Aramco’s Solar Strategy 2025: From Oil Giant to Renewable Powerhouse

Industry Adoption: Saudi Aramco’s Pivot from Oil Giant to Solar Powerhouse

Saudi Aramco’s strategic pivot to solar energy has evolved from foundational investments into an aggressive, large-scale industrial strategy. Between 2021 and 2024, Aramco’s approach was characterized by establishing its presence through key partnerships and initial project stakes. The company took a significant 30% equity position in the 1.5 GW Sudair Solar project (August 2021) and followed up with participation in the 2.6 GW Al Shuaibah 1 & 2 projects (August 2023). These moves, made through its subsidiary Saudi Aramco Power Company (SAPCO) alongside ACWA Power and the Public Investment Fund (PIF), were calculated entries to build experience and align with Saudi Arabia’s Vision 2030. The period also saw venture investments in enabling technologies, such as “green” solar wafer manufacturer NexWafe (May 2023), signaling an interest in localizing the supply chain.

The period from January 2025 to the present marks a dramatic inflection point, shifting from participation to market dominance. The scale and velocity of activity have accelerated significantly, highlighted by the July 2025 announcement of a massive $8.3 billion consortium investment to develop 15 GW of new renewable capacity, of which 12 GW is solar PV. This single initiative dwarfs previous commitments and is designed to power over 11 million homes. This phase demonstrates a focus on integrated energy systems. The May 2025 launch of the world’s first megawatt-scale Iron-Vanadium (Fe/V) flow battery to store solar energy for its own gas well operations illustrates a move beyond just generating electrons to creating synergistic, 24/7 energy solutions. This variety of applications—from giga-scale grid supply to decarbonizing its own fossil fuel operations—reveals that solar is no longer a peripheral activity for Aramco but a core pillar of its future-facing business model, creating new opportunities in energy storage and operational decarbonization.

Table: Saudi Aramco Solar Investment Timeline and Strategy

Table: Saudi Aramco Solar Partnership Ecosystem

Geography of Saudi Aramco’s Solar Ambitions

Aramco’s solar activities are overwhelmingly concentrated within Saudi Arabia, leveraging the Kingdom’s high solar irradiance of approximately 2,200 kWh per square meter annually. Between 2021 and 2024, geographic activity was focused on establishing cornerstone projects in strategic industrial locations. This included the 1.5 GW Sudair Solar project in Sudair Industrial City and the massive 2.6 GW Al Shuaibah projects in the Makkah province. These initial sites were chosen to anchor the national grid transformation and were located to maximize solar yield and proximity to existing infrastructure.

Since January 2025, the geographic strategy has become one of massive, nationwide scaling, but still almost exclusively domestic. The 12 GW of new solar capacity announced in July 2025 is distributed across several large-scale plants, including Bisha (3 GW), Humaij (3 GW), and Khulis (2 GW), indicating a plan to build out renewable capacity across multiple regions to support a decentralized and more resilient national grid. The main geographic shift is the attempted, though stalled, international expansion with the talks to acquire a stake in Spain’s Repsol renewables unit in September 2025. This signals a future ambition to become a global clean energy player but also highlights the current risk and complexity of translating its domestic dominance into the European market. For now, Saudi Arabia remains the undisputed epicenter of Aramco’s solar universe.

Technology Maturity in Saudi Aramco’s Solar Strategy

Aramco’s approach to solar technology has matured from adoption to innovation and integration. In the 2021–2024 period, the focus was on deploying commercially proven, at-scale technologies to rapidly build capacity. Projects like Sudair Solar utilized established technologies, including smart solar trackers from Nextracker, to maximize yield from conventional PV panels. The investment in NexWafe (May 2023) represented an early-stage venture bet on a next-generation manufacturing process (green wafers), but it was not yet at the commercial deployment stage within Aramco’s own projects. The development of robotic cleaning solutions also showed a focus on optimizing existing commercial technology for the harsh desert environment.

The period from 2025 to the present demonstrates a significant shift toward deploying and scaling more advanced, integrated technologies. The launch of the 1 MWh Iron-Vanadium (Fe/V) flow battery with Rongke Power in May 2025 is a landmark validation point. This moved advanced long-duration storage from pilot to commercial application, directly integrating it with solar to decarbonize Aramco’s own operations. This is no longer just about generating power; it’s about ensuring its reliability. Furthermore, the partnership with Siemens Energy to test Direct Air Capture (DAC) and investments in Ucaneo show a forward-looking strategy to pair solar generation with other cleantech applications. The record-low Power Purchase Agreement (PPA) prices of ~$0.013/kWh achieved in July 2025 confirm that conventional solar PV is a fully mature, commoditized technology for Aramco, allowing it to focus on the next frontier: storage and system integration.

Table: SWOT Analysis of Saudi Aramco’s Solar Strategy

Forward-Looking Insights and Summary

The data from 2025 signals that Saudi Aramco is transitioning from an investor in solar to an architect of a fully integrated renewable energy system. The year ahead will likely see this strategy deepen rather than broaden. The most critical signal to watch is execution. With 15 GW of new capacity scheduled for commissioning between 2027 and 2028, the market will be closely monitoring project milestones as a test of the consortium’s ability to deliver on its colossal promises.

Expect Aramco to aggressively participate in upcoming tenders, such as the 3.1 GW of solar announced by the Saudi Power Procurement Company (SPPC), to maintain momentum. The stalled Repsol talks suggest that major international acquisitions may be on hold in favor of perfecting the domestic model first. Instead, the focus will likely turn to technology integration. Pay close attention to the scaling of energy storage solutions beyond the first Fe/V battery and the first tangible links between Aramco’s new solar farms and Saudi Arabia’s ambitious green hydrogen projects, like NEOM. The ability to produce cost-competitive green hydrogen powered by its own ultra-low-cost solar will be the next major validation point for Aramco’s energy transition strategy. The era of standalone solar projects is ending; the era of the integrated, solar-powered energy ecosystem, architected by Aramco, is beginning.

For energy professionals and investors, tracking these developments is crucial to understanding the shifting competitive landscape. To conduct your own deep-dive analysis on Aramco, its partners, or the broader solar market, explore a dedicated research platform. [Request a demo of Enki today.]

Frequently Asked Questions

What has been the biggest change in Aramco’s solar strategy since the beginning of 2025?
The biggest change has been a dramatic acceleration from being a strategic partner in solar projects to aiming for market dominance. Before 2025, Aramco made calculated investments to gain experience. Since January 2025, the scale has exploded with initiatives like the $8.3 billion investment for 12 GW of solar, signaling a shift to becoming an architect of an integrated renewable energy system rather than just a participant.

Who are the key partners helping Aramco execute its massive solar projects in Saudi Arabia?
Aramco primarily works within a powerful domestic consortium. Its key partners, as highlighted in its largest deals, are ACWA Power (a leading developer) and Badeel, which is a company wholly owned by Saudi Arabia’s Public Investment Fund (PIF). Together with Aramco’s subsidiary (SAPCO), this trio is driving the development of giga-scale projects.

Is Aramco’s solar expansion happening only within Saudi Arabia?
Currently, Aramco’s solar activities are overwhelmingly concentrated within Saudi Arabia, where it leverages high solar irradiance to build massive domestic capacity. However, the company has shown ambition for international expansion, as seen in its September 2025 talks to acquire a stake in the renewables unit of Spanish firm Repsol. Although those specific talks stalled, it signals a future goal to become a global clean energy player.

How is Aramco using solar technology for more than just generating electricity for the grid?
Aramco is creating integrated energy solutions that go beyond grid supply. It is using solar to decarbonize its own fossil fuel operations, exemplified by the launch of a megawatt-scale Iron-Vanadium flow battery to provide 24/7 renewable power for its gas wells. It is also linking solar to other cleantech applications, such as Direct Air Capture (DAC) and producing synthetic e-fuels from green hydrogen.

What is the significance of the low electricity cost of ~$0.013/kWh mentioned in the report?
Achieving a world-record low Power Purchase Agreement (PPA) price of approximately $0.013/kWh signifies that conventional solar PV is a fully mature and commoditized technology for Aramco. This ultra-low cost, achieved through massive economies of scale, validates the financial viability of its giga-scale projects and allows the company to focus on the next strategic frontier: integrating advanced energy storage to overcome solar intermittency and create reliable, 24/7 energy systems.