Saudi Arabia Power EPC - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

Saudi Arabia Power EPC Market Analysis

The Saudi Arabia Power EPC Market size is estimated at USD 14.20 billion in 2026, and is expected to reach USD 17.84 billion by 2031, at a CAGR of 4.67% during the forecast period (2026-2031).

This steady uptick is anchored by Vision 2030’s 100–130 gigawatt renewable-capacity goal, the accelerating build-out of grid links, and a sovereign wealth–backed procurement model that shields developers from commercial-lending stress. Public and private sponsors alike rely on engineering-procurement-construction (EPC) firms to deliver an annual installation pace above 20 gigawatts from 2025, driving both generation and transmission awards. Contractors diversify by pairing large solar and wind farms with battery storage, while industrial off-takers commission captive microgrids that bypass permitting bottlenecks. Competition splits along technology lines: Korean and Chinese firms win price-driven bids, whereas European OEMs monetize long-term service contracts that guarantee stable cash flows.

Saudi Arabia Power EPC Market Trends and Insights

Vision 2030 Capacity-Addition Roadmap

Saudi Arabia raised its renewable target to 100–130 gigawatts by 2030, a leap that requires more than 20 gigawatts of fresh capacity each year—a rate triple the cumulative 6.55 gigawatts installed before 2025. The Public Investment Fund–backed ACWA Power secured seven PPAs in July 2025 totaling 15 gigawatts, proving that sovereign balance sheets can absorb large awards without auction delays. Record solar bids of USD 0.0129 per kilowatt-hour at the 2-gigawatt Al-Sadawi plant illustrate continuing cost deflation. Yet with only 14.4 gigawatts tendered to date, policymakers must contract at least 70 gigawatts in five years to meet the low end of the target range, underscoring the urgency for streamlined permitting.

National Renewable Energy Program Pipeline

Round 5 of the National Renewable Energy Program pre-qualified 33 bidders for a 2-gigawatt battery-storage tender, bundling storage and solar into one EPC scope that favors integrated suppliers. PowerChina alone won 1.75 gigawatts of solar EPC in January 2025, while China Energy Engineering Corporation secured the 2-gigawatt Haden plant for USD 976 million in 2024, confirming Chinese dominance in price-competitive utility-scale projects. The phased auction schedule mitigates execution risk, but parallel construction of multiple sites strains welders, electricians, and logistically critical crane operators.

Lengthy Permitting & Approval Cycles

Environmental assessments, land leases, and interconnection sign-offs can stretch 12–18 months. The 2025 Investment Law promises streamlined dispute resolution, but developers have yet to record faster approvals. While the Etimad e-procurement portal pays 83% of invoices within 15 days, licensing delays continue to slow multi-gigawatt auctions.

Other drivers and restraints analyzed in the detailed report include:

1. Rapid Industrial-Sector Electricity Demand Growth
2. Grid-Modernisation & Inter-Connection Investments
3. Local-Content Mandates for EPC Contractors
4. Green-Hydrogen Mega-Projects Driving New Power Build-Outs
5. Shortage of Specialised EPC Labor & Skills

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Renewables took 100% of new capacity awards in 2025, and the segment is forecast to rise at a 4.8% CAGR to 2031. This dominance stems from policy that channels Saudi Power Procurement Company auctions solely to solar and wind while thermal plants proceed under direct awards. ACWA Power alone commissioned 2.79 gigawatts of solar in 2025 across Al Kahfah, Ar Rass 2, and Saad 2. Although excluded from competitive tenders, combined-cycle gas turbine builds such as the 3.6-gigawatt Rumah 2 project ensure reserve margin stability. Siemens Energy booked USD 1.6 billion of orders for Rumah 2 and Nairiyah 2 in March 2025, bolstering the Saudi Arabia power EPC industry’s thermal backlog.

Second-order effects include rising demand for grid-connected batteries, with Round 5 bundling 2 gigawatts of storage across four sites. Competitive tariffs below USD 0.013 per kilowatt-hour indicate that integrated solar-plus-storage EPC achieves economies non-integrated vendors cannot match. If execution stays on schedule, renewables will continue to shape 60–65% of the Saudi Arabia power EPC market size over the forecast period.

Projects above 500 megawatts captured 61.5% of 2025 EPC spending, led by ACWA Power’s 1.425-gigawatt Al Kahfah solar farm. High capacity factors and centralized procurement cut levelized costs, favoring mega-scale plants. The 100–499 megawatt bracket serves regional utilities and industrial clusters, often integrating 250-megawatt storage blocks.

The up-to-100 megawatt segment, though smaller in absolute value, is the fastest-growing at 6.1% through 2031. NEOM’s hydrogen facility uses modular sub-100 megawatt arrays aligned with electrolyzer ramps. The Red Sea Development Company operates a 400-megawatt microgrid with 1.3 gigawatt-hours of batteries, proving distributed resources can power isolated assets. These projects confirm that microgrids will steadily enlarge their Saudi Arabia power EPC market share.

The Saudi Arabia Power EPC Market Report is Segmented by Power Generation EPC (Technology: Thermal, Nuclear, Renewables; Capacity Band: Up To 100 MW, 100-499 MW, Above 500 MW; End-User: Regulated Utilities, Ipps, Industrial Captive Power, Public Sector/SOE) and Power T&D EPC. Market Forecasts are Provided in Terms of Value (USD).

List of Companies Covered in this Report:

1. ACWA Power
2. Saudi Electricity Company – National Contracting Co.
3. Larsen & Toubro
4. PowerChina
5. Doosan Enerbility
6. Alfanar
7. Hyundai Engineering & Construction
8. GE Vernova
9. Hitachi Energy
10. Siemens Energy
11. Sepco III
12. Elsewedy Electric
13. China Energy Engineering Co. (CEEC)
14. Fluor Corp.
15. Bechtel
16. SNC-Lavalin
17. Worley
18. Samsung C&T
19. Al-Toukhi
20. Nesma & Partners
21. …

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support