Energy Saudi Arabia

Saudi Arabia’s renewable energy capacity surges 88% to 12.3GW

Saudi Arabia’s operational renewable energy capacity increased by 88% year-on-year to 12,313 megawatts by the end of 2025, supported by the commissioning of five new solar projects.

According to the Renewable Energy Statistics 2025 report issued by the General Authority for Statistics, the Kingdom had 15 operational renewable energy projects at the end of the year. The five newly launched solar developments added a combined capacity of 5,762MW, strengthening Saudi Arabia’s growing clean energy portfolio.

Cumulative investment in operational renewable energy projects reached approximately $9.63 billion. The five projects commissioned during 2025 attracted around $4.34 billion, accounting for 45% of the total investment.

The report also highlighted the increasing cost competitiveness of Saudi Arabia’s renewable energy sector. The weighted average production cost across operational projects stood at 6.60 halalas per kilowatt-hour in 2025.

Al-Hanakiyah 1 recorded the lowest average production cost at 6.30 halalas per kWh, followed by Al-Rass 2 at 6.34 halalas per kWh. These figures reflect the efficiency and competitiveness of the Kingdom’s latest solar developments.

By the end of 2025, Saudi Arabia’s operational renewable energy projects were estimated to provide electricity to approximately 2.08 million homes.

The five projects that began operations during the year are expected to supply power to around 939,000 homes, representing an 82.3% increase in the estimated number of housing units served compared with 2024.

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