Introduction: Why Floating Solar?

Saudi Arabia, long dependent on fossil fuels, is now rapidly diversifying its energy mix as part of its Vision 2030 goals—aiming for 50% of electricity from renewables and 40 GW of photovoltaic (PV) capacity by 2030. Floating photovoltaic (FPV) systems are emerging as an innovative solution to meet this ambition. By utilizing the surface of water reservoirs instead of limited desert or urban land, FPV systems help address land scarcity while offering additional benefits such as reduced water evaporation, enhanced PV panel cooling (which boosts efficiency), and minimized environmental and aesthetic impact.

Feasibility study companies in Saudi Arabia play a crucial role in assessing whether FPV systems are viable for widespread deployment, especially in a region with unique environmental and infrastructural challenges.

Economic Feasibility: LCOE & ROI

A recent techno-economic study evaluated the feasibility of 1 MW FPV systems on three major Saudi reservoirs:

• King Fahd Dam – Levelized Cost of Electricity (LCOE): $0.053/kWh

• Wadi Namar Dam – LCOE: $0.063/kWh

• Hali Dam – LCOE: $0.063/kWh

At $0.053/kWh, the King Fahd Dam site is particularly competitive. These figures compare favorably with the average household electricity tariff (approximately $0.048/kWh) and industrial electricity rates (around $0.08/kWh) in Saudi Arabia. Furthermore, the estimated return on investment (ROI) ranges from 12 to 13 years depending on the site.

These findings underscore the importance of engaging feasibility study companies in Saudi Arabia to conduct detailed cost-benefit analyses and help identify optimal locations where FPV installations are not only technically feasible but also economically profitable.

Techno-Environmental Advantages

Cooling Effect

The proximity of solar panels to water bodies naturally cools them, improving power output. Field tests have shown that FPV panels can remain 7.5% to 21% cooler and deliver about 12% more energy than traditional ground-mounted systems in similar conditions.

Water Conservation

By partially shading reservoir surfaces, FPV systems significantly reduce evaporation—a major advantage in Saudi Arabia’s arid climate. They also help limit algae growth by blocking excessive sunlight, improving water quality.

Optimal Land Use

FPV installations require no land clearing or displacement of agriculture and are especially attractive in urbanizing areas where land is scarce or expensive. They also avoid many of the challenges related to land acquisition and can be easily installed and removed with minimal environmental disruption.

Feasibility study companies in Saudi Arabia assess these environmental advantages in their analyses, ensuring that both ecological and economic outcomes are factored into project development.

Scaling Up: Market Trends & Projections

Saudi Arabia’s onshore floating solar market is experiencing rapid growth. Valued at approximately $17.9 million in 2023, the market is projected to expand to $77.6 million by 2029, representing a compound annual growth rate (CAGR) of about 27.5%.

Key Trends Driving This Expansion Include:

• Public-Private Partnerships: Government support through initiatives like the National Renewable Energy Program (NREP) is essential to facilitate private investment and structured Power Purchase Agreements (PPAs).

• Technological Innovation: Advances in materials, floating platforms, tracking systems, and integrated energy storage solutions are making FPV more efficient and cost-effective.

• Strategic Regional Deployment: Coastal and inland cities such as Jeddah, Riyadh, and Abha, with access to large reservoirs and growing energy demand, are well-positioned for FPV projects.
   

For successful expansion, feasibility study companies in Saudi Arabia can help tailor project plans to local demand, regulatory readiness, and reservoir-specific characteristics.

Challenges & Mitigation Strategies

Technical Complexity

FPV systems must be designed to withstand extreme temperatures, high UV radiation, dust storms, and water currents. Engineering solutions such as reinforced mooring systems and durable, UV-resistant floats are essential.

Maintenance and Operations

Cleaning panels in dusty environments without harming the aquatic ecosystem can be challenging. Specialized cleaning mechanisms and remote monitoring systems help mitigate this.

Regulatory and Permitting Hurdles

Clear regulatory frameworks are still evolving. Policymakers must streamline permitting processes and provide specific guidelines for FPV projects.

Upfront Capital Costs

While FPV systems can provide a lower LCOE over time, their initial investment is typically higher than that of ground-mounted systems. Blended finance, concessional loans, and supportive PPA structures can help bridge this gap.

Here again, feasibility study companies in Saudi Arabia serve as essential partners in identifying these challenges early and advising on mitigation strategies, regulatory compliance, and investment structuring.

Implementation Roadmap

To successfully integrate floating solar into Saudi Arabia’s energy infrastructure, a phased implementation approach is advisable:

• Pilot Projects: Begin with 1–5 MW pilot installations on strategically selected dams with high solar irradiance and low technical barriers.

• Data Collection and Analysis: Monitor performance, LCOE, maintenance needs, and environmental impact to refine future designs.

• Policy Development: Establish comprehensive guidelines for FPV system design, installation, and operation, including environmental compliance.

• Investment Incentives: Facilitate financing by offering tax incentives, subsidies, or loan guarantees to local and international developers.

• Large-Scale Deployment: Use pilot success to scale up to 50–100 MW installations on major reservoirs like King Fahd Dam and Wadi Namar Dam.

Throughout each stage, feasibility study companies in Saudi Arabia provide critical support by supplying data, risk modeling, and strategic guidance to ensure each phase is successful and scalable.

Alignment with National Strategy

Floating solar aligns with several strategic pillars of Saudi Arabia’s national transformation:

• Renewable Energy Transition: Supports Vision 2030 by expanding clean energy capacity and reducing reliance on fossil fuels.

• Water Resource Management: Reduces evaporation losses from critical reservoirs, contributing to water conservation goals.

• Carbon Reduction: Complements broader environmental commitments, including the Circular Carbon Economy framework and planned net-zero emissions targets.

• Economic Diversification: Stimulates new industries and job creation in engineering, environmental management, and clean energy operations.

Feasibility study companies in Saudi Arabia help ensure that these strategic alignments are quantified, communicated, and implemented through actionable project plans.

Stakeholder Roles

The success of FPV systems will depend on strong collaboration between:

• Government Institutions: Entities such as the Ministry of Energy and King Abdullah City for Atomic and Renewable Energy (K.A.C.A.R.E.) play key roles in policy and oversight.
   

• Academic and Research Centers: Universities like King Fahd University of Petroleum and Minerals (KFUPM) can contribute to R&D and performance validation.

• Private Sector Developers: Companies like ACWA Power and international FPV specialists will lead on project development, engineering, and financing.

• Financial Institutions: Banks and sovereign funds can provide concessional financing and green bonds to reduce project risk and attract investors.

In each of these collaborations, feasibility study companies in Saudi Arabia serve as the analytical backbone — guiding decisions with evidence, market data, and customized technical solutions.

Floating solar farms on Saudi Arabia's reservoir systems offer a technically sound, economically attractive, and environmentally beneficial option for expanding renewable energy. With LCOEs as low as $0.053/kWh and strong potential for water conservation, FPV systems align closely with national priorities in energy diversification, water security, and sustainable development.

As the technology matures and more pilot projects demonstrate success, Saudi Arabia stands poised to lead the MENA region in harnessing its vast solar resources — not just from the desert sands, but also from its water bodies. Collaborating with feasibility study companies in Saudi Arabia ensures these projects are not only visionary but actionable, scalable, and impactful.

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