Saudi Arabia Small Wind Turbine Market

Market Overview

The Saudi Arabia small wind turbine market size was valued at USD 1,762.8 thousand in 2023 and is projected to reach a value of USD 4,343.4 thousand by 2032, registering a CAGR of 10.5% during the forecast period (2024-2032).

The small wind turbine industry in Saudi Arabia is still in its early stages. Still, it has significant potential due to the country's increased emphasis on renewable energy as part of its Vision 2030 project. The Kingdom's determination to diversify its energy mix away from oil dependency presents an ideal environment for renewable energy technology, such as small wind turbines. In 2023, Saudi Arabia will install a 5kW grid-off Aeolos-H wind turbine with a 15m monopole tower. In addition, the government has announced incentives to encourage investment in renewable energy projects, which will help the small wind turbine market grow even more. These advances highlight the potential of modest wind turbines to help Saudi Arabia meet its renewable energy targets while lowering its carbon footprint.

Market Dynamics

Saudi Arabia Small Wind Turbine Market Drivers:

Renewable Energy Ambitions

Saudi Arabia has actively pursued renewable energy projects via competitive auctions arranged by the Renewable Energy Project Development Office (REPDO). These tenders seek to procure much of the Kingdom's electricity from renewable sources, such as wind energy. The government's aims demonstrate a strong intent to move to a more sustainable energy future.

In addition, Saudi Arabia's Renewable Energy Project Development Office (REPDO) has granted various renewable energy projects via competitive bidding. The Kingdom intends to build 58.7 GW of renewable energy capacity by 2030. REPDO will oversee the development of 30% of this through tenders, with the Public Investment Fund (PIF) acquiring the remaining 70% through direct contracts with investors. By capitalizing on these renewable energy ambitions, stakeholders may help the Kingdom achieve its sustainable development goals while also realizing small wind energy's economic and environmental benefits.

Saudi Arabia Small Wind Turbine Market Restraints:

Limited Wind Resources

One of the most significant barriers to the small wind turbine business in Saudi Arabia is the country's limited wind resources, characterized by low and fluctuating wind speeds in many areas. This geographical constraint substantially impacts the feasibility and efficiency of tiny wind turbine installations. The King Abdullah City for Atomic and Renewable Energy (K.A.CARE) and private companies have acknowledged that several areas of Saudi Arabia have low wind resources. These studies use meteorological station data, remote sensing technology, and numerical modeling to study wind speed patterns and regional variations.

Furthermore, the average wind speed in Saudi Arabia is 1.2 to 22.1 meters per second (m/s), although the monthly and yearly average wind speeds in the Eastern Province are 2.4 to 6.1 m/s and 3.2 to 5.3 m/s, respectively. Small wind turbines perform well when the average annual wind speed is at least 4.0 m/s. Saudi Arabia's unique geographical and meteorological characteristics, such as high temperatures, sandstorms, and complicated topographical features, make it even more challenging to harness wind energy. These site-specific problems necessitate tailored turbine designs, modern materials, and cutting-edge technologies to overcome constraints and assure reliable operation in severe settings.

Saudi Arabia Small Wind Turbine Market Opportunity:

Off-grid and Remote Applications

Off-grid and distant uses of tiny wind turbines in Saudi Arabia offer substantial prospects for providing dependable and sustainable energy solutions to locations with limited grid connectivity. Small wind turbines can be an effective solution for rural parts of Saudi Arabia, particularly for water pumping and battery charging. The country's northern and coastal regions can harness wind energy.

Furthermore, switching from diesel generators to small wind turbines in Saudi Arabia can be cost-effective, eliminating costly refueling trips and frequent maintenance. Saudi Arabia has been operating modest demonstration plants to obtain operational experience with wind facilities. Dumat Al Jandal, the country's first and largest wind farm, began operations in 2022 with 99 turbines and a total capacity of 400 MW. These savings are due to wind energy's lower operating costs and fuel expenses than diesel generating.

Regional Analysis

Saudi Arabia is still in its early stages, yet it has significant potential due to its increased emphasis on renewable energy as part of its Vision 2030 project. The Kingdom's determination to diversify its energy mix away from oil dependency presents an ideal environment for renewable energy technology, such as small wind turbines. The environmental trend in Saudi Arabia's small wind turbine market is to reduce greenhouse gas emissions and promote sustainable energy practices. Saudi Arabia plans to generate 27.3 GW of renewable energy by 2024 and 58.7 GW by 2030. The country's National Renewable Energy Program (REPDO) has been the primary factor behind these goals. According to the Saudi General Investment Authority (SAGIA), utilizing small wind turbines can help the country achieve its renewable energy objective of 27.3 GW by 2024.

In addition, small wind turbines assist in minimizing reliance on diesel generators, which are expensive and environmentally damaging. For example, Saudi Arabia can deploy small wind turbines in isolated places, particularly along the Red Sea coast and the north. The country's Vision 2030 includes a 400 MW wind farm near Dumat Al Jandal, which will go online in 2022.

Furthermore, the Saudi Ministry of Energy's National Renewable Energy Program (NREP) intends to enhance the proportion of renewable energy in the country's energy mix. The NREP plans to build 30 solar and wind projects over the next nine years as part of a USD 50 billion initiative to cut oil use and increase power output. By 2030, the government expects to attract USD 30 billion to USD 50 billion in new renewable energy investments.

Segmental Analysis

The Saudi Arabia small wind turbine market is segmented based on axis type, grid type, component, hybrid system, power, and application.

The market is further segmented by axis type into Horizontal and vertical Axes.

The small wind turbine market is currently dominated by horizontal axis models and is expected to have a CAGR of 10.9% throughout the projection period. The segment's growth is attributed to its high efficiency, scalability, and proven performance. Horizontal Axis Wind Turbines (HAWT) are the most common type of wind turbine, with blades revolving horizontally around an axis. Similar to conventional windmills, this design efficiently converts wind energy into electricity.

Based on grid type, the market is fragmented into Off-Grid and On-Grid.

The on-grid segment dominates the small wind turbine market, with a CAGR of 11.7% throughout the projected period. Small wind turbines integrated into on-grid systems offer a versatile solution for supplementing traditional grid electricity with renewable energy while reducing reliance on fossil fuels and lowering greenhouse gas emissions.

The market is sub-segmented based on components such as aerogenerators, solar photovoltaic panels, battery banks, charge controllers, and inverters.

Aerogenerators have a sizable market share, with a predicted CAGR of 10.5%. The aerogenerator has been the dominant entity in the small wind turbine market due to its immense contribution to energy production. The component is significant because of its effectiveness, technological advancements, and direct impact on the overall operation of the system.

The market is divided based on hybrid systems into Wind-Solar Photovoltaic (PV), Wind-Diesel, Wind-Fuel Cell, and Wind-Hydro.

The wind-solar photovoltaic (PV) sector holds the largest market and is projected to grow at a CAGR of 11.7%. Wind-solar PV hybrid systems dominate the small wind turbine hybrid market because of their compatibility and wide-ranging applicability. These systems exhibit exceptional efficiency in delivering a consistent and uninterrupted power supply, rendering them suited for diverse consumers, encompassing residential and commercial applications.

Based on power, the market is classified into Up to 5kW, 6kW-10kW, 11kW-20kW, and 21kW-50kW.

The small wind turbine sector is predominantly controlled by the "Up to 5kW" category, expanding at a CAGR of 11.2%, typically employed for residential and small-scale agricultural purposes. These turbines are highly favored because of their affordability and convenient accessibility, making them an ideal alternative for people and small businesses seeking to decrease energy expenses and lessen dependence on the power grid.

The market can be bifurcated by application into Residential, Commercial, Agriculture, Industrial, Construction, Infrastructure, Telecommunication, Government and Military.

Residential is one of the most significant segments in the small wind turbine market, growing at an 11.1% CAGR during the forecast period. The segment's growth is driven by a convergence of factors emphasizing the appeal of decentralized energy generation and sustainability. In recent years, there has been a substantial growth in residential installations of small wind turbines, owing to increased environmental awareness, a desire for energy independence, and technology advancements that make these systems more accessible and efficient to homeowners.

Recent Developments

• January 2024- A Saudi-led group signed an agreement for the Middle East's largest wind energy project.