Renewable energy in the Middle East and North Africa (MENA) region is projected to be worth US$59.9 B by end-2030, a CAGR of 14.4% from 2025 to 2030. As a comparison, the market was worth US$26.8 B in 2024.
These figures are from BCC Research's Renewable Energy Regional Analysis Market: Middle East and North Africa report, which covers energy sources such as solar, wind, hydro, and bioenergy, and their use in the residential, commercial, and utility sectors.
According to BCC Research, MENA countries are accelerating their shift to renewable energy to reduce reliance on fossil fuels and meet climate goals. MENA receives 22% to 26% of the planet's solar radiation. Each sq km can generate the equivalent of 1 million to 2 million barrels of oil annually, potentially meeting half of the world's electricity needs.
National strategies like Saudi Vision 2030 and UAE Net Zero 2050 are driving major clean energy projects. At the same time, falling technology costs and rising electricity demand are making renewables more viable and necessary respectively. Global climate commitments and the push for green hydrogen exports are further boosting momentum. Additionally, growing foreign investment is fuelling large-scale renewable developments across the region.
Growth drivers include:
Government-led strategies and energy diversification plans
MENA governments are promoting renewable energy through national strategies aimed at reducing reliance on fossil fuels. These plans include policy reforms, investment incentives, and partnerships to support clean energy development.
Abundant natural resources with renewable energy potential
The region's high solar radiation and strong wind conditions make it ideal for renewable energy projects. Countries like KSA are leveraging these natural advantages to build cost-effective solar and wind farms.
Growing energy demand
Rising energy needs due to population growth and industrialisation, along with the electrification of sectors like transport and water desalination, are driving demand for sustainable power sources.
Energy export goals
MENA nations are investing in green hydrogen production to become global exporters of clean energy. This aligns with international decarbonisation goals and opens new economic opportunities in energy trade.
Green hydrogen and ammonia production
Green hydrogen and ammonia are being developed for export and domestic use in power generation, transport, and industry, supporting both economic growth and environmental goals.
Industrial decarbonisation
Heavy industry in MENA is transitioning to renewable energy to reduce emissions. This includes using green hydrogen and electrification to power manufacturing processes, helping meet climate targets.
Utility-scale renewable energy
Large-scale solar and wind projects are expanding across the region, backed by government and private investment. These projects are crucial for increasing renewable energy capacity and reducing carbon footprints.
Mohammed bin Rashid Al Maktoum Solar Park in Dubai is the
world's largest single-site concentrated solar power (CSP) plant. It
boasts a total capacity of 1 GW, with 600 MW from CSP and 400 MW from
photovoltaic panels, and can deliver power continuously for 12 hours at
night.
Countries covered in the report include Algeria, Egypt, Jordan, KSA, Kuwait Morocco, Oman, Tunisia, and the UAE, and the list of related emerging startups include Barq EV, Enerwhere, Nour Energy, Pylon, and Yellow Door Energy.
BCC Research believes that the dominant renewable energy source through to 2030 will be hydropower.