Saudi Arabia is known for oil. That’s no secret. But behind the scenes, the country is making some serious moves towards renewable energy. Solar, wind, even hydrogen; there’s a big shift happening. And if you’re into electric vehicles (EVs), this matters more than you might think.
From Oil Giant to Renewable Powerhouse?
Right now, fossil fuels dominate the country’s energy mix, 99.9% of it, to be exact. But with Vision 2030 in full swing, the goal is for half of all electricity to come from renewables by the end of the decade. That’s a massive leap from today’s 2%, where solar makes up just 1% and wind an even smaller 0.42%. The big question: Can they actually pull it off?
One thing’s for sure, Saudi Arabia isn’t messing around. The government is investing billions into renewable energy projects, with a major focus on solar. Thanks to the country’s 3,000+ hours of annual sunlight, solar power is a no-brainer. The Sudair Solar Plant, at 1.5 GW, is one of the biggest solar projects in the region. There’s also the futuristic Neom City, a $500 billion mega-project that aims to run entirely on renewable energy.
And it’s not just solar. Wind power is also making progress, particularly in the northwest. The Dumat Al Jandal wind farm, with a capacity of 400 MW, is already up and running, and it’s proving that wind energy can be cheaper than natural gas in Saudi Arabia.
EVs Need Clean Energy. Will They Get It?
Saudi Arabia isn’t just investing in renewables, it’s also investing in EVs. The Public Investment Fund (PIF) has put serious money into Lucid Motors, which plans to manufacture up to 150,000 EVs a year in the Kingdom. Then there’s Ceer, the country’s first homegrown EV brand, which aims to put Saudi-made electric cars on the road by 2025. And other brands such as BYD, Tesla and many others are targeting the market very concertedly.
The problem? Right now, EVs in Saudi Arabia are mostly powered by fossil fuels. If the country wants to make EVs a truly sustainable option, they’ll need a renewable-powered charging infrastructure. That’s something the government is working on, especially with plans to roll out solar-powered charging stations in Neom City.
The Missing Piece: Green Tariffs
One thing that’s missing? A way for consumers to buy 100% renewable electricity. Unlike in some other countries, there aren’t retail green energy tariffs available in Saudi Arabia yet. Instead, the focus is on net metering, which lets homeowners with solar panels sell excess energy back to the grid. That’s great for self-sufficiency, but it doesn’t help someone who just wants to charge their EV with clean energy from the grid.
If Saudi Arabia really wants to cut emissions, introducing green tariffs could be a game-changer – giving businesses and individuals the option to run on fully renewable electricity.
The NEOM Green Hydrogen Company is an equal joint venture by ACWA Power, Air Products and NEOM, building the world’s largest green hydrogen plant to produce green ammonia at scale in 2026.
The Challenges Ahead
Of course, none of this is simple. Expanding solar and wind energy isn’t just about building new power plants – it also means upgrading the grid. Studies have shown that when solar power makes up more than 30% of a local grid, it can cause stability issues. Saudi Arabia will need smart grid solutions, energy storage, and better grid management to keep things running smoothly.
Then there’s the issue of public awareness. According to research, about 70% of Saudis still don’t fully understand how renewables work or why they matter. That’s a problem if the country wants widespread adoption.
What’s Next?
Looking ahead, Saudi Arabia has some ambitious targets:
- 130 GW of renewable energy capacity by 2030
- Solar PV making up 27% of total energy by 2035
- More investment in hydrogen, with the goal of becoming a major exporter
For EVs, this means a future where they could be powered by solar and wind instead of fossil fuels. The pieces are coming together, but there’s still work to do.
The Bottom Line
Saudi Arabia’s energy shift is happening, and it’s happening fast. Renewables are scaling up, EVs are on the rise, and the country is positioning itself as a future leader in clean energy. But to fully close the loop – where EVs are powered by clean energy on a large scale – there’s still a gap to bridge.
Whether the Kingdom can hit its ambitious targets remains to be seen. But one thing’s clear: the days of relying solely on oil are numbered, and the transition to renewables is well underway.
