Middle East's Solar Energy Expansion and Green Hydrogen Projections
Key Ideas
  • Rystad Energy predicts significant growth in the Middle East's solar capacity, reaching 23 GW by the end of 2024 and 100 GW by 2030.
  • Solar photovoltaic (PV) is expected to dominate as the leading renewable energy source, accounting for over half of the region's power supply by mid-century.
  • Renewables are projected to increase their share in the power generation mix from 3% in 2023 to potentially 75% by 2050, with a 30% annual growth rate driven by green hydrogen projects.
  • Despite the growth in renewables, gas will remain a primary energy source in the region, expected to decline from 74% in 2023 to 22% by 2050 as a transitional fuel.
Research by Rystad Energy indicates a promising future for solar energy in the Middle East, with the region's solar capacity surpassing 16 GW at the end of 2023 and poised to achieve nearly 23 GW by the end of 2024. The report forecasts a remarkable growth trajectory, aiming for 100 GW of solar capacity by 2030, fueled by green hydrogen projects that are expected to contribute to a 30% annual growth rate. Solar photovoltaic (PV) is anticipated to lead the renewable energy sector, taking over 50% of the region's power supply by 2050, a substantial increase from its 2% share in 2023. The research highlights a shift towards renewable energy sources, with renewables expected to constitute 30% of the region's installed capacity by 2030, possibly rising to 75% by 2050. However, despite these advancements, gas-fired power will continue to be a significant energy source in the Middle East, serving as a transitional fuel in the long term due to the region's limited hydropower potential and competitive gas prices. The share of gas in the region's power generation mix is projected to decrease from 74% in 2023 to 22% by 2050. This transition signifies a positive momentum towards a more sustainable and diversified energy landscape in the Middle East.
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