expansion.

Overall, Saudi Arabia’s combination of ambitious renewable energy targets, large scale project tenders, competitive tariffs and investments in storage and green hydrogen is expected to make the Kingdom an increasingly significant market in the global energy transition.