Saudi Arabia Power Market Overview

Market Size in 2024: 81.7 GW

Market Forecast in 2033: 104.4 GW

Market Growth Rate 2025-2033: 2.76%

According to IMARC Group's latest research publication, "Saudi Arabia Power Market Size, Share, Trends and Forecast by Generation Source, and Region, 2025-2033", The Saudi Arabia power market size was valued at 81.7 GW in 2024. Looking forward, IMARC Group estimates the market to reach 104.4 GW by 2025-2033, exhibiting a CAGR of 2.76% from 2025-2033.

How AI is Reshaping the Future of Saudi Arabia Power Market

• Vision 2030's renewable energy transition initiatives are driving massive investments in solar and wind power infrastructure, with AI-powered grid management systems and smart meters enabling efficient energy distribution and consumption optimization across the Kingdom.
• The National Renewable Energy Program's ambitious targets for renewable energy capacity are accelerating the deployment of advanced power generation technologies, including concentrated solar power, photovoltaic systems, and wind farms integrated with intelligent grid management solutions.
• Government initiatives including the Saudi Green Initiative and circular carbon economy framework are promoting clean energy adoption while supporting the development of energy storage systems and grid modernization projects powered by artificial intelligence and machine learning.
• The emergence of smart city developments and NEOM project requirements are creating demand for advanced power infrastructure, including microgrids, energy storage solutions, and renewable energy integration systems that leverage IoT and blockchain technologies.
• Strategic partnerships between Saudi Aramco, ACWA Power, and international energy companies are advancing the development of hydrogen production facilities, carbon capture technologies, and integrated renewable energy projects that position Saudi Arabia as a global clean energy leader.

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Saudi Arabia Power Market Trends Drivers:

Saudi Arabia’s push for renewable energy is a major driver of its power market, fueled by Vision 2030’s goal of 50% renewable energy in the power mix. The Saudi Power Procurement Company recently announced 3.7 GW of solar projects, attracting global players like EDF and Masdar. The NEOM project’s 4 GW green hydrogen facility highlights the shift to clean energy. With 10-15% of electricity used for desalination and 40-50% for residential needs, mostly air conditioning, renewables like solar and wind are critical for sustainable growth.

Economic growth and rising energy demand are boosting the power market. Saudi Arabia’s GDP hit SAR 4,155.56 billion recently, driven by non-oil sectors like manufacturing, which demands reliable electricity. The Saudi Industrial Development Fund’s Mutjadeda program offers up to USD 130 million for renewable projects, supporting industrial and residential needs. Companies like ACWA Power are investing heavily, with USD 2.2 billion for solar projects like Al Shuaibah 1 and 2. This growth ensures a stable power supply for expanding industries and urban households.

Advanced energy storage and grid modernization are transforming the power market. With 4,500 MW of renewable energy integrated into the grid, battery storage systems are vital for managing solar and wind variability. The Ministry of Energy reported 32% progress in automating distribution networks, aiming for 40% soon. Saudi Arabia’s focus on smart grids and digital monitoring, with plans for nine advanced control centers, cuts transmission losses and boosts efficiency. These innovations support the kingdom’s goal of a resilient, sustainable power system.

Saudi Arabia Power Industry Segmentation:

The report has segmented the market into the following categories:

Analysis by Generation Source:

• Thermal
• Hydro
• Renewable
• Others

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

• Saudi Electricity Company (SEC)
• National Grid SA
• Acwa Power
• Kepco
• SPPC

Recent News and Developments in Saudi Arabia Power Market

• 2025 August: Saudi Electricity Company announces major grid modernization program with AI-powered smart grid technologies, aimed at improving system reliability and enabling higher renewable energy integration across the national power network.
• 2025 July: NEOM announces breakthrough in renewable energy storage with the world's largest green hydrogen production facility, positioning Saudi Arabia as a global leader in clean energy export capabilities.
• 2025 June: Vision 2030 renewable energy initiatives accelerate with new solar and wind power projects totaling 5 GW capacity, supported by international partnerships and advanced energy storage systems for grid stability.

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