A recent report from the International Energy Agency (IEA) claimed that Saudi Arabia is likely to see the highest growth of renewable energy among other Middle Eastern member countries. The report said that the renewable capacity expansion in the Middle East and North Africa is expected to increase by 62 GW from 2023 to 2028.
The report said that the highest growth could be seen in Saudi Arabia, but other Middle Eastern countries like the United Arab Emirates (UAE), Morocco, Oman, and Egypt will also see a rise in the addition of clean energy in the days to come.
“Renewable capacity expansion in the Middle East and North Africa is expected to increase 62 GW in 2023-2028. Over the next five years, the pace of growth is expected to accelerate to more than three times the previous five-year period, with solar PV making up over 85% of the increase. Onshore wind and concentrated solar power also contribute. Over one-third of the growth will be in Saudi Arabia alone, followed by the United Arab Emirates, Morocco, Oman, Egypt, Israel3 and Jordan. These seven countries account for over 90% of the region’s growth,” the IEA report said.
The report also talked about the weaker executions of competitive auctions in Middle Eastern countries, posing new challenges. “In the Middle East and North Africa region, several countries initiated competitive auctions for renewable energy projects in 2023, including solar PV tenders in Algeria, Israel and Morocco, and the United Arab Emirates increased capacity in its existing projects. However, no auctions were concluded, with just one contract awarded in Saudi Arabia two years after initial bidding in 2021. Instead, most contracts were signed through unsolicited bilateral agreements. Lengthy processes to select bidders, determine winners and negotiate contracts were common, contributing to project implementation delays,” the report said.
The report said that countries like China, Saudi Arabia, and UNS are leading the growth of Hydrogen worldwide. “Growth is led by China, followed by Saudi Arabia and the United States. These three markets account for more than 75% of renewable capacity for hydrogen production by 2028,” the IEA report said.