Solar PV to generate $182 Bn investment in Middle East by 2025

With a 57GW capacity addition—solar photovoltaic (PV), concentrated solar power (CSP), and wind—by 2025, the region is estimated to witness an 18-fold growth of the current capacity, thereby receiving an investment of $182.3 billion, said an analysis by Frost & Sullivan.

The report reveals that the pressure to lower greenhouse gas (GHG) emissions is compelling the Middle East—the United Arab Emirates, Saudi Arabia, Qatar, Oman, Kuwait, Bahrain, Iran, Iraq, Jordan, and Lebanon—to embrace renewable energy. It adds, the COVID-19 crisis has adversely impacted the renewable energy market through supply chain disruptions, delays in tendering processes, crashing oil prices, and government restrictions.

“Capabilities in solar are more pronounced compared to wind energy as most countries in the region fall under the Sun Belt,” said Saraswathi Venkatesan, Energy & Environment Research Analyst at Frost & Sullivan. “Going forward, with wind making less than 20 percent of the total renewable energy installed capacity by 2025, solar energy investments are relatively more attractive.”

Venkatesan added: “Qatar and Saudi Arabia are hubs of polysilicon production. Solar cell manufacturing and solar panel assembly are key areas to consider for investment. Going forward, in terms of value, solar PV investments are expected to contribute the most, at 67.4 percent of the opportunity size for the next five years, followed by solar CSP investments at 17.5 percent.”