The research shows that due to the strong support for the long-term plan of the power industry, the photovoltaic power generation potential of Saudi Arabia will grow rapidly from 2022 to 2031. It is expected that the installed capacity of the photovoltaic system installed in 2031 will be slightly higher than 5.1gw.
The national renewable energy plan (nrep) launched by Saudi Arabia has established a government driven renewable energy auction bidding system, which has won contracts for more than 1.7gw photovoltaic projects. Saudi Arabia also stressed that hydrogen is an important part of its long-term energy sector strategy, and its goal is to produce 2.9 million tons of hydrogen per year by 2030.
A research report issued by the research institute points out that although the strategy does not set the goal of building large-scale green hydrogen projects for green hydrogen production, it indicates that renewable hydrogen will account for a large part of its production.
The analyst of the research institute said, "we have noticed the development of the emerging green hydrogen energy industry, so there is an upward risk in the prediction of photovoltaic power generation, which will exert upward pressure on the renewable energy power supply and promote further investment in photovoltaic power generation in the next few years."
However, the agency is cautious about the growth prospects of the Saudi PV market, because the country has not achieved its goals in the past.
Analysts pointed out that "as the photovoltaic industry has only seen substantial growth in the past two years, the policy restrictions on foreign private ownership in the industry and the dominant position of large state-owned utility companies will bring some obstacles to investors seeking to participate in the market."
Analysts pointed out that Saudi Arabia has the largest photovoltaic power generation potential in the world because of its high solar radiation rate, a large number of suitable and available land, and the strong growth of power demand in the next decade.
The friendly attitude of the Saudi government towards renewable energy in recent years will support the development of the photovoltaic industry. Its goal is to reduce crude oil consumption, diversify its power sector and increase green hydrogen production.