MENA Adds 16 GW of Renewable Energy Capacity in 2025

The Middle East and North Africa (MENA) region has recorded its highest annual addition of renewable energy capacity in 2025, installing around 16 GW of solar and wind power, according to BloombergNEF’s MENA Clean Energy Market Outlook 2026.

Solar power accounted for the bulk of the expansion, supported by large utility scale projects and government backed procurement programmes across the region. Renewable energy deployment is expected to accelerate further in 2026, with annual additions projected to increase by 37 percent.

Solar capacity additions are forecast to reach 18 GW in 2026. Five MENA countries are expected to install more than 1 GW of solar capacity each during the year, with utility scale projects continuing to represent the largest share of new capacity.

The region is also preparing for significant growth over the longer term. BloombergNEF expects combined solar and wind capacity in MENA to reach 404 GW by 2035, compared with about 49 GW currently.

Battery energy storage is emerging as another major area of investment. The region is expected to add about 4 GW, equivalent to 16 GWh, of battery storage capacity in 2026. This would be twice the storage capacity added during 2025. Storage deployment is increasingly being integrated with renewable energy projects, while standalone battery projects are also gaining traction through competitive tenders.

Wind power development is expected to remain concentrated in a few major markets. Egypt and Saudi Arabia are projected to account for 86 percent of MENA’s wind capacity additions between 2026 and 2035.

Investment in renewable energy is also increasing. The region attracted about USD 22 billion in renewable energy investment during 2025, marking the third consecutive year of record investment. Regional investors accounted for around 85 percent of financing activity.

The expansion is being driven by efforts to diversify power systems, strengthen energy security and reduce dependence on fossil fuel based electricity generation. Large scale solar projects, competitive procurement and growing demand for energy storage are expected to remain key factors shaping the region’s clean energy market.