Renewable energies in Saudi Arabia and Bahrain

Saudi Arabia

Saudi Arabia intends to achieve net zero carbon emissions by 2060 and is primarily focusing on the expansion of renewable energies such as solar, CSP, and wind power technologies. The National Renewable Energy Program (NREP), published in 2018, aimed to increase renewable energy capacity to 9.5 gigawatts by 2023. However, this target has now been raised to 58.7 gigawatts. In April 2021, Saudi Energy Minister Abdulaziz bin Salman announced that the kingdom will implement solar projects with a total capacity of 5 to 7 gigawatts each year. By 2030, PV systems with a total capacity of 40 gigawatts are to be connected to the grid and thus supply the majority of the targeted 58.7 gigawatts of renewable energy. 

The expansion of renewable energies offers opportunities for German companies to position themselves with appropriate solution concepts in the Saudi market. The integration of solar, CSP, and wind power technologies in visionary mega projects such as NEOM and The Red Sea Project offers German technology developers, infrastructure builders, service providers, and producers a wide range of opportunities to establish themselves in the Saudi market. 

The chart below shows how Saudi Arabia plans to roll out PV, CSP, and wind turbines for electricity generation across the country by 2030.  


Bahrain is a small but energy-intensive country that focuses on oil and gas exports to boost its economy. The energy sector is the country's largest industry, accounting for about 80% of GDP. As early as the 1970s and 1980s, the kingdom tried to diversify its economy and established itself as a leading regional financial center.

With Vision 2030, the kingdom has been in an economic and social transformation process for years, which aims to further diversify the economy. Like Saudi Arabia, Bahrain aims to reduce long-term dependence on crude oil and gas. 

The oil and gas industry drives national economic development in the country, which is a member of the Organization of the Petroleum Exporting Countries (OPEC). In recent years, Bahrain has taken initiatives to reduce its dependency on oil and gas and to accelerate the expansion of renewable energy. In 2017, Bahrain announced plans to build a 100-megawatt solar power plant that would provide about 5% of the country's electricity needs.