National Renewable Energy Program

The National Renewable Energy Program is a national program supervised by the Ministry of Energy in the Kingdom of Saudi Arabia, working to raise the share of renewable energy sources in the energy mix used for electricity generation.[1] It was announced in February 2017 as part of the drive to diversify energy sources and support Saudi Vision 2030.[1]

The program delivers photovoltaic solar and wind power projects distributed across the regions of the Kingdom, while developing local supply chains and raising the local content share in these projects.[3]

The program aims for the share of both gas and renewable energy sources in the electricity generation mix to reach about 50% by 2030, and for gas and renewable energy to replace the equivalent of nearly one million barrels of oil equivalent of liquid fuel per day; these targets were announced by His Royal Highness the Crown Prince and Prime Minister.[5]

In February 2017, the Ministry of Energy announced that the deadline for issuing requests for qualification for the first phase of the program would be 20 February 2017, that bidding for the production of 700 megawatts of wind and solar power would open on 17 April 2017, that the qualification window would close in July, and that the first phase of projects would be awarded in September 2017.[1]

At its launch, the program targeted the production of 9.5 gigawatts by 2023 in support of Saudi Vision 2030, and 3.45 gigawatts of renewable energy by 2020 under the umbrella of the National Transformation Program.[1]

The Renewable Energy Project Development Office was established within the Ministry of Energy as a body of the ministry responsible for implementing the National Renewable Energy Program and expanding renewable energy across the Kingdom.[1]

The Saudi Power Procurement Company, the principal buyer, concludes power purchase agreements with the winning consortia for the program's projects in the various regions.[6][7]

The Custodian of the Two Holy Mosques Renewable Energy Initiative was launched as a leading initiative in the drive to diversify energy sources under the National Transformation Program 2020, targeting the introduction of 3,450 megawatts of renewable energy, equivalent to about four percent of the energy produced at the time, into the national energy mix.[2]

The initiative seeks to make renewable energy a fundamental and effective element of the national energy mix, as energy produced from natural sources that emit no hydrocarbon residues.[2]

On 09 January 2020, the Renewable Energy Project Development Office issued the requests for qualification for the third phase of the program, comprising four photovoltaic solar projects with a combined capacity of up to 1,200 megawatts; Category A includes the Layla project with a capacity of 80 megawatts and the Wadi Ad-Dawasir project with a capacity of 120 megawatts, while Category B includes the Saad project with a capacity of 300 megawatts and the Ar-Rass project with a capacity of 700 megawatts.[3]

On 08 April 2021, the Sakaka solar power plant project was inaugurated in Al-Jawf Region, marking the beginning of renewable energy projects in the Kingdom, with a production capacity of 300 megawatts.[4]

At the inauguration ceremony, power purchase agreements were signed for seven other renewable energy projects with five investment consortia made up of 12 Saudi and international companies in Madinah, Sudair, Al-Qurayyat, Ash-Shuaibah, Jeddah, Rabigh and Rafha; the total capacity of these projects, together with the Sakaka and Dumat Al-Jandal projects, amounts to 3,670 megawatts, providing electricity to more than 600,000 housing units and reducing more than 7 million tons of greenhouse gas emissions.[4]

On 07 March 2022, the Ministry of Energy awarded the Ar-Rass and Saad photovoltaic solar projects with a combined capacity of 1,000 megawatts; the investment in the 700-megawatt Ar-Rass project amounts to about 1.7 billion riyals with an electricity purchase cost of 5.62 halalas per kilowatt-hour, while the 300-megawatt Saad project involves an investment of 800 million riyals at a cost of 5.56 halalas per kilowatt-hour.[6]

On 30 November 2022, a power purchase agreement was signed for the Ash-Shuaibah 2 photovoltaic solar project in Makkah Region with a capacity of 2,060 megawatts and a purchase price of 6.72 halalas per kilowatt-hour, expected to supply about 350,000 housing units with electricity.[7]

On 08 February 2024, the Saudi Power Procurement Company announced the list of developers qualified to compete in the fifth phase, for which requests for qualification had been issued on 12 November 2023 with a combined capacity of 3,700 megawatts; it includes the As-Sadawi project in the Eastern Province with a capacity of 2,000 megawatts, the Al-Masaa project in Ha'il Region with a capacity of 1,000 megawatts, the Al-Hunaykiyah (2) project in Madinah Region with a capacity of 400 megawatts, and the Rabigh (2) project in Makkah Region with a capacity of 300 megawatts, with 23 companies qualifying out of 31 requests.[9]

On 27 October 2025, five new renewable energy projects were awarded, comprising one wind project and four solar projects with a combined capacity of 4,500 megawatts and investments exceeding 9 billion riyals (2.4 billion US dollars), within the sixth phase of the program.[12]

The geographic survey project for renewable energy projects was launched, with its implementation contracts awarded to national companies to install 1,200 stations for monitoring solar and wind energy across all regions of the Kingdom, in a survey covering more than 850,000 square kilometres.[10]

The Kingdom aims to launch projects for generating electricity from renewable energy with a capacity of 20 gigawatts annually starting in 2024, to reach between 100 and 130 gigawatts by 2030 in line with the growth in electricity demand.[10]

The number of renewable energy projects operated in the Kingdom since their construction began up to the end of 2024 reached ten projects with a combined capacity of 6,551 megawatts, nine of them solar with a capacity of 6,151 megawatts and one wind project with a capacity of 400 megawatts.[11]

Financial close was achieved for the Ash-Shuaibah 1 and Ash-Shuaibah 2 projects with a combined capacity exceeding 2.6 gigawatts and long-term financing of 6.1 billion riyals, within a commitment to develop 70% of the Kingdom's renewable energy generation capacity by 2030 under the program.[8]

The program seeks to achieve a storage capacity of up to 48 gigawatt-hours by 2030, and about 26 gigawatt-hours of storage projects had been offered up to February 2025.[13]

Q: What is the National Renewable Energy Program? A: It is a national program supervised by the Ministry of Energy to raise the share of renewable energy sources in the energy mix used for electricity generation, announced in February 2017 as part of the drive to diversify energy sources and support Saudi Vision 2030.[1]

Q: What are the program's targets for the electricity generation mix? A: It aims for the share of both gas and renewable energy sources in the electricity generation mix to reach about 50% by 2030, and for gas and renewable energy to replace the equivalent of nearly one million barrels of oil equivalent of liquid fuel per day, while reaching between 100 and 130 gigawatts of renewable energy by 2030.[5][10]

Q: What were the first program projects to enter service? A: The Sakaka solar power plant project, inaugurated on 08 April 2021 with a capacity of 300 megawatts, marks the beginning of renewable energy projects in the Kingdom, and the number of operated projects up to the end of 2024 reached ten projects with a combined capacity of 6,551 megawatts.[4][11]

Q: What are the most prominent phases announced under the program? A: The third phase with four solar projects with a combined capacity of 1,200 megawatts, the fifth phase with four projects with a capacity of 3,700 megawatts for which 23 companies qualified to compete, and the sixth phase with five projects with a capacity of 4,500 megawatts and investments exceeding 9 billion riyals.[3][9][12]

Q: What is the target storage capacity in the program? A: The program seeks to achieve a storage capacity of up to 48 gigawatt-hours by 2030, and about 26 gigawatt-hours of storage projects had been offered up to February 2025.[13]

The National Renewable Energy Program moved from its announcement in February 2017 to the sixth phase in 2025, with successive production capacities and projects spanning the regions of the Kingdom, and defined targets for the electricity generation mix, storage capacity and the geographic survey in support of Saudi Vision 2030.[1][10][12] Related topics on the platform include the Saudi Green Initiative and the Public Investment Fund.