Saudi Arabia’s Renewable Energy Investment Reaches SAR 36.11 Billion as Capacity Surges 88%

Saudi Arabia significantly expanded its renewable energy infrastructure in 2025, with cumulative investment in operational renewable energy projects reaching SAR 36.11 billion ($9.64 billion) by the end of the year.

According to data from the General Authority for Statistics (GASTAT), the Kingdom recorded strong growth in renewable energy capacity as major projects received significant investment and entered commercial operation.

Projects commissioned during 2025 accounted for SAR 16.27 billion of total investment, representing approximately 45% of cumulative spending on operational renewable energy projects. By the end of the year, Saudi Arabia had 15 renewable energy projects in operation.

Renewable Capacity Rises 88%

The projects increased the Kingdom’s total installed renewable energy capacity to 12,313 MW, marking an 88% increase compared with 2024.

Solar power was the primary driver of this growth. Five major solar projects were commissioned during 2025, adding a combined 5,762 MW to the national grid.

Several large-scale projects accounted for significant investment. Al-Rass 2 attracted the highest investment among operational renewable energy developments, with capital spending of SAR 5.52 billion, followed by Al-Kahfa, which received SAR 4.06 billion.

Renewable Energy Supports Cost-Competitive Power

GASTAT’s data also highlights the growing cost competitiveness of Saudi Arabia’s renewable energy sector. The weighted average production cost across operational renewable energy projects stood at 6.60 Saudi halalas per kilowatt-hour.

The figure underscores the increasing role of large-scale renewable projects in providing cost-effective electricity as the Kingdom continues to diversify its energy mix.

The expansion is also extending access to clean electricity. According to GASTAT, operational renewable energy projects are now capable of supplying electricity to approximately 2.1 million homes.

Saudi Arabia Accelerates Energy Transition

The rapid increase in renewable energy capacity and investment demonstrates the accelerating pace of Saudi Arabia’s energy transition. The commissioning of major solar projects in 2025 has strengthened the Kingdom’s clean power infrastructure, while billions of riyals in investment are supporting the development of a more diversified and sustainable electricity system.

With additional renewable energy projects expected to come online in the coming years, Saudi Arabia is continuing to build momentum toward its long-term clean energy and sustainability objectives.