
Recent reports from the ETM Solar Energy Industry Association (ESIA), published by GTM, highlight a significant shift in solar energy development across the Middle East and North Africa (MENA). According to the research, solar demand in the region is expected to make up 8% of global demand by 2015, with installed capacity reaching 3.5 GW. This marks a growing interest in renewable energy as countries look to diversify their energy sources.
Looking ahead, the report forecasts that solar energy demand in MENA will surpass 10 GW by 2017. In fact, some of this demand could be met ahead of schedule in 2015. Saudi Arabia and Turkey are set to lead the charge, accounting for 70% of the region’s solar energy demand. This trend reflects a strategic move toward sustainable power generation and energy security.
Saudi Arabia has already become the first market in the region to reach a gigawatt-scale solar capacity. The country's strong renewable energy policies, along with lessons learned from its wind power projects, have paved the way for rapid solar expansion. Turkey is following closely behind, with expectations of becoming the second-largest solar market in the region.
Scott Berg, a researcher at GTM and one of the report's authors, noted, “The Middle East and North Africa are poised for major transformation in the solar sector over the next five years. As Saudi Arabia emerges as the leading market, other countries will also find new opportunities. With strategic planning, local partnerships, and a growing supply chain, global companies are beginning to see the potential of the MENA solar market and are eager to collaborate.â€
For oil-dependent nations in the region, the transition to renewable energy offers a chance to reduce reliance on expensive imported oil. By generating electricity from solar and other renewables, these countries can free up more oil for export, enhancing their economic stability.
Renewable energy is playing a crucial role in diversifying energy supplies across the region. Several countries have announced plans to build extensive renewable infrastructure, with substantial investments expected to follow. This shift is not just about reducing carbon emissions—it's about securing long-term energy independence.
On January 14th, the Saudi Daily News reported that a recent study by the organizers of the upcoming Energy Summit in Doha, Qatar, revealed that the MENA region will invest $25 billion over the next five years to meet rising energy demands. Additionally, Gulf countries plan to invest around $63 billion in the power industry between 2013 and 2017, with further investments in various parts of the Arab world.
In terms of solar-specific initiatives, Qatar aims to increase its solar capacity by 1.8 GW in 2014. Dubai has pledged that 5% of its electricity will come from solar by 2030, while Abu Dhabi is completing the 100 MW Shams 1 concentrated solar power plant. Saudi Arabia has also unveiled an ambitious renewable strategy, targeting 16 GW of solar projects and 25 GW of centralized solar power by 2030. Meanwhile, the European Union continues to support large-scale solar projects in the region, including desert-based solar farms.
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