Current Trends in the Middle Eastern Solar PV Market

Solar photovoltaic (PV) technology, in particular, is deemed critical in hitting energy targets. Globally, the cumulative solar PV capacity has grown exponentially since the 2000s. In 2023, the capacity has reached 1,624 GW, with about 447 GW of new PV installations in the said year alone.

The sun, the centre of the solar system, provides us with many benefits — light, warmth, and the energy needed to power our world. In the Middle East and around the globe, solar energy has become a pillar of many renewable energy strategies. 

Solar photovoltaic (PV) technology, in particular, is deemed critical in hitting energy targets. Globally, the cumulative solar PV capacity has grown exponentially since the 2000s. In 2023, the capacity has reached 1,624 GW, with about 447 GW of new PV installations in the said year alone.

What is PV? 

In a nutshell, PV is a technology that converts sunlight into electricity using a special electrical system. 

It comes in various configurations, one of which is those rooftop installations used by residential and commercial properties. Another is those large solar farms that are connected to the grid. This utility-scale application helps power larger communities. There are also off-grid applications, which refer to independent systems for remote or rural areas.

The International Energy Agency (IEA) reports that solar PV, together with wind, could account for 95% of global renewable expansion by 2028.

The Middle East’s potential 

The Middle East, being a region blessed with high solar irradiance, brims with much potential for solar energy. 

Receiving over 2,000 kWh/m² annually in solar irradiation and benefiting from an 89% drop in solar generation costs since 2010, the region could leverage this abundant natural resource to become a global leader in renewable energy. 

According to the Middle East Solar Industry Association (MESIA)’s 2024 Solar Outlook Report, the Middle East and North Africa (MENA) region is expected to reach 40 GW solar capacity in 2024 and 180 GW by 2030. Solar capacity in the region grew by 23% last year, reaching 32 GW. Saudi Arabia, Türkiye, Egypt, the UAE, Oman, and Morocco are leading the growth, and these countries are projected to account for over two-thirds of the region's solar capacity by 2030. 

Large-scale utility and offshore innovations

Positioning itself as a solar energy leader, the Middle East is embarking on various endeavors to advance solar energy. One of the most prominent is the implementation of large-scale utility projects.

On this front, Saudi Arabia is leading the charge. Under its National Renewable Energy Programme, it aims to tender 20 GW annually. The country’s long-term goal is to achieve between 100 GW and 130 GW of solar capacity by 2030.

Earlier in June, the Saudi Power Procurement Company (SPPC) signed power purchase agreements (PPAs) for 5.5 GW of new solar PV projects. 

Meanwhile, the UAE is home to the Mohammed bin Rashid Al Maktoum Solar Park, which has a current capacity of 2.6 GW, with the aim of hitting 5 GW by 2030. The solar park employs both PV and concentrated solar power (CSP) technologies.

Exploring offshore PV systems is also an emerging trend, with the Dubai-based Floating Man unveiling a floating structure for offshore PV. 

In January, the startup announced that it had developed a new offshore floating solar system, currently under negotiation for deployment. The system is designed to endure in open sea conditions, capable of withstanding winds up to 160 km/h and lasting for 30 years. It covers an area large enough to accommodate 200 solar modules and includes a patented offshore floating breakwater for additional protection.

Manufacturing and localisation

Both Saudi Arabia and the UAE are also at the forefront of localising solar manufacturing in the region. 

In July, Saudi Arabia inked two major deals for a total of 30 GW of domestic production capacity. The agreements, which involve Chinese manufacturers JinkoSolar and TCL Zhonghuan Renewable Energy, aim to produce everything from ingots to modules locally. 

These joint ventures, involving the Saudi Public Investment Fund (PIF), Renewable Energy Localisation Company (RELC), and Vision Industries (VI), underscore a strategic push to localise 75% of renewable energy components by 2030 as part of Saudi Arabia’s National Renewable Energy Programme.

In the UAE, solar manufacturer GCL Tech also plans to build a polysilicon facility. In May, the company said it is keen to explore collaboration with Mubadala Investment Company, a sovereign wealth fund in the UAE, to develop a silicon ecosystem in the country. The highly purified form of silicon is a key component in the creation of solar cells. 

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