The award of the contract for a record-breaking tariff for Saudi Arabia’s maiden large-scale renewable energy project has set the wheels in motion for what promises to be one of the world’s most lucrative energy programmes in 2018.

While the Sakaka photovoltaic (PV) solar project represents just one 300MW scheme, it marks a watershed moment in the region’s renewable energy ambitions. Ever since the late King Abdullah launched the King Abdullah City for Atomic & Renewable Energy (KA-Care) in 2010, regional and international firms have been waiting for the region’s largest economy and utilities market to proceed with clean energy on a significant scale.

After a false dawn with the initial 54GW KA-Care programme, Riyadh returned with a more manageable, but still ambitious, 9.5GW renewable target in 2016 as part of its Vision 2030 development programme.

While the specially created Renewable Energy Project Development Office (Repdo) has impressed with its transparency for its first tender, there were still going to be questions over the feasibility of the programme until the first contract was awarded. Now that milestone has passed, attention will turn to the 4GW of renewable energy projects that Repdo is planning to launch to the market before the end of 2018.

The kingdom's National Renewable Energy Programme (NREP) is far more than just an important part of the kingdom’s power strategy – it also symbolises the wider reforms and goals of energy diversification and efficiency that permeate throughout Vision 2030. While there is still a long way to go, a successful start will inspire confidence that Saudi Arabia will become a global focal point for renewable energy in the next decade.