Saudi Energy Projects Surge Ahead with Record-Low Costs and 15 GW Capacity
Saudi Arabia is rapidly redefining the global renewable energy landscape, with its latest Saudi Energy projects achieving record-breaking cost efficiency and scale. As of mid-2025, the Kingdom has signed renewable energy contracts totaling 15 gigawatts, outpacing traditional leaders like China and India in both pricing and execution.
15 GW of New Saudi Energy Projects Signed in 2025
In a bold move underscoring its clean energy ambitions, Saudi Arabia signed renewable energy deals amounting to 15 gigawatts in capacity during the latest tender round. These projects span both solar and wind sectors and are among the most competitively priced globally. During the International Workshop on Renewable Energy and Green Hydrogen Exports held in Riyadh on July 20th, Saudi Energy Minister Prince Abdulaziz bin Salman emphasized that the Kingdom is now executing projects at costs lower than China and India—a milestone that positions Saudi Arabia as a cost leader in the global energy transition.
SR19.8 Billion Invested Across 10 Operational Projects
By the end of 2024, Saudi Arabia had 10 operational renewable energy projects with a total investment of SR19.839 billion (US$5.28B). Of this, SR18.264 billion (US$4.87B) was allocated to nine solar energy plants, while SR1.575 billion (USD$418.7M) funded a single wind energy project. These projects collectively deliver 6,551 megawatts of clean energy—6,151 MW from solar and 400 MW from wind—enough to power approximately 1.14 million residential units across the Kingdom.
Shuaibah 1 Sets Benchmark at 3.9 Halalas/kWh
Among the standout achievements in Saudi Energy projects is the Shuaibah 1 solar plant, which registered the lowest energy purchase cost in the country at just 3.9 halalas per kilowatt-hour. This pricing benchmark reflects the Kingdom’s ability to deliver high-efficiency solar energy at minimal cost. Across all renewable projects, energy purchase costs ranged from 3.9 to 11.18 halalas per kWh, reinforcing Saudi Arabia’s competitive edge.
Battery Projects Reach 48 GW Capacity Milestone
Saudi Arabia is not only scaling up solar and wind but also investing heavily in battery technologies. The Kingdom is currently developing battery storage projects with a combined capacity of 48 gigawatts. These initiatives are designed to support grid stability and enable large-scale green hydrogen exports, which have already begun. The Energy Minister highlighted the Bisha battery manufacturing project as a key example of Saudi competitiveness in this space.
Carbon Capture and Gas Expansion Complement Renewables
In parallel with its renewable push, Saudi Arabia is advancing carbon capture infrastructure, including pipelines and storage systems. The Kingdom is also expanding its gas production and upgrading its power generation fleet with globally leading efficiency systems. These complementary efforts ensure that Saudi Energy projects are not only clean but also integrated into a broader energy ecosystem that supports sustainability and resilience.
Also Read: Saudi Energy Transition: Resilience in a $5.9T Global Shift
