Clean Energy Growth in MENA: Challenges and Opportunities
Key Ideas
- The MENA region is set to invest USD 9 billion in clean power generation this year, with renewables and nuclear now constituting 15% of the power mix.
- Solar energy is flourishing in countries like Saudi Arabia, the UAE, and Egypt, but the infrastructure to connect it, such as power grids and battery storage, lags behind.
- Challenges include heavy reliance on natural gas, significant fossil fuel subsidies hindering clean energy competitiveness, and underinvestment in grid infrastructure and battery storage.
- Despite obstacles, progress is visible with countries like the UAE, Saudi Arabia, and Egypt exploring energy storage and hydrogen, emphasizing the need for grid upgrades, storage solutions, and subsidy reform for further development.
The Middle East and North Africa (MENA) region is increasing its efforts towards clean energy, with a notable rise in renewable investments. Solar energy, in particular, is experiencing significant growth in countries like Saudi Arabia, the UAE, and Egypt due to falling costs and abundant sunlight. However, the infrastructure required to support this growth, including power grids and battery storage, is lagging behind. The region still heavily relies on natural gas for electricity generation, with fossil fuel subsidies in countries like Iran, Saudi Arabia, and the UAE posing challenges for the competitiveness of renewables. Despite global advancements in renewable energy, insufficient investment in grid infrastructure and battery storage remains a concern, especially in MENA, where many renewable projects lack adequate grid connections. While the region faces obstacles like high financing costs and limited policy support for storage solutions, momentum is building as countries like the UAE, Saudi Arabia, and Egypt delve into energy storage and hydrogen initiatives. To fully unleash its clean energy potential, MENA must prioritize grid upgrades, storage technologies, and subsidy reforms. The region's progress is evident, but to lead the global energy transition effectively, MENA needs to accelerate its efforts in developing the necessary infrastructure to support its clean energy goals.
Topics
Utilities
Renewable Energy
Infrastructure
Energy Transition
Solar Power
Subsidies
Natural Gas
Battery Storage
Grid Investment
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