Saudi Arabia Renewable Energy Market Set for Explosive Growth (2026-2031)

Dublin, Jan. 20, 2026 (GLOBE NEWSWIRE) -- The "Saudi Arabia Renewable Energy - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering. The Saudi Arabia renewable energy market is poised for remarkable growth, with a projected capacity of 15.06 gigawatts by 2026, up from 10.90 gigawatts in 2025. By 2031, the market is expected to expand to an impressive 75.68 gigawatts, reflecting a 38.12% CAGR from 2026 to 2031. This underscores the Kingdom's commitment to its Vision 2030 decarbonization goals, as well as its leadership in renewable energy expansion. Key drivers include cost-competitive solar tariffs averaging USD 0.018/kWh, the energy needs of giga-projects, and a rapidly growing demand for green hydrogen. The National Renewable Energy Program, with its 130 GW procurement pipeline, plays a crucial role in this growth, supported by ambitious local-content mandates. This accelerates supply-chain investments and the localization of manufacturing within Saudi Arabia. Increasing industrial and commercial power purchases, alongside regulatory support for corporate power purchase agreements, further broadens market opportunities. However, challenges like dust-induced PV efficiency losses, grid congestion, and an ample natural gas supply must be addressed for sustained adoption. Trends and Insights National Renewable Energy Program Drives Capacity Expansion The National Renewable Energy Program's round-based auctions issue predictable tenders that are crucial to the market, with allocations reaching 17.1 GW by late 2025. Record-low tariffs incentivize aggressive bidding while stimulating financing innovation. Local-content thresholds exceeding 35% spark domestic production of essential components. Project clustering in optimal regions exploits superior solar and wind resources, reducing curtailment through geographic diversification. International standards ensure bankability, while streamlined permitting compresses timelines to 24 months, providing visibility that encourages investments. Solar LCOE Competitiveness Utility-scale PV costs breached USD 0.018/kWh in 2024, achieving grid parity with gas-fired generation. Economies of scale, low-interest financing, and technological advancements enhance yields, prompting oversubscription of projects in recent auction rounds. Despite grid integration costs partially offsetting savings, storage adoption is stimulated, creating new revenue streams for battery integrators. Natural Gas Price Advantage Despite competitive gas generation costs, Saudi Arabia's vast natural gas reserves and strategic utility of gas plants provide headwinds. Nonetheless, carbon neutrality pledges and potential LNG revenues could gradually shift the balance toward enhanced renewable energy adoption. Segment Analysis Solar energy dominated 93.15% of the 2025 market, leveraged by superior irradiance and scale-driven cost efficiencies. Wind energy is experiencing rapid growth, with technology advancements closing the price gap with solar. Emerging technologies like floating PV and agrivoltaics, alongside hybrid solar-wind plants, support a balanced energy mix supporting long-term grid resilience. Companies Covered in the Report ACWA Power Masdar (Abu Dhabi Future Energy Co.) Engie SA EDF Renewables Alfanar Energy Nesma Holding Vestas Wind Systems Enel SpA Marubeni Corporation TotalEnergies SE Desert Technologies JinkoSolar First Solar Sumitomo Corp. Kepco KPS Siemens Gamesa GE Vernova ACWA-Masdar JV (Shuaibah PV) Al Jomaih Energy & Water Larsen & Toubro Hyundai Engineering & Construction Key Topics Covered 1 Introduction 1.1 Study Assumptions & Market Definition 1.2 Scope of the Study 2 Research Methodology 3 Executive Summary 4 Market Landscape 4.1 Market Overview 4.2 Market Drivers 4.3 Market Restraints 4.4 Supply-Chain Analysis 4.5 Regulatory Outlook 4.6 Technological Outlook 4.7 Porter's Five Forces 4.8 PESTLE Analysis 5 Market Size & Growth Forecasts 5.1 By Technology 5.2 By End-User 6 Competitive Landscape 6.1 Market Concentration 6.2 Strategic Moves 6.3 Market Share Analysis 6.4 Company Profiles 7 Market Opportunities & Future Outlook 7.1 Development of Hybrid Renewable Energy Systems 7.2 Integration with Green-Hydrogen Production 7.3 Grid-scale Energy-Storage Build-out 7.4 Digitalization & Smart-Grid Solutions 7.5 Local Manufacturing & Supply-Chain Development For more information about this report visit https://www.researchandmarkets.com/r/7bmtho About ResearchAndMarkets.com ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.