Renewable Energy Surge in the MENA Region: A New Era of Clean Power
The Middle East and North Africa (MENA) continue to make strides towards a sustainable energy future, even as global geopolitical dynamics shift. A recent report by the Desertech Industrial Initiative (Dii) highlights the region’s commitment to energy transition goals aligned with the Paris Agreement.
The MENA Energy Outlook 2025 report underscores substantial investments made over the past decade in renewable energy, hydrogen, and energy storage. These findings were a focal point at the World Hydrogen MENA Conference and Exhibition in Dubai, where ongoing projects and future plans took center stage.
Renewable Energy: A Decade of Growth
Fifteen years ago, renewable energy was nearly non-existent in the MENA region, with only 1 GW of capacity. Fast forward to today, and the region boasts over 30 GW of installed capacity. Should current projects and future developments proceed as planned, the capacity could soar to 131 GW by 2030, according to the Dii report.
The United Arab Emirates (UAE) leads with 6.3 GW, followed by Egypt (4.6 GW) and Saudi Arabia (4.5 GW). Notable projects include Dubai’s Mohammed bin Rashid Al Maktoum Solar Park, aiming for a 5 GW capacity, and Saudi Arabia’s ambitious solar installations exceeding 500 MW each.
Hydrogen Development: Current Challenges and Future Opportunities
Globally, hydrogen development faces hurdles like regulatory uncertainties and high costs. However, the MENA region is forging ahead with over 110 hydrogen projects, mostly green hydrogen. The European Union’s goal to import 10 Mt of low-carbon hydrogen by 2030 presents a potential export market, although actual demand may be lower.
Saudi Arabia is notably ambitious with its hydrogen targets, while Egypt leads in project count with 29 announced initiatives. Many of these projects are extensions of agreements made during COP27 in 2022.
UAE’s Comprehensive Energy Strategy
The UAE has diversified its clean energy portfolio significantly since its initial 10 MW PV project at Masdar City. Current developments include the expansion of the MBR Solar Park and the Al Ajban PV project, adding a combined 3.3 GW to the grid.
The UAE’s approach includes both green and blue hydrogen, with Masdar and Adnoc committing to significant production targets by 2030. Initiatives like the ‘green hydrogen oasis’ strategy and waste-to-hydrogen projects further illustrate the UAE’s strategic focus.
Saudi Arabia and Egypt: Emerging Leaders in Renewable Energy
Saudi Arabia is rapidly catching up in the renewables sector, with a 9 GW capacity under construction and plans for a massive green hydrogen project at NEOM. The country’s carbon capture initiatives also highlight its commitment to sustainable energy.
In Egypt, renewable energy is seen as crucial for economic stability, with several large-scale solar and wind projects underway. The country is also exploring nuclear energy in collaboration with Russia.
Broader Regional Developments
Oman, Qatar, and Morocco also demonstrate progress in renewable energy. Oman is launching large solar projects and hydrogen concessions, while Qatar plans a second major renewable project. Morocco continues to expand its wind energy capacity.
Despite the impressive progress, the region’s vast renewable potential remains underutilized. Advancements in financial support mechanisms, such as carbon pricing and green markets, could unlock further development.
For more insights, visit Oilprice.com.
Original Story at oilprice.com