Middle East and Africa Renewable Energy Market Size 2026-2030
The middle east and africa renewable energy market size is valued to increase by USD 22.54 billion, at a CAGR of 9.7% from 2025 to 2030. Government mandates for economic diversification and energy security will drive the middle east and africa renewable energy market.
Major Market Trends & Insights
- By End-user - Residential segment was valued at USD 23.04 billion in 2024
- By Type - Hydropower segment accounted for the largest market revenue share in 2024
Market Size & Forecast
- Market Opportunities: USD 34.58 billion
- Market Future Opportunities: USD 22.54 billion
- CAGR from 2025 to 2030 : 9.7%
Market Summary
- The renewable energy market in Middle East and Africa is undergoing a profound transformation, driven by ambitious national agendas for economic diversification and energy security. This shift is enabled by the rapidly declining levelized cost of energy (LCOE) for solar photovoltaic (PV) technology and utility-scale wind farms, making renewables the most economically viable source of new power generation.
- Key trends include the strategic development of green hydrogen production facilities to create a new clean energy export economy and the mainstreaming of battery energy storage systems (BESS) to manage renewable energy intermittency and enhance grid stability services.
- For instance, a multinational mining company operating in a remote area might deploy a hybrid renewable asset with off-grid solar solutions and BESS.
- This provides a reliable, low-cost power source, reduces its carbon footprint by over 60%, and insulates its operations from volatile fuel prices and unreliable grid supply, showcasing a direct application of renewables to enhance operational efficiency and meet corporate sustainability agendas.
- This market-driven ecosystem is further supported by growth in corporate renewable procurement through power purchase agreements (PPA) and investment in critical energy transmission infrastructure.
What will be the Size of the Middle East and Africa Renewable Energy Market during the forecast period?
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How is the Middle East and Africa Renewable Energy Market Segmented?
The middle east and africa renewable energy industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2026-2030, as well as historical data from 2020-2024 for the following segments.
- End-user
- Residential
- Industrial
- Commercial
- Type
- Hydropower
- Wind
- Solar
- Others
- Application
- Electricity generation
- Heating and cooling
- Transportation
- Industrial processes
- Geography
- Middle East and Africa
- UAE
- Saudi Arabia
- Israel
- Middle East and Africa
By End-user Insights
The residential segment is estimated to witness significant growth during the forecast period.
The residential segment is expanding beyond basic energy provision, driven by a blend of economic incentives and policy support for decentralized energy resources.
Widespread adoption of rooftop solar is supported by frameworks like net metering, while off-grid solar solutions are crucial for rural electrification programs and ensuring broader energy access solutions.
Supportive government initiatives, often through public-private partnerships, are lowering entry barriers, with standardized permitting processes reducing project approval timelines by over 40% in some municipalities.
This growth also stimulates demand for ancillary technologies such as solar water heaters and residential electric vehicle charging infrastructure, aligning with national goals for sustainable urban development and improved energy efficiency solutions.
The Residential segment was valued at USD 23.04 billion in 2024 and showed a gradual increase during the forecast period.
Market Dynamics
Our researchers analyzed the data with 2025 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
- A comprehensive analysis of the renewable energy market in Middle East and Africa reveals deep-seated complexities beyond simple capacity additions. A critical focus is the impact of intermittency on grid management, where the role of BESS in frequency regulation is becoming paramount for system stability.
- The economics of utility-scale solar projects are increasingly favorable, but success hinges on navigating policy frameworks for renewable investment and securing long-term offtake agreements. Simultaneously, the push for green hydrogen for industrial decarbonization is reshaping industrial strategy, though it introduces new challenges in cross-border energy transmission.
- Integrating VRE into legacy power grids remains a significant operational hurdle, forcing a reevaluation of grid architecture. Financial models for corporate PPA are evolving to de-risk investments, while applications like solar PV for off-grid communities address energy access goals.
- Niche technologies are also proving their value, with CSP for high-temperature industrial heat and agrivoltaics for dual land-use strategy offering tailored solutions. Geothermal as a baseload power source and waste-to-energy for urban waste management provide dispatchable renewable options. Strategic initiatives focus on decoupling power generation from water consumption, a crucial issue in the region.
- For developers, understanding strategies for reducing LCOE in wind power and assessing offshore wind potential in coastal regions is key. Operational excellence is pursued through innovations like robotic cleaning for desert solar farms, which can improve plant efficiency by over 5% compared to manual methods.
- Ultimately, robust risk management in renewable project finance, addressing supply chain vulnerabilities for turbine manufacturing, and developing skilled labor for renewable O&M are foundational to sustainable growth.
What are the key market drivers leading to the rise in the adoption of Middle East and Africa Renewable Energy Industry?
- Government mandates for economic diversification and enhanced energy security are the key drivers of market growth.
- Economic diversification mandates and the need for energy security enhancement are primary drivers, accelerated by the compelling economics of solar photovoltaic (PV) technology.
- Competitive auctions have pushed the levelized cost of energy (LCOE) down by over 80% in the past decade, making renewables the most cost-effective new generation source.
- This has fueled a surge in corporate renewable procurement, with businesses leveraging long-term power purchase agreements (PPA) to meet environmental social governance (ESG) goals and ensure cost stability.
- This corporate demand, now accounting for over 20% of new capacity, complements national strategies for the decarbonization of industry and attracts significant green finance, aligning with global climate change mitigation efforts.
What are the market trends shaping the Middle East and Africa Renewable Energy Industry?
- The market is shaped by a strategic pivot toward green hydrogen production, leveraging renewable energy to create a carbon-free, exportable energy carrier.
- A defining trend is the pivot toward integrated energy systems, where hybrid renewable assets combining utility-scale wind farms and solar are paired with battery energy storage systems (BESS). This approach improves grid reliability by over 25% by mitigating intermittency.
- The mainstreaming of BESS facilitates a more effective energy arbitrage mechanism, increasing asset revenue by up to 15% by shifting power to peak demand periods. This trend supports ambitious energy transition strategies, including large-scale green hydrogen production and green ammonia synthesis for clean energy export.
- Furthermore, innovations like solar-powered district cooling are becoming integral to sustainable industrial development, creating a more dynamic, market-driven ecosystem for renewables.
What challenges does the Middle East and Africa Renewable Energy Industry face during its growth?
- Inadequate grid infrastructure and difficulties in managing intermittency present key challenges to the industry's growth trajectory.
- Significant challenges stem from managing renewable energy intermittency and the limitations of existing energy transmission infrastructure. The integration of high-penetration variable renewable energy (VRE) into legacy grids strains stability, leading to curtailment rates exceeding 10% for some projects without adequate grid curtailment mitigation strategies.
- Upgrading to smart grid technologies and building out high-voltage transmission lines are critical for connecting remote generation sites to demand centers but require investments representing up to 30% of total project costs. Ensuring supply chain resilience for key components and developing ancillary grid services are essential for building a resilient power infrastructure capable of supporting the energy transition.
Exclusive Technavio Analysis on Customer Landscape
The middle east and africa renewable energy market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the middle east and africa renewable energy market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape of Middle East and Africa Renewable Energy Industry
Competitive Landscape
Companies are implementing various strategies, such as strategic alliances, middle east and africa renewable energy market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
Acciona SA - Key offerings focus on sustainable infrastructure and primary clean energy solutions, including wind and solar PV, to support a decarbonized economy.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
- Acciona SA
- Acwa Power Co.
- AKUO ENERGY SAS
- AMEA Power
- Electricite de France SA
- Enerwhere Sustainable Energy
- ENGIE SA
- Masdar
- MVV Energie AG
- Saudi Arabian Oil Co.
- Siraj Power Contracting LLC
- Solarwind M.E.
- SunPower Corp.
- Vestas Wind Systems AS
- Yellow Door Energy
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Recent Development and News in Middle east and africa renewable energy market
- In September, 2024, Saudi Basic Industries Corp. (SABIC) commissioned its first pilot-scale green ammonia plant in Jubail, powered by a direct feed from a solar park to produce low-carbon ammonia for specialty fertilizers.
- In January, 2025, the government of the Democratic Republic of Congo announced the final investment decision for the 4.8-gigawatt Inga III Basse Chute hydropower project, with a significant portion of its output designated for export to South Africa.
- In February, 2025, Kenya Geothermal Development Co. (GDC) confirmed the commercial viability of a new geothermal field in the Baringo-Silali block, proving a steam resource capable of supporting an initial 150 megawatts of power generation.
- In April, 2025, Masdar finalized its acquisition of Greek renewable energy firm Terna Energy, a landmark transaction that is a critical step in its plan to achieve a global renewable energy portfolio of 100 gigawatts by 2030.
Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Middle East and Africa Renewable Energy Market insights. See full methodology.
| Market Scope | |
|---|---|
| Page number | 215 |
| Base year | 2025 |
| Historic period | 2020-2024 |
| Forecast period | 2026-2030 |
| Growth momentum & CAGR | Accelerate at a CAGR of 9.7% |
| Market growth 2026-2030 | USD 22537.3 million |
| Market structure | Fragmented |
| YoY growth 2025-2026(%) | 8.9% |
| Key countries | UAE, Saudi Arabia, Israel, Oman and Rest of MEA |
| Competitive landscape | Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Research Analyst Overview
- The renewable energy market in Middle East and Africa is defined by a rapid transition toward a diversified and technologically advanced energy mix. Boardroom decisions are increasingly influenced by the need to integrate variable renewable energy (VRE) sources like solar photovoltaic (PV) technology and utility-scale wind farms.
- This necessitates significant investment in grid stability services and smart grid technologies to manage renewable energy intermittency and enable effective grid curtailment mitigation. The deployment of battery energy storage systems (BESS) and pumped hydro storage is becoming standard for energy arbitrage mechanism and providing ancillary grid services, with some hybrid renewable assets achieving a 20% improvement in dispatchability.
- Strategic development includes large-scale green hydrogen production and green ammonia synthesis, powered by dedicated onshore wind resources and advanced bifacial solar modules on single-axis solar trackers. Projects are secured via corporate renewable procurement through power purchase agreements (PPA), driven by a competitive levelized cost of energy (LCOE). This shift supports the decarbonization of industry and the expansion of electric vehicle charging infrastructure.
- The energy-water nexus is addressed through solar-powered district cooling, waste-to-energy plants, solar water heaters, and enhanced energy efficiency solutions. To connect remote generation, upgrades to energy transmission infrastructure, including high-voltage transmission lines and cross-border interconnectors, are critical.
- The market is also seeing growth in decentralized energy resources, including off-grid solar solutions and geothermal power generation, ensuring the supply of baseload renewable power.
What are the Key Data Covered in this Middle East and Africa Renewable Energy Market Research and Growth Report?
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What is the expected growth of the Middle East and Africa Renewable Energy Market between 2026 and 2030?
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USD 22.54 billion, at a CAGR of 9.7%
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What segmentation does the market report cover?
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The report is segmented by End-user (Residential, Industrial, and Commercial), Type (Hydropower, Wind, Solar, and Others), Application (Electricity generation, Heating and cooling, Transportation, and Industrial processes) and Geography (Middle East and Africa)
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Which regions are analyzed in the report?
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Middle East and Africa
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What are the key growth drivers and market challenges?
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Government mandates for economic diversification and energy security, Inadequate grid infrastructure and intermittency management
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Who are the major players in the Middle East and Africa Renewable Energy Market?
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Acciona SA, Acwa Power Co., AKUO ENERGY SAS, AMEA Power, Electricite de France SA, Enerwhere Sustainable Energy, ENGIE SA, Masdar, MVV Energie AG, Saudi Arabian Oil Co., Siraj Power Contracting LLC, Solarwind M.E., SunPower Corp., Vestas Wind Systems AS and Yellow Door Energy
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Market Research Insights
- The market's dynamics are shaped by strong economic diversification mandates and national energy transition strategies aimed at long-term energy security enhancement. These initiatives attract significant green finance, supported by public-private partnerships that facilitate large-scale projects aligned with national decarbonization targets.
- The focus on sustainable industrial development is evident, with corporations adopting stringent environmental social governance (ESG) criteria and corporate sustainability agendas. This has led to a rise in long-term energy contracts, creating a market-driven ecosystem where low-carbon manufacturing is a competitive advantage. For instance, integrated renewable projects show a 25% faster alignment with circular economy principles than standalone assets.
- Furthermore, regional energy integration and resilient power infrastructure are key to climate change mitigation and achieving sustainable urban development goals. Innovations in clean energy export, such as carbon-free marine fuel, are gaining traction, while rural electrification programs expand energy access solutions.
- Firms that leverage technological innovation in renewables report up to a 15% higher success rate in securing contracts under new local content requirements.
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