Middle East's Solar Power Boom: 22.4GW by 2023
The Middle East is experiencing a solar power boom, thanks to the removal of fuel subsidies and increased institutional support. By 2023, Saudi Arabia, Bahrain, Jordan, Oman, and the UAE are expected to install over 22.4 gigawatts of solar capacity, fostering a thriving local industry.
The shift towards solar power is driven by the falling oil prices, which has prompted regional governments to rethink their subsidy programs. In Jordan, for instance, the removal of fuel subsidies has led to the growth of the local solar industry. The region's high natural potential for solar energy, coupled with the right policy environment, is expected to drive further growth.
Artificially low retail tariffs have previously disincentivized behind-the-meter solar development. However, with fuel subsidies totaling nearly $150 billion in 2015, and Saudi Arabia accounting for 72% of this, governments are increasingly recognizing the need to shift towards renewable energy. More than 8 gigawatts of utility-scale solar projects are expected in the Gulf in 2018, reflecting this trend.
The Middle East is home to some of the most attractive markets for new-build solar in the world. With significant investment in solar power, the region can reduce its reliance on fossil fuels, lower energy costs, and create new job opportunities. The expected growth in the utility-scale solar battery storage market in Saudi Arabia, valued at $19.14 billion, is a testament to the region's commitment to solar power.
Read also:
- Saudi Arabia's TASI Surges Past 11,000, Leading Gulf Equities Rally
- Quantum Computing Market in the Automotive Sector Forecast to Expand to $6,462.13 Million by 2034
- Texas finalizes 1.8 billion dollars for the construction of solar, battery, and gas-fueled mini-grids
- EU Outlines VAT in the Digital Age (ViDA) Implementation Plan
