Renewable Energy Investment in Saudi Arabia: Environmental Engineering Insights
Saudi Arabia is undergoing a significant transformation under its Vision 2030, aiming to diversify its economy and reduce its reliance on fossil fuels. A key component of this vision is the aggressive push towards renewable energy sources like solar, wind, and hydrogen. This article, published in the Alexandria Engineering Journal in 2025, explores the trends and opportunities in renewable energy investment within the Kingdom, with a particular focus on environmental sustainability.
The study highlights that while current investment strategies often prioritize financial returns, they frequently overlook the inherent risks and uncertainties associated with large-scale renewable energy projects. These risks can include policy shifts, technological hurdles, and fluctuating energy prices. To address this, the researchers propose a multi-criteria decision-making (MCDM) framework that integrates economic, environmental, and social factors into the investment analysis.
Through their analysis, the study identifies solar energy as having the highest investment potential across various Saudi Arabian cities. Specifically, Abha emerged with the highest investment index (0.93), followed by Jeddah (0.85) and Dammam (0.75). This suggests that geographical factors, including environmental conditions and regulatory frameworks, play a crucial role in determining the viability of renewable energy projects. The findings are intended to guide investors and policymakers in strategically deploying renewable energy infrastructure, aligning with both sustainability goals and economic objectives of Vision 2030.
This research underscores the importance of a holistic approach to renewable energy investment, where environmental engineering considerations are paramount. By systematically evaluating projects based on their environmental impact, alongside economic and social benefits, Saudi Arabia can ensure that its transition to a green economy is both robust and sustainable. The framework presented offers a valuable tool for optimizing renewable energy investments, fostering sustainable development, and contributing to the Kingdom's long-term economic growth and environmental protection.
Key Environmental Engineering Aspects:
• Shift from Fossil Fuels: The core environmental benefit is the reduction of greenhouse gas emissions and air pollution by transitioning away from traditional energy sources.
• Sustainable Energy Development: The article emphasizes the need for development that meets current energy needs without compromising the ability of future generations to meet their own needs.
• Geographical Optimization: Environmental engineering principles are applied to identify optimal locations for solar energy projects based on factors like solar irradiance, land availability, and local environmental sensitivities.
• Risk Assessment: The MCDM framework incorporates environmental risks, such as potential ecological impacts of large-scale infrastructure, into the decision-making process.
| City | Investment Index |
|---|---|
| Abha | 0.93 |
| Jeddah | 0.85 |
| Dammam | 0.75 |
References:1 Selim, M. M., & Alshareef, N. (2025). Trends and opportunities in renewable energy investment in Saudi Arabia: Insights for achieving vision 2030 and enhancing environmental sustainability. Alexandria Engineering Journal, 112, 224-234. (This is the article being summarized)2 Al-Gahtani, S. F. (2024). Saudi Arabia's journey toward a renewable future. Energies, 17(11), 2444. (Cited by 24)3 Waheed, R. (2022). The significance of energy factors, green economic indicators, blue economic aspects towards carbon intensity: a study of Saudi vision 2030. Sustainability, 14(11), 6893. (Cited by 20)