Solar PV power generation costs in the Middle East

Is the Middle East embracing solar energy?

The Middle East’s embrace of solar energy is unfolding at an unprecedented scale. Once almost entirely reliant on oil and gas, the region is now pouring billions into solar infrastructure, setting some of the most ambitious renewable energy targets in the world. Saudi Arabia has placed solar energy at the center of its economic transformation.

Is solar power the cheapest source of power in the Middle East?

Costs have plummeted, with solar now the cheapest source of new power generation in most countries. The Middle East, blessed with abundant sunlight and vast desert landscapes, has seized this opportunity. Governments have set net-zero targets, launched mega-projects, and created favorable investment environments that are driving rapid expansion.

How much solar power will the Middle East have in 2023?

The total solar capacity in the Middle East at the end of 2023 exceeded 16 gigawatts (GW) and is expected to approach 23 GW by the end of 2024. Projections indicate that by 2030, the capacity will surpass 100 GW, with green hydrogen projects contributing to an annual growth rate of 30%.

Are solar energy prices tumbling in the Persian Gulf?

For the third time in a decade, solar energy pricing records are tumbling in the Persian Gulf. As each previous wave of new records was met with incredulity, only for these prices to become the new normal around the world within a few years, it would be unwise to once again dismiss low prices as unrepresentative outliers.

Will solar power prices reach grid parity?

This trend will continue to increase as solar power prices reach grid parity. In 2019, the global estimated additions of solar photovoltaic (PV) reached almost 138 GW (Figure 1). Within the Middle East and North Africa (MENA) region, the increased industrial activity and drive towards renewables is reflected in each country’s strategy.

How much money is invested in solar energy?

The total corporate funding in the global solar sector saw an 11% increase year-on-year at $109.4 billion in the first half of 2019. More than $2.6 trillion has been invested in renewable energy over the past decade.