Issues
A Saudi-based power sector investor planning to expand its portfolio sought deep market insights to evaluate investment opportunities across renewable energy, grid modernization, and distributed-generation segments. The investor’s strategy focused on long-term value creation through assets aligned with Vision 2030 diversification goals. However, the team required specialized research covering demand forecasts, technology trends, regulatory evolution, and competitive dynamics to support data-driven investment decisions. Their leadership emphasized the need for accuracy, sector segmentation, and risk-adjusted evaluation frameworks before committing capital to new projects.
Solution
We executed a comprehensive Energy Market Research program tailored to key themes shaping the Saudi energy landscape. This included demand modeling across utilities, industrial sectors, commercial users, and distributed-generation consumers. We analyzed regulatory frameworks influencing investment cycles, including renewable capacity targets, grid-interconnection rules, and tariff structures. Competitive analysis mapped major players, new entrants, and technology providers. Advanced scenario modeling was used to assess asset performance under varying economic and policy conditions. The research provided a unified view of market size, growth trajectories, risks, and investment attractiveness across priority segments.
Approach
- Conducted structured interviews with energy stakeholders including regulators, technology providers, and project developers.
- Developed market-sizing models incorporating growth drivers, economic indicators, and sector-specific demand patterns.
- Analyzed policy developments impacting renewable procurement, grid access, and distributed generation.
- Benchmarked competitive landscapes across sub-segments such as solar, wind, storage, and transmission solutions.
- Performed financial modeling for multiple investment scenarios with varied regulatory and economic assumptions.
- Delivered a strategic insights dashboard summarizing risks, opportunities, and long-term market projections.
Recommendations
- Prioritize investments in segments with favorable policy support such as utility-scale solar, hybrid systems, and grid-enhancing technologies.
- Diversify across regional clusters to balance regulatory variations and customer demand differences.
- Establish strategic partnerships with developers and EPC firms to secure access to high-quality projects.
- Continuously monitor policy updates to adjust investment timing and capitalize on regulatory incentives.
- Strengthen internal analytical capabilities through advanced data tools and market intelligence platforms.
- Develop a phased investment plan to gradually increase exposure while mitigating early-stage risks.
Engagement ROI
The research enabled the investor to identify SAR 1.2 billion in high-potential opportunities while filtering out low-return assets that could have resulted in SAR 160 million in potential losses. Scenario modeling improved investment accuracy by 37%, while regulatory tracking reduced exposure to compliance risks by 42%. Over a five-year horizon, the investment strategy supported by the insights projected a return uplift of 18–23%, equating to cumulative gains exceeding SAR 480 million based on aligned asset selection and optimized portfolio allocation.