Solar Power in Saudi Arabia: Plans vs Potential

Abstract

The recently adopted national plan “Saudi Arabia Vision 2030” aims to reduce the kingdom’s dependence on oil and generate 9.5 GW of power from renewable energy sources. The plan acknowledges that the kingdom’s high potential of renewable energy is still untapped. This Policy Brief examines what the requirements are for high solar penetration for electricity production in Saudi Arabia. It also aims to verify different deployment scenarios to estimate the investment and opportunity costs due to the use of solar power, in addition to outlining the policy changes needed to increase the role of renewables in the Saudi energy mix. Compared to the “Saudi Arabia Vision 2030”, a new scenario is suggested, reaching 20% of renewable penetration by 2030. Our study also found that under the current energy framework in the kingdom, it would be difficult to implement high penetration of renewable energies in general, unless certain measures and policies are adopted.