The latest trend of energy storage electricity prices in Saudi Arabia

Will Saudi Arabia be able to deploy battery energy storage systems by 2030?

According to Saudi Energy Minister Prince Abdulaziz bin Salman, the nation has set a goal of deploying 48GWh of battery energy storage systems by 2030. This ambitious target not only supports Saudi Arabia's energy transition but also injects fresh momentum into the global renewable energy and energy storage markets.

Why is electricity demand increasing in Saudi Arabia?

Studies show that electricity demand in Saudi Arabia and the GCC region has been growing rapidly over the past decades. This growth has several drivers, including economic growth, increasing populations and regulated electricity tariffs.

How much energy does Saudi Arabia use?

Per capita energy consumption in Saudi Arabia is notably high, reaching 6.5 tons of oil equivalent (toe) in 2022, including approximately 9.2 megawatt-hours (MWh) of electricity. Total energy consumption increased to 228 million tons of oil equivalent (Mtoe) in 2022, driven by economic expansion and higher energy demand.

How will Saudi Vision 2030 impact electricity production & demand?

The Saudi government has implemented several initiatives as part of Saudi Vision 2030 that will impact electricity production and demand. These initiatives include industrial development and localization; energy efficiency; and replacing liquid fuels in power generation with low-cost natural gas, solar energy and wind.

How much does solar electricity cost in Saudi Arabia?

Currently, the levelized costs of solar electricity (LCOEs) in Saudi Arabia, the United Arab Emirates and Qatar are among the lowest worldwide. Recent tenders ranged from 1.35 to 1.61 cents per kilowatthour (kWh). In 2021, a solar photovoltaic project in Saudi Arabia achieved an LCOE of 1.04 cents/kWh.

Why is Saudi Arabia opening its energy sector to private investment?

As part of its plan to reduce dependence on oil, Saudi Arabia is actively opening its energy sector to private investment. This strategic move is designed to attract global expertise and capital, fostering innovation and efficiency in the market.