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The Kingdom aims to add 20GW of renewable energy capacity annually to reach 130GW by 2030, and is ready to export up to 150GW of green electricity.
Riyadh, KSA – The Kingdom of Saudi Arabia is steadily advancing its economic diversification efforts while transitioning towards a more sustainable future. In the latest edition of PwC Middle East's Saudi Economy Watch, we explore the Kingdom’s progress toward achieving a stable and sustainable energy future, aiming for net-zero emissions by 2060.
The non-oil economy performed strongly in H1 2024, up by 3.8% year-on-year (y/y) fueled by a 4.9% expansion in the private sector in Q2 - the strongest performance in a year. Driving this growth are the trade and hospitality sectors, which grew by 6.4% in H1. Other key sectors, such as transport and communications (4.8%), finance and business services (3.8%) also showed positive growth.
Saudi Arabia's sustainability journey has achieved significant milestones, including the development of non-associated gas, now accounting for half of the country’s total gas production. Plans to expand gas production, focusing on the Jafurah unconventional gas field, are set to further boost the Kingdom’s energy transition. Production at Jafurah is expected to begin in Q3 2025, with gas output ramping up to 2bcf/day by 2030.
Saudi Arabia’s renewable energy ambitions continue to gain momentum, with a goal of adding 20GW of renewable energy capacity annually to reach 130GW by 2030. As of September 2024, 21 renewable energy projects had been contracted, with a total capacity of 19GW. The 700MW Al-Rass solar plant, which became operational in August, is part of this ambitious plan, with capacity expected to more than double in 2025 and again in 2026 to reach 21GW.
Riyadh AlNajjar, Middle East Chairman of the Board and KSA Senior Partner at PwC Middle East said: “Saudi Arabia's transformational journey combines economic diversification with sustainable growth. The expansion of renewable energy, focus on advanced industries, and vision for a green future highlight the Kingdom’s commitment to its national goals and its role in the global energy transition. The progress detailed in our report demonstrates Saudi Arabia’s capacity to create new opportunities, drive innovation, and ensure a sustainable future for generations to come.”
The Kingdom is making significant investments in electric vehicle (EV) manufacturing, establishing a hub in King Abdullah Economic City with a target of producing 150,000 vehicles by 2026 and 500,000 by 2030. Additionally, the government is expanding EV infrastructure through the Electric Vehicle Infrastructure Company, a JV between Public Investment Fund and Saudi Electricity Company, which aims to install 5,000 fast chargers by 2030.
Faisal Alsarraj, KSA Deputy Country Senior Partner and PwC Middle East Consulting Clients & Markets Leader, commented: “Saudi Arabia's drive towards a diversified and sustainable economy showcases its adaptability and resilience. These efforts reflect our nation's commitment to a greener future and set a benchmark for global energy transition”
As Saudi Arabia transforms its economy by diversifying beyond oil and implementing reforms to drive job creation and economic growth, it is looking beyond Vision 2030 to ensure long-term, resilient growth and a sustainable future.
The PwC Saudi Economy Watch 2024 can be read here.
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