Saudi Arabia is executing one of the world’s most ambitious renewable energy transitions — a country whose entire modern economy was built on petroleum is now targeting 50 percent of its electricity from renewables by 2030 and positioning itself as a global leader in green hydrogen production. The kingdom’s renewable energy programme, executed through ACWA Power, Vision 2030’s National Renewable Energy Program (NREP), and multi-billion-dollar project financing, represents a strategic bet that the energy transition will create new export opportunities even as it erodes the value of the oil Saudi Arabia has built its wealth upon.
NEOM’s Renewable Energy Vision
NEOM, the futuristic mega-city under development in northwest Saudi Arabia, is designed to run entirely on renewable energy. The NEOM Green Hydrogen Company — a joint venture between ACWA Power, Air Products, and NEOM — is building one of the world’s largest green hydrogen production facilities at Sharma in NEOM, targeting 600 tonnes of green ammonia per day (from which hydrogen can be extracted). ACWA Power is the anchor developer, with Air Products contracted to purchase the offtake for international distribution.
The NEOM project draws on the region’s exceptional solar and wind resources — the Gulf of Aqaba coast offers some of the highest solar irradiance and consistent wind speeds in the world. The combination of cheap renewable electricity, proximity to shipping lanes, and massive project investment makes the NEOM green hydrogen project a potential model for Gulf-scale renewable export development.
National Renewable Energy Program (NREP)
Saudi Arabia’s National Renewable Energy Program targets 130 gigawatts of renewable capacity by 2030, up from near-zero a decade ago. ACWA Power — Saudi Arabia’s largest renewable energy developer, listed on Tadawul — is the primary vehicle for NREP project development alongside state utility Saudi Electricity Company. Projects under NREP include the Sudair Solar Farm (approximately 1.5 GW, one of the world’s largest solar facilities), Neom’s solar and wind installations, and multiple other utility-scale solar photovoltaic projects across the kingdom.
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See also: UAE Renewable Energy 2026, GCC Economic Diversification, and OPEC+ GCC Oil Strategy.
Frequently Asked Questions
What is Saudi Arabia’s renewable energy target for 2030?
Saudi Arabia’s official target is to generate 50 percent of electricity from renewable sources by 2030, with a total installed renewable capacity target of 130 gigawatts. This includes solar photovoltaic (the dominant technology given Saudi Arabia’s exceptional solar resources), wind (particularly in the northwest and along the Gulf coast), and some geothermal potential. As of 2024, Saudi Arabia’s installed renewable capacity remained far below target, making the pace of NREP project development in 2025-2030 critical.
What is green hydrogen and why is Saudi Arabia investing in it?
Green hydrogen is hydrogen produced through electrolysis — splitting water into hydrogen and oxygen using electricity from renewable sources (solar or wind), resulting in no carbon emissions. Saudi Arabia is investing in green hydrogen because: (1) the kingdom has exceptional solar and wind resources enabling very cheap renewable electricity; (2) green hydrogen is positioned as a future clean fuel for shipping, steel production, and energy storage; (3) Saudi Arabia wants to develop a new export product that can leverage its existing energy infrastructure relationships. The economics of green hydrogen remain challenging versus fossil fuel-derived hydrogen, making cost reduction through scale the key strategic bet.
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