Measuring the Impacts of Saudi Arabia's Energy Diversification Strategy: A Review

Abstract

[Abstract] Saudi Arabia announced its ambitious goal to produce around 50 % of its electricity from renewable energy sources as part of its Vision 2030. The impact of this country's energy policy on economic-related areas has been the subject of intense research in the last decade. The aim of the study is twofold: on the one hand, to conduct a structured and accessible synthesis of studies already carried out and, on the other hand, to detect possible gaps of interest to be covered in the specialized literature on this issue. The synthesis is based on a selective search for relevant publications in different academically-recognized databases. Studies were grouped in five areas in order to provide an in-depth review of Saudi Arabia's energy diversification strategy in different periods. Namely, we consider the impact on the domestic economy, the country's ecological footprint, investment potential, a techno-economic analysis, and the role of Saudi Aramco. Based on our review of the literature, most studies have found that renewable energy is positively correlated to economic-related areas in Saudi Arabia, contributes to a lower environmental impact, and requires significant volumes of investment, especially for the development of solar energy and hybrid combinations, with Aramco being a major player. However, the implications of feasible and promising renewable energy systems for Saudi Arabia's oil revenue are a topic worthy of further research.