Market Trends of Middle-East and Africa Solar Photovoltaic (PV) Industry
This section covers the major market trends shaping the MEA Solar Photovoltaic Market according to our research experts:
Utility Sector to Dominate the Market
- Many utility-scale projects are under construction in the Middle East and Africa regions, estimated to feed the grid in the forecast period.
- According to the Middle East Solar Industry Association, the total value of solar projects expected to come online by 2020-2024 is expected to be USD 15 billion to USD 20 billion.
- In May 2022, the Emirates Water and Electricity Co. (EWEC ) announced that it had started accepting expressions of interest to develop the 1.5 GW Al Ajban PV project, a greenfield solar plant.
- Similarly, in September 2022, The Dubai Electricity and Water Authority (DEWA) launched a tender to construct a 900 MW solar facility as a part of the 6th phase of the planned 5 GW Mohammed bin Rashid Al Maktoum Solar Park.
- The electricity generation from solar energy increased in the Middle East and Africa from 11 TWh in 2017 to 31.7 TWh in 2021. Upcoming projects are expected to increase further significantly in the forecast period.
- With several projects under construction or in the tender phase in countries like Jordon, Morocco, and the United Arab Emirates, considerable growth in the utility sector is expected.
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The United Arab Emirates to Dominate the Market
- United Arab Emirates has multiple policies and plans like The UAE Vision 2021, the Green Growth Strategy, the UAE Future Strategy, the UAE Centennial Plan (2071), the UAE Climate Plan, and UAE Energy Plan 2050, which will be assisting in the growth of solar photovoltaics in the region.
- It is estimated that during 2021-2025, the installed photovoltaic capacity is expected to increase fourfold from now to the end of 2025, increasing from its 2.6 GW level to reach 8.5 GW, which will constitute roughly 94% of the country's solar capacity. Among the seven emirates, most of the new solar capacity is expected to be concentrated in Dubai and Abu Dhabi,
- Four solar projects, which are all at various stages of development, namely the Al Dhafra (2GW), Abu Dhabi PV3 (1.5GW), and the fourth (950MW) and fifth (900MW) phases of the Mohammad bin Rashid Al Maktoum (MBR) solar facility, are expected to drive the growth of the UAE segment of the market during the forecast period.
- The United Arab Emirates had a 2.6 GW installed capacity of solar photovoltaics in 2021, which accounts for nearly one-third of the Middle East's total solar photovoltaic capacity. The projects mentioned above and policies are expected to also add significant capacity in the forecast period.
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