Saudi Arabia
Solar Energy Market is anticipated to grow at a steady pace during the forecast
period, 2024-2028. The Saudi Arabia solar energy market is growing as a result
of factors such as favorable government regulations, increased attempts to meet
electricity demand using solar energy, and a reduction in reliance on fossil
fuels.
Sun energy is
the term for solar radiation that can create heat, trigger chemical reactions,
or create electricity. The total solar energy incident on Earth is higher than
the global energy needs at the moment, and it is expected to remain the same in
the future. This highly distributed source has the ability to meet all future
energy demands if properly exploited. Due to its limitless supply and lack of
pollution, solar energy is predicted to become a more appealing renewable
energy source in the twenty-first century than the finite fossil fuels coal,
petroleum, and natural gas.
Growing
Adoption of Renewable Sources for Power Generation to Boost Market Growth
Considered to
be the best feasible replacement for traditional power sources such as coal and
oil, renewable energy sources assist minimize carbon emissions and serve as an
affordable supply of daily power. Presently, over 29% of the electricity
produced across the world comes from renewable sources. In the coming years, it
is anticipated to increase significantly, which, in turn, will drive the growth
of the market. Solar PV had an installed capacity of 842.14 GW by the end of
2021, making it the second-largest renewable energy source after wind.
Energy
production and consumption in developing nations are directly impacted by
population growth. With the increased need to reduce carbon emissions, power
generation from renewable sources is the most viable replacement for
conventional power sources. For instance, the price of coal and oil goods is
rising steadily. Another option for the expansion of the solar power sector is
the building of new grids and mass storage systems by utilities to use the
energy produced from renewable sources.
Integration
of New Technologies to Hold Immense Growth Opportunities
Artificial
intelligence's enhanced prediction capabilities are enabling improved
forecasting and asset management, and its automation capability is driving
operational excellence, giving stakeholders a competitive advantage and cost
savings. With the backing of other cutting-edge technologies such as big data,
the Internet of Things (IoT), sensors, and distributed ledger technology,
artificial intelligence can unleash the enormous potential of solar energy.
Recent
developments promise to produce solar panels that are more affordable, potent,
and less wasteful after their useful lives are through. Pyramidal lenses,
invented by Stanford University researchers, aim to concentrate the quantity of
light that strikes a solar cell, obtaining the same amount of light to hit an
area. This innovation can increase the efficiency of solar panels in conditions
of indirect light. The integration of more power electronics, which transforms
energy from one form to another, is facilitated by increased solar and DER on
the electrical grid. Depending on where the electricity is flowing and how it
will be utilized, this can entail converting between high and low voltage,
controlling the quantity of power flow, or switching between direct current
(DC) and alternating current (AC) electricity. Up to 80% of electricity may be
used to power electronic devices by 2030. The inverter is one kind of power
electrical gear that is crucial for the integration of solar energy. Solar panels
provide DC electricity, which is then converted by inverters into AC
electricity that is used by the electrical grid.
Solar
Photovoltaic (PV) Technology to Boost Market Growth
The unique
geographic and climatic conditions of Saudi Arabia make it economically
advantageous to use renewable energy sources, particularly solar energy
sources, aiding Saudi efforts to diversify the domestic energy mix. Due to the
decreasing cost of solar modules and the adaptability of these systems for many
applications, such as power production and water heating, the solar PV segment
is anticipated to hold the biggest market share during the projection period.
The Saudi green initiative reaffirmed the nation's pledge in 2021 to produce
50% of its primary energy mix from renewable sources and the remaining 50% from
natural gas by 2030. By 2030, it is anticipated that the country would have
developed more than 40 GW of solar photovoltaic (PV) capacity and 2.7 GW of
concentrated solar power (CSP) capacity. The National Renewable Energy Program
(NREP) targets must be met in accordance with Vision 2030, and this
responsibility falls under the purview of the Ministry of Energy's Renewable
Energy Project Development Office (REPDO), which was founded in 2017. The total
installed solar capacity in Saudi Arabia, according to the International
Renewable Energy Agency (IRENA), was 14 MW in 2012 and is expected to reach 439
MW by the end of 2021. With 389 MW installed nationwide, solar PV has the
largest percentage of the nation's total solar energy capacity and accounts for
more than 88% of it.
In September
2022, Saudi Power Procurement Co. began five projects to produce power as a
part of the National Renewable Energy Program's fourth phase. Two of these
projects use solar energy, and three of them use wind energy. The capacity of
the two solar energy plants in Tabarjal and Al Hinakiyah would be 400 MW and
approximately 1,100 MW, respectively. Saudi Arabia awarded solar energy
projects with a combined capacity of 1 GW in March 2022. A 25-year power
purchase agreement for a 700-Megawatt plant with Ar RassSolar Energy Company
was inked as part of this project by the Saudi Power Procurement Company. It is
anticipated that the project will cost around USD 450 million. The business has
finalised a second contract for a 300 MW solar power facility. A Chinese solar
startup named Jinko Power won the contract. The project is anticipated to cost
USD 213 million and be developed in the Saad area of Riyadh. The solar PV
segment is anticipated to increase during the projection period as a result of
such impending and massive projects as well as rising government efforts.
Recent
Developments
- The 400 MW (DC) Rabigh Solar PV IPP
project in Saudi Arabia received the LONGia module supply contract from
China Energy Engineering Group and Guangdong Power Engineering Company
(GPEC) in June 2022. This solar PV project is currently under development,
and LONGiHi-MO 5(72C) solar modules are anticipated to be installed. The
project's location is in Rabigh Industrial City, in Saudi Arabia's western
Makkah Province, around 150 km west of Jeddah.
- A contract was given to China's
Jinko Power in March 2022 as part of the third round of Saudi Arabia's
National Renewable Energy Plan (NREP) to create the 300MW Saad PV solar
project. Jinko Power and Jinko Power Dhafra Holding inked a 25-year power
purchase agreement (PPA) with Saudi Power Procurement Company as a part of
the competitive tendering process (SPPC). For the project, the consortium
provided a price of SAR 5.56255/kWh.
- The 3A Independent Seawater
Desalination Plant of ACWA Power in Jubail, Saudi Arabia, received a 44 MW
PV-ezRacksolar installation solution from Clenergy in August 2022.
PV-ezRack SolarTerraceMAC, a magnesium, aluminum, and zinc-coated steel
ground mounting system, is used in this project. A contract to build a
hybrid solar farm at King Abdullah Economic City (KAEC) was signed in
August 2022 by a joint venture comprising TotalEnergies,
AltaaqaAlternative Solutions, and KAEC. A city's strategic plan plans for the
construction of 25,000 ground-mounted motorized solar panels with a peak
output of 12.5 megawatts (MWp).
- The Saudi Power Procurement
Corporation (SPPC) announced a tender in September 2022 for the
installation of 3.3 GW of renewable energy capacity. The Saudi government
plans to construct two solar parks with a combined capacity of 1.5 GW,
along with two wind power facilities with a combined capacity of 1.8 GW.
One of the two solar power plants built in the west-central Saudi Arabian
province of Medina, which will have an installed capacity of 1.1 GW. In
Tabarjal, a town in the nation's north, a 400 MW solar facility will be
built. The contest is the fourth in a line of renewable energy purchase
plans that follow the National Renewable Energy Program (NREP).
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Market
Segmentation
The Saudi
Arabia Solar Energy Market is segmented based on technology, solar module,
application, end-use, and region. Based on technology, the market is segmented
into photovoltaic systems and concentrated solar power systems. Based on solar
module, the market is divided into monocrystalline, polycrystalline, cadmium
telluride, amorphous silicon cells, and others. Based on application, the
market is split into residential, commercial, and industrial. Based on end-use,
the market is split into electricity generation, heating, charging, and
lighting. Based on region, the market is segmented into eastern, central &
northern, western, and southern.
Market
Players
The main market
players in Saudi Arabia Solar Energy Market are ACWA Power Company, Alfanar
Group, Abu Dhabi Future Energy Company (Masdar), EDF Renewables, Saudi
Electricity Company, Engie SA, JinkoSolar Holding Co. Ltd, and Enel SpA.
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Attribute
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Details
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Base Year
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2022
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Historic Data
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2018 –
2022
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Estimated Year
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2023
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Forecast Period
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2024–
2028
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Quantitative Units
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Revenue in USD Million, and CAGR for 2018-2022 and 2024-2028
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Report coverage
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Revenue
forecast, company share, growth factors, and trends
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Segments covered
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Technology
Solar Module
Application
End-Use
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Regional scope
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Eastern
Region, Central & Northern Region, Western region, Southern Region
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Key companies profiled
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ACWA
Power Company, Alfanar Group, Abu Dhabi Future Energy Company (Masdar), EDF
Renewables, Saudi Electricity Company, Engie SA, JinkoSolar Holding Co. Ltd,
and Enel SpA.
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Customization scope
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10% free report customization with purchase. Addition or
alteration to country, regional & segment scope.
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Pricing and purchase options
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Avail
customized purchase options to meet your exact research needs. Explore purchase options
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Delivery Format
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PDF
and Excel through Email (We can also provide the editable version of the
report in PPT/Word format on special request)
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Report
Scope:
In this report,
the Saudi Arabia Solar Energy Market has been segmented into following
categories, in addition to the industry trends which have been detailed below:
- Saudi Arabia Solar Energy Market,
By Technology:
- Photovoltaic Systems
- Concentrated Solar Power Systems
- Saudi Arabia Solar Energy Market,
By Solar Module:
o
Monocrystalline
o
Polycrystalline
o
Cadmium
Telluride
o
Amorphous
Silicon Cells
o
Others
- Saudi Arabia Solar Energy Market,
By Application:
- Residential
- Commercial
- Industrial
- Saudi Arabia Solar Energy Market,
By End-Use:
- Electricity Generation
- Heating
- Charging
- Lighting
- Saudi Arabia Solar Energy Market,
By Region:
- Eastern Region
- Central & Northern Region
- Western Region
- Southern Region
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies present in the Saudi Arabia Solar Energy
Market.
Available
Customizations:
Saudi Arabia
Solar Energy Market report with the given market data, TechSci 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
Solar Energy 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]