Overview
The Renewables sector represents a promising opportunity for the Kingdom to diversify its economy. The Kingdom’s offers one of the best locations worldwide for solar energy production due to its naturally sunny conditions. The visionary position of KSA has led to its ambitious National Renewable Energy Program which has already set the target to produce 50% of KSA’s energy mix through renewable energy by 2030. In addition, regionally renewables generation capacity is expected to increase by 160 GW by 2035. Collectively, this creates a tremendous opportunity for renewables manufacturing in the Kingdom. The Renewables sector has a high localization potential and Strong eco-system with ~50+ players bided in KSA’s solar projects.
The NIS has prioritized 6 segments through an integrated value chain with opportunities for local industries. The NIS is activating the segments to ensure the success of the Renewables Industry which will begin to impact the economy as early as 2024. The NIS has set the road map through structural initiatives which includes prerequisites and accelerators to fast-track the development of the renewables manufacturing development.
It’s expected that the Renewables industry in the Kingdom will have a total investment of SAR 6.7Bn by 2035 for 5 industrial opportunities, Wind towers, Wind blades, Solar Photovoltaic modules, Balance of System and Energy Storage. (Estd. 50% PIF and 50% private sector) and the MENA’s Renewables manufacturing market size is expected to reach 13 Bn USD by 2030. The M&E works closely with MoEnergy to support the T1 and T2 manufacturers.
Saudi Arabia aims to produce 50% of it’s energy mix through renewable methods by 2030
The Renewables industry’s vision is to achieve regional leadership and global-level competitiveness in Solar and Wind equipment manufacturing and address regional renewables demand. The Renewables industry will grow from its current nascent stage to become an engine for the Kingdom’s economy and will contribute to its GDP with SAR 2.5 bn annually and more than 29,000 direct jobs by 2030.
The group of different industrial goods in the renewable energy value chain shown in relation to 3 renewable energy sources was studied in coordination with the Ministry of Energy and relevant authorities, which are:
- Wind Energy
- Solar photovoltaic energy PV
- Concentrated solar power (thermal) CSP
Market
2021
2.25 B
Impact by
2035
11 B GDP
29 K JOBS
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