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The Middle-East renewable energy market had installed capacity of 24,073 MW in 2020, and it is anticipated to reach USD 59,656 MW by 2027, at a CAGR of around 13.43% during the forecast period of 2022-2027. With the COVID-19 pandemic in 2020, the slowdown in the economy of several countries had a nagative impact on the regional market for renewable energy. With countries in the region having an oil-dependent economy, a strong revival in the oil & gas sector became the priority for several nations, leading to a temporary shift in focus away from renewables. Factors such as various government's plan to diversify the energy mix and increase investments in renewable energy are expected to be significant contributors to the growth of the market. However, the increasing penetration of natural gas for power generation purposes, along with its lower prices is expected to hinder the market growth during the forecast period.
- Solar energy in the Middle-East region is expected to witness significant growth in the market as the solar energy and associated system's prices continue to fall during the forecast period.
- Renewable power is an intermittent energy source. Therefore, to maintain the constant power distribution of generated renewable power, storage of electricity is essential. Thus, the increasing integration of renewable energy along with the energy storage systems is expected to create several opportunities for the market in the future.
- The United Arab Emirates (UAE) is expected to witness a significant growth in the Middle-East renewable energy market during the forecast period, owing to the upcoming projects and government targets.
Scope of the Report
The Middle-East renewable energy market report includes:
|The United Arab Emirates (UAE)|
|Rest of Middle-East|
Key Market Trends
Solar Energy Segment to Witness Significant Growth
- In the Middle-Eastern region, solar energy plays a vital role in achieving the country’s renewable energy target and is expected to have significant growth in the coming years. Besides, the Middle-Eastern countries are blessed with an abundance of solar energy, as the annual average solar radiation within the region is relatively equal to 1.1 barrels of oil equivalent per m2. The radiation is highest in Kuwait (8200 kWh/m2) and the lowest in Oman (6400 kWh/m2).
- Also, installed renewable capacity in the Middle-Eastern region is dominated by utility-scale solar projects. Further, in 2019, the Middle East Solar Industry Association (MESIA) announced that it expects at least USD 15 billion of solar power projects to enter operation in the region in the next five years, which is likely to drive the Middle-East renewable energy market during the forecast period.
- Moreover, according to the International Renewable Energy Agency (IRENA), as of 2020, the Middle-East total solar installed capacity accounted for 6968 MW. Also, significant countries in the region are heavily investing in solar power farms to reduce fossil fuels for the power sector and increase oil export. For instance, in early-2019, Abu Dhabi’s Emirates Water & Electricity Company announced a plan to construct a 2 GW solar project in Al Darah. The project is expected to be completed in 2022.
- Additionally, the key projects commissioned in 2019 includes commissioning of the world’s largest single-site photovoltaic (PV) solar plant, the 1.17 GW Sweihan independent power project (IPP) in Abu Dhabi, and reaching a financial close for a USD 4.3 billion concentrated solar power (CSP) project, the largest single-site power investment project in the world.
- Further, the government in the region is also focusing on the growth of residential and commercial rooftop solar power systems. For instance, as a part of the Shams Dubai initiative, the United Arab Emirates’ government, as of April 2021, connected 6,727 buildings with a capacity of 298.7MW. Thus, factors such as government regulations, increasing investments, and upcoming solar projects are likely to drive the Middle-Eastern renewable energy market during the forecast period.
- Therefore, owing to the above points, solar energy is expected to witness significant growth in the Middle-East renewable energy market during the forecast period.
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The United Arab Emirates (UAE) Expected to Witness Significant Growth
- The United Arab Emirates has undertaken significant steps over the past few years, and it is leading the region in driving towards the adoption of renewable energy, particularly in the solar sector. In 2020, the country's renewable energy installation capacity reached 2540 MW from 136 MW in 2015.
- Further, to meet the rising demand, the country embarked on a challenging mission to increase its energy security, diversify its energy sources, and increase the share of solar energy in its power mix.
- The country has proven that it has some of the world's best solar resources while supporting economic and regulatory policies and helping its clean energy program. One of the contributing factors is access to affordable finance.
- In addition to conventional project financing, the solar sector is witnessing financial innovation to help facilitate and provide investments required in the long term, including the AED 100 billion Dubai Green Fund, to support the Shams Dubai initiative, a program aimed at promoting the installation of rooftop solar panels.
- As part of the Shams Dubai Initiative, the Dubai Electricity and Water Authority (DEWA) outlined easy steps to install photovoltaic systems on buildings to generate solar power. As of April 2021, DEWA connected 6726 photovoltaic installations on residential, commercial, and industrial buildings in Dubai, with a total capacity of 298 MW (as a part of the Shams Dubai initiative).
- In the past decade, several solar PV and CSP projects in Abu Dhabi and Dubai broke world records, and in 2020, both technologies recorded the lowest bids. The country secured a prominent place in the international solar energy industry by developing solar energy projects, including the Sheikh Mohammed bin Rashid Al Maktoum Solar Complex in Dubai, the world's largest concentrated solar power project, which is scheduled for commissioning in 2030. The Zayed Renewable Energy Complex in Abu Dhabi is another major solar energy project.
- Further, several factors converged to make solar energy an attractive option, to meet the country's energy needs. The country is geographically well-positioned, with solar irradiance of approximately 2,285 kWh/m2. The country has one of the highest solar exposure rates globally, there by holding tremendous potential for renewable energy development.
- In addition to this, the declining cost of solar module and battery technology is increasing solar PV adoption in the United Arab Emirates. Furthermore, as the cost of solar power is declining rapidly, the United Arab Emirates is revaluating its strategies related to the power sector, which currently relies on large subsidies for electricity generated from natural gas or liquefied natural gas (LNG).
- The 'UAE Energy Strategy 2050' aims to increase the contribution of clean energy to the country's overall national energy mix, to 50%, by 2050, thereby saving approximately USD 190 billion of the overall energy costs.
- The country is committed to tackling climate change and announced in joining the International Solar Alliance, which aims to help developing countries harness 1,000 GW of solar power by 2030.
- Therefore, owing to the above points, the United Arab Emirates is expected to witness significant growth in the Middle-East renewable energy market during the forecast period.
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The Middle-East renewable energy market is moderately fragmented. Some of the major companies include MASE, Enerwhere Sustainable Energy DMCC, Solarwind M.E., Akuo Energy SAS, and Yellow Door Energy.
- In January 2021, Masdar and EDF Renewables signed a strategic agreement to explore renewable energy opportunities in Israel. Under the agreement, the companies are expected to collaborate on existing renewable energy projects and projects under development, while also exploring joint participation in new programs announced by Israel's government.
- In April 2021, ACWA Power inaugurated the 300 MW Sakaka PV IPP, the country’s first utility-scale renewable energy project, at an investment cost of SAR 1.2 billion. The project was awarded to ACWA Power at a record-breaking tariff of USD 2.3417 cents/kWh (8.781 halalas/kWh).
Table of Contents
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.2 Renewable Energy Mix, 2020
4.3 Installed Capacity and Forecast in GW, till 2027
4.4 Recent Trends and Developments
4.5 Government Policies and Regulations
4.6 Market Dynamics
4.7 Supply Chain Analysis
4.8 Porter's Five Force Analysis
4.8.1 Bargaining Power of Suppliers
4.8.2 Bargaining Power of Consumers
4.8.3 Threat of New Entrants
4.8.4 Threat of Substitutes Products and Services
4.8.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.2.1 The United Arab Emirates (UAE)
5.2.2 Saudi Arabia
5.2.7 Rest of Middle-East
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.2 Enerwhere Sustainable Energy DMCC
6.3.3 Solarwind M.E.
6.3.4 Akuo Energy SAS
6.3.5 Yellow Door Energy Limited
6.3.6 Masdar (Abu Dhabi Future Energy Co)
6.3.7 Canadian Solar Inc.
6.3.8 Siraj Power Contracting LLC
6.3.9 ACWA POWER BARKA SAOG
6.3.10 EDF Renewables
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Middle-East Renewable Energy Market market is studied from 2019 - 2027.
What is the growth rate of Middle-East Renewable Energy Market?
The Middle-East Renewable Energy Market is growing at a CAGR of 13.43% over the next 5 years.
Who are the key players in Middle-East Renewable Energy Market?
Enerwhere Sustainable Energy DMCC , Solarwind M.E. , Akuo Energy SAS , Yellow Door Energy , MASE are the major companies operating in Middle-East Renewable Energy Market.