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New Energy World™
New Energy World™ embraces the whole energy industry as it connects and converges to address the decarbonisation challenge. It covers progress being made across the industry, from the dynamics under way to reduce emissions in oil and gas, through improvements to the efficiency of energy conversion and use, to cutting-edge initiatives in renewable and low-carbon technologies.
Desert is served: The Middle East countries turning a profit from overground solar and wind resources
19/2/2025
8 min read
Feature
For decades, the Middle East has been synonymous with oil and gas, powering industries, transport networks and economies worldwide. While fossil fuels will remain a significant part of the region’s energy mix, a noticeable shift is underway. Some of the wealthiest Gulf states, particularly the United Arab Emirates (UAE) and Saudi Arabia, are aggressively scaling up their renewable energy capacity, aiming to position themselves as global leaders in the clean energy transition, writes Sara Siddeeq.
This transformation is not just about meeting climate targets; it is a strategic necessity. Over 90% of the region’s electricity is still generated from hydrocarbons, one of the highest proportions globally. With rapid population growth, industrial expansion and rising temperatures driving an unprecedented surge in power demand – especially for cooling and water desalination – governments are keen to diversify their energy portfolios and reduce reliance on fossil fuels for domestic consumption.
Solar energy: a competitive advantage
The Middle East is ideally positioned for large-scale solar deployment, boasting some of the highest solar irradiation levels in the world, exceeding 2,000 kWh/m2 annually, according to the Middle East Solar Industry Association. While natural gas remains the dominant energy source in regional power generation, solar power is set to play an increasingly larger role in the region’s renewable energy transition. Leading the charge are Saudi Arabia, the UAE, Morocco and Egypt, which are pushing the boundaries of solar efficiency and leveraging economies of scale to drive down costs.
Recent projects highlight the region’s progress. For instance, Saudi Arabia’s 600 MW Al Shuaiba solar plant boasts a record-breaking levelised cost of electricity (LCOE) of just 1.04 US cents per kWh – among the lowest rates globally, compared to the 4–6 cent average. Another key development is the Sudair solar PV project, a 1.5 GW solar plant commissioned in 2023, which plays a crucial role in Saudi Arabia’s goal of sourcing at least 50% of its power from renewables by 2030. This solar expansion, along with 40 GW from wind, will contribute a total of 58.7 GW of renewable capacity, reinforcing Saudi Arabia’s position as a global renewable energy leader.