Market Trends of Middle-East Solar Power Industry
Solar Photovoltaic (PV) Projects to Drive the Market
- Photovoltaic (PV) cells are arrays of cells containing a solar photovoltaic material that converts solar radiation or energy from the sun into direct current electricity. Photovoltaic (PV) solar panels held a share of more than 96.57% of the total Middle Eastern solar energy installed in 2022.
- The solar PV installed capacity of the Middle East grew to 12.440 GW in 2022, which is higher compared to the 9.239 GW installed in 2021. Upcoming projects are expected to increase capacity during the forecast period even further.
- In October 2022, the Water Procurement Company (OPWP) and Oman Power initiated bidding for the second large-scale solar photovoltaic (PV) project at Ibri in northwest Oman. The new Ibri III Solar Independent Power Project (IPP) has a solar PV capacity of 500 MW. The new facility is anticipated to begin commercial operations in the fourth quarter of 2026.
- In February 2023, Mobarakeh Steel Company was anticipated to finance the solar photovoltaic power plant in Kouhpayeh County, Isfahan Province, with a capacity of 600 MW. The project is expected to receive an investment of USD 500 million. The first phase will likely add nearly 100 MW to the nation's power grid by July 2023.
- With several projects under construction or in the tender phase in countries like Saudi Arabia and the United Arab Emirates, considerable growth in solar PV is expected to drive the solar power market in the Middle Eastern region over the forecast period.
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Saudi Arabia to Dominate the Market
- In Saudi Arabia, the solar energy installed capacity growth can be attributed to the National Renewable Energy Program, which had a target of installing 35 renewable projects with 58.7 GW of installed capacity by 2030.
- The installed solar power capacity for Saudi Arabia in 2022 was 440 MW, which is expected to increase in the coming years. Also, the solar PV installed capacity for Saudi Arabia increased to 390 MW in 2022, which was higher compared to 59 MW in 2020.
- In November 2022, ACWA Power signed an agreement with Water and Electricity Holding Company (Badeel) to develop the world's largest single-site solar-power plant in Al Shuaibah, Mecca province. With a 2,060 MW generation capability, the solar power plant is anticipated to begin operations by the end of 2025.
- Moreover, in March 2022, according to the Ministry of Industry and Mineral Resources, Saudi Arabia launched a new plan to support green energy initiatives and reduce its reliance on crude oil. Additionally, the ministry would provide tax breaks and other benefits to businesses that generate renewable energy.
- Therefore, based on the aforementioned facts, Saudi Arabia is expected to witness significant demand for the solar power market in the Middle Eastern region over the forecast period.
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