Saudi, UAE and other GCC states are growing their renewable energy capacity through ongoing projects targeting electricity production for domestic use and freeing up more hydrocarbons for exports, the Financial Times reports.

The Kingdom plans to generate 50% of its electricity from renewables by 2030, requiring 130GW of new capacity to power 25 mn homes. The ambitious target would require Saudi policymakers to “ramp up their efforts quite substantially,” head of renewables at Rystad Wiik Vollset said. The renewables boom promises big dividends for the Kingdom, including cheap energy costs and ample solar resources, synergies with AI data centers, and strong export potential for competitively priced clean hydrogen, Vollset added.

Not an easy target: Integrating renewables into Saudi’s fossil fuel-based grid requires substantial upgrades and poses a significant challenge. Still, GCC states are known for quick project turnarounds which far exceed comparable Western timelines, Vollset added.

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