Saudi Arabia, UAE, and Oman Leading the Middle East’s Solar Transition
In a groundbreaking report by Norwegian business intelligence and research company Rystad Energy, it has been revealed that Saudi Arabia, the UAE, and Oman are poised to become the frontrunners in the Middle East’s solar revolution.
Solar Power Rising in Importance
Solar power is rapidly gaining significance in the energy policies of Middle Eastern countries, with Saudi Arabia emerging as a global leader in the field. The country has achieved a world record-low levelized cost of electricity for solar photovoltaics at $10.4 per megawatt-hour, thanks to factors such as low hurdle rates, large-scale projects, declining hardware prices, low labor costs, and high solar irradiance.
Exceptional Solar Energy Potential
The Middle East boasts exceptional solar energy potential, with countries like Saudi Arabia, the UAE, and Oman receiving over 2,000 kilowatt-hours per sq. m. annually in solar irradiation. The total solar capacity in the region is expected to approach 23 GW by the end of 2024 and surpass 100 GW by 2030, with green hydrogen projects contributing significantly to the growth rate.
Rapid Growth in Renewable Sources
By 2050, renewable sources, including hydro, solar, and wind, are projected to make up 70 percent of the Middle East’s power generation mix, a significant increase from the current 5 percent. Despite this surge, natural gas will remain a key player in the short term, with usage peaking around 2030.
Transition to Renewable Energy
By 2030, 30 percent of installed capacity in the Middle East is expected to come from renewables, potentially reaching 75 percent by 2050. Battery energy storage will play a crucial role in supporting the transition to solar and wind power, while the share of gas in power generation is predicted to decrease from 74 percent in 2023 to 22 percent by 2050.