Saudi Arabia’s Renewable Energy Solutions: Harnessing Solar, Wind, and Sustainable Power for the Future

A major Saudi electric utility company tasked with increasing the share of renewable energy in the national power mix as part of the country’s diversification strategy.

In 2023 renewables were ~1% of power generation (about 2.7 GW), yet Vision 2030 targeted 50% by 2030. The client needed to rapidly add solar and wind capacity to close this huge gap. Challenges included securing sites, massive investment, and grid upgrades for intermittent energy. The utility had little experience with renewables and faced evolving regulations. A clear roadmap was needed to scale up new projects efficiently and reliably.

We delivered a national renewable energy roadmap for the client. The plan outlined a phased deployment of solar and wind projects over the next decade. We proposed an optimal mix of solar photovoltaic (PV) plants in high-sun regions and wind farms in identified high-wind areas. Concretely, the roadmap targeted adding approximately 15 GW of renewable capacity by 2028, including ~12 GW of solar PV and 3 GW of wind, as a milestone toward 2030. We advised the client to utilize competitive auctions to attract experienced international and local developers under IPP (Independent Power Producer) models, where the utility would purchase power via long-term contracts. The solution also integrated innovation initiatives – for example, exploring green hydrogen projects (using solar/wind power to produce hydrogen) and pilot energy storage systems, to address intermittency and position Saudi Arabia as a future exporter of clean energy. To support this expansion, we included recommendations for substantial grid infrastructure upgrades (new transmission lines, substations, and smart grid technologies) and for policy adjustments (such as feed-in tariffs or financial incentives) to ensure renewable projects were economically attractive.

Our approach combined technical analysis, financial modeling, and stakeholder engagement. We started by assessing Saudi Arabia’s renewable resource maps (solar irradiance and wind speed data) to pinpoint the most promising sites for large-scale projects. We then modeled different renewable expansion scenarios, considering factors like declining technology costs and project lead times, to determine a realistic yet ambitious capacity addition schedule. We benchmarked Saudi’s plans against global renewables growth to ensure competitiveness. Our team also consulted with regulators and government bodies (like the Ministry of Energy) to align the roadmap with national initiatives such as the Saudi Green Initiative. Financial analysts developed models to estimate investment needs (billions of dollars) and proposed financing structures, including public-private partnerships and green bonds. Throughout, we incorporated lessons from successful programs in other countries (e.g. UAE’s solar park auctions) in designing the implementation approach. We then worked with the client’s technical teams to outline grid connection plans for each new project and to plan for workforce training in renewables. The final roadmap included a detailed timeline, responsible parties, and risk mitigation measures (for instance, strategies to handle project delays or integrate newer technologies).

Key recommendations included immediately launching a series of solar PV projects through competitive bidding, starting with utility-scale plants of a few hundred MW each in the sun-rich central and western regions. In parallel, initiate development of the first large wind farm in a high-wind area of the Kingdom to diversify the renewable mix. We advised establishing a dedicated Renewables Division within the utility to oversee these projects and build internal expertise. We also stressed the importance of grid readiness: we recommended investing in new transmission infrastructure to connect remote renewable sites to demand centers and deploying smart grid solutions to better manage the variability of solar and wind output. On policy, we suggested that the client work with policymakers to implement a clear regulatory framework for renewables (e.g. standardized PPAs and land lease arrangements) to give investors confidence. Additionally, we advocated for integrating energy storage pilots (like large battery systems) to gain experience in smoothing renewable power, and preparing for future technologies (like hydrogen fuel from renewables) as part of a long-term vision.

The renewable energy roadmap has put the client on a clear path toward sustainability. Acting on our recommendations, the utility successfully conducted its first solar PV auction, drawing international developers and resulting in record-low solar electricity tariffs. Several large solar plants totaling a few gigawatts are now under construction, firmly moving the needle from the ~1% renewable share upward. These projects, along with others in the pipeline, are set to add roughly 15 GW of capacity by 2028, significantly advancing the Kingdom toward its Vision 2030 targets. The client has also created a new Renewables Division and has begun training its staff in solar and wind project management, reducing reliance on external consultants over time. Importantly, early signs show that renewable integration is working: the grid handled the first influx of solar power without issues, and peak daytime oil burn for power has reduced, cutting emissions as intended. The financial impact is positive too – the competitive procurement approach is delivering low-cost clean energy that will save fuel costs in the long run. By following the roadmap, the utility has transformed from an oil-dependent power producer into a diversified energy company. This engagement not only helps Saudi Arabia reduce its carbon footprint but also positions the client as a regional leader in the renewable energy transition.