Solar, Wind, And Storage Are Reshaping The MENA Region

Representational image. Credit: Canva

.

The Middle East and North Africa region is moving into a major phase of change in the way it produces electricity. For decades, oil and gas have been the backbone of power generation across the region. However, falling costs of solar panels, wind turbines, and battery storage systems are now pushing countries to adopt renewable energy at an unprecedented pace. As a result, renewable power capacity in the region is expected to double by 2027, marking a sharp acceleration compared to previous years.

Solar energy is leading this transition. The MENA region has some of the highest solar radiation levels in the world, making solar power both practical and cost-effective. According to long-term projections, solar photovoltaic capacity alone could reach around 860 GW by 2040. This massive scale of deployment reflects how quickly governments and utilities are moving away from traditional fossil-based generation. Over the longer term, the energy mix is expected to change completely. By 2060, non-fossil sources such as solar, wind, and other clean technologies are forecast to account for about 92% of total electricity generation, a dramatic reversal from today’s fossil-dominated system.

Despite this rapid growth in renewables, the region faces a critical challenge. Electricity demand is increasing even faster than clean energy capacity. Strong economic growth, population expansion, urban development, and rising temperatures are all contributing to higher power consumption. Overall, electricity demand in the region is expected to triple by 2060. In the near and medium term, space cooling will be a major driver of this growth. The increasing use of air conditioners, especially during long and intense summers, is projected to account for nearly 30% of demand growth up to 2035.

Because demand is growing so quickly, renewable energy will not immediately replace gas-fired power generation. In fact, natural gas will continue to play a major role in balancing the grid for many years. It is only around 2040 that non-fossil power generation is expected to start clearly outpacing demand growth, allowing renewables to genuinely displace gas-based electricity on a large scale.

To support this transition, solar projects are increasingly being paired with battery energy storage systems. These hybrid projects are designed to provide reliable power even after sunset, addressing one of the key limitations of solar energy. Large-scale examples are already under development in the region. In the United Arab Emirates, Masdar is working on a 1 GW project that combines solar power with battery storage. In Saudi Arabia, the 2.6 GW Al Shuaibah solar plant represents another milestone in utility-scale renewable development.

Wind energy is also gaining importance, although it currently plays a smaller role compared to solar. Countries such as Oman, Egypt, and Morocco are emerging as regional leaders in wind power deployment. With improving technology and falling costs, wind capacity across the region is expected to triple every decade through 2060, adding another critical source of clean electricity.

One advantage the Gulf region currently enjoys is a relatively modern and well-developed power grid. Unlike parts of Europe or North America, it does not yet face severe congestion or bottlenecks. However, maintaining this advantage will require continuous investment. By 2060, the region is expected to need around 9,500 GWh of energy storage to manage the variability of solar and wind power and to ensure grid stability.

Regional cooperation will also be essential. Initiatives such as the Pan-Arab Electricity Market and the expansion of the GCC Interconnection Authority are aimed at improving cross-border electricity trade and sharing resources. These efforts will help balance supply and demand across countries and reduce the risks associated with high shares of variable renewable energy.

In summary, although the MENA region started its energy transition later than some other parts of the world, it is now moving at a remarkable speed and scale. The shift toward renewables is driven not only by climate goals but also by strong economic logic. By replacing domestic fossil fuel use with renewable power, GCC countries alone could save an estimated $92 billion each year while freeing up more oil and gas for export. While fossil fuels will remain part of the energy mix for decades, large investments in renewable energy and grid flexibility are positioning the Gulf and the wider region as key players in the global clean energy economy.

*

*