MENA Region to Triple Renewable Capacity by 2030, Boosting Solar, Wind, and Hydrogen
According to IEA's 'Renewables 2024' report, the MENA region’s renewable capacity is projected to triple by 2030, driven by solar PV and onshore wind. Hydrogen production is a key factor, while concentrated solar power (CSP) growth remains uncertain due to delays.
October 10, 2024. By EI News Network
The report said that the renewable capacity in the region is forecast to triple from 53 GW in 2023 to almost 150 GW by 2030, with solar photovoltaics (PV) accounting for over 85 percent of this expansion due to the region’s abundant solar resources and favorable economic conditions.
Solar PV projects are becoming increasingly attractive, with lower costs of land, financing, and economies of scale helping to drive record-low bids in the global energy market. For example, Saudi Arabia's Renewable Energy Project Development Office (REPDO) auction in 2023 saw average bids for solar plants of 400 MW to 1.1 GW ranging between USD 16.8-17 per MWh—one of the lowest globally.
In addition to solar PV, onshore wind capacity is expected to grow significantly, driven by rising demand for hydrogen in the region. By 2030, about 40 percent of the wind capacity expansion in the MENA region (4 GW) will be dedicated to hydrogen production, particularly in countries like Saudi Arabia, Oman, and Egypt. Wind capacity in the region is forecast to increase to nearly 10 GW by 2030, reflecting an 8 percent rise from last year's projections, with more countries rolling out auctions and other renewable energy programs.
One of the key drivers for this rapid renewable expansion is the growing demand for green hydrogen. Oman, in particular, has allocated large areas of land for hydrogen projects aimed at meeting both local industrial demand and exporting hydrogen-derived products like ammonia. This development comes as part of Oman's efforts to position itself as a major player in the global hydrogen economy, alongside Saudi Arabia and Egypt, both of which have also announced major hydrogen-related projects.
While the outlook for solar and wind is bright, the future of concentrated solar power (CSP) in the region remains uncertain. After an expansion of 1.4 GW from 2017 to 2023, the next six years are expected to see less than 300 MW of new CSP projects. Despite large-scale projects like the 600 MW CSP plant in the United Arab Emirates completed in 2023, challenges such as delays in government implementation and technical issues, including outages at Morocco's first CSP plant, have cast doubt on the technology’s long-term viability.
As renewable capacity grows, countries in the MENA region are also focused on using these resources to reduce electricity imports and free up fossil fuel resources for export. Rising domestic electricity demand, driven by population growth and increased use of air conditioning, has led to record levels of consumption in countries like Saudi Arabia, Kuwait, and Egypt, prompting governments to accelerate renewable deployments to meet these needs.
Additionally, renewable energy is playing an increasingly important role in the region’s push to decarbonize industries and produce low-carbon products for export. For instance, Morocco’s state-owned mining company OCP is planning to install 200 MW of solar power to decarbonize its operations, while aluminum companies in Egypt and the UAE are also ramping up their renewable energy usage to meet the growing global demand for green products.
The MENA region has set ambitious renewable energy targets, aiming for a total of 201 GW of capacity by 2030. Although the current forecast suggests the region may fall 26 percent short of this goal, countries like the United Arab Emirates, Oman, and Morocco are on track to exceed their targets, driven by progressive renewable policies and a clear focus on green hydrogen.
As the global energy landscape shifts, the MENA region is positioning itself as a critical hub for renewable energy, with solar PV, wind, and hydrogen at the forefront of its strategy to meet both domestic and international energy needs.
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