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Solar power in Saudi Arabia has become more important to the country as oil prices have risen. In 2011, over 50% of electricity was produced by burning oil. The Saudi agency in charge of developing the nations renewable energy sector, Ka-care, announced in May 2012 that the nation would install 41 gigawatts (GW) of solar capacity by 2032. It is projected to be composed of 25 GW of solar thermal, and 16 GW of photovoltaics. At the time of this announcement, Saudi Arabia had only 0.003 gigawatts of installed solar energy capacity. A total of 24 GW of renewable energy is expected by 2020, and 54 GW by 2032. In January 2015, it was announced that the plan was delayed with completion not occurring until 2040.
A 200 kW rooftop installation is planned for Riyadh, and is expected to generate 330 MWh/year.
1,100 megawatts (MW) of photovoltaics and 900 megawatts of concentrated solar thermal (CSP) is expected to be completed by early 2013.
Due to rising oil prices and decreasing costs of utility-scale solar installations, solar power in Saudi Arabia has achieved grid parity and can produce electricity at costs comparable to conventional sources.
History
The United States and Saudi Arabia jointly set up a solar-research station in Al-Uyaynah village. The village, located about 30 miles northwest of Riyadh, had no electric supply at the time. The station is operated by the the King Abdulaziz City for Science and Technology. The agency established an experimental assembly line at the site to manufacture solar panels. The equipment on the assembly line was imported from Europe, and the solar cells are imported from Taiwan. The line's capacity was quadrupled within a year.
Saudi Arabia's first solar power plant was commissioned on October 2, 2011, on Farasan Island. It is a 500 kW fixed tilt photovoltaic plant.