Saudi Arabia, the world’s largest net crude exporter, is accelerating its shift toward renewable energy to cut domestic petroleum use.
Between a quarter and a third of its oil consumption currently powers crude- and fuel oil-fired generators, but the government aims to replace these with 130 gigawatts of renewables by 2030 — roughly India’s entire solar capacity.
This effort, part of the Vision 2030 plan to diversify the economy, could deliver the single largest drop in global oil demand in the next five years, according to the International Energy Agency. While skepticism persists due to delays in other megaprojects, recent progress in energy infrastructure suggests momentum is building.
ACWA Power, the kingdom’s top electricity and water developer, has added 4.9 GW of solar capacity since early 2024, with another 4.9 GW expected by late 2025. It plans 78 GW by 2030, enough to replace all oil-generated electricity in the country.
Saudi Aramco President Amin Nasser said eliminating oil from the grid remains “on track” and would boost exports “as effectively as drilling extra wells.” Analysts warn that if one of the world’s largest crude consumers cuts demand by decade’s end, the global oil market could face deeper oversupply.