As a major part of the Kingdom's solar energy program, the King Abdulaziz City for Science and Technology is carrying out a joint program of research, development and training with the United States Department of Energy. One of its major accomplishments has been a photovoltaic electric power system for several villages. With a capacity of 350 kilowatts, this is the world's largest solar powered electricity generating system. Other programs focus on utilizing solar energy for water desalination, agriculture, and the generation of hydrogen. Projected applications for solar energy include using it to power water pumps, refrigerators, air conditioners, heaters and communications equipment, as well as to run pipeline anti-corrosion units in remote areas.

Saudi Arabia has harnessed its oil wealth to implement a program of national development and modernization. Among the leaders in efficient and economical use of existing and alternative energy sources, Saudi Arabia has been working to reduce its dependence on crude oil as the dominant source of national energy and income.

The current Seventh Development Plan (2000-04) emphasizes the need to develop the Kingdom's mineral resources and to improve economic efficiency to produce services, utilities and products. It also aims to reduce production costs of public services and utilities, such as electricity, and supports investment in projects for new technologies, such as solar energy. Another strategic principle is to develop economically promising natural resources, such as minerals and undersea deposits. Increasing the country's production of refined petroleum products and petrochemicals is another priority. The plan also encourages production of gas by the Saudi private sector or through joint-venture enterprises with companies abroad. In 2000, bids were submitted by twelve foreign companies for investment in gas and downstream oil projects.