Saudi Arabia likely to miss 2030 RE target amidst growing demand

It would need to add more than 23GW of renewable capacity annually.

Saudi Arabia aims for 130 gigawatts (GW) of renewable power by 2030, but progress is lagging.

By 2025, the kingdom had reached only 13GW, and experts now project just 74.2GW by 2030, far short of its goal, according to GlobalData’s Saudi Arabia Power Market Trends and Analysis by Capacity, Generation, Transmission, Distribution, Regulations, Key Players and Forecast to 2035 report.

Saudi Arabia would need to add more than 23GW of renewable capacity annually to meet its 2030 goal.

Whilst Saudi Arabia meets domestic electricity demand using oil and natural gas, rising power consumption and desalination needs are forcing greater reliance on oil, limiting exports.

“Power consumption has been increasing at a rapid pace in the country due to a burgeoning economy and a growing population,” said Attaurrahman Ojindaram Saibasan, power analyst at GlobalData.”A large amount of power is required for water desalination plants due to the low availability of naturally occurring groundwater.”

“This has made it necessary for the country to use more oil for power generation, leaving less available for export,” he added. “This is a development that Saudi Arabia cannot afford, and the government has therefore been focusing on increasing the share of non-oil fuels in its power mix.”

Recent renewable efforts include 4.5GW of solar and wind projects awarded in October 2025 under the sixth National Renewable Energy Program (NREP), and 5.3GW added in the seventh round by January 2026.

“Despite having support mechanisms such as net metering and renewable auctions, the country has not done enough to bolster its renewable capacity in line with its targets,” said Saibasan.

He said tha the government needs to focus on creating more purchase power agreements (PPAs) for large-scale renewable power plants.

Saudi Arabia has strong solar potential and some wind growth, but geopolitical risks in the Middle East and rising electricity demand from projects like the repurposed NEOM data hub could complicate investments.