Power and Electricity

Saudi Arabia has prioritized the energy sector during the last two decades as interest in the sector has grown. Many large investments have begun to take effect, particularly after the kingdom's significant position in the global energy sector was highlighted during the COVID-19 pandemic. According to the Kingdom's Vision 2030, renewable energy is regarded as an important initiative for the kingdom that constitutes a vital investment to achieve the anticipated advancements for the energy sector. Furthermore, in order to achieve sustainable development, the kingdom is eager to improves resource efficiency, works to maximize benefit management, provides an appealing environment for investments, and creates national services and products based on creativity and innovation.

Saudi Arabia's Vision for the Energy Sector

Saudi Vision 2030 targets further development in the energy sector to land the Kingdom's objectives and its vision for the energy sector. Among these objectives are diversifying the national energy mix used in electricity production,
optimize its energy mix, generating electricity in the most efficient least costly, and maximize and optimize the renewables' share in Saudi Arabia, designed to balance the local energy mix and meet Saudi's emissions-related obligations.
Saudi Arabia is to take advantage of its unique geographical and climate location, making its available energy sources a central and fundamental economic factor. The Ministry of Energy's main objective is to ensure the sustainable development of the petroleum, gas, and mining holds the highest value to the national economy, in addition to working to discover and exploit Saudi's petroleum, gas, and mineral resources and achieve the highest returns.

Electrical Sector

The kingdom aims to achieve sustainability and improve the efficiency and thus the performance of the electricity sector through raising production efficiency, reducing the use of liquid fuel, increasing the level of environmental commitment, enhancing the reliability of the grid in order to produce electricity from renewable energy sources which is central to the optimization of the energy mix, and improving and digitizing the distribution networks to further enhance service reliability.

Since the electricity sector is intrinsically linked and integrated with the sectors of oil and gas, renewable energy and nuclear energy, the Ministry of Energy is putting the finishing touches on an integrated energy sector strategy to align with the new electricity law, the sub-strategies, and executive programs of Saudi Vision 2030.

Electricity Sector Integration

The Ministry of Energy launched in mid-2017 the electricity sector integration ecosystem to serve as a space for integration and coordination between the various electricity entities. It aims to maximize the long-term integrated economic value and efficiency of the sector through supporting and coordinating between the various teams in the ecosystem. Representatives from over 23 public- and private-sector entities participate in this ecosystem.

Energy Sector Initiatives

Saudi Arabia follows a continuous and escalating pattern that aims primarily at achieving further development in the energy sector to achieve the kingdom's goals and transcend its vision for the energy sector. These goals include diversifying the national energy mix used in electricity production, achieving the optimal, most efficient, and least expensive energy mix, increasing the share of Saudi Arabia in producing renewable energy to the optimum extent, achieving balance in the mix of local energy sources, fulfilling the kingdom's commitments towards reducing carbon dioxide emissions.

 The kingdom also wishes to capitalize on its unique geographical and climatic location, which makes readily available energy sources a critical and necessary economic support. As a result, the Saudi Ministry of Energy's main goal is to ensure the sustainable development of the integrated oil, gas, and mining industry at all stages in order to achieve the highest value added to the national economy, in addition to launching several initiatives aimed at achieving value added by enabling the basic infrastructure environment to create a promising investment environment that attracts qualitative investments and achieves Saudi Arabia's leadership in the field of energy among the countries of the world.

Optimum Energy Mix

​​​​​​​​The energy mix to produce electricity aims to increase generation efficiency and lower costs through the diversification of energy sources used to produce electricity, depending on the available technologies and strategic direction of the sector including emission reduction. The energy mix is basically anchored on removing liquid fuel from the system in order to diversify the energy mix comprised of renewables and gas, each with a share of 50% by 2030. The energy mix goals are updated and reviewed on a regular basis. The chart below illustrates the current goals of the energy mix.


Renewable Energy

The Ministry of Energy strives to achieve integration and interdependence of the various energy sectors as a driving force of development and therefore strengthen the national and global economies. These sectors include conventional energy, renewable energy, and, in the future, nuclear energy for peaceful purposes. 
In addition, the ministry is developing the renewable energy sector by creating a local competitive market that contributes to increasing private sector investment and encourages public-private partnerships. The success of the Ministry's work to date is underscored by the fact that the Kingdom has achieved the most competitive prices globally in wind and solar electricity generation projects.

​​​The most prominent achievements of the sector during the last phase:

  1. Launching the first phase of the National Renewable Energy Program, which includes the Sakaka solar project and Dumat Al-Jandal wind project with an aggregate capacity of 700 MW.
  2. Launching the second phase of the National Renewable Energy Program, which consists of seven solar projects with an aggregate capacity of 2,970 MW.
  3. The Dumat Al-Jandal project setting a world record for the lowest cost of electricity produced by wind energy.
  4. Launching the third phase of the National Renewable Energy Program, which consists of four solar projects with an aggregate capacity of 1,200 MW.
  5. The Shuaiba solar project setting a world record for the lowest cost of electricity produced by solar energy.

Saudi Energy Efficiency Center

​The Saudi Energy Efficiency Center was established in 2010 with aim to rationalize and increase the energy efficiency in production and consumption in order to preserve Saudi Arabia’s natural resources and enhance the economic and social welfare of the population.
In 2012, the national program to rationalize and increase the efficiency of energy consumption called "Saudi Energy Efficiency Program” was launched as a framework for a system coordinates energy efficiency effort in the kingdom. In addition to the center, it includes several specialized government authorities, some governmental institutions and companies, and the private sector.

The goal is to improve and increase the efficiency of energy use in three key sectors that consume more than 90% of primary energy:

  1. Industry: 2.1 million barrels of oil are daily consumed. 47% of the total primary energy is consumed in KSA.
  2. Buildings: ​1.3 million barrels of oil are daily consumed. 28% of the total primary energy is consumed in KSA.
  3. Transportation: 1 million barrels of oil are daily consumed. 20% of the total primary energy consumed in KSA.

TARSHID

TARSHID is the national energy services company, fully owned by the Ppublic Iinvestment Ffund (PIF). It was established in 2017 to be a pioneer in the energy efficiency sector and to build towards a more sustainable future. TARSHID also aims to play a key role in the development of this sector through the establishment of a thriving energy efficiency industry in the kKingdom by attracting key international energy players, promoting foreign investment, and contributing to the creation of thousands of highly skilled jobs.

N​ational Program of Circular Carbon Economy

Saudi Arabia has launched the Circular Carbon Economy National Program to draw a comprehensive roadmap, which includes technological localization and advancement through the implementation of the Carbon Circular Economy. The program is the result of joint efforts by different stakeholders that worked on developing and implementing mechanisms that cover all technical, administrative, engineering, and normative aspects in order to achieve the strategic objectives of sustainable social and economic growth, promote integrated climate-change solutions, and ensure global leadership in the field of circular carbon economy.​

Crude Oil

The kingdom has gained a leading position in the global petroleum industry. Saudi Arabia has 19% of global reserves, 12% of global production, and more than 20% of global oil sales. It also has a refining capacity of more than 5 million barrels per day, both internally and externally. The Kingdom's fixed petroleum reserves are estimated at about 267 billion barrels.
The kingdom's influential role in global energy was evident during the coronavirus pandemic, where it reached the historic Organization of Petroleum Exporting Countries (OPEC) Plus agreement, and its subsequent efforts to strengthen the commitment of countries to their quotas from the cut, compensate for the excess amounts of quotas, and the impact of this agreement on the stability of global markets.

Oil Sustainability Program

​​​​The Oil Sustainability Program (OSP) was launched in 2020 with the participation of multiple government agencies, research institutions and companies. The OSP’s ambition is to create opportunities and applications for Hydrocarbons globally as a competitive source of energy, both from an economic and an environmental point of view, while ensuring Hydrocarbons remain part of the global energy mix in the most efficient and sustainable way. The program enables and supports the transition by removing barriers to energy access in developing markets, accelerating technological advancements, and increasing sustainability.

Natural Gas

Natural gas is an important natural resource in Saudi Arabia, and the Ministry of Energy seeks to maximize its exploitation through exploration, production, and investment. Natural gas is used to meet the growing demand for energy in the domestic market, where it is used as fuel for power plants and desalinated water production, in addition to being used as a staple (for values) for several manufacturing industries, as well as fuel in other industrial sectors.

Saudi Arabia is now the world's seventh-largest natural gas market. Although the main gas network can eliminate the associated gas burning, gas flares have the lowest gas burning density in the world, with less than 1%. By 2030, the kingdom intends to discontinue habitually utilizing gas in burners.

Atomic Energy

The King Abdullah City for Atomic and Renewable Energy is working within the kingdom's energy sector to develop and implement national plans that will allow atomic energy to contribute to the national energy mix in order to meet the requirements of sustainable national development within the Vision 2030 objectives, as well as to strengthen the Kingdom's international role as an energy leader and actor. By broadening the use of atomic energy for saltwater desalination, atomic energy and its peaceful applications will also help to electricity generation and address some of Saudi Arabia's challenges, such as water scarcity.

Saudi Green Initiative

Based on Vision 2030, Saudi Arabia has taken tireless steps to build a more sustainable future. The Saudi Green Initiative was launched in 2021 to guide more care for environmental protection, energy transformation and sustainability programs in Saudi Arabia to achieve its overall objectives of offsetting and reducing carbon emissions, increasing the use of clean energy, combating climate change and protecting land and marine areas, and afforestation of Saudi Arabia.

Electronic services provided by the Ministry of Energy

Electronic services provided by the Ministry of Energy

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