Risk Assessment of Renewable Energy Investments: The Case of Saudi Arabia

Renewable energy plays a vital role in global sustainability goals, yet investment in this sector remains exposed to numerous uncertainties that may hinder project success. While the subject has attracted greater attention from scholars and policymakers, the lack of specific structures for prioritizing investment risks in renewable energy in Saudi Arabia persists. This study investigates and prioritizes the risks associated with renewable energy investments in Saudi Arabia. A three-stage methodological approach was used: risks were first identified through a comprehensive literature review and organized into eight categories; experts from academia, the private sector, and the government assessed these risks using the Fuzzy Group Decision-Making (FGDM) method to incorporate both probability and impact; and response strategies were developed for the most significant risks. Among the 23 risk factors analyzed, 11 were categorized as high-level. The top risks include insufficient supporting policy frameworks and incentives (0.6025), complex approval systems (0.5873), and environmental impact on solar panel efficiency (0.5738). The findings emphasize the importance of streamlining regulatory frameworks and enhancing technical and infrastructural readiness. This study provides a new evidence-based framework for informed decision-making and improving the planning of investments in renewable energy in Saudi Arabia.