đź•’ Last updated on September 12, 2025
For many years, Saudi Arabia stood as the world’s biggest net exporter of crude oil. What surprises many is that the country also consumed a huge amount of its own oil.
From heavy oil use to renewable energy push
Since the early 2000s, its oil use has more than doubled, reaching about 2.3 million barrels per day. That is more than the growth in demand across entire regions like Africa or Latin America.
A large part of this oil never left the country. Between one-quarter and one-third of it was burned in power plants to keep the lights on and air conditioners running during the hot summer months. This meant that barrels that could have been sold abroad were being used at home.
Now, this pattern is changing. Saudi Arabia has set a bold goal to swap its oil-powered grid with renewable energy. By 2030, the country wants to have about 130 gigawatts of renewable capacity. To put that number in perspective, it is almost equal to all the solar power currently in India. If achieved, it could mark the single largest drop in oil demand in the world over the next five years.
A history of big plans and doubts
Ambitious targets are not new in Saudi Arabia. Back in 2016, the kingdom announced “Vision 2030,” a plan to diversify its economy away from oil. Shifting electricity production from crude to a mix of natural gas and renewables was one of the main promises.
But many observers have often doubted these large announcements. The country is known for launching huge projects, some of which struggle to reach completion. Examples include skyscrapers and futuristic city designs that remain incomplete or under review. Because of this, many believed the renewable energy goals would suffer the same fate.
In fact, data trackers once suggested that by 2030, only about 11.6 gigawatts of the 130 gigawatts might actually be ready. That shortfall would have kept oil use in power plants for many more years. Skepticism was widespread, and the gap between promises and execution was often highlighted.
Yet something has begun to change in the past few years. Unlike the grand futuristic cities, energy infrastructure is simpler and more practical. And here, Saudi Arabia has already shown strong capability. For decades, it has been able to build world-class oil wells, pipelines, and export terminals. That same skillset is now being applied to renewable projects.
Solar power takes center stage
The clearest signs of progress appeared in 2024. A major domestic energy company switched on four new solar facilities in just one year, adding nearly 4.9 gigawatts of capacity. That is a sharp jump compared to earlier years, when the largest plant connected was only 0.3 gigawatts. More projects of a similar size are already scheduled for completion by the end of 2025.
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In addition, fresh agreements have been signed to deliver another 15 gigawatts of renewable capacity by mid-2028. The same company has outlined a roadmap to reach 78 gigawatts of clean power by 2030. That amount alone would be enough to replace all the electricity Saudi Arabia generated from burning oil last year. Other developers are also working on projects that could further increase these numbers.
Building solar plants in Saudi Arabia has several advantages. The country receives strong sunlight year-round, allowing solar panels to generate power at very low costs. In fact, electricity from these panels can be produced at less than half the price of power from the grid. Compared to the complex engineering required for oil extraction and refining, solar arrays are relatively straightforward to build and operate.
This progress carries huge importance for the global oil market. Every barrel of oil that is no longer burned in Saudi power stations becomes available for export. That means the country can strengthen its position in the global energy trade without drilling additional wells. With oil use for domestic electricity already declining, the global balance of supply and demand may face new challenges.
For now, the story is clear. A nation long seen as the world’s oil giant is beginning to replace oil with sunlight. What once looked like an impossible promise is slowly turning into action. And in doing so, Saudi Arabia is quietly changing the energy map from inside its own borders.