Saudi Arabia, a name synonymous with vast oil reserves, holds a pivotal position on the global stage. But Where Is Saudi Arabia exactly, and what’s shaping its future beyond petroleum? Nestled in the heart of the Middle East, Saudi Arabia occupies the majority of the Arabian Peninsula, a land bridging Asia and Africa. This geographical location has not only defined its history but is now central to its ambitious plans for a diversified energy future.
For decades, Saudi Arabia’s energy landscape has been dominated by fossil fuels. In fact, virtually all of the nation’s electricity has been generated by burning oil and natural gas. As of 2021, the nation’s electricity generation mix was heavily reliant on natural gas (58%) and oil (41%), with only a nascent contribution from renewables like solar (0.8 TWh) and wind (0.4 TWh). This reliance is underscored by a gross electricity generation of 409 TWh in 2021, showcasing the immense energy demands of a rapidly growing nation.
Saudi Arabia’s population has surged from a mere 4 million in 1960 to over 36 million by 2021, driving a significant increase in energy consumption. The nation itself consumes a substantial portion of its own oil production, a figure projected to rise further. While energy demand is on an upward trajectory, the Kingdom recognizes the finite nature of oil reserves and the global shift towards sustainable energy sources. This realization is a major driver behind Saudi Arabia’s strategic pivot towards diversifying its energy portfolio.
The scale of Saudi Arabia’s energy infrastructure is immense. By 2021, generating capacity reached 83.0 GWe, a dramatic increase from 25.8 GWe in 2000. Interestingly, Saudi Arabia operates on a 60 Hz grid frequency, a factor that sets it apart in the region and presents unique challenges for grid interconnections with neighboring countries operating at 50 Hz.
Despite its current fossil fuel dependence, Saudi Arabia has set ambitious targets for renewable energy and nuclear power. Historically, plans for diversification have faced delays. As recently as 2019, a negligible 0.1% of total electricity generation came from solar photovoltaic (PV) sources, with the vast majority still originating from oil and gas. However, the commitment to change is now stronger than ever.
Renewable Energy Initiatives: Powering Vision 2030
Saudi Arabia’s journey towards renewable energy is marked by evolving targets and ambitious projects. The government’s commitment was initially formalized in 2012 with a proposal from the King Abdullah City for Atomic and Renewable Energy (KA-CARE). This initial plan aimed to add 23.9 GWe of renewable capacity by 2020 and a staggering 54 GWe by 2032. The envisioned mix included 16 GWe of solar PV, 25 GWe of concentrated solar power (CSP), 9 GWe of wind energy, 3 GWe from waste-to-energy, and 1 GWe of geothermal capacity. While the initial timeline shifted to 2040, the underlying ambition remained.
Vision 2030, launched in April 2016, further solidified the commitment to renewables through the National Renewable Energy Program (NREP). The initial NREP targets were set at 9.5 GW of renewable energy by 2023, with an interim milestone of 3.45 GWe by 2020. Demonstrating increasing ambition, these targets were significantly elevated in January 2019 by the Renewable Energy Project Development Office (REPDO). The revised goals aimed for 27.3 GWe by 2023 and a massive 58.7 GWe by 2030. This revised capacity was planned to be comprised of 40 GWe solar PV, 16 GWe wind, and 2.7 GWe from other renewable sources.
One particularly ambitious, albeit ultimately unrealized project, was a memorandum of understanding (MoU) signed in March 2018 between Crown Prince Mohammed bin Salman and Japan’s SoftBank. This MoU envisioned a colossal 150-200 GW solar capacity by 2030 as part of a $200 billion program. Despite the scale of ambition, this project was discontinued within six months.
However, the spirit of innovation and large-scale vision persists. The Neom project, announced in October 2017 by Crown Prince Mohammad bin Salman, exemplifies this. Neom is a futuristic 2.7 million-hectare city being developed in northwestern Saudi Arabia on the Red Sea coast. This ambitious project is designed to be entirely powered by renewable energy. In March 2022, Neom took a significant step forward by launching Enowa, a subsidiary company tasked with developing Neom’s energy and water systems, ensuring sustainability at its core.
Further underscoring the national commitment, in January 2021, Energy Minister Prince Abdulaziz bin Salman declared Saudi Arabia’s dedication to achieving carbon neutrality. The stated goal is to generate 50% of the nation’s electricity from renewable sources by 2030, with the remaining 50% supplied by natural gas, marking a significant shift away from oil dependence in power generation.
Desalination and the Dual Approach
Water scarcity is a critical challenge in arid regions like where Saudi Arabia is located. Desalination plays a vital role in providing potable water. Historically, the Ministry of Water & Electricity (MOWE) oversaw both power and desalination. However, in May 2016, this portfolio was divided, with water responsibilities moving to the Ministry of Environment, Water and Agriculture and electricity oversight transferring to the Ministry of Energy, Industry and Mineral Resources.
The Saline Water Conversion Corporation (SWCC) currently operates a substantial desalination capacity of approximately 7.5 million m3/day. To enhance efficiency, Saudi Arabia favors coupling desalination plants with power generation facilities. This integrated approach, known as dual-purpose or hybrid plants, allows for the utilization of reject heat from power generation, significantly reducing the energy required for desalination by about half. Independent water and power production (IWPP) facilities are also increasingly favored for large-scale projects.
Saudi Arabia continues to invest heavily in desalination capacity. While traditional thermal desalination technologies like multi-stage flash distillation (MSF) and multiple-effect distillation (MED) remain prevalent, reverse osmosis (RO), driven by electricity, is gaining prominence due to advancements in energy efficiency and cost-effectiveness.
Significant desalination plants are located along Saudi Arabia’s coastlines. The Shuaibah/Shoaiba plant on the Red Sea provides 0.9 million m3/day of capacity. Yanbu and Rabigh 3, also on the Red Sea, collectively contribute another 1.5 million m3/day, supplying the Medina region. On the Gulf coast, Ras Al Khair boasts over 1 million m3/day, serving Riyadh, while Marafiq/Jubail provides approximately 0.8 million m3/day.
Innovation in desalination is also being explored. In January 2020, UK-based Solar Water secured a contract to construct the first ‘solar dome’ concentrated solar power desalination plants in Neom. The first of these innovative plants was expected to be completed in late 2020, showcasing a commitment to sustainable desalination solutions.
Nuclear Ambitions: A Future Energy Source
Saudi Arabia’s interest in nuclear power dates back to the early 2000s. In December 2006, the Gulf Cooperation Council (GCC), including Saudi Arabia, initiated a study on the peaceful uses of nuclear energy. This regional approach involved collaborations with France and expressions of assistance from Iran in nuclear technology.
Building upon regional cooperation, in February 2007, the GCC states partnered with the International Atomic Energy Agency (IAEA) to conduct a feasibility study for a regional nuclear power and desalination program, with Saudi Arabia taking the lead in the investigation.
By August 2009, Saudi Arabia began considering an independent nuclear power program. This intent was formalized in April 2010 with a royal decree emphasizing the essential role of atomic energy in meeting the Kingdom’s growing energy demands for electricity generation and desalinated water, while simultaneously reducing reliance on depleting hydrocarbon resources. The King Abdullah City for Atomic and Renewable Energy (KA-CARE) was established in Riyadh to spearhead this agenda, serving as the primary agency for nuclear energy treaties and projects.
KA-CARE embarked on a strategic planning phase, appointing Poyry, a consultancy firm, in June 2010 to define a high-level strategy for nuclear and renewable energy applications, including desalination. Site selection became a critical next step. In November 2011, WorleyParsons was contracted to conduct site surveys and regional analysis to identify and rank potential nuclear power plant locations. By September 2013, three sites were shortlisted: Jubail on the Gulf coast and Tabuk and Jizan on the Red Sea.
Early projections in June 2011 from KA-CARE indicated ambitious plans to construct 16 nuclear power reactors over 20 years, estimated at a cost exceeding 300 billion riyals ($80 billion). These reactors were envisioned to supply approximately 20% of Saudi Arabia’s electricity. Smaller reactors, such as Argentina’s CAREM, were considered for desalination applications. An initial timeline in April 2013 anticipated nuclear construction to commence in 2016.
In April 2013, KA-CARE projected a substantial 17 GWe of nuclear capacity by 2032, within a total generation capacity of 123 GWe. This vision included significant contributions from solar PV (16 GWe) and solar CSP (25 GWe), alongside smaller contributions from geothermal, wind, and waste. Despite the diversification efforts, hydrocarbons were still projected to constitute about half of the capacity in 2032. However, by January 2015, the target date for nuclear capacity was shifted to 2040, indicating a recalibration of immediate nuclear ambitions.
Despite timeline adjustments, Saudi Arabia has actively engaged with international nuclear vendors. In September 2013, GE Hitachi Nuclear Energy and Toshiba/Westinghouse signed agreements with Exelon Nuclear Partners (ENP) to pursue reactor construction deals with KA-CARE. French nuclear giant Areva (now Framatome) and EdF also signed agreements with Saudi entities, including a joint venture between EdF and Saudi Arabia’s Global Energy Holding Company (GEHC) to conduct feasibility studies for an EPR reactor in the country.
In January 2015, the government officially adjusted the target for 17 GWe of nuclear capacity to around 2040, signaling a scaling back of immediate nuclear plans. However, in 2017, KA-CARE announced a tender for 2.9 GWe of nuclear capacity, inviting proposals from South Korea, China, Russia, and Japan, indicating continued commitment to nuclear energy. In November 2018, Worley Parsons was awarded a consultancy contract for the Saudi National Atomic Energy Project, covering a broad scope including large plants, small modular reactors (SMRs), and the nuclear fuel cycle.
Small modular reactors (SMRs) have also garnered attention. In March 2015, the Korea Atomic Energy Research Institute (KAERI) and KA-CARE agreed to assess the potential for deploying at least two South Korean SMART reactors in Saudi Arabia. The SMART reactor, designed for both electricity generation (up to 100 MWe) and thermal applications like desalination, offers a smaller footprint and enhanced flexibility. Argentina’s INVAP also partnered with Saudi Arabia’s Taqnia to develop nuclear technology, potentially focusing on small reactors like the CAREM for desalination.
China has also emerged as a key partner. In January 2016, KA-CARE and China Nuclear Engineering Corporation (CNEC) agreed to collaborate on building a high-temperature reactor (HTR) in Saudi Arabia, based on China’s HTR-PM technology. Feasibility studies and cooperation agreements have further solidified this partnership, exploring HTR applications for both desalination and the petrochemical industry.
In July 2017, the Saudi cabinet formally approved the Saudi National Atomic Energy Project (SNAEP) and established new regulations for KA-CARE, streamlining the development of the nuclear sector.
The IAEA’s integrated nuclear infrastructure review (INIR) mission in January 2019 recognized Saudi Arabia’s “significant progress” in establishing a nuclear legislative framework and developing nuclear infrastructure. Further solidifying the organizational structure, in February 2022, Saudi Arabia confirmed the establishment of the Nuclear Holding Company to act as the country’s nuclear developer, an entity initially conceived in 2013. Most recently, in September 2023, the energy minister reiterated the Kingdom’s commitment to building nuclear power plants and transitioning to a comprehensive safeguards agreement with the IAEA, demonstrating a proactive approach to nuclear non-proliferation.
International Nuclear Cooperation: Building Partnerships
Saudi Arabia has actively pursued international nuclear cooperation agreements to support its nuclear ambitions. A nuclear cooperation agreement with France in early 2011 signaled French interest in supporting Saudi nuclear plans. In June 2015, France agreed to conduct a feasibility study for constructing two EPR nuclear power reactors in Saudi Arabia, alongside agreements on nuclear safety training and waste disposal.
Agreements with Argentina, South Korea, and China have also been established, focusing on various aspects of nuclear development, from R&D and reactor construction to fuel cycle services and human resource development. A significant agreement with Rosatom of Russia in June 2015 encompassed a broad spectrum of nuclear cooperation, including reactor design, construction, operation, and decommissioning, as well as fuel cycle services and radioactive waste management.
Further agreements with Hungary and Kazakhstan have focused on specific areas like fuel supply, while a collaboration with Jordan explores the potential for small modular reactors (SMRs) for electricity and desalination. KA-CARE has also indicated ongoing negotiations with the Czech Republic, UK, and USA for further nuclear cooperation. A full nuclear cooperation agreement with the USA is widely considered crucial for the advancement of Saudi Arabia’s nuclear power program, particularly given non-proliferation considerations.
Fuel Cycle and Uranium Exploration
Speculation has arisen regarding Saudi Arabia’s intentions for uranium enrichment, although no official confirmation exists. However, in March and August 2017, China National Nuclear Corporation (CNNC) and the Saudi Geological Survey signed agreements for uranium exploration in Saudi Arabia. CNNC is undertaking exploration in nine potential areas over two years, expanding upon its existing exploration activities in Jordan. In March 2019, KA-CARE, in collaboration with Jordanian entities, launched a program to develop Saudi expertise in uranium exploration and mining, further indicating a strategic interest in securing uranium resources.
Research and Development Initiatives
Saudi Arabia is also investing in nuclear research and development. A 30 kWt low power research reactor (LPRR) is currently under construction at King Abdulaziz City for Science & Technology (KACST) in Riyadh, being built by Argentina’s INVAP. Launched in November 2018, this research reactor signifies a commitment to developing domestic nuclear expertise and infrastructure.
Regulation, Safety, and Non-Proliferation
Establishing a robust regulatory framework for nuclear activities is paramount. The Saudi Arabian Atomic Regulatory Authority (SAARA) was established to commence operations in early 2014. To support SAARA’s development, KA-CARE signed an agreement with the Finnish Radiation and Nuclear Safety Authority (STUK) in May 2014 for personnel training and the establishment of safety standards. Cooperation with South Korea’s Nuclear Safety and Security Commission (NSSC) further strengthens regulatory capabilities. Regional cooperation is also evident, with an agreement between Saudi Arabia’s Nuclear and Radiological Regulatory Commission (NRRC) and the UAE’s Federal Authority for Nuclear Regulation (FANR) to share best practices in nuclear and radiation regulation.
Saudi Arabia has a safeguards agreement with the IAEA in force since 2009, demonstrating its commitment to non-proliferation. While currently without an Additional Protocol, the Kingdom’s evolving nuclear program and recent statements suggest a potential shift towards more comprehensive safeguards.
Conclusion: Saudi Arabia’s Energy Crossroads
Where is Saudi Arabia heading in its energy journey? From its geographical position at the heart of the global energy landscape to its ambitious Vision 2030, Saudi Arabia stands at a crucial crossroads. While historically defined by its vast oil resources, the Kingdom is actively pursuing a diversified energy future. Renewable energy initiatives, particularly in solar and wind, are gaining momentum, with ambitious targets and large-scale projects like Neom leading the way. Nuclear power, though with adjusted timelines, remains a significant part of the long-term energy strategy, supported by international collaborations and a growing domestic nuclear infrastructure. As Saudi Arabia navigates this energy transformation, its geographical location and strategic importance will continue to shape its role in the global energy arena.
Notes & References:
- Korea Atomic Energy Research Institute, KAERI and K.A.CARE signed SMART PPE Agreement (3 September 2015)
- International Energy Agency and The World Bank. Data for year 2021.
- World Nuclear Association information on Saudi Arabia Nuclear Power.
