Energy & Utilities
From The Report: Saudi Arabia 2024
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Saudi Arabia’s energy strategy focuses on maximising returns from hydrocarbons while expanding renewable energy capacity. Acknowledging peak oil demand could occur before 2030, the Kingdom is investing in clean energy solutions. With plans to produce 50% of its energy from renewables by 2030, Saudi Arabia is diversifying its energy mix. The National Renewable Energy Programme and Circular Carbon Economy National Programme support Vision 2030, aiming to reduce oil dependency. The Kingdom is also investing in solar, wind, hydrogen and emerging technologies. Despite leading the Organisation of the Petroleum Exporting Countries, Saudi Arabia is positioning itself as a global leader in both traditional and sustainable energy markets, with substantial investment in the energy transition.

This chapter also contains an interview with Marco Arcelli, CEO, ACWA Power; and Waled Al Ghreri, CEO, National Energy Services Company.

Articles from this Chapter

Overview

Sustainability drive: Key projects aim to diversify the economy away from oil and gas
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Saudi Arabia’s energy strategy focuses on maximising economic returns from its existing hydrocarbons reserves, while simultaneously increasing domestic renewable energy capacity. This involves investing in research, development and innovation to create clean energy solutions and minimise the environmental impact of fossil fuels. The Kingdom’s approach is influenced by projections of a future decline in demand for hydrocarbons, driven by global initiatives to combat climate change. In June 2024…

Interview

Key contributions: Marco Arcelli, CEO, ACWA Power, on the role of the private sector in supporting diversification through renewable energy projects
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Interview: Marco Arcelli, CEO, ACWA Power In what ways can renewable energy projects contribute to economic diversification efforts? MARCO ARCELLI: Renewable energy projects can significantly enhance Saudi Arabia’s economic diversification under Vision 2030 by bolstering decarbonisation and encouraging private sector participation. These projects drive large-scale renewable energy construction, creating opportunities for local suppliers. This, in turn, can generate substantial employment opportunities.…

Interview

Targeting efficiency: Waled Al Ghreri, CEO, National Energy Services Company (Tarshid), on strategic initiatives to increase energy savings and contribute to achieving global sustainability goals
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Interview: Waled Al Ghreri, CEO, National Energy Services Company (Tarshid) Which initiatives are encouraging energy conservation among consumers and businesses? WALED AL GHRERI: Energy efficiency throughout the Kingdom is being encouraged through multiple initiatives, such as regulatory intervention, awareness campaigns and financial incentives. With respect to regulatory intervention, the Saudi Energy Efficiency Programme, which was introduced in 2012, has established more than 30 energy efficiency…

Analysis

Strategic planning: A planned reduction in sustainable oil production capacity is in line with moves towards sustainable development
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As oil markets rebounded in 2021 when the global economy began to recover from the Covid-19 pandemic, Saudi Arabia announced plans to increase its maximum sustainable oil production capacity from 12m to 13m barrels per day (bpd) by 2027. However, in January 2024 the Ministry of Energy scaled back these plans, opting to maintain capacity at 12m bpd. This shift aligns with the strategy of Vision 2030, which emphasises a diversified and sustainable energy mix. Despite this pivot, Saudi Arabia remains…

Analysis

Efficient solutions: Recycling initiatives and waste-to-energy projects are poised to bolster the Kingdom’s sustainability efforts
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In alignment with its Vision 2030 and Net Zero 2060 commitments, Saudi Arabia is transforming its waste management system to focus on sustainability and resource efficiency. Rapid industrialisation, population growth and urbanisation have made waste management a pressing concern. The Kingdom generates over 110m tonnes of waste annually, with 43% of the total coming from Riyadh, Jeddah and Dammam. Targets To tackle waste-related challenges, the National Centre for Waste Management (MWAN), established…