02 — Sector
Energy & Utilities
Saudi Arabia is building one of the world’s largest renewable-energy programmes alongside its hydrocarbon base, with competitive tenders run through a single principal buyer and the world’s largest desalination capacity.
Key figures
- Renewable capacity tendered under the National Renewable Energy Program by end-2025; 43.2 GW under signed contracts
- 64 GW1
- Target share of renewables in the power mix by 2030
- ~50%2
- Desalination capacity at end-2025, the largest in the world
- 16m m³/day3
- Ministry of Energy, October 2025
- Ministry of Energy
- National Transformation Program report, June 2026
What is driving demand
- Solar and wind rounds, with tariffs as low as 1.10 US¢/kWh
- Battery storage: 2,000 MW of four-hour storage contracted in 2026
- Water, desalination and grid expansion
- Green hydrogen: the NEOM Green Hydrogen Company, owned equally by ACWA Power, Air Products and NEOM, was reported more than 90% built in 2026, with first output expected between late 2026 and mid-2027
- Industrial supply chains around energy hubs such as SPARK
Who buys
- The Saudi Power Procurement Company, as principal buyer, through competitive rounds
- Developers such as ACWA Power, the Kingdom’s largest private developer of power and water, and the EPC contractors on awarded projects
- Aramco, Saudi Electricity and other state-owned majors, through supplier programmes such as iktva and Bena
Typical entry route
Technology and service providers usually enter as suppliers or subcontractors to developers and EPC contractors already in the pipeline, often with a local partner to meet local-content requirements.
Request a sector briefingWatch for
- Record-low tariffs that squeeze supplier margins
- Local-content requirements in renewable rounds, reported to have risen from about 17% in early rounds to about 30% in recent ones
- Energy sites hit during the 2026 conflict, including Ras Tanura in March, an East–West pipeline pumping station in April and the Jazan refinery from July: plan for site security and war-risk cover
FAQ
Common questions
How are renewable projects procured?
Through competitive rounds run by the Saudi Power Procurement Company as principal buyer. Developers bid for projects and then procure equipment, construction and services.
What is iktva?
Aramco’s In-Kingdom Total Value Add programme, which scores suppliers on local content. Aramco reported reaching 70% local content in 2026 and targets 75% by 2030.
Can a foreign supplier sell without a local entity?
Some can, as a supplier to a developer or EPC contractor. But local content, after-sales service and tender eligibility usually favour a local presence or partner.
Sources for this page: Ministry of Energy (October 2025); National Transformation Program report (June 2026); AGBI, NEOM green hydrogen (February 2026); Bloomberg, attacks on Saudi energy sites (September 2026); local-content levels in renewable rounds from industry reporting, confirmed per tender.
Reference guides
The detail behind the decision.
Local content and local manufacturing: how the numbers work
Local content can outweigh a 10% price gap in a Saudi tender. How it is measured, the exact evaluation formula with a calculator, and the incentives that make manufacturing in the Kingdom pay.
10 min readReadSaudi Arabia’s industrial zones: a map and a guide to choosing one
More than fifty industrial cities, special economic zones and hubs, run by four different authorities with four different rulebooks. Where they are, what each offers, and how to choose.
9 min readReadSaudi Arabia’s trade agreements: where a Saudi-made product goes duty-free
Saudi Arabia negotiates trade deals through the GCC. What is in force, what has just been concluded, including the UK deal of May 2026, and the rules of origin that decide whether you benefit.
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