Middle East Set to Hit $75 Billion in Renewable Energy Investments

A recent report from the Energy Industries Council (EIC), a leading global trade association for energy suppliers, reveals that the Middle East is set to invest $75.63 billion in renewable energy projects by 2030.

The report highlights 116 renewable energy projects tracked by the EICDataStream database, expected to commence between 2025 and 2030. These projects encompass a range of technologies, including solar power, onshore wind, hydro, hydrogen production, carbon capture utilization and storage (CCUS), geothermal energy, and energy storage systems.

Despite the exponential growth in clean energy investments, the International Energy Agency estimates that only 20 percent of the region's allocated energy funds will go towards renewables, with the majority still directed at the oil and gas sector. The Middle East continues to be a major player in hydrocarbon production, supported by extensive gas reserves and competitive pricing.

Aqilah Shahruddin, the report's author, notes that the region’s strategy involves a dual focus on both renewable energy projects and traditional energy infrastructure. "While most spending is understandably on oil and gas, we are observing significant investments in clean technologies like hydrogen, solar, wind, and carbon capture. This reflects a balancing act between advancing clean energy and maintaining the region’s hydrocarbon dominance."

Large solar initiatives, such as Phase 5 of the Rashid bin Mohamed Al-Makhtoum Solar Park, are progressing well. However, onshore wind development faces challenges due to rising equipment costs and grid capacity issues. Recent wind installations in the UAE and Israel added 306 MW, but ongoing supply chain delays and higher labor costs are impeding further progress.

EIC’s forecast suggests that while renewable energy is being steadily incorporated, oil and gas will continue to be predominant for years to come. Ryan McPherson, EIC’s Regional Director for the Middle East and Africa, emphasizes the importance of the region’s clean tech projects and the EIC’s role in supporting the energy transition through data, reports, and industry events.