Balancing Tradition and Innovation: Middle East's Renewable Energy Investments
Key Ideas
- The Middle East is expected to attract $75.63 billion in renewable energy investments by 2030, with 116 projects planned between 2025 and 2030.
- Despite the growth in clean energy investments, the region still primarily allocates funds to the oil and gas sector, with only 20% directed towards renewables.
- A delicate balance is observed in investing in traditional energy sources like oil and gas while advancing projects in cleantech areas such as hydrogen, solar, wind, and carbon capture.
- EIC forecasts show that while renewable energy is increasing, oil and gas will maintain dominance in the region for the foreseeable future.
A recent report by the Energy Industries Council (EIC) reveals that the Middle East is set to receive $75.63 billion in renewable energy investments by 2030. The investments will support 116 projects scheduled to be operational between 2025 and 2030, covering technologies like solar power, wind, hydropower, hydrogen production, and more. Despite this growth, the International Energy Agency estimates that only 20% of total energy investments in the Middle East will go towards renewables, with oil and gas continuing to receive the majority. Aqilah Shahruddin, the report's author, highlights the complex transition in the region, where both traditional and clean energy infrastructures are being developed concurrently. The delicate balance between promoting clean energy, including hydrogen and solar projects, and maintaining the region's hydrocarbon leadership is crucial. EIC's data forecasts a gradual integration of renewable sources while acknowledging the continued dominance of oil and gas. Ryan McPherson, EIC's regional director, underlines the organization's focus on supporting the Middle East's energy transition through project data and industry events, recognizing the importance of cleantech projects for the region's future sustainability.