Middle-East and Africa Solar Photovoltaic (PV) Market - Growth, Trends, and Forecasts (2023 - 2028)

Middle-East and Africa Solar Photovoltaic (PV) Market - Growth, Trends, and Forecasts (2023 - 2028)

The solar photovoltaic market in the Middle East and Africa region is expected to grow at a CAGR of more than 12% in the forecast period.

The market was moderately affected by the Covid-19 pandemic, as power demand fell across the region, delaying several projects. However, the market has since rebounded and is expected to grow steadily during the forecast period.

• Over the long term, the exploitation of the high solar potential of the region, which results in a low Levelized Cost of Energy (LCOE), is expected to drive the market during the forecast period.
• On the other hand, the abundant availability of oil and gas for power generation and rising investments in the sector are expected to restrain the market during the forecast period.
• Nevertheless, developing a regional solar manufacturing industry is expected to be a significant opportunity for the market beyond the forecast period.

• Many utility-scale projects are under construction in the Middle East and Africa regions, estimated to feed the grid in the forecast period.
• According to the Middle East Solar Industry Association, the total value of solar projects expected to come online by 2020-2024 is expected to be USD 15 billion to USD 20 billion.
• In May 2022, the Emirates Water and Electricity Co. (EWEC ) announced that it had started accepting expressions of interest to develop the 1.5 GW Al Ajban PV project, a greenfield solar plant.
• Similarly, in September 2022, The Dubai Electricity and Water Authority (DEWA) launched a tender to construct a 900 MW solar facility as a part of the 6th phase of the planned 5 GW Mohammed bin Rashid Al Maktoum Solar Park.
• The electricity generation from solar energy increased in the Middle East and Africa from 11 TWh in 2017 to 31.7 TWh in 2021. Upcoming projects are expected to increase further significantly in the forecast period.
• With several projects under construction or in the tender phase in countries like Jordon, Morocco, and the United Arab Emirates, considerable growth in the utility sector is expected.

• United Arab Emirates has multiple policies and plans like The UAE Vision 2021, the Green Growth Strategy, the UAE Future Strategy, the UAE Centennial Plan (2071), the UAE Climate Plan, and UAE Energy Plan 2050, which will be assisting in the growth of solar photovoltaics in the region.
• It is estimated that during 2021-2025, the installed photovoltaic capacity is expected to increase fourfold from now to the end of 2025, increasing from its 2.6 GW level to reach 8.5 GW, which will constitute roughly 94% of the country's solar capacity. Among the seven emirates, most of the new solar capacity is expected to be concentrated in Dubai and Abu Dhabi,
• Four solar projects, which are all at various stages of development, namely the Al Dhafra (2GW), Abu Dhabi PV3 (1.5GW), and the fourth (950MW) and fifth (900MW) phases of the Mohammad bin Rashid Al Maktoum (MBR) solar facility, are expected to drive the growth of the UAE segment of the market during the forecast period.
• The United Arab Emirates had a 2.6 GW installed capacity of solar photovoltaics in 2021, which accounts for nearly one-third of the Middle East's total solar photovoltaic capacity. The projects mentioned above and policies are expected to also add significant capacity in the forecast period.

The Middle East and Africa solar photovoltaic (PV) market is moderately fragmented. Some major companies (in no particular order) include First Solar Inc, Jinko Solar Holding Co Ltd, ACWA Power, Canadian Solar Inc, and Enerwhere Sustainable Energy DMCC.

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