ESG

INNOVATION BRINGS SAUDI CLOSER TO A SUSTAINABLE GRID

Saudi Electricity Company (SEC) is positioning itself at the heart of Saudi Arabia’s clean energy transition, delivering strong financial results in the first half of 2025 while rapidly scaling renewable energy and storage capacity. 

Revenues surged 24% to SAR 27.7 billion in the second quarter, with gross profit up 42% to SAR 7.4 billion and net profit climbing 22% to SAR 5.3 billion. For the first half of the year, revenue reached SAR 47.2 billion, up 23% year-on-year, underpinned by higher allowed revenue from network expansion and rising electricity demand.

Beyond the financials, SEC’s growth story shows a dedication to boost its green credentials. By June 2025, the company had integrated over 9.2 gigawatts (GW) of renewable energy capacity into the national grid,flexibility is evident in the successful commissioning of 8.0 gigawatt-hour (GWh) of battery energy storage systems across four sites – Bisha, Jazan, Khamis Mushait, and Najran – critical for smoothing renewable power fluctuations. Another 14 GWh of storage is under development for 2026, promising even greater stability and clean energy penetration. 

SEC’s ESG momentum is also on the up. In 2025, the company achieved a 65/100 ESG rating from S&P Global – a 30% jump from 2024 and an 85% improvement from 2023 – placing it first in Saudi Arabia and at the top of the Middle East and North Africa’s energy sector, far above the global utilities average. This performance reflects deep integration of sustainability in operations, from smart grid automation to expanded fibre-optic control networks. 

The utility’s ability to handle record-breaking peak loads, including during the 1446 AH Hajj season without a single outage, underscores its dual mission: to meet surging demand and to enable a cleaner, more resilient grid. With 110,000 new customers connected in the first half of the year and infrastructure upgrades advancing, SEC is proving that energy reliability and renewable integration can grow hand in hand, cementing its role as a cornerstone of Saudi Arabia’s low-carbon future.

GREEN ROADS

Other parts of the economy are also pursuing sustainable pathways. The kingdom's road sector is undergoing significant development, with the Roads General Authority introducing several innovations to create a safer, more sustainable, and effcient logistics network. In a commitment to environmental sustainability and the circular economy, the authority is also using recycled building demolition waste in its asphalt mixes. This initiative aims to reduce reliance on natural raw products and convert waste into valuable construction materials, with a target to recycle 60% of such waste. 

In addition, the authority has introduced several innovations to improve public spaces and urban environments. Flexible rubber asphalt, made from recycled tyres, is being used for pedestrian paths and public parks. This material provides a more comfortable surface for walking and running, while also helping to reduce pollution from tyre waste. 

Another notable innovation is road cooling technology, which uses locally manufactured materials that reflect sunlight. This technology can lower road surface temperatures by an average of 12 to 15 degrees Celsius, creating a more comfortable environment for pedestrians, and mitigating the urban heat island effect. 

SUSTAINABLE LABS

Meanwhile, the King Abdullah University of Science and Technology (KAUST), through its Center of Excellence for Renewable Energy and Storage Technologies (CREST), launched several initiatives to support innovation in energy fields, and transition toward a knowledge-based economy by promoting sustainable development. 

KAUST is leveraging the centre’s research to boost energy security and reduce environmental impacts. The centre’s research is focused on prototype development and technology scaling, enhancing energy effciency, reliability, storage, and sustainability. 

Many projects are based on innovative technologies developed at KAUST in cooperation with industrial partners. These include advanced photovoltaic cells and new battery chemistries that reduce cooling requirements and fire risks in harsh conditions, as well as lithium extraction and battery recycling to ensure a stable lithium supply and enhance the kingdom’s battery sector. 

Research on sustainable cooling technologies are aimed at improving the performance of electronic devices such as solar panels and LED lights, extending their lifespan. Additional research includes storing energy in chemical fuels and generating electricity, testing and modelling energy storage technologies, and integrating them across disciplines within the university by merging research strategies involving experts in chemistry, engineering, and software development. 

In the same vein, Climeworks unveiled in July its first demonstration of a direct air capture (DAC) testing unit within King Abdullah Petroleum Studies and Research Center’s (KAPSARC) facilities in Riyadh. 

The mobile DAC unit is now operational, effectively capturing carbon dioxide (CO2) directly from the atmosphere and validating Climeworks’ pioneering technology under the region’s hot and arid conditions. 

This demonstration is one of many steps the kingdom is taking to advance carbon management solutions. As a result, Saudi Arabia has announced an ambition to capture and utilise up to 44 million tonnes of CO2 annually by 2035 through the development of large-scale carbon capture, utilisation and storage (CCUS) hubs.