Saudi Electricity Company Sees H1 2025 Surge in Renewables and ESG
The Saudi Electricity Company (SEC) has released its mid-year report, showcasing a significant surge in renewables and Environmental, Social, and Governance (ESG). This growth is attributed to the company’s strategic shift towards solar and wind projects, marking a notable departure from reliance on oil.
Renewable Energy Growth
SEC’s revenue jumped 14% year-over-year, with renewables contributing 22% more to the grid compared to 2024. This upswing is largely driven by new PV installations near Riyadh and wind farms along the Red Sea, which are finally hitting their stride.
Record Solar Growth
Saudi Arabia’s 2030 Vision aimed for 50% renewable energy; they’re now at 32%, ahead of schedule. This progress underscores the growing importance of solar energy in the region’s energy mix.
ESG Performance
Two years ago, SEC’s ESG scores were mediocre. Today, they’re topping regional rankings. The secret? Hard policy pivots, such as slashing methane leaks by 40%, partnering with Siemens on smart grid tech, and recycling retired solar panels through First Solar’s program.
Grid Expansion and Peak Demand
Summer 2025 saw record temperatures, but SEC’s grid held up. Distributed solar saved the day, with over 800 MW of rooftop systems easing pressure during afternoon peaks. Critics said decentralized energy would destabilize the network, but the data says otherwise: grid reliability improved by 8%.
The Battery Question
SEC’s storage capacity lags behind solar growth. They’re still leaning on gas peakers after sundown. But with Tesla’s Gigafactory rumored to break ground near Neom, that bottleneck might not last.
Future Outlook
The real test comes in 2026. Can SEC maintain momentum as subsidy reforms kick in? Residential electricity prices are set to rise 18%, which could spark a solar adoption frenzy. If they play this right, Saudi households might start seeing solar leases the way Californians do – as a no-brainer.
