Saudi Aramco Wind Energy Strategy 2025: Analyzing the Pivot from Oil Giant to Renewables Powerhouse

Industry Adoption: How Saudi Aramco is Building its Wind Energy Empire

Saudi Aramco’s engagement with wind energy has undergone a dramatic transformation, shifting from a calculated, foundational phase between 2021 and 2024 to a phase of massive acceleration in 2025. Initially, the strategy was a pragmatic hedge, driven by Saudi Arabia’s Vision 2030 mandate to generate 50% of its electricity from renewables and install 16 GW of wind capacity. During this period, Aramco’s involvement was characterized by pilot projects, such as the GE wind turbine demonstration in Turaif, and strategic equity stakes like its 30% acquisition in the Sudair Solar project. This dual-pronged approach, balancing core hydrocarbon business with nascent green investments, was underscored by CEO Amin Nasser’s public dismissal of a rapid fossil fuel phase-out as a “fantasy.” The primary applications were to test technology, establish key partnerships through its subsidiary Saudi Aramco Power Company (SAPCO), and begin decarbonizing its own vast operational footprint.

The inflection point arrived in 2025. The strategy evolved from cautious exploration to aggressive, large-scale execution. The commercial application of wind power is no longer just for pilots or decarbonizing single facilities; it is now central to powering the Kingdom’s grid at a gigawatt scale. This shift is epitomized by SAPCO’s participation in an $8.3 billion consortium with ACWA Power and Badeel to develop 15 GW of renewables, of which 3 GW is dedicated wind power from the massive Starah (2,000 MW) and Shaqra (1,000 MW) projects. The award of the 1,500 MW Dawadmi Wind IPP in October 2025 further cements this trend. This variety—spanning direct project investment, enabling technology ventures like HydoTech for hydrogen, and grid-scale storage—signals that wind energy is now a core pillar of Aramco’s long-term portfolio, de-risking against the energy transition and creating a parallel, low-carbon business line.

Investment Analysis: Tracing Aramco’s Multi-Billion Dollar Renewables Commitment

Saudi Aramco’s investment strategy in wind and renewables has scaled dramatically, reflecting a shift from strategic, smaller-scale commitments to deploying massive capital for gigawatt-level projects. The period from 2021 to 2024 was marked by foundational investments, including Aramco’s internal allocation of around $5 billion annually from its CAPEX for renewables and strategic venture investments in enabling technologies like Energy Vault for storage. This laid the groundwork for the explosive growth seen in 2025, where Aramco, through its SAPCO subsidiary, became a cornerstone investor in multi-billion-dollar national programs.

Table: Saudi Aramco and National Wind-Related Investments

Strategic Partnerships: The Alliances Driving Saudi Arabia’s Wind Power Scale-Up

Partnerships are the central pillar of Saudi Aramco’s wind energy strategy, allowing it to leverage external expertise and share the immense financial load of utility-scale projects. Between 2021 and 2024, Aramco established its core partnership model, working alongside ACWA Power and the Public Investment Fund (PIF) on renewable projects and engaging with technology providers like General Electric for pilot demonstrations. The year 2025 saw this model mature and scale, with SAPCO becoming an anchor in massive consortiums responsible for delivering a significant portion of the Kingdom’s renewable energy targets.

Table: Key Partnerships in Saudi Aramco’s Wind and Renewables Ecosystem

Geography: Mapping Saudi Aramco’s Wind Projects Across the Kingdom

Between 2021 and 2024, Saudi Aramco’s wind energy activities were geographically dispersed and exploratory. The key sites included the operational 400 MW Dumat Al Jandal wind farm in the Al-Jouf region and the pilot GE turbine in Turaif in the Northern Borders province. During this period, planning was also underway for projects in diverse locations, including the Al Madinah region (700 MW Yanbu), Riyadh province (600 MW Al-Ghat), and an expansion in the Northern Borders (500 MW Waad Al Shamal). This geographical spread suggests a national strategy to identify and harness the best wind resources across the country, validating different regional conditions.

In 2025, the geographic focus sharpened and scaled significantly, concentrating heavily in the Riyadh province. This region has emerged as a central hub for the Kingdom’s wind ambitions, hosting the newly announced 2,000 MW Starah project, 1,000 MW Shaqra project, and 1,500 MW Dawadmi Wind IPP. This clustering of over 4.5 GW of capacity indicates a move towards creating economies of scale in construction and grid integration. Simultaneously, the horizon has expanded to new frontiers. The national conversation now includes developing Saudi Arabia’s offshore wind potential in the Red Sea and Arabian Gulf, with market forecasts predicting a $1.53 billion market by 2033. This signals a future geographic shift from solely onshore development to leveraging Aramco’s extensive offshore expertise.

Technology Maturity: From Pilots to Gigawatts in Saudi Aramco’s Wind Portfolio

The technological maturity of Saudi Aramco’s wind strategy advanced from demonstration to commercial scaling between the two periods. From 2021 to 2024, the focus was on validating foundational technologies. The commercial operation of the 400 MW Dumat Al Jandal wind farm in 2021 was a landmark, proving utility-scale wind was viable. This was complemented by the 2023 launch of the GE turbine pilot in Turaif, a crucial step to de-risk technology in harsh desert conditions. Investments in enabling technologies like Energy Vault (storage) and Rondo Energy (thermal storage) were still at the venture or exploratory stage, signaling an awareness of intermittency challenges but not yet at-scale deployment.

By 2025, the focus shifted entirely to the commercial scaling and integration of proven technologies. Onshore wind is now fully commercial, with multi-gigawatt projects like Starah (2 GW) and Dawadmi (1.5 GW) being awarded based on highly competitive, record-low electricity prices ($18.62/MWh for the Shaqra project). Technology integration has also matured. The commissioning of a megawatt-scale Iron-Vanadium flow battery in May 2025 demonstrates a move from venture investment to deploying proprietary storage solutions. Furthermore, wind is now being commercially integrated into the burgeoning green hydrogen economy, with 4 GW of wind and solar capacity dedicated to powering the NEOM Green Hydrogen Project. The emerging interest in offshore wind represents the next frontier, moving a well-understood technology into a new, more complex operating environment.

SWOT Analysis: Saudi Aramco’s Wind Energy Position

Table: SWOT Analysis of Saudi Aramco’s Wind Strategy Evolution

2026 Outlook: What to Expect from Saudi Aramco’s Wind Strategy

The data from 2025 signals that Saudi Aramco’s wind energy strategy is entering a phase of relentless execution. In the year ahead, market actors should watch for the financial close of the 15 GW SAPCO-ACWA-Badeel portfolio, expected in late 2025, as this will be the ultimate trigger for a massive wave of construction activity. We can expect Aramco, likely through its established partnerships, to be a formidable bidder in the seventh round of the National Renewable Energy Program, which seeks another 5.3 GW of capacity. The key signal gaining traction is the integration of enabling technologies. Look for announcements on how Aramco plans to scale its newly commissioned iron-flow battery technology to support its gigawatt-scale wind projects and stabilize the grid.

While the domestic onshore wind build-out is consuming most of the focus and capital, the strategic groundwork for the next frontier is being laid. Pay close attention to any formal feasibility studies or pilot project announcements related to offshore wind in the Red Sea or Arabian Gulf. This would represent a logical next step for Aramco to leverage its decades of offshore engineering expertise. While international M&A appears to have taken a backseat to domestic deployment following the Repsol talks, Aramco’s ambition is unlikely to remain confined. Successful execution of its 2027-2028 project pipeline at home could be the catalyst for a renewed, more confident push into global renewable markets.

Frequently Asked Questions

How did Saudi Aramco’s wind energy strategy change in 2025?
In 2025, the strategy pivoted from a cautious, exploratory phase (2021-2024) focused on pilot projects and internal decarbonization to one of aggressive, large-scale execution. Wind power is now a core pillar for powering the national grid at a gigawatt scale, not just a strategic hedge.

What are the key partnerships driving Aramco’s wind power development?
Aramco’s strategy is built on a core partnership model. Its main allies are ACWA Power and Badeel (a company owned by the Public Investment Fund – PIF). The consortium between Aramco’s subsidiary SAPCO, ACWA Power, and Badeel is the primary vehicle for executing its largest utility-scale wind projects.

What are some of Aramco’s most significant wind projects mentioned?
The most prominent projects are the massive Starah (2,000 MW) and Shaqra (1,000 MW) wind farms, which are part of an $8.3 billion, 15 GW renewable energy deal. The article also highlights the award of the 1,500 MW Dawadmi Wind IPP, further cementing its role in the Kingdom’s gigawatt-scale wind deployment.

How is Aramco using technology beyond just wind turbines?
Aramco’s technology strategy has matured from simply testing turbines to integrating enabling technologies at scale. This includes investing in and deploying grid-scale energy storage, such as its megawatt-scale Iron-Vanadium flow battery, to manage intermittency. It is also linking its wind capacity to the production of green hydrogen.

What does the outlook for Aramco’s wind strategy look like for 2026 and beyond?
The outlook for 2026 is focused on execution, particularly the financial close and start of construction for its massive 15 GW project portfolio. Beyond that, Aramco is expected to explore the next frontier: offshore wind, leveraging its extensive offshore engineering expertise for potential projects in the Red Sea and Arabian Gulf.