By adopting innovative solutions to maximize the Kingdom’s economic benefit from the energy sector as a whole, the Ministry of Energy strives to achieve integration and interdependence of the various energy sectors as a driving force of development and therefore strengthen the national and global economies. These sectors include conventional energy, renewable energy, and, in the future, nuclear energy for peaceful purposes.
They also include renewable energy initiatives, which are integrated with hydrocarbons. The Kingdom is blessed with privileged geographic location and climate, which makes renewables economically feasible and contribute to the efforts of the diversification of energy sources. The Kingdom works to promote and expand its international oil-industry prominence and leadership to cover the other energy sources.
The National Renewable Energy Program is a strategic initiative under The Custodian of the Two Holy Mosques Initiative for Renewable Energy in the Kingdom and Saudi Vision 2030. The program aims to maximize and optimize the renewables’ share in the Kingdom, designed to balance the local energy mix and meet the Kingdom’s emissions-related obligations.
Through the program, the Ministry of Energy seeks to diversify the energy mix used in electricity production; increasing the shares of gas and renewables in it. The kingdom aims at have the energy mix that is optimal, most efficient, and least costly, by replacing liquid fuel with natural gas, in addition to renewables which are going to make up around 50% of the energy mix used to produce electricity by 2030.
The Ministry also works on developing the renewable energy sector through creating a competitive local market that contributes to the growth of private sector investments and promotes partnerships between the public and private sectors. A testament to the Ministry’s success in this area is that the Kingdom has achieved the world’s most competitive prices in solar and wind projects.