Saudi Arabia relies heavily on fossil fuels for its electricity consumption, with almost all of its electricity being generated from such sources. Gas, as a subset of fossil fuels, accounts for more than half of the electricity generation in the country. Meanwhile, a very small percentage of the electricity is generated using low-carbon energy sources. Solar energy contributes just over 1%, with the total low-carbon electricity share being about 1.36%. The reliance on fossil fuels results in greater environmental impacts, including contributions to climate change and air pollution. This highlights an urgent need for Saudi Arabia to transition towards more sustainable electricity generation methods.

Is Electricity Growing in Saudi Arabia?

Despite the heavy use of fossil fuels, electricity consumption in Saudi Arabia is witnessing an upward trend. The latest figures from 2023 show electricity consumption at 12,712 kWh per person, an increase from the previous high in 2021. This marks a growth of about 170 kWh per person. Even more encouraging is the growth in low-carbon electricity generation, which rose significantly, with an increase of 103 kWh per person since the previous record in 2022. This demonstrates progress in the adoption of cleaner energy, which is essential for sustainable growth, even though large-scale low-carbon investments are still required.

Suggestions

To further increase its low-carbon electricity generation, Saudi Arabia can draw lessons from other regions that have successfully harnessed solar and nuclear power. For instance, California derives 31% of its electricity from solar energy—a pertinent model given Saudi Arabia's abundant sunlight. Similarly, France's 67% share of nuclear electricity shows the potential of this reliable and continuous energy source in reducing dependency on fossil fuels while maintaining stable electricity supplies. By adopting a combination of solar and nuclear energy strategies, Saudi Arabia could dramatically expand its low-carbon electricity production and substantially reduce environmental impacts, paving the way for a cleaner energy future.

History

The history of low-carbon electricity generation in Saudi Arabia reflects a slow initial uptake, with years of negligible solar growth starting in 2010. Gradual developments began from 2015, but significant progress was missing until recently. The year 2021 saw a modest but noticeable increase of 0.6 TWh in solar power, while 2022 experienced a pioneering 1.4 TWh increase in wind energy. The energy landscape shifted more notably in 2023, with solar generation surging by 3.5 TWh. Despite these incremental gains, the lack of development in other forms of sustainable electricity, like nuclear power, highlights the missed opportunities to diversify further and enhance Saudi Arabia’s low-carbon electricity portfolio.

Electricity Imports and Exports

Balance of Trade