Renewable & Clean Energy

Saudi Arabia has made significant investments in renewable energy in recent years as part of its economic diversification strategy and plan to meet rising electricity demands sustainably. The U.S.-Saudi Business Council has supported growth in this sector by organizing industry events and introducing U.S. solar, wind, smart grid, and energy storage companies to the Saudi market. With plans to generate 50 percent of electricity from renewables and transform into a global renewable energy leader by 2030, Saudi Arabia offers unique opportunities for U.S. companies providing green and renewable energy technologies.

Sargent & Lundy's experience working with our colleagues at the U.S.-Saudi Business Council was excellent from start to finish. The structured setup of the meetings enabled Sargent & Lundy to meet the correct client and industry contacts in a targeted and efficient manner, which is now bearing fruit. Thank you to Ana and the U.S.-Saudi Business Council.

The Mission was well arranged and scheduled, and we got to meet with several impactful business contacts through the introductions by the USSBC.

View all testimonials →

Overview

Renewable and clean energy play a pivotal role in Saudi Arabia’s development and diversification goals. The Saudi government recognizes the importance of a diverse energy mix; by 2030, the country aims to be the region’s hub for renewable energy and related manufacturing. To this end, the Kingdom is offering attractive investment opportunities to investors and manufacturers to take part in the growth of the country’s largely undeveloped market for clean and renewable energy.

Saudi Arabia has vast potential in solar and wind energy production/transmission as well as in energy savings and efficiency. The country is placed squarely in the center of the sunbelt and offers year-round clear skies, providing excellent potential for photovoltaic energy collection throughout much of its territory. Saudi Arabia also has an excellent potential for wind energy along the northeast, central regions, and mountains in the western region.

These geographic advantages combine with the country’s sheer scale of energy consumption (one of the largest energy consumers in the world with annually increasing electricity rates and energy usage for mega projects and urban development) and ambitious Vision 2030 decarbonization goals to offer immense opportunities available to companies in the renewable and clean energy space. Major potential exists as well for lithium-based batteries and other energy storage systems for renewable energy, grid demand management, and electric vehicle production/maintenance.

To further facilitate new investments, the government has introduced new regulations (e.g. licenses for energy services companies, legal framework, incentives), new standards, large investments in technical education and human capital, and launched The National Energy Services Company (branded as Tarshid), a PIF-owned energy services company with $500 million in capital. Tarshid is supervising energy efficiency projects for more than 250,000 government buildings and millions of streetlights and has full authority to revamp all government institutions and public infrastructure to meet energy efficiency goals through collaboration with private sector partners. The Saudi government also recently launched the Saudi Energy Efficiency Center, which serves as the primary institution and single point of contact for the energy efficiency sector.