MENA Renewable Energy

MENA Renewable Energy

Renewable energy is energy derived from natural sources that are replenished at a higher rate than they are consumed. It is often referred to as clean energy and comes from natural sources or processes that are constantly replenished, such as sunlight, wind, the movement of water, and geothermal heat. The region's renewable energy capacity has surged by 400% annually, marking a significant stride toward sustainable progress. The MENA region's commitment to a sustainable and green future is driving the growth of renewable energy in the region and is likely to continue to do so in the coming years.

The MENA Renewable energy Market is expected to grow at a strong CAGR of 10.26% during the forecast period (2023-2030). The rising government’s carbon-reducing goals and massive abundance of renewable energy resources in the MENA region are driving the growth of renewable energy. The growing energy demands through sustainable sources and renewable energy projects offer job opportunities and stimulate economic growth. In Morocco, where the development of a local industry surrounding solar water heaters has served to create 13,000 jobs in 2021, as per the report of Ministry of Economy.

• Based on the product, the market is segmented into hydropower, wind energy, solar energy, bioenergy, geothermal energy. Solar energy dominate the market in 2022. Solar energy is a foundation of renewable energy growth in the MENA region. The region is fortunate with abundant sunlight, making it a prime location for solar power generation. It helps reduce the region's dependence on fossil fuels which addressing both energy security and environmental concerns. Moreover, the economic feasibility is the main driver of the solar energy growth. For instance, in 2022, Masdar announced the launch of the Etihad 7 program with the goal of installing 20 GW of solar and wind capacity in Africa by 2035.
• By end-use, the market is segmented into residential, commercial, and industrial. Commercial is expected to grow with a significant CAGR during the forecast period (2023-2030). The commercial sector in the MENA region, comprising businesses, offices, and retail establishments, has recognized the potential of renewable energy in cutting operational costs and enhancing sustainability. With a growing awareness of corporate social responsibility and the need to reduce greenhouse gas emissions, many businesses are investing in solar panels, wind turbines, and energy-efficient technologies. The UAE is currently building four units at the Barakah Nuclear Power Plant, and the project’s overall completion rate as of March 2021 is more than 95%. When all four units of the plant start operating commercially, the plant will produce up to 25% of the country's electricity requirements with zero carbon emissions, since the plant will be powered by renewables.
• For a better understanding of the market adoption of the renewable energy industry, the MENA market is analyzed based on its worldwide presence in countries such as UAE, Saudi Arabia, Egypt, Kuwait, and the Rest of MENA. The United Arab Emirates (UAE) is expected to grow with a significant CAGR during the forecast period. The country has made substantial investments in solar power, driven by an abundant supply of sunlight and a commitment to reducing its dependence on fossil fuels. The growth of the renewable energy sector in the UAE is propelled by the government has implemented ambitious targets, such as the UAE Energy Strategy 2050. The strategy aims to increase the contribution of clean energy in the total energy mix from 25 percent to 50 per cent by 2050, reduce carbon footprint of power generation by 70 percent, thus saving AED 700 billion by 2050, and It also seeks to increase consumption efficiency of individuals and corporates by 40 per cent.
• Some of the major players operating in the market include ACWA POWER, Masdar, ABB, General Electric, Abu Dhabi National Energy Company PJSC (TAQA)‎, Akuo, Saudi Electricity Company, Enerwhere, MASE, Israel Electric Corporation.