Middle East's Solar Capacity to Exceed 100 GW by 2030

• Middle East set to dominate solar energy with over 100 GW capacity by 2030, leading the way towards a renewable-powered future.

The Middle East is projected to surpass 100 GW of solar capacity by 2030, with renewable energy sources expected to account for 70% of the region's power generation mix by 2050, up from only 5% in 2023. Solar energy will be the leading source, with a share of over 50% by 2050. The region's power demand is projected to grow to about 2,000 TWh by 2050, up from 1,200 TWh currently.

The share of gas in the power generation mix is expected to decline to 46% in 2040 and 22% by 2050, with renewables making up 30% of the installed capacity by 2030 and potentially reaching 75% by the middle of the century. Solar energy is becoming key in Middle Eastern energy policies, with Saudi Arabia having the world's lowest levelised cost of electricity for solar PV. The region had over 16 GW of solar capacity at the end of 2023, expected to reach 23 GW by the end of 2024 and surpass 100 GW by 2030, with green hydrogen projects contributing to a 30% annual growth rate.

What is driving the rapid growth of solar energy in the Middle East?

• Abundant sunlight: The Middle East region has some of the highest solar irradiance levels in the world, making it an ideal location for solar energy generation.
  
• Government support: Many countries in the Middle East have set ambitious renewable energy targets and implemented supportive policies and incentives to encourage the growth of solar energy.
  
• Economic diversification: With a heavy reliance on oil and gas exports, countries in the Middle East are looking to diversify their economies and reduce their carbon footprint by investing in renewable energy sources like solar power.
  
• Technological advancements: Advances in solar technology, such as improvements in efficiency and reductions in costs, have made solar energy more competitive and attractive for countries in the Middle East.
• Energy security: Investing in solar energy helps countries in the Middle East reduce their dependence on imported fossil fuels and enhance their energy security by utilizing their abundant solar resources.