Although the Kingdom is one of the largest oil importing countries. The clean energy investment in Saudi Arabia became a new approach that meets the needs and wants of the green future.
About the Clean Energy Investment in Saudi Arabia
Saudi Arabia is trying to be one of the leading countries in clean energy production, with such a great ambition, the clean energy investment became a requirement to enhance this sector and upgrade productivity.
This type of investment is a national initiative that works on diversifying the energy that’s used in generating electricity. This will be achieved by injecting capitals toward the projects that rely on renewable energy sources.
Also read about: The Small Cap Investment in Saudi Arabia.
Types of Clean Energy Investment in Saudi Arabia
This type of investment encompasses multiple branches that cover all the aspects of generating clean energy. For example:
- Photovoltaic projects, which embody the greatest majority.
- The wind energy that contains huge investments like in Dumat Al Jandal.
- Investing in the green hydrogen in producing the fuel, like in NEOM.
- Energy storage through investing in battery systems to ensure uninterrupted power supply.
Key Participants in Saudi Clean Energy Investment
The national ecosystem is working in close cooperation to lead this transformation under the umbrella of the Saudi Green Initiative.
The Ministry of Energy assumes the legislative and regulatory role through the National Renewable Energy Program. Alson, the Public Investment Fund stands out as a key executive driver by committing to develop 70% of the targeted capacity.
This is achieved in partnership with the local and international private sector, represented by leading companies such as ACWA Power, which operates under the Independent Power Producer (IPP) model to ensure investment efficiency and sustainability.
Clean Energy Investment Initiatives in Saudi Arabia
There are multiple initiatives that reflect the Kingdom’s desire of creating a brighter future, such as:
The National Renewable Energy Program
The National Renewable Energy Program is recognized as a flagship strategic initiative, managed by the Saudi Ministry of Energy, with the goal of achieving a balanced national energy mix.
It proposes large scale projects implemented in phased sequences, guided by competitive and transparent processes. This approach is designed to attract leading investors and international companies.
Also read about: The Green Investment in Saudi Arabia.
Principal Buyer
A core focus of the initiative is to ensure both financial and operational stability through long term energy purchase agreements.
These agreements can extend up to 25 years, providing certainty for investors and reducing risks. By committing to buy the full output of the plants, the initiative encourages the private sector to make significant investments in clean energy.
Optimum Energy Mix
The initiative aims to create a sustainable and resilient electricity system by combining clean energy and natural gas in a balanced manner, supporting Saudi Arabia’s transition toward a greener and more secure energy future.
Ultimately, the clean energy investment in Saudi Arabia is just one of the fast growing sectors that the Kingdom depends on to diversify its economic resources. Bayut Blog offers you the chance to explore all the approaches to invest in Saudi.
