Middle East Set to Reach USD 75 Bn in RE Projects

The Middle East is set to reach USD 75 billion in renewable energy investments by 2030. This funding will boost solar, wind, and hydrogen projects while the oil and gas sector continues to dominate, according to a new report released by Energy Industries Council (EIC).

September 18, 2024. By EI News Network

The Middle East is on track to attract USD 75.63 billion in renewable energy investments by 2030, according to a new report by the Energy Industries Council (EIC).

"The investments, spread across 116 renewable energy projects, reflect the region’s growing commitment to clean energy. These projects, expected to go live between 2025 and 2030, will encompass solar power, onshore wind, hydroelectricity, hydrogen production, carbon capture utilisation and storage (CCUS), geothermal energy, and battery storage systems," said the report.

However, it pointed out that despite this surge in renewable investments, the region remains heavily reliant on oil and gas. The International Energy Agency (IEA) estimates that just 20 percent of the Middle East’s energy investments will be dedicated to renewables, while the bulk of capital will continue to be funneled into the oil and gas sector. With its vast gas reserves and competitive pricing, the Middle East remains a dominant force in global hydrocarbon production, and these resources are likely to play a significant role during the energy transition.

Aqilah Shahruddin, author of the EIC report, emphasised the complexity of the region’s energy landscape, saying, "Most of the funding is still going to oil and gas, but we are witnessing substantial cleantech developments in hydrogen, solar, wind, and carbon capture. It's a balancing act—expanding clean energy while maintaining the region’s dominance in hydrocarbons."

One of the key projects highlighted in the report is Phase 5 of the Rashid bin Mohamed Al-Makhtoum Solar Park, which is making substantial progress. However, onshore wind developments face hurdles due to rising equipment costs, grid capacity issues, and supply chain delays. Wind installations, particularly in the UAE and Israel, added 306 MW in 2023, but further advancements are being slowed by logistical challenges and increased labor costs.

The EIC forecasts that while renewable energy will steadily grow in importance, oil and gas will continue to dominate the energy landscape in the Middle East for the foreseeable future. Ryan McPherson, EIC’s Regional Director for the Middle East and Africa, remarked, “The Middle East’s energy transition is accelerating, and with the increasing number of cleantech projects, it remains a critical focus for the industry. We are committed to supporting this transition with our data, reports, and industry events.”

The report highlights the dual strategy of expanding renewable energy infrastructure while simultaneously enhancing traditional energy systems, which will be crucial in ensuring the region’s stable economic growth and continued energy dominance.

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Middle East Market

Middle East RE investment

The International Energy Agency

Ryan McPherson

EIC Regional Director