In 2023, Saudi Arabia's electricity consumption is predominantly based on fossil fuels, with more than half of its electricity coming from natural gas, together constituting almost the entirety of the country's electricity generation at approximately 99%. In contrast, clean energy sources contribute close to none, with solar power making up just over 1% of the electricity generation. This heavy reliance on fossil fuels is not only a missed opportunity for decreasing carbon emissions, but it also risks exacerbating climate change impacts and air pollution, which could have significant adverse effects on environmental and public health. With only a fraction of the electricity coming from low-carbon sources, a shift towards more sustainable and environmentally friendly energy is essential for long-term environmental health and energy security.

Is Electricity Growing in Saudi Arabia?

Electricity usage in Saudi Arabia is on a growth trajectory. The latest data from 2023 shows that electricity consumption per person has risen to approximately 12,712 kWh, a noticeable increase of 170 kWh compared to the historic record from 2021. This upward trend indicates a growing demand for electricity, likely driven by economic expansion and population growth. Moreover, Saudi Arabia has made a commendable advancement in its low-carbon electricity generation, which has more than doubled from the previous year’s record, rising to 173 kWh per person. This positive change demonstrates a budding commitment towards integrating more clean energy into the country's electricity mix, though there remains a substantial journey ahead to achieve significant low-carbon electricity penetration.

Suggestions

To boost low-carbon electricity generation, Saudi Arabia can learn from regions that have successfully implemented solar and nuclear energy at a substantial scale. Learning from countries like France and Slovakia, where nuclear power accounts for almost two-thirds of their electricity, Saudi Arabia can consider expanding its nuclear energy capabilities to ensure a stable and low-carbon electricity supply. Similarly, the success of states like Nevada and California, which derive around a third of their electricity from solar power, offers a model for exploiting the abundant sunlight available in Saudi Arabia. Emulating these successful regions could facilitate the transition of Saudi Arabia’s electricity grid to a more diverse and sustainable mix, significantly reducing reliance on fossil fuels and decreasing carbon emissions.

History

Historically, Saudi Arabia's low-carbon electricity started making modest gains only recently, with solar power showing almost no growth from 2010 through 2014. However, a slight increase was noted in 2015, and then again in 2019, but significant growth occurred in 2021, with solar contributing an additional 0.6 TWh. This growth was modest compared to the surge in 2023, where solar energy saw an increase of 3.5 TWh. Wind energy experienced its first measurable growth in 2022, adding 1.4 TWh to the low-carbon electricity portfolio. These recent expansions signify a meaningful but delayed investment in clean energy. However, to build a resilient and sustainable electricity system, Saudi Arabia must continue to accelerate its investments and policies promoting solar and nuclear developments.

Electricity Imports and Exports

Balance of Trade