The Middle East and Africa (MEA) renewable energy market is set to expand by USD 17.28 billion from 2023 to 2028, growing at a CAGR of 8.88%, fueled by the rising energy demand and increasing adoption of clean energy technologies. Countries across the region are leveraging their natural resources—sunlight, wind, rain, tides, waves, and geothermal heat—to reduce greenhouse gas (GHG) emissions, enhance energy security, and diversify from traditional fossil fuel-based energy.
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The MEA region is experiencing rapid urbanization, population growth, and industrialization, placing immense pressure on energy infrastructure. Governments are shifting toward renewable energy to meet this growing demand while curbing GHG emissions. Notable examples include the Noor Abu Dhabi solar facility, the largest single-site solar project in the world, and Egypt’s Benban Solar Park.
These projects reflect a broader regional strategy to decrease dependence on imported fossil fuels and reduce exposure to volatile oil markets. In addition to power generation, renewable projects are delivering co-benefits such as irrigation, clean drinking water, and flood control, further reinforcing their strategic importance.
Across MEA, the transition toward solar, wind, hydro, biomass, and geothermal energy is accelerating. Countries are investing in both on-grid and off-grid solutions to improve access and reliability. Among the landmark investments:
Morocco’s Noor Complex and Egypt’s Benban Solar Park for solar energy.
Oman’s 850 MW Wind Power Project highlighting regional interest in wind energy.
Saudi Arabia’s push into green hydrogen production as part of its broader clean energy strategy.
Off-grid solutions are also critical in remote areas, improving energy accessibility while minimizing power outages.
Despite the momentum, the MEA renewable market contends with competition from entrenched fossil fuels, which remain abundant and economically dominant in the region. Projects like the Barakah Nuclear Power Plant in the UAE and Ethiopia’s Grand Ethiopian Renaissance Dam (GERD) illustrate alternative paths being pursued alongside renewables.
Additionally, the high upfront cost of solar panels, wind turbines, and infrastructure limits accessibility, though long-term cost savings and emissions benefits continue to justify the investment for forward-looking governments and businesses.
Residential (largest growth segment)
Industrial
Commercial
The residential sector is leading demand for renewable energy across MEA. With rising energy consumption and significant environmental impacts such as air pollution and urban heat islands, households are increasingly adopting solar and wind systems. Integration of smart grids, electric vehicles (EVs), and distributed energy resources (DERs) is optimizing consumption and boosting energy independence.
The residential segment was valued at USD 16.57 billion in 2018, showing a steady upward trajectory through the forecast period.
Hydropower
Wind
Solar
Others
Solar energy remains the most dominant type due to the region’s abundant sunlight and ongoing investment in large-scale solar projects. Wind power is growing steadily, particularly in Oman and Egypt, while hydropower continues to be explored in countries with suitable terrain and water resources. “Others” include biomass, geothermal, and ocean energy, which are increasingly gaining interest as the region diversifies its clean energy portfolio.
The entire MEA region is the geographical focus of this renewable energy boom, characterized by:
United Arab Emirates: Investments in Noor Abu Dhabi, green hydrogen, and nuclear alternatives.
Egypt: Leading solar and wind initiatives including Benban Solar Park.
Morocco: Home to the expansive Noor Complex solar power facility.
Oman: Investing heavily in wind, with large-scale projects under development.
Saudi Arabia: Exploring advanced clean energy technologies including green hydrogen.
These countries are actively leveraging policy instruments such as feed-in tariffs and subsidy frameworks to attract private investment and drive the adoption of sustainable energy technologies.
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The Renewable Energy Market in the Middle East and Africa is witnessing dynamic growth, driven by increasing investments in diverse clean energy technologies. Solar power remains at the forefront, with widespread deployment of solar panels, photovoltaic cells, solar inverters, and battery storage solutions. Advancements in monocrystalline panels, polycrystalline panels, and thin-film panels, along with solar trackers, charge controllers, and power optimizers, are optimizing performance and energy yield. In the wind sector, installations of wind turbines, equipped with rotor blades, nacelle systems, pitch systems, yaw systems, and wind towers, are gaining traction, particularly in high-wind regions. Hydropower continues to play a vital role, utilizing hydropower turbines such as Francis turbines and Kaplan turbines, and leveraging pumped storage systems. Solar integration is further supported by advanced solar modules and grid infrastructure, including HVDC cables and grid stabilizers, which are critical for efficient energy transmission.
Companies are engaging in strategic partnerships, mergers and acquisitions, and regional expansions to strengthen their foothold in the MEA renewable energy sector. The market features a diverse mix of global giants and regional players:
Acciona SA
ACWA Power International
AKER HORIZONS
AKUO ENERGY SAS
AMEA Power
Electricite de France SA
Enel Spa
Enerwhere Sustainable Energy
ENGIE SA
IBC SOLAR AG
Masdar
MVV Energie AG
PV Technology Inc.
Saudi Arabian Oil Co.
Scatec ASA
Siraj Power Contracting LLC
SolarAfrica Energy Pty Ltd.
Solarwind M.E.
SunPower Corp.
Yellow Door Energy
These companies are classified based on qualitative and quantitative assessments into pure play, category-focused, industry-focused, and diversified business models, with performance ranging from dominant to weak depending on market penetration and growth strategies.
Analytical insights into the Middle East and Africa's renewable energy market reveal a growing diversification into geothermal and bioenergy sources. Geothermal developments are expanding with deeper geothermal wells, flash steam, and dry steam systems, alongside heat pumps that offer sustainable heating and cooling solutions. The bioenergy sector is supported by technologies like biomass boilers, biogas reactors, gasification systems, biofuel processors, and anaerobic digesters, which utilize organic waste for power generation. Wind energy optimization is enhanced through wind gearboxes, turbine bearings, and blade hubs, while hydropower efficiency is maintained through robust infrastructure, including penstock pipes and heat exchangers. Accurate energy tracking and regulation are facilitated by energy meters, smart inverters, and control systems, while monitoring systems ensure operational reliability across installations. This broad technological deployment positions the region for sustainable, long-term energy transformation.
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