Saudi Arabia’s HVDC Backbone Explained: What the Oxagon-yanbu Line Signals for Cleaner Power

The renewables buildout provides the strongest near-term reason for backbone-style transmission. Under the National Renewable Energy Program, 21 projects totaling 19 GW have been awarded, and seven plants equal to 4.1 GW were operating by late 2024. Grid-connected renewables climbed to 6.5 GW in 2024 and are scheduled to double to 12.7 GW in 2025. Those additions can stress an AC network if generation is far from demand centers, so planning attention shifts to bulk transfer capability and controllability. This is the context in which discussions of an Oxagon–Yanbu HVDC backbone sit: the strategic need to move large blocks of cleaner power reliably as the installed renewable fleet expands.

Why HVDC Matters Now for Saudi Arabia’s Grid

Multiple indicators point to a widening commitment to transmission investment. The U.S. Department of Commerce country guide says the Ministry of Energy’s spending on power and renewable energy projects is expected to reach USD 293 billion by 2030, alongside policies aimed at diversifying the energy mix. It also highlights how SEC is ramping up grid infrastructure investments to address anticipated demand growth. In 2023, SEC’s capex program amounted to USD 10.9 billion, a 51.8% increase from 2022. In 2024, SEC deployed USD 16 billion into generation, transmission, distribution, and general projects, a 43.8% increase on the previous year. Those figures do not describe a single line. But they explain why backbone projects and new corridors are on the table as part of system-wide reinforcement.

The market data also shows HVDC’s growing footprint. Grand View Research reports the Saudi Arabia HVDC transmission market generated USD 972.6 million in revenue in 2024 and is expected to reach USD 1,286.5 million by 2030. In the same dataset, line-commutated converter (LCC) technology was the largest segment, with a 68.42% revenue share in 2024. Separate regional research from Mordor Intelligence links HVDC growth to national and cross-border interconnections, noting that in October 2021 Saudi Arabia was looking to build a 3 GW link worth USD 1.6 billion with Egypt. Together, these points help explain why hvdc transmission in Saudi Arabia is discussed as a backbone enabler for both domestic reinforcement and interconnection ambitions.

Finally, the buildout is not only about generation and substations. Project delivery depends on cables, marine works, and enabling infrastructure. IndexBox notes that giga-projects like NEOM—particularly Oxagon and The Line—involve extensive coastal and marine infrastructure that will require control and power cables for ports, water management, and communication networks. That same report provides external context from Scotland, citing a 203-kilometer, 2 GW Spittal to Peterhead HVDC subsea link and nearshore geo-surveys for a 1.8 GW Western Isles HVDC power link. These are not Saudi projects, but they illustrate the kind of enabling works and cable-intensive effort that long-distance HVDC development can require when it intersects with coastal and industrial infrastructure programs.