KSA Wave Energy Market Outlook to 2030

KSA Wave Energy Market Overview

• The KSA Wave Energy Market has experienced notable growth, reaching a valuation of 372.6 billion Kilowatt Hours in 2023. This growth is fueled by increasing demand for renewable energy sources, supported by government initiatives aimed at diversifying the energy mix and reducing dependency on fossil fuels.
• The key players in the KSA wave energy market include: Ocean Power Technologies (OPT), Carnegie Clean Energy, Eco Wave Power, Wave Swell Energy, and AW-Energy Oy. These companies are at the forefront of developing and deploying innovative wave energy technologies in the region.
• In 2023, Saudi Aramco agreed to acquire a minority stake in MidOcean Energy for $500 million, marking its first investment in liquefied natural gas (LNG) as part of its strategy to diversify beyond oil operations. This partnership allows Aramco to tap into international LNG opportunities, particularly as MidOcean Energy is in the process of acquiring interests in four Australian LNG projects
• The city of Jeddah, is currently dominating the wave energy market. Jeddah's strategic location along the Red Sea, with its consistent wave patterns and favorable maritime conditions, makes it an ideal site for wave energy projects. The city's proximity to major industrial and urban centers further enhances its significance in the wave energy market.

KSA Wave Energy Market Segmentation

• By Technology: KSA Wave Energy Market is segmented by technology into Oscillating Water Column (OWC), Point Absorbers, and Attenuators. In 2023, Oscillating Water Column (OWC) paved the way with significant share which is attributed to its proven track record and higher energy conversion efficiency. OWCs are well-suited for the KSA's coastal conditions, making them a preferred choice for wave energy projects.

• By Application: KSA Wave Energy Market is segmented by application into Power Generation, Desalination, and Environmental Monitoring. In 2023, Power generation was the significant sector due to the pressing need for renewable energy solutions to meet the growing electricity demand in the Kingdom.

• By Region: KSA Wave Energy Market is segmented by region into North, South, East, and West. In 2023, Western region lead with maximum market share due to its ideal wave conditions, which provide higher energy generation potential. This region's extensive coastline along the Red Sea makes it a prime location for wave energy projects.

KSA Wave Energy Market Competitive Landscape

• Ocean Power Technologies (OPT): In January 2022, OPT announced a partnership with Eco Wave Power to collaborate on key projects. This collaboration aims to combine each company's offshore and onshore technologies with OPT's offshore engineering and robotics skills to produce innovative solutions.
• Carnegie Clean Energy: In 2024, Carnegie Clean Energy is currently working on the CETO 6 wave energy converter, which is expected to produce 1 MW of electricity per buoy. This represents a significant advancement from the previous CETO 5 model, which had a capacity of around 240 kW per buoy.

KSA Wave Energy Industry Analysis

KSA Wave Energy Market Growth Drivers

• Favorable Geographic Conditions: The Red Sea's wave energy potential is significant, with deep water sites reaching up to 4.5 kW/m and nearshore areas ranging from 0.66 to 1.16 kW/m. This region's extensive coastlines and consistent, high wave activity make it well-suited for harnessing wave energy.
• Renewable Energy Transition: Saudi Arabia is actively investing in renewable energy projects, including solar and wind, to diversify its energy mix and reduce reliance on fossil fuels. The country's Vision 2030 initiative aims to reach 40 GW of solar PV and 16 GW of wind power by 2030.
• Diversification of energy mix: Saudi Arabia, a major oil producer, is actively diversifying its energy mix and reducing reliance on fossil fuels. The country has set ambitious goals, such as achieving net-zero carbon emissions by 2060 and generating 50% of its power from clean energy sources by 2030.

KSA Wave Energy Market Challenges

• High Upfront Costs: Saudi Arabia lacks comprehensive policies and incentives to promote the growth of the wave energy sector, unlike the strong support provided for solar and wind power. The high capital expenditure required to set up wave energy projects in the country poses a significant barrier to widespread adoption of this technology.
• Grid Integration Challenges: Integrating intermittent wave energy into the grid poses technical challenges, including load balancing and grid stability. Unlike conventional power plants, WECs have limited control over power output, leading to mismatches between generation and demand, which can cause grid imbalances.

KSA Wave Energy Market Government Initiatives

• The National Renewable Energy Program (NREP): The NREP was launched as part of Saudi Arabia's broader Vision 2030 initiative, which aims to reduce the country's dependence on oil and promote sustainable energy sources. The NREP originally targeted 9.5 GW of renewable energy capacity by 2023, which was later increased to 27.3 GW for that year and aims for 58.7 GW by 2030. The goal is to generate half of the Kingdom's electricity from renewable sources by 2030, with the other half from natural gas.
• The Saudi Energy Efficiency Program (SEEP): The Saudi Energy Efficiency Program (SEEP) aligns with Saudi Arabia's green financing framework to issue green bonds and sukuk. The framework includes categories for energy efficiency projects, supporting the Circular Carbon Economy program and Vision 2030 sustainability goals. By the end of 2023, 55 licensed energy efficiency service providers were established in Saudi Arabia.

KSA Wave Energy Market Future Outlook

The KSA wave energy market will be growing swiftly by 2028, driven by continued investment in renewable energy infrastructure, advancements in wave energy technologies, and supportive government policies.

KSA Wave Energy Market Future Trends

• Desalination Applications: The rising demand for water and renewable-powered desalination in KSA will be driving the wave energy market in the coming years. Wave energy's predictability makes it ideal for desalination plants, addressing KSA's water scarcity. Integrating wave energy with solar and wind in hybrid systems will enhance reliability and overcome intermittency challenges.
• Technological Advancements: The global wave and tidal energy market is expected to experience substantial growth in the coming years as wave energy technology continues to advance and costs decrease. Innovations like the testing of Mocean Energy's Blue-X tidal wave energy prototype and Orbital Marine's unveiling of its Orbital O2 turbine demonstrate the rapid progress in wave energy technology.