Saudi Arabia's renewable energy sector to create 750,000 jobs over the next 10 years
A new report cites the Kingdom’s efforts in localising its manufacturing base as the primary generator of employment opportunities as the Kingdom aims to localize the sector to 40-45 percent by 2028 and beyond.
The US-Saudi Business Council (USSBC) has released a new report indicating that the level of ongoing investments in Saudi Arabia’s renewable sector is expected to create up to 750,000 jobs over the next 10 years, and will become a prominent sector in the development of Saudi talent.
The report cited the Kingdom’s efforts in localizing its manufacturing base as the primary generator of employment opportunities as the Kingdom aims to localize the sector to 40-45 percent by 2028 and beyond.
The Saudi power sector is in the midst of significant developments aimed at generating and growing its capacity to supply electricity to residential consumers and commercial customers.
Facing strong demand for electricity, a desire to diversify its domestic energy mix, the need to improve energy efficiencies, the decline in the cost of alternative energy sources, and the abundance of solar radiation across the country are measures that will allow the Kingdom to become a global leader in renewable energy.
While the current contribution of renewable energy to the Kingdom’s total capacity is in a nascent stage, the scale of growth is expected to significantly ramp up as the Kingdom aims to reach its ambitious goal of generating 50 percent of its energy through alternative resources by 2030.
In order to reach this goal, the Kingdom will prioritize the growth of the sector through private sector participation, attracting foreign direct investments, job creation, and localizing domestic production and content.
A growing population coupled with a surge of mega projects over the past two decades has necessitated significant strides by the government to meet the Kingdom’s demand for power. According to the General Authority for Statistics (GAStat), Saudi Arabia’s population grew by a compounded annual growth rate (CAGR) of 2.8 percent between 2000-2019, reaching approximately 34.2 million people.
Meanwhile, the Kingdom’s peak load grew from 21.7 MW in 2000 to 68.1 MW in 2019 according to the Electricity & Cogeneration Regulatory Authority (ECRA), marking a CAGR of 5.7 percent. This points to the growth in demand for electricity per user that outpaces population growth and has placed growing pressure on the government to provide for the needs of consumers.