Saudi Arabia Power Market to Reach 106.0 GW by 2034 at CAGR of 2.62% | Growth & Forecast

Saudi Arabia Power Market Overview
Market Size in 2025: 84.0 GW
Market Forecast in 2034: 106.0 GW
Market Growth Rate 2026-2034: 2.62%

According to IMARC Group's latest research publication, "Saudi Arabia Power Market Size, Share, Trends and Forecast by Generation Source, and Region, 2026-2034", the Saudi Arabia power market size reached 84.0 GW in 2025. Looking forward, IMARC Group estimates the market to reach 106.0 GW by 2026-2034, exhibiting a CAGR of 2.62% from 2026-2034.

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How AI is Reshaping the Future of Saudi Arabia Power Market

● AI is supercharging Saudi Arabia's power grid with smart predictive maintenance, where digital twins cut downtime by 30% in utilities like those tied to NEOM's giga-projects, thanks to Vision 2030's push for AI-ready infrastructure that keeps energy flowing smoothly without constant human fixes.

● Government schemes under the National AI Strategy are rolling out AI for demand forecasting in the power sector, handling peaks with 25% better accuracy as seen in recent Saudi Electricity Company pilots, making blackouts a thing of the past.

● In renewable energy, AI optimizes solar and wind farms across the Kingdom, boosting output by 20% through real-time weather analytics, fueled by the Public Investment Fund's massive green power investments.

● Major players like Aramco are deploying AI-driven energy trading platforms that process market data 10x faster, aligning with SDAIA's data platforms to reshape how power gets bought and sold efficiently.

● Vision 2030's sovereign cloud initiatives power AI for grid cybersecurity, slashing breach risks by 40% in state utilities, as recent Microsoft partnerships demonstrate real-world hardening against threats.

Saudi Arabia Power Market Trends & Drivers:

Saudi Arabia's power market is surging ahead thanks to Vision 2030, the bold national plan pushing hard to diversify away from oil and embrace renewables like never before. With goals to hit 50% of electricity from clean sources such as solar and wind, the government is pouring billions into massive projects-think the 2.4 GW Sakaka solar plant already online and the gargantuan 1,500 GW potential across sun-drenched deserts. ACWA Power just sealed deals for new facilities, blending private investment with state backing through independent power producer models that draw in global players like EDF and Engie. This isn't just talk; peak demand hit around 70 GW recently, fueled by urban boomtowns like Riyadh and Jeddah where air conditioning alone guzzles massive power. Real-world wins include smart grid pilots cutting losses by 10% in test zones, making the grid tougher and greener while companies like Saudi Electricity Company roll out digital upgrades for round-the-clock reliability. It's a game-changer, turning endless sunshine into steady juice for homes and factories alike.

Population boom and industrial hustle are cranking up electricity needs across the Kingdom, with over 37 million people now crowding into sprawling cities that never sleep. Urbanization means more malls, skyscrapers, and data centers lighting up, while mega-projects like NEOM demand reliable power for futuristic cities running on AI and tech. Stats show residential use jumping 5% yearly from household gadgets and cooling, hitting utilities where it hurts amid scorching summers. Government schemes shine here, like the Saudi Green Initiative that plants trees and boosts efficiency, alongside rebates for LED lights and efficient AC units in millions of homes-slashing waste without skimping on comfort. On the company front, Marubeni and local firms broke ground on combined-cycle plants adding 1.3 GW capacity, ensuring factories in Jubail churn out chemicals and plastics nonstop. These moves keep blackouts at bay, powering everything from desalination plants quenching national thirst to electric vehicles charging up in pilot fleets.

Smart tech and energy storage are flipping the script on old-school power woes, letting Saudi Arabia juggle peak loads like a pro. Battery systems paired with solar farms store daytime surplus for night use, with pilot projects already holding 100 MWh to smooth out supply dips. The push comes via the National Renewable Energy Program, funneling $50 billion into grid modernization-think AI-driven demand forecasting that trims outages by 20% in upgraded areas. News from Engie highlights their role in hybrid plants mixing gas and batteries for 40% cleaner output, while Aramco tests hydrogen blending in turbines as a bridge to net-zero. This tech trio tackles real headaches: during 2025 heatwaves, smart meters helped shift 15% of usage off-peak, saving millions in fuel costs. It's practical magic, ensuring hospitals stay lit, desalination hums, and industries thrive without the fossil fuel crutch.

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Saudi Arabia Power Industry Segmentation:

The report has segmented the market into the following categories:

Analysis by Generation Source:

● Thermal
● Hydro
● Renewable
● Others

Regional Insights:

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

Competitive Landscape:

● Saudi Electricity Company (SEC)
● National Grid SA
● Acwa Power
● Kepco
● SPPC

Recent News and Developments in Saudi Arabia Power Market

● January 2026: Saudi Arabia tenders 64 GW renewables, connecting 12.3 GW to grid with record-low solar costs, accelerating clean energy shift via Ministry of Energy initiatives.

● January 2026: Plans emerge for 14 GW solar-wind awards under NREP's Round 7, with SPPC securing 47.7 GW PPAs to diversify power mix rapidly.

● December 2025: Saudi Smart Grid Conference highlights innovations, featuring 225 papers on grid efficiency and renewables from 25 countries.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

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IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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