Saudi Arabia’s renewable energy sector is accelerating its shift from launching initiatives to large-scale operations and expansion, with operational project capacity jumping 88 percent in 2025 to reach 12.313 gigawatts by year-end. Investment in existing projects exceeded SAR 36 billion ($9.6 billion), reflecting the sector’s growing scale as the Kingdom works to diversify its energy mix and increase the use of renewable energy sources. According to the latest data from the General Authority for Statistics (GASTAT), 15 renewable energy projects were operational in the Kingdom by the end of 2025. Specialists said faster project implementation and rising investment in clean technologies are paving the way for further expansion in the coming years, encompassing solar and wind power and green hydrogen, alongside growth in related industries and the localization of supply chains and specialized workforce capabilities. The figures are part of the authority’s "Raqam Saudi" ("Saudi Number") initiative, which highlights national statistics and indicators and their significance for economic, social and development trends. Historic transformation Majid Refae, chairman of the Saudi Polytechnic Institute for Renewable Energy (SPIRE), described the sector as undergoing an unprecedented qualitative transformation in the Kingdom’s modern economic history. He said the shift goes beyond the growing scale of investment projects to include exceptionally rapid implementation, a more mature regulatory and administrative framework, and greater integration of the infrastructure needed to support the emerging industry. Refae underlined that the indicators clearly reflect Saudi Arabia’s move from the stage of launching initial initiatives to an advanced phase of operating the renewable energy system on a broad and practical scale, demonstrating greater maturity in implementation and planning capabilities. He attributed the momentum to three main drivers working in tandem: faster implementation of projects under the National Renewable Energy Program, expanding domestic and international investment in clean technologies, and the Kingdom’s achievement of world-leading levels of competitiveness. Taken together, he said, these developments confirm that Saudi Arabia has established itself as a major player in the global renewable energy market. The transformation is being pursued through a strategy led by the Ministry of Energy in cooperation with the Public Investment Fund (PIF) and based on developing projects, infrastructure and local capabilities needed for the sector’s growth. Sustainable economic base From an industrial and economic perspective, Refae described renewable energy as an important avenue for diversifying the Saudi economy and building a stronger and more sustainable production base. He pointed to the importance of the current phase, which extends across four interconnected areas: diversifying the economy and creating new sectors, strengthening energy security and the long-term sustainability of supplies, generating environmental and development benefits, and reinforcing the Kingdom’s regional and international standing. Saudi Arabia now holds an advanced position regionally and globally in areas including production costs, project scale, infrastructure readiness and the development of green hydrogen projects, stressing that those strengths enhance the Kingdom’s attractiveness for cooperation and investment in the next phase, he added. Refae expects Saudi Arabia to enter a new phase of growth in the sector between 2026 and 2030, driven by major solar and wind projects coming on stream, alongside an expansion in green hydrogen projects for both production and export. The Kingdom’s stated target is for renewable energy to account for 50 percent of its electricity mix by 2030. Faster project implementation and growing investment, he said, strengthen its ability to achieve that goal. Given the scale of the targets, government financing alone will not be sufficient, making broader participation by the local private sector and international companies necessary. Public-private partnerships can attract further investment, draw on global expertise and technology, accelerate project implementation and develop related supply chains, he remarked. Local manufacturing Growth in renewable energy projects is also expected to expand supporting industries and services, increasing the importance of localizing the manufacture of key components and parts. According to Refae, building a domestic manufacturing base would reduce reliance on imports, create jobs and increase value added to the national economy. Faster project implementation also places greater responsibility on SPIRE to prepare the skilled workforce required by the industry, he noted, stressing that its role "is not limited to training, but carries multiple strategic dimensions." Institute strategy Refae said the institute’s main priority is to prepare specialized Saudi professionals capable of operating and maintaining renewable energy projects in line with international standards, while also contributing to knowledge transfer, skills development and innovation. SPIRE is developing specialized training programs covering solar and wind power, green hydrogen and energy-storage technologies, with an emphasis on practical and applied instruction that links training to the actual needs of projects and the labor market, he revealed. He noted that the expansion of renewable energy projects gives SPIRE an opportunity to strengthen its role as a platform for developing capabilities, transferring expertise and supporting innovation, rather than serving merely as a conventional training provider. Refae noted that the growth of the renewable energy sector represents an important opportunity to diversify the economy and create new areas of activity and investment. Fully capitalizing on that opportunity will require continued investment in Saudi talent, research and development, innovation, and stronger partnerships with domestic and international companies and institutions, he said.
