Fitch: Renewable Energy Goals Boost Power Project Investments in GCC
Investment in power projects is increasing in the Gulf Cooperation Council (GCC) region. This is mainly because of efforts to use more renewable energy and make fossil-fuel power more efficient, according to a report by Fitch Ratings.
Saudi Energy Goals
Saudi Arabia wants to attract private and foreign investment in green energy. By 2030, it plans for renewable energy to make up 50% of its electricity—about 130 gigawatts (GW).
Most of this new energy (60%) will come from solar power, while the rest (40%) will come from wind power. The country also plans to replace old oil-based power plants with more efficient gas turbines that work at over 60% efficiency.
By 2023, Saudi Arabia added 2.8 GW of renewable energy to its national grid, which is enough to power 520,000 homes. Since launching its national renewables program, the country has approved 21 projects with a total capacity of over 19 GW as of June 2024. Seven of these projects are already supplying power to the grid, with a total of 4.1 GW.
UAE’s Plan
Abu Dhabi wants to develop 18 GW of solar power by 2035. The UAE aims to have clean energy make up 30% of its total energy by 2030.
To achieve this, the country plans to invest up to $54.5 billion (AED 200 billion) in renewable energy over the next six years. This will help reduce carbon emissions and reach net-zero emissions by 2050.
Interesting Fact
Both Saudi Arabia and Abu Dhabi use a system where the government owns 60% of power projects through state-linked companies, while international energy companies own the remaining 40%.
Published: 27th February 2025
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