Renewable Energy Landscape in Africa and the Middle East: Opportunities and Challenges Ahead
Key Ideas
  • Africa's solar PV market shows immense potential with 140 GWdc of new grid-connected PV capacity expected by 2033, led by Egypt and South Africa.
  • Challenges like grid integration and financing hurdles hinder decarbonization efforts, especially in Sub-Saharan Africa.
  • Onshore wind power is rapidly growing in the Middle East and Africa, with a projected 100 GW of cumulative wind installs in the next decade.
  • Green hydrogen projects are set to materialize by the early 2030s, offering significant opportunities for developers and advancing the region's energy transition.
The renewable energy landscape in Africa and the Middle East presents promising opportunities alongside significant challenges. Africa is poised to witness substantial growth in its solar PV market, with a forecasted 140 GWdc of new grid-connected PV capacity by 2033, primarily driven by Egypt and South Africa. However, challenges such as grid integration and financing obstacles pose barriers to the region's decarbonization efforts, particularly in Sub-Saharan Africa where underdeveloped transmission infrastructure limits renewable energy penetration. Additionally, the onshore wind power sector is gaining momentum in the Middle East and Africa, set to reach 100 GW of cumulative wind installs in the next ten years at a remarkable growth rate. Despite advancements in turbine technology driving competitiveness, grid bottlenecks and policy uncertainty remain risks. Chinese investments and imports play a vital role in the region's wind sector, with a focus on establishing local manufacturing bases. Moreover, the region is gearing up for the green hydrogen revolution, with major projects set to commence in the early 2030s. Countries like Egypt, Mauritania, and Oman are aiming to become hydrogen super-producers by 2035, with Saudi Arabia's NEOM green hydrogen project expected to be a significant milestone. Despite a large pipeline of announced hydrogen projects exceeding 250 GW, uncertainties persist regarding project integration. The region's renewable energy transition holds immense promise for developers and clean energy technology manufacturers, shaping a greener and more sustainable future.
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