Electrical energy future of Saudi Arabia: Challenges and opportunities

The economy of Saudi Arabia is primarily oil-based, and the energy system is heavily dependent on fossil fuel sources. Electrical demand in Saudi Arabia has been overgrowing due to the high rates of both population and economy. The real problem is that most of this demand has been met by polluting sources, which in turn causes severe economic and environmental challenges. Despite the abundant amount of clean and freely available renewable sources, the practice of benefiting from these sources is minimal and modest. Therefore, the country has launched a promising vision, one pillar of which is diversifying energy sources and reducing dependence on oil. Since Saudi Arabia is located within the equatorial Sun Belt area, the country is a candidate for leading the World’s renewable energy industry, particularly solar energy. This paper discusses the current energy policy in Saudi Arabia, the associated main energy-related challenges and promising opportunities, and the efforts and actions taken by the country’s policymakers to address these challenges and to take advantage of available opportunities–especially those related to electrical energy–to assure continued future prosperity for subsequent generations.