Saudi Arabia Commits $8.3 Billion to Develop 15 GW of Renewable Energy Projects by 2028

Saudi Arabia has announced a landmark commitment of $8.3 billion to develop seven large-scale renewable energy projects, adding a combined capacity of 15 gigawatts (GW) to the national grid by 2028.

These projects comprise 12 GW of solar photovoltaic (PV) and 3 GW of wind power, reflecting a significant push under the Kingdom’s National Renewable Energy Program (NREP), aligned with its Vision 2030 goals.

The projects are set to reach financial close by the third quarter of 2025 and are expected to become operational between late 2027 and early 2028.

The initiative is a collaboration between major local entities: ACWA Power, the Public Investment Fund (PIF)-owned Badeel, and Saudi Aramco’s SAPCO. Together, they will jointly own these projects located in various regions including Asir, Madinah, Makkah, and Riyadh.

This investment not only expands ACWA Power’s renewable portfolio within Saudi Arabia to 34 GW but also supports Aramco's net-zero ambitions and efforts to diversify the country's energy mix.

The agreement demonstrates PIF’s commitment to delivering 70% of the Kingdom’s renewable capacity target by 2030, while reinforcing efforts toward economic diversification and energy sector resilience.

These seven projects include major solar plants such as Bisha (3,000 MW) and Afif 1 & 2 (each 2,000 MW), alongside wind projects like Starah (2,000 MW) and Shaqra (1,000 MW) in Riyadh.

With this substantial boost in clean energy infrastructure, Saudi Arabia aims to position itself as a regional leader in the energy transition, targeting a total renewable energy capacity of 130 GW by 2030.

The collaborative effort between government, sovereign funds, and major energy companies signals a strong strategic direction towards sustainable energy development and economic growth.

$8.3 billion into 15 GW by 2028 is the sustained deployment tempo Vision 2030 needs, and it materially widens the PPA menu Gulf corporates can source from - Scope 2 procurement in the Kingdom stops being constrained by availability. Our energy-transition and responsible-investment teams help clients rework procurement strategy and disclosure narratives around that expanded supply.