The Saudi Shift: Laying The Groundwork For A Clean Energy Future

Jeffrey Beyer, UNDP Chief Technical Advisor to the Saudi Ministry of Energy, Stephen Gitonga, Regional Energy Specialist, UNDP Regional Hub for Arab States

Saudi Arabia is defying expectations by accelerating renewable energy deployment at a remarkably impressive pace. While it started from a lower base than many other countries, it is now outperforming even nations that began from a much stronger starting point. The Kingdom deliberately took time to lay solid foundations for clean energy growth toward 2030 and is now entering a dynamic take-off phase.

Saudi Arabia’s journey started in the last two decades and UNDP has been partnering with the Ministry of Energy for over 15 years to supercharge its sustainable energy objectives. UNDP partnered with the Ministry of Energy on the $100M National Energy Efficiency Program, which resulted in the establishment of the Saudi Energy Efficiency Centre. Since 2019, UNDP worked with the Ministry of Energy to build capacity, advance renewable energy integration and deliver techno-economic analysis of new renewable resources. UNDP has also worked closely with the Ministry to study R&Dresearch and development priorities in the power sector and facilitated delegations to study international best practices.

UNDP has partnered with the Ministry of Energy for over 15 years to supercharge its sustainable energy objectives.
Saudi Arabia is preparing to remain a global energy leader through growth in affordable and sustainable energy. It aims for 50% renewable electricity by 2030, driven by its National Renewable Energy Program (NREP), and underpinned by its Net Zero by 2060 goal. The Kingdom is also improving environmental outcomes whilst saving costs through the Liquid Displacement Program, where cheaper and cleaner forms of electricity replace Heavy Fuel Oil and diesel.

In addition to its successful energy efficiency efforts over the last 15 years, Saudi Arabia is deploying solar energy at a faster rate than any country in history. The first large-scale, grid-connected utility solar PV project under the NREP was the 300 MW Sakaka PV IPP in November 2019. Developed by ACWA Power, Sakaka marked Saudi Arabia’s entry into utility-scale solar power production feeding directly into the national electricity grid. Since then, it has connected over 10.2 GW of renewable capacity and has over 33 GW in different stages of the development pipeline. It aims to tender 20 GW of renewables annually to achieved 2030 targets subject to electricity demand growth.

Saudi Arabia is deploying solar energy at a faster rate than any country in history.
This new, clean electricity will not only decarbonize the country’s grid, but it will also help to decarbonize the factories and transport systems of Europe and the Far East, by producing and exporting green hydrogen made from water and renewable electricity. With the ambition to be a major player in Artificial Intelligence data centers, it will also help decarbonize AI and digital infrastructure.

Beyond wind and solar, the Kingdom is exploring its vast geothermal potential along the Red Sea coast where tectonic activity is highest. This could provide reliable, renewable baseload power and capitalize on the country’s strong experience with drilling and subsurface mapping.

Research into civil nuclear power is also ongoing. Saudi hosts national civil nuclear research centres at King Abdulaziz City for Science and Technology (KACST) and King Abdullah City for Atomic and Renewable Energy (KACARE), alongside nuclear engineering degrees at three leading universities.

Saudi is confident in its trajectory because it has carefully built a strong foundation that de-risks clean energy investments and will lead to the lowest renewable energy costs in the world. It is deploying 1,200 “meteorological masts” (weather stations) across the country to develop a national database of wind and solar patterns covering an area of 850,000 km2. These reliable measurements build confidence in expected generation, improve revenue forecasts, reduce project development timelines, and de-risk new projects, which lowers the cost of capital for project finance.

Saudi is confident in its trajectory because it has carefully built a strong foundation that de-risks clean energy investments and will lead to the lowest renewable energy costs in the world.
Building solar panels, wind turbines and manufacturing clean energy value chain components are important foundational steps. But operating a robust electricity grid safely and reliably adds a layer of complexity to the energy transition that is often underappreciated.

Saudi Arabia is now complementing its healthy pipeline of renewable energy projects with a renewables integration plan that aims to leapfrog the world’s fastest adopters. This includes large-scale battery energy storage systems (BESS) to enhance grid flexibility and reliability, enabling higher penetration of renewables. Saudi Arabia has already operated four BESS projects with a total capacity of 2GW / 8GWh. In addition, the country is developing a pipeline of 5.5 GW / 22 GWh of additional BESS projects, with a national target of reaching 48 GWh of storage capacity by 2030 as a part of its energy mix. And it has engaged the national energy ecosystem to develop a shared list of research, development and innovation priorities for the power sector, which will inform where and how the Research, Development and Innovation Authority should invest.

Lessons emerging from the long-standing partnership between the Saudi Ministry of Energy and UNDP highlight the importance of establishing a strong foundation from the outset—anchored in sound public policies and robust regulatory frameworks. Such a foundation enables the rapid scaling of clean energy–for–development initiatives supported by sustainable financing and investment. This approach has positioned Saudi Arabia to further consolidate its regional leadership in the energy space, demonstrating how energy can drive economic transformation and setting an example by fostering a holistic approach to the energy sector both domestically and across borders.

UNDP remains committed to its partnership with the Ministry of Energy and aims to strengthen the collaboration to build its capacity to deliver on its ambitious plans. Saudi Arabia’s success story is a regional exemplar of strategic foresight in achieving the twin objectives of secure, affordable and clean energy that also supports economic diversification.