Forecast Period | 2025-2029 |
Market Size (2023) | USD 17.9 Million |
Market Size (2029) | USD 77.59 Million |
CAGR (2024-2029) | 27.5% |
Fastest Growing Segment | Irrigation |
Largest Market | Riyadh |
Market Overview
Saudi Arabia Onshore Floating Solar
Market was valued at USD 17.9 million in 2023 and is anticipated to project
robust growth in the forecast period with a CAGR of 27.5% through 2029. The
Saudi Arabia Onshore Floating Solar Market is experiencing a notable upswing as
the kingdom strategically endeavors to diversify its energy portfolio. In a
concerted effort to reduce dependence on conventional fossil fuels and mitigate
environmental impact, the government has increasingly turned its attention to
renewable energy sources. The unique geography of Saudi Arabia, characterized
by expansive desert landscapes and abundant sunlight, makes onshore floating
solar installations particularly attractive. This innovative approach to solar
energy deployment not only capitalizes on the vast available land but also
addresses the country's water scarcity challenges. With an ambitious commitment
to sustainable energy goals, the onshore floating solar market in Saudi Arabia
is witnessing heightened investment, technological advancements, and growing
collaboration between public and private sectors, positioning the kingdom at
the forefront of the global shift towards clean and renewable energy solutions.
Key Market Drivers
Strategic
Renewable Energy Initiatives
The Saudi Arabia Onshore Floating Solar
Market is experiencing significant growth, driven by the government's strategic
initiatives to integrate renewable energy sources into the national energy mix.
Central to this drive is the ambitious roadmap outlined in Saudi Vision 2030,
signaling a comprehensive effort to diversify the economy and reduce dependence
on traditional oil exports. At the forefront of these initiatives is the
Renewable Energy Project Development Office (REPDO), playing a pivotal role in
propelling the onshore floating solar market forward. This governmental body
has been instrumental in fostering collaborations, formulating policies, and
introducing incentives that encourage the widespread deployment of renewable
energy technologies, specifically emphasizing the potential of onshore floating
solar solutions. The strategic alignment of Saudi Arabia's efforts with global
sustainability goals positions the kingdom as a frontrunner in the global
transition towards a low-carbon economy. By actively embracing onshore floating
solar initiatives, Saudi Arabia not only demonstrates a commitment to
environmental responsibility but also secures its position at the forefront of
the evolving energy landscape, contributing significantly to the global discourse
on sustainable and diversified energy sources. The multifaceted approach,
encompassing policy frameworks, collaborative partnerships, and a focus on
cutting-edge technologies, underscores Saudi Arabia's dedication to reshaping
its energy sector and exemplifies its role as a leader in driving the adoption
of renewable energy solutions on a global scale.
Abundant
Solar Resources and Geographic Advantage
The onshore floating solar market in
Saudi Arabia is flourishing due to the country's vast and untapped solar
potential, with abundant sunlight across its expansive desert landscapes. The
geographic advantage of having large open spaces enables the efficient
deployment of onshore floating solar installations. These installations,
leveraging photovoltaic technology, harness solar energy from reservoirs,
providing an innovative solution to address the dual challenges of energy
production and water conservation. The utilization of water bodies for solar
installations not only maximizes land use but also helps mitigate water
evaporation, showcasing a sustainable synergy between energy and environmental
considerations.
Water
Scarcity Mitigation and Dual-Use Applications
Saudi Arabia confronts a critical
challenge in the form of water scarcity, and the onshore floating solar market
stands out as a proactive solution by introducing innovative dual-use
applications. Beyond its primary function of generating clean and renewable
energy, onshore floating solar installations play a dual role as shades,
strategically mitigating water evaporation from reservoirs. This dual-use
approach seamlessly aligns with the country's overarching vision for resource
efficiency and sustainable development. As Saudi Arabia grapples with the
urgent need to address both its energy and water challenges, the onshore
floating solar market emerges not merely as a technological advancement but as
a strategic investment with profound implications for the resilience and
sustainability of the kingdom's infrastructure. By tackling these two critical
challenges concurrently, onshore floating solar initiatives contribute
substantially to the diversification of Saudi Arabia's energy mix while also
bolstering its water conservation efforts, reflecting a holistic and integrated
approach to solving complex environmental issues. This innovative synergy not
only exemplifies the country's commitment to embracing sustainable technologies
but also positions the onshore floating solar market as a cornerstone in the
broader strategy for fostering resilience and sustainability across critical
sectors of the nation's infrastructure.
Technological
Advancements and Cost Competitiveness
The thriving onshore floating solar
market in Saudi Arabia is positioned at the forefront of technological
innovation in solar energy, continuously benefiting from the evolution of solar
technology. This progress is marked by a series of advancements that
collectively enhance the efficiency and cost-effectiveness of floating solar installations.
Noteworthy innovations encompass refined floating platforms, cutting-edge solar
panels, and streamlined energy storage solutions, all contributing
significantly to the heightened feasibility and economic viability of onshore
floating solar projects. The continuous refinement and enhancement of these
technological components align with the broader trend of declining costs in
solar technologies worldwide. Saudi Arabia strategically harnesses these global
trends to bolster the appeal of onshore floating solar projects, making them
increasingly enticing for investors. This deliberate alignment with
technological advancements and cost reductions not only propels the market's
growth trajectory but also solidifies Saudi Arabia's pioneering role in the adoption
of state-of-the-art renewable energy solutions. The kingdom's proactive
approach to leverage cutting-edge innovations not only positions onshore
floating solar as a financially sound investment but also underscores the
nation's commitment to remaining at the forefront of the global transition
toward sustainable and advanced renewable energy solutions. As these
technological strides persist, Saudi Arabia stands poised to play a pivotal
role in shaping the future landscape of onshore floating solar technology,
setting a compelling example for sustainable energy adoption on a global scale.
Public-Private
Partnerships and Investment Incentives
Public-private partnerships and
favorable investment incentives play a pivotal role in driving the growth of
the onshore floating solar market in Saudi Arabia. The government has actively
engaged with private enterprises, both domestic and international, to
collaborate on solar projects. Initiatives such as the National Renewable
Energy Program (NREP) and competitive bidding processes have attracted
significant investments. Through long-term power purchase agreements (PPAs) and
other financial incentives, the government ensures a conducive environment for
private investors, fostering a robust ecosystem for the development of onshore
floating solar projects. This collaborative approach enhances project
scalability, accelerates deployment, and reinforces Saudi Arabia's commitment
to sustainable and diversified energy sources.
Download Free Sample Report
Key Market Challenges
Technical
and Operational Challenges
The burgeoning Onshore Floating Solar
Market in Saudi Arabia faces technical and operational challenges that stem
from the unique nature of floating solar installations. These challenges
include the need for robust engineering solutions to ensure the stability and
durability of floating platforms in harsh environmental conditions, such as
high temperatures and sandstorms prevalent in the region. Additionally, the
maintenance and cleaning of solar panels over water present logistical
challenges that demand innovative solutions to maximize energy yield.
Overcoming these technical hurdles is crucial for the long-term viability and
efficiency of onshore floating solar projects, requiring ongoing research and
development efforts to address the specific challenges associated with this
innovative approach.
Water
Resource Management and Ecological Impact
While onshore floating solar
installations offer dual-use benefits by reducing water evaporation from
reservoirs, they also raise concerns about water resource management and
potential ecological impact. The shading effect of floating solar panels can affect
the aquatic ecosystem beneath, impacting flora and fauna. Striking a balance
between water conservation and ecological preservation is a complex challenge
that requires thorough environmental assessments and sustainable design
practices. Managing the coexistence of floating solar projects with aquatic
ecosystems is critical to ensuring the overall environmental sustainability of
these installations in Saudi Arabia.
Regulatory
and Policy Framework
The Onshore Floating Solar Market in
Saudi Arabia encounters challenges related to the regulatory and policy
framework governing renewable energy projects. While the government has shown
commitment to fostering renewable energy development, evolving regulatory
frameworks and permitting processes can introduce uncertainties for investors
and project developers. Streamlining and standardizing these regulations,
ensuring transparency, and providing consistent long-term policies are
essential to creating a favorable investment climate. Clear guidelines will
facilitate the efficient implementation of onshore floating solar projects,
attracting both domestic and international investors, and contributing to the
sustained growth of the market.
Financing
and Economic Viability
Financing and economic viability pose
significant challenges to the widespread adoption of onshore floating solar
projects in Saudi Arabia. Despite decreasing costs of solar technologies
globally, the initial capital investment for floating solar installations
remains relatively high. Securing financing, especially for large-scale
projects, requires collaboration between financial institutions, the
government, and private investors. Demonstrating the long-term economic
viability of onshore floating solar through effective risk mitigation
strategies and financial incentives is essential. Striking a balance between
encouraging investments and ensuring affordability for end consumers is crucial
for the market to thrive and contribute substantially to Saudi Arabia's
renewable energy goals. Overcoming these financial hurdles will be instrumental
in accelerating the development and deployment of onshore floating solar
projects in the kingdom.
Key Market Trends
Growing Embrace of Utility-Scale Floating Solar Projects
The Onshore
Floating Solar Market in Saudi Arabia is witnessing a notable trend towards the
development of utility-scale floating solar projects. As the technology matures
and gains wider acceptance, there is a shift from smaller pilot projects to
larger, more ambitious installations. Utility-scale projects offer economies of
scale, enabling more efficient use of resources and driving down the overall
cost of solar energy production. This trend reflects the industry's confidence
in the scalability and long-term viability of onshore floating solar as a key
contributor to the kingdom's renewable energy portfolio. The momentum towards
utility-scale projects aligns with Saudi Arabia's commitment to achieving
substantial contributions from renewable sources in its energy mix.
Integration of Energy Storage Solutions
A prominent
trend in the Saudi Arabia Onshore Floating Solar Market is the integration of energy
storage solutions to address intermittency and enhance grid stability. As the
industry matures, stakeholders are recognizing the importance of optimizing
energy output and ensuring a consistent power supply. Energy storage
technologies, such as advanced batteries, enable the storage of excess energy
generated during peak sunlight hours for use during periods of low solar
irradiance. This trend not only contributes to grid reliability but also
positions onshore floating solar as a dependable and dispatchable source of
renewable energy. The integration of storage solutions aligns with global
advancements in energy storage technology and supports Saudi Arabia's vision
for a reliable and resilient energy infrastructure.
Technological Advancements in Floating Solar Platforms
Advancements
in technology are driving innovations in floating solar platforms within the
Saudi Arabian market. Manufacturers and developers are investing in research
and development to enhance the efficiency, durability, and adaptability of
floating solar structures. This trend includes the development of modular and
customizable floating platforms that can be tailored to specific water bodies,
optimizing the deployment of solar panels. Additionally, improvements in
materials and design contribute to the resilience of floating platforms in
challenging environmental conditions. The emphasis on technological
advancements reflects the industry's commitment to overcoming technical
challenges and ensuring the long-term success of onshore floating solar projects
in Saudi Arabia.
Increasing Collaboration and Partnerships
Collaboration
and partnerships among government entities, private companies, and
international players are emerging as a key trend in the Saudi Arabia Onshore
Floating Solar Market. Recognizing the complexity and scale of renewable energy
projects, stakeholders are joining forces to leverage collective expertise,
resources, and funding. Public-private partnerships facilitate the sharing of
risks and responsibilities, creating a conducive environment for investment and
project development. International collaborations bring in global best
practices and technological know-how, further accelerating the growth of the
onshore floating solar market. This trend reflects a holistic approach to
sustainable development, aligning with Saudi Arabia's commitment to fostering a
collaborative ecosystem for the successful implementation of renewable energy
initiatives.
Increasing Focus on Environmental, Social, and Governance
(ESG) Criteria
There is a
discernible trend in the Saudi Arabia Onshore Floating Solar Market towards a
heightened focus on Environmental, Social, and Governance (ESG) criteria.
Investors, developers, and policymakers are recognizing the importance of
ensuring that renewable energy projects adhere to stringent environmental and
social standards. This trend involves comprehensive environmental impact
assessments, community engagement initiatives, and the incorporation of
sustainable practices throughout the project lifecycle. As ESG considerations
become integral to investment decisions, projects that align with these
criteria are likely to receive increased support and funding. This trend
underscores the industry's commitment to responsible and sustainable
development, contributing to both the energy transition and broader societal
well-being in Saudi Arabia.
Segmental Insights
Type Insights
The Tracking segment asserted its
dominance in the Saudi Arabia Onshore Floating Solar Market, positioning itself
as the leading type segment, and it is anticipated to maintain this dominance
throughout the forecast period. Tracking systems, designed to dynamically
adjust the position of solar panels to optimize sunlight exposure, have gained
prominence due to their ability to enhance energy yield and overall system
efficiency. The Tracking segment's dominance is underpinned by the compelling
advantages it offers in maximizing the capture of solar irradiance throughout
the day, thereby significantly increasing the output of onshore floating solar
installations. The dynamic orientation of solar panels in response to the sun's
movement allows tracking systems to achieve higher energy production compared
to stationary systems. As Saudi Arabia prioritizes the optimization of
renewable energy resources, the Tracking segment aligns with the kingdom's
commitment to leveraging cutting-edge technologies for enhanced energy
generation. The efficiency gains and increased energy output associated with
tracking systems make them a preferred choice for project developers and
investors alike. Additionally, advancements in tracking technology, including
robust control systems and precision algorithms, contribute to the segment's
sustained dominance. The economic viability and performance benefits offered by
Tracking systems make them integral to the strategic vision of expanding the
onshore floating solar capacity in Saudi Arabia. As the market continues to
mature, the Tracking segment is expected to maintain its leading position,
driven by ongoing innovations, improved reliability, and the clear advantages
it presents in optimizing solar energy capture. The continued dominance of the
Tracking segment underscores its pivotal role in shaping the trajectory of the
Saudi Arabia Onshore Floating Solar Market, as the kingdom strives to harness
renewable energy sources efficiently and sustainably.
Application
Insights
The Irrigation segment emerged as the
dominant force in the Saudi Arabia Onshore Floating Solar Market and is poised
to maintain its leadership throughout the forecast period. The Irrigation
application segment demonstrated a strong foothold due to the compelling
synergy between onshore floating solar installations and the water-intensive
needs of agricultural practices in the region. By providing a sustainable and
energy-efficient solution to power irrigation systems, onshore floating solar
projects enhance the overall efficiency and environmental sustainability of
agricultural operations. The kingdom's commitment to optimizing water usage
aligns seamlessly with the Irrigation segment's value proposition, making it a
preferred choice for both public and private stakeholders. As the agricultural
sector seeks eco-friendly alternatives to meet energy demands, the Irrigation
segment is expected to continue its dominance, driven by ongoing investments,
government incentives, and the increasing recognition of onshore floating solar
as a key enabler for sustainable agricultural practices in Saudi Arabia. The
continued reliance on onshore floating solar for irrigation underscores its
pivotal role in addressing both energy and water challenges, making it a
linchpin in the broader strategy for a more sustainable and resilient future in
the kingdom.
Download Free Sample Report
Regional Insights
The Riyadh region emerged as the
dominant in the Saudi Arabia Onshore Floating Solar Market, establishing
itself as the frontrunner among the regions. Riyadh's dominance can be
attributed to several factors, including the region's strategic significance as
the capital and economic hub of Saudi Arabia. The Riyadh region has been at the
forefront of the kingdom's efforts to diversify its energy mix and enhance
sustainability, leading to substantial investments in onshore floating solar
projects. Government initiatives, coupled with Riyadh's robust infrastructure
and proactive approach to renewable energy adoption, have propelled the region
to a prominent position in the onshore floating solar market. The capital
city's commitment to renewable energy aligns with the broader goals of Saudi
Vision 2030, contributing to the region's dominance. As Riyadh continues to
prioritize and invest in sustainable energy projects, it is expected to
maintain its leadership in the onshore floating solar market during the forecast
period. The combination of favorable policies, economic significance, and a
commitment to renewable energy initiatives positions Riyadh as a key driver of
the kingdom's transition towards a more sustainable and diversified energy
landscape. The region's dominance is likely to persist as Riyadh serves as a
model for other provinces, influencing the overall trajectory of the Saudi
Arabia Onshore Floating Solar Market.
Recent Development
- In may 2024, Marubeni Corporation, in collaboration with Ajlan & Bros, has signed a Power Purchase Agreement (PPA) with SPPC (Saudi Power Procurement Company) for two onshore wind projects in Saudi Arabia. The 600MW Al-Ghat project will be situated in Al-Ghat, Riyadh Province, while the 500MW Waad Al-Shamal project will be located in Turaif, Northern Frontier Province. These projects mark the first involvement of a Japanese company in wind power initiatives in Saudi Arabia. Under the agreement, SPPC will purchase the electricity generated for 25 years post the commencement of commercial operations, ensuring a consistent supply of renewable energy.
- In July 2024, Saudi Arabia has intensified its efforts in constructing the world's largest solar project, with ACWA Power and its consortium securing financing for Al-Shuaibah 1 and Al-Shuaibah 2. The total investment of SR8.3 billion ($2.2 billion) includes a mix of long-term debt and equity. ACWA Power disclosed this in a bourse filing, highlighting SR6.1 billion in senior debt, which incorporates a SR1.7 billion loan from the National Development Fund on behalf of the National Infrastructure Fund. Additionally, a SR4.4 billion US-dollar commercial facility from a consortium of local, regional, and international banks, including Bank Saudi Fransi, First Abu Dhabi Bank, and Mizuho Bank, contributes to the financing package.
Key Market Players
- First Solar Inc.
- Yellow Tropus Pvt. Ltd.
- Ocean Sun AS
- Waaree Energies Ltd
- Akuo Energy SAS
- Kyocera TCL Solar LLC
- Duke Energy Corporation
- BELECTRIC GmbH
|
By Component
|
By Type
|
By Application
|
By Region
|
- PV Modules
- Lightning Protection System
- Anchoring System
- Inverter
- Others
|
|
- Irrigation
- Hydroelectric Dam
- Water Treatment
- Quarry
- Mining
|
- Riyadh
- Makkah
- Madinah
- Jeddah
- Tabuk
- Eastern Province
- Rest of Saudi Arabia
|
Report Scope:
In this report, the Saudi Arabia Onshore
Floating Solar Market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- Saudi Arabia Onshore
Floating Solar Market, By
Component:
o PV Modules
o Lightning Protection System
o Anchoring System
o Inverter
o Others
- Saudi Arabia Onshore
Floating Solar Market, By
Type:
o Stationary
o Tracking
- Saudi Arabia Onshore
Floating Solar Market, By
Application:
o Irrigation
o Hydroelectric Dam
o Water Treatment
o Quarry
o Mining
- Saudi
Arabia Onshore Floating Solar Market, By Region:
o Riyadh
o
Makkah
o
Madinah
o
Jeddah
o
Tabuk
o
Eastern
Province
o
Rest of
Saudi Arabia
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the Saudi Arabia Onshore Floating Solar Market.
Available Customizations:
Saudi Arabia Onshore Floating Solar Market report
with the given market data, Tech Sci Research offers customizations according
to a company's specific needs. The following customization options are
available for the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
Saudi Arabia Onshore Floating Solar Market is an
upcoming report to be released soon. If you wish an early delivery of this
report or want to confirm the date of release, please contact us at [email protected]