Solar power in Saudi Arabia

History

In 2011, The United States and Saudi Arabia jointly set up a solar-research station in Al-Uyaynah village. The village, located about 30 miles northwest of Riyadh, had no electric supply at the time. The station is operated by the King Abdulaziz City for Science and Technology. The agency established an experimental assembly line at the site to manufacture solar panels. The equipment on the assembly line was imported from Europe, and the solar cells are imported from Taiwan. The line's capacity was quadrupled within a year.

Saudi Arabia's first solar power plant was commissioned on October 2, 2011, on Farasan Island. It is a 500 kW fixed tilt photovoltaic plant.

Given that the cost of solar projects decreased by roughly 90 percent in the 2010s, petrostates in the Middle East have raised their ambitions. Saudi Arabia had about 500 megawatts of renewable electricity capacity in 2020, but targets 60 gigawatts, most of which would come from solar photovoltaics and concentrated solar power, by 2030. This has incentivized announcements for private sector solar projects which have a highly competitive bid price in terms of levelized cost of electricity.

As its needs have increased, Saudi Arabia’s energy crisis has also risen in urgency. From 1975 to 2010, there was a nearly 45 GW increase in the country’s energy consumption. Nearing the end of 2012, Saudi Arabia went beyond its designated power capacity by 1500 GW, and this was expected to grow to encompass nearly 13% of the world’s power needs. As a large powerhouse for oil production, with nearly 11 million barrels of oil produced in 2015, Saudi Arabia’s shift towards solar energy is needed to keep up with their immense energy consumption.

Saudi Arabia has been implementing solar energy projects since the early 1960s. In addition to its 3,281 MWh producing photovoltaic solar rooftop, Saudi Arabia created the world’s biggest solar parking lot, with a capacity of 4500 cars. Furthermore, it houses the largest thermal plant that provides hot water for nearly 40,000 students at Princess Noura University for Women.

As of 2023, Saudi Arabia is still trailing other wealthy countries in solar power capacity rankings, ranking 45 worldwide, despite being one of the top countries in solar potential. Oil and gas still make up most of Saudi Arabia’s power mix, with 0.5% of the mix being solar power.

Types of solar power

The main technologies Saudi Arabia employs are photovoltaic and concentrated solar power.

Of these two, photovoltaic (PV) systems are the most commonly applied throughout Saudi Arabia. They produce clean electricity by converting solar energy through semiconductor materials. Between different PV systems, research shows that sun-tracking systems such as the 1-axis tracking system and the 2-axis tracking system produce the greatest amount of energy compared to fixed systems. They increased electricity production by 28–33%. Sun tracking systems work by varying the angles of solar panels throughout the day based on the Sun's movement across the sky to ensure they are consistently capturing the most solar energy possible. The 2-axis tracking system is slightly more efficient than the 1-axis, but the difference is considered negligible.

Saudi Arabia has also explored concentrated solar power (CSP) due to its potential to store the thermal energy, which can then be accessed later when there is greater demand or shortage. Among the CSP systems, the country is focusing on parabolic trough, solar tower, linear Fresnel, and parabolic dish. All of these are considered viable options due to their high yield, retention capabilities, and most importantly, Saudi Arabia's Direct Normal Irradiance (DNI). DNI is the measure of solar radiation per unit of land that is orthogonal (at right angles) to the direction of the sunlight. Thus, the higher this value, the more effective the CSP system. However, the initial expenses of setting up a CSP system are very high, necessitating the use of hybridized systems including photovoltaic systems to mitigate the costs.

Government policy

The Saudi government is pushing their renewable energy goals through solar developments and research, indicating their support for the cause. They have faced obstacles from existing subsidy frameworks and a distorted energy market. However, deployment of renewable energy technologies has been observed since 2023. This has coincided with accelerated fuel subsidy removal. To execute these proposals, the Saudi government would have to establish strong political support and regulatory changes.

Public response

Saudi Arabia's public interest in solar energy is similarly affected by social acceptance, finances, politics, and awareness. A recent study shows that residential solar photovoltaic systems (RSPSs) are desirable among respondents of varying backgrounds. However, 79.7% of those surveyed would consider solar only if 40% of the upfront costs were subsidized, and most would avoid adoption if their monthly electric bill increased by more than 10 SAR (about 2.5 USD). Achieving widespread solar adoption and support in Saudi Arabia relies heavily on financial incentives and broader public approval.

Future

Saudi Arabia is striving to transition its reliance on fossil fuels to renewable energy sources within the next two decades. The government plans to produce 41 GW of solar energy by 2040 and invest $108.9 billion by 2032. Part of this initiative is The Line, a proposed car-free, self-sustaining city in the Neom region powered entirely by renewable energy, with solar power as a primary source. The Neom region was chosen for its solar energy levels of 20 megajoules per square meter and average wind speeds of 6.2 meters per second. The government hopes The Line and other solar mega projects in development will redefine energy production and technology in Saudi Arabia.