Saudi Arabia Wind Power Market to Reach USD 1,374.9 Million by 2034, Growing at 4.65% CAGR

Energy diversification policies, grid modernization initiatives, and localized manufacturing capabilities are converging to redefine the Kingdom's renewable energy landscape. According to IMARC Group's latest data, the Saudi Arabia wind power market size reached USD 913.6 Million in 2025. Looking forward, IMARC Group expects the market to reach USD 1,374.9 Million by 2034, exhibiting a growth rate (CAGR) of 4.65% during 2026-2034. The onshore segment currently dominates installations, with high-wind regions such as Al-Jouf and the Red Sea coastline serving as the primary development corridors for utility-scale wind projects under the National Renewable Energy Program.

The Saudi Arabia wind power market is shaped by a combination of strategic policy action, technological advancement, and international investment interest. Wind energy has emerged as a viable and increasingly competitive complement to the Kingdom's dominant solar sector, supported by structured power purchase agreements, long-term tariff frameworks, and national workforce development priorities. Market segmentation by location spans onshore and offshore formats, while regional coverage encompasses Northern and Central, Western, Eastern, and Southern zones.

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Saudi Arabia Wind Power Market Growth Drivers:

• National Renewable Energy Program and Structured Procurement Frameworks

The Saudi Power Procurement Company has been instrumental in translating Vision 2030's energy diversification ambitions into concrete market activity through competitive tenders under the National Renewable Energy Program (NREP). These procurement rounds issue power purchase agreements and long-term tariff structures that provide developers and financiers with the revenue certainty required to commit to large-scale capital expenditure. The regulatory architecture surrounding these tenders, including transparent prequalification criteria and standardized contract terms, has significantly reduced perceived investment risk and attracted a pipeline of global-tier project developers, utilities, and infrastructure funds to bid for wind capacity across the Kingdom's most resource-abundant regions.

• Grid Modernization and Transmission Infrastructure Investment

The economic viability of wind energy in Saudi Arabia has historically been constrained by the grid's capacity to absorb and distribute variable renewable generation. Sustained investment in transmission infrastructure, substation upgrades, and smart grid technology is progressively eliminating this bottleneck. On December 19, 2024, SPARK Utilities and the Saudi Electricity Project Development Company formalized a strategic partnership at the Saudi Smart Grid Conference to modernize utility connectivity and enhance bulk supply infrastructure within King Salman Energy Park, directly supporting renewable integration across industrial and commercial zones. These grid improvements are enabling wind-generated electricity to reach demand centers efficiently, reinforcing the commercial case for new project development.

• Localized Manufacturing and International Technology Partnerships

The government's push for domestic industrial participation is reducing project costs and creating self-reinforcing supply chain ecosystems within the Kingdom. International turbine manufacturers and technology providers are entering joint ventures with Saudi-based firms to establish local component assembly, logistics, and service operations. In July 2024, Saudi Arabia's Public Investment Fund announced three joint ventures with Envision Energy, Jinko Solar, and LUMETECH alongside Vision Industries to localize renewable energy equipment manufacturing, targeting the domestic production of wind turbine components as part of the broader goal to localize 75% of renewable energy components within the Kingdom. This strategy compresses project timelines, lowers capital costs, and creates skilled employment aligned with national workforce development objectives.

Saudi Arabia Wind Power Market Trends:

• Utility-Scale Onshore Project Pipeline Expansion

Onshore wind development is accelerating across Saudi Arabia's highest-resource zones, with a growing pipeline of utility-scale projects progressing from feasibility assessment through to financial close and construction. The 1,500 MW Dawadmi Wind IPP project represents the most prominent active development, attracting prequalification bids from globally recognized developers including EDF Renouvelables, TotalEnergies, Masdar, Engie, and Alfanar. This project sits within Round 6 of the NREP, which encompasses 4,500 MW of combined wind and solar capacity, underscoring the scale of procurement ambition and the depth of international developer interest in the Kingdom's onshore wind opportunity.

• Offshore Wind as an Emerging Frontier

While onshore wind dominates the current development landscape, offshore wind along Saudi Arabia's Red Sea coastline is attracting growing policy and investor attention as a longer-term opportunity. The Red Sea's wind resource profile, combined with the proximity of NEOM and other coastal giga-project demand centers, is generating feasibility work and site assessment activity that positions offshore wind as a strategic pillar of the Kingdom's post-2030 clean energy architecture. Advances in floating wind technology and falling offshore installation costs globally are improving the economic outlook for this segment, with early-stage discussions between government agencies and international developers beginning to take shape.

• Workforce Development and Knowledge Transfer Initiatives

Saudi Arabia's wind sector expansion is being deliberately engineered to create lasting domestic capability rather than relying on imported expertise for the long term. Training partnerships between international project developers and Saudi technical institutes are building a pipeline of locally qualified engineers, technicians, and project managers. This Saudization of the renewable energy workforce not only satisfies national employment policy requirements but also reduces ongoing operational and maintenance costs for wind farm operators, improving the long-run economics of wind assets across their full project lifespans and strengthening the overall competitiveness of the Saudi Arabia wind power market share.

Recent News and Developments in Saudi Arabia Wind Power Market

• March 2026: First turbine at 600 MW Al Ghat wind project connects to grid, marking progress in Riyadh province renewable integration.
• January 2026: Saudi Arabia qualifies bidders for major wind projects including 1.3 GW Bilghah, advancing National Renewable Energy Program and clean energy diversification.
• July 2025: ACWA Power consortium signs $8.3 billion PPAs for 3 GW wind farms at Starah and Shaqra, boosting large-scale onshore deployment.
• October 2025: Dawadmi 1.5 GW wind project awarded with record-low LCOE of 1.338 US cents/kWh, setting global benchmark for wind power costs.
• October 2025: 700 MW Yanbu wind PPA signed with Marubeni-led consortium at competitive 1.72 US cents/kWh tariff in Al-Madinah Province.

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