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Middle East

Saudi Arabia

With a power score of 2.29, Saudi Arabia ranks number 21 among Emerging Markets and number 1 in the Middle East region

Power score

2.29/5

135135135

Score over time

2021 - 2024

53
2021
19
2022
33
2023
21
2024

Overview

Saudi Arabia has a power score of 2.29, which puts it at rank 21 in the Emerging Markets power ranking. In comparison to 2023, Saudi Arabia has improved in the power rankings by 12 places, from rank 33, to rank 21.

At 2.29, the power score of Saudi Arabia is better than than the regional average of 1.84 in the Middle East region and puts it at rank 1 in the region.

Regional comparison chart

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Saudi Arabia

Power

Power policy

Saudi Arabia implements policies in 4/9 power policy categories tracked by Climatescope, including Renewable energy target, Renewable energy auction, Net metering, and Import tax incentives.

Power policies

Renewable energy target
Renewable energy auction
Feed-in tariff
Net metering
Import tax incentives
VAT incentives
Priority grid access
Renewables mandate
Renewable Energy Certificates

Power prices and costs

The average electricity price in Saudi Arabia has increased from 59.51 USD/MWh in 2022 to 59.56 USD/MWh in 2023. Since 2017, the average electricity price in Saudi Arabia has fluctuated between 47.11 USD/MWh (2017) and 59.56 USD/MWh (2023).

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Power market

The top amount of capacity installed in Saudi Arabia in 2023 was in Natural Gas at 50.15%, up from 47.41% in 2022.

Installed capacity (in MW)

20002005201020152020020K40K60K80K100K MW

Electricity generation (in GWh)

200020052010201520200100K200K300K400K GWh

The top amount of electricity generated in Saudi Arabia in 2023 was in Natural Gas at 49.83%, up from 47.45% in 2022.

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Investment in clean energy in Saudi Arabia was around $9,134.58 million in 2023, an increase of 1017.3% from 2022 ($817.56 million). Between 2018 and 2023, the highest investment in clean energy was in 2023 at $9,134.58 million, while the lowest was in 2020 with $360.00 million.

Utility privatisation

Which segments of the power sector are open to private participation?

generation: Yes
transmission: No
retail: No

Doing business and barriers

Type

Question

Availability

Currency of PPAs

Are other PPAs (eg. corporate PPAs) signed in or indexed to U.S. Dollars or Euro?

No

Type

Question

Availability

Bilateral power contracts

Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?

Yes

Type

Question

Availability

Fossil fuel price distortions - Subsidies

Does the government keep the wholesale price of electricity from fossil fuels artificially low through subsidies?

Yes

Type

Question

Availability

Fossil fuel price distortions - Taxes and carbon prices

Does the government significantly�increase the wholesale price of electricity from fossil fuel through targeted taxes and/or carbon prices?

No

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