Electricity in Saudi Arabia in 2023

In 2023, Saudi Arabia's electricity consumption is overwhelmingly reliant on fossil fuels, with almost 99% of its electricity sourced from these non-renewable sources. Natural gas alone accounts for about 63% of this consumption, highlighting the country's significant dependence on this particular fossil fuel. On the cleaner side, low-carbon energy sources make up a modest 1.36% of the electricity mix, with almost all of that coming from solar power, which provides just over 1% of the total electricity. This stark contrast between fossil and low-carbon usage underscores the potential for growth in more sustainable energy forms to mitigate the adverse effects of climate change and air pollution traditionally associated with fossil fuel consumption.

Suggestions

To increase the share of low-carbon electricity, Saudi Arabia could look towards nations like the United Arab Emirates, which have made strides with nuclear energy, reaching a 20% share in their electricity mix. Learning from countries that have successfully integrated nuclear energy, such as France (67%) and Slovakia (60%), offers a roadmap of technical and policy measures to balance energy systems with cleaner alternatives. Additionally, looking to wind energy, as seen in Denmark's impressive 59% share, could provide inspiration for harnessing the kingdom’s vast desert landscapes to diversify its clean energy portfolio. Emphasizing investments in infrastructure and R&D could accelerate the deployment of solar and wind energy, tapping into the region's abundant solar resources, as demonstrated by Chile's 21% and Greece's 22% solar shares.

History

Historically, Saudi Arabia has taken measured steps toward diversifying its electricity sources with low-carbon options. Throughout the late 2000s and early 2010s, there was no significant change in low-carbon electricity generation. The first notable shift occurred in 2018 when solar energy saw an uptick with an incremental increase of 0.1 TWh, which was mirrored in 2019. However, it wasn't until 2021 that solar energy sharply increased by 0.6 TWh, and a more pronounced rise occurred in 2023 with an expansion of 3.5 TWh. The introduction of wind energy in 2022 added a notable 1.4 TWh to the mix, representing a promising start for this energy source in the kingdom. While the pace of change has been relatively slow, the recent years show a clear upward trend in low-carbon electricity generation, reflecting Saudi Arabia's growing commitment to greener energy solutions.

Electricity Imports and Exports

Balance of Trade

Data Sources