Saudi Arabia Renewable Energy Market to Reach 40.42 GW by 2033, Exhibiting a Strong CAGR of 35.07%

Saudi Arabia Renewable Energy Market Overview

Market Size in 2024: 2.09 Gigawatt

Market Size in 2033: 40.42 Gigawatt

Market Growth Rate 2025-2033: 35.07%

According to IMARC Group's latest research publication, "Saudi Arabia Renewable Energy Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The Saudi Arabia renewable energy market size was valued at 2.09 Gigawatt in 2024. Looking forward, IMARC Group estimates the market to reach 40.42 Gigawatt by 2033, exhibiting a CAGR of 35.07% from 2025-2033.

How AI is Reshaping the Future of Saudi Arabia Renewable Energy Market

● Revolutionizing Energy Forecasting and Grid Management: AI-powered predictive analytics and machine learning algorithms are transforming solar and wind energy forecasting through advanced weather prediction and generation optimization systems, reducing prediction errors by up to 30% while enhancing grid balancing capabilities and supporting seamless integration of variable renewable energy sources across Saudi Arabia's expanding 130 GW renewable capacity target.

● Optimizing Renewable Energy Production: Advanced artificial intelligence systems are maximizing energy generation efficiency through real-time optimization of solar panel angles, wind turbine operations, and hybrid system performance, improving capacity factors by 15-20% while reducing operational costs and enabling intelligent energy storage management across the Kingdom's utility-scale solar and wind projects.

● Enhancing Predictive Maintenance and Asset Management: Machine learning algorithms integrated with IoT sensors are revolutionizing maintenance strategies through early fault detection, performance anomaly identification, and automated repair scheduling, reducing unplanned downtime by 40-45% while extending equipment lifecycles and supporting the efficient operation of Saudi Arabia's rapidly expanding renewable infrastructure.

● Enabling Smart Energy Storage Solutions: AI-driven battery management systems are optimizing energy storage operations through intelligent charge-discharge cycles, peak demand management, and grid stabilization algorithms, improving battery performance and supporting the Kingdom's ambitious deployment of 48 GWh of battery energy storage systems by 2030 to ensure reliable renewable energy integration.

● Facilitating Intelligent Energy Distribution: Artificial intelligence is transforming power grid operations through smart grid technologies, automated load balancing, and real-time energy distribution optimization, improving grid reliability by 25-30% while supporting Saudi Arabia's transition to 50% renewable electricity generation by 2030 and enabling efficient management of distributed energy resources across diverse geographical regions.

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Saudi Arabia Renewable Energy Market Trends & Drivers:

Saudi Arabia's renewable energy market is experiencing unprecedented growth driven by the government's Vision 2030 strategic initiatives, with the Kingdom deploying solar energy at a faster rate than any country in history, connecting over 10 gigawatts of renewable energy to the grid and planning to install 20 gigawatts annually to reach the ambitious goal of 50% renewable electricity generation by 2030. The National Renewable Energy Program (NREP), financed by the Public Investment Fund, aims to deploy 130 GW of renewable capacity by 2030, up dramatically from the current operational capacity of 6.551 GW, representing investments of approximately SAR 19.84 billion.

Massive project announcements are accelerating market expansion, with ACWA Power, Badeel, and Saudi Aramco Power Company (SAPCO) committing approximately $8.3 billion to develop 15,000 MW of renewable energy capacity across seven large-scale projects, including 12,000 MW of solar PV and 3,000 MW of wind energy scheduled for completion between 2027 and 2028. Masdar secured 2 GW of solar projects including the 1,400 MW Najran and 600 MW Ad Darb facilities, while China's Goldwind is constructing the world's largest wind farm near Riyadh with 3 GW nameplate capacity, expected to be operational by early 2028.

Cost competitiveness and technological innovation are driving sustainable market growth, with solar electricity generation costs plummeting to just 1.57 cents per kilowatt-hour at the AlGhat wind project and solar power achieving prices as low as one cent per kilowatt-hour at the Najran Solar Project, making renewables six to ten times cheaper than fossil fuels. ACWA Power announced that renewables in the Kingdom no longer require government subsidies, with Chinese technological innovations and Saudi Arabia's exceptional natural endowments of abundant sunlight and strong coastal winds creating ideal conditions. The Middle East AI in energy market, valued at USD 54.48 million in 2024 with projected CAGR of 22.24% through 2033, is further accelerating renewable energy optimization through advanced forecasting systems, with ACWA Power and Saudi Aramco developing sophisticated photovoltaic energy forecasting using big data analytics and machine learning to enhance grid stability and optimize energy distribution.

Saudi Arabia Renewable Energy Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

● Solar
● Wind
● Others

Breakup by Region:

● Western Region
● Northern and Central Region
● Eastern Region
● Southern Region

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● October 2025: ACWA Power secured clean energy contracts across the Gulf, Africa, Central Asia, and China, with the largest project involving collaboration with Saudi Aramco to support Saudi Arabia's renewable energy targets by 2030, expanding ACWA Power's Saudi portfolio of renewable projects.

● August 2025: ACWA Power received commercial operation certifications for large-scale solar projects in Saudi Arabia, including ArRass2 and the SAAD 2 Solar PV project, contributing to the Kingdom's solar capacity goals.

● February 2025: ACWA Power and Saudi Aramco signed agreements to develop an advanced photovoltaic energy forecasting system using big data analytics and machine learning to enhance solar power generation predictions, grid stability, and microgrid management.

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