The Clean Energy Kingdom: Saudi Arabia's Plan to Procure Up To 54 GW of Renewable Energy

Firm Thought Leadership

The Kingdom of Saudi Arabia (“KSA”) is pursuing an ambitious strategy to diversify the country’s energy portfolio over the next 20 years by procuring up to 54 gigawatts (“GW”) of electrical energy from renewable sources. The initiative is intended to diversify the country's energy mix, introduce renewable energy as a major component of that energy mix, reduce the country’s reliance on fossil fuels and diversify the Saudi Arabian economy. It will be implemented and overseen by the King Abdullah City for Atomic and Renewable Energy (“K.A.CARE”).

While Saudi Arabia remains the world’s largest exporter of crude oil, steadily increasing domestic demand for electricity and desalinated water is rapidly eating into reserves. Various forecasts have predicted that, under projected rates of consumption, Saudi Arabia would become a net importer of oil within 25 years. Saudi Arabia's effort to foster renewable energy development is one strategy to deal with this reality and counteract the nation's current dependence on the oil industry. KSA recognizes the hazards of failing to adapt to its changing energy landscape and is proactively focused on transitioning to a more balanced energy mix as a means of preserving wealth and stability, in part by creating jobs for its growing population in the technology and other sectors important to its future.


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