Energy sector in Saudi Arabia and Bahrain

Hydrogen is central to Saudi Arabia's plans to transform the energy sector. Therefore, the kingdom is increasingly investing in technologies that enable the production, storage, and transport of hydrogen. Saudi Arabia has planned $6 billion worth of green hydrogen projects. The $500 billion Helios Green Hydrogen and Ammonia Project in NEOM is a collaboration between ACWA Power, AirProducts, and NEOM. The plant is scheduled to be operational by 2025 and will export 650 tons of green hydrogen per day. 

In addition, the oil company Saudi Aramco is already producing blue hydrogen. A memorandum has been signed between Aramco, Modern Industrial Investment Holding Group (MIG), and Intercontinental Energy (IE) for the development of new green hydrogen and ammonia production units. 

Additionally, the kingdom has formed a hydrogen alliance with Germany to research and develop clean hydrogen technologies and solutions. Euler Hermes, a German export credit agency, and KfW, a German development bank, are in talks about financing the NEOM project. 

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.  

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.  

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.