The Middle-East solar power market is expected to grow at a CAGR of more than 10.02% over the period of 2020 - 2025. Factors such as supportive government policies and increasing efforts to meet power demand using renewable energy sources and to decrease dependency on fossils are expected to be the significant contributors to drive the market. However, factors such as delays in large-scale solar projects and increasing focus on alternative energy sources are expected to hinder the growth of the market studied.
- Solar PV projects at utility-scale have been growing in the entire Middle-East, with massive acceptance in all counties. Many ambitious photovoltaic projects are lined up in the forecast period and are expected to drive the solar market in the coming years.
- The upcoming solar power projects along with the use of hybrid power solutions in this region can create immense opportunities for the solar power market in the near future.
- Saudi Arabia is expected to witness significant demand, owing to the number of on-going and upcoming projects over the forecast period.
Key Market Trends
Solar Photovoltaic (PV) Projects to Drive the Market
- In 2019, the Middle East Solar Industry Association (MESIA) announced that it expects at least USD 15 billion of solar power projects to enter operation in the region in the next five years.
- Further, in 2019, one of the world’s largest single-site photovoltaic (PV) solar plant, the 1.17GW Sweihan independent power project (IPP) in Abu Dhabi got commissioned.
- In early-2019, Abu Dhabi’s Emirates Water & Electricity Company announced a plan to construct a 2 GW solar project in Al Darah. The project is expected to be completed in 2022, driving the solar photovoltaic market in the forecast period.
- Moreover, in November 2019, under the fifth phase of Mohammad Bin Rashid Al Maktoum Solar Park, tender for construction of 900 MW capacity was secured by ACWA. The project is expected to be operational in phases starting from mid-2021.
- The electricity generation from solar energy has increased in Middle-East from 2.4 TWh in 2014 to 4.8 TWh in 2019. Therefore, upcoming projects are expected to increase further significantly in the forecast period.
- With several projects under construction or the tender phase in countries like Saudi Arabia, and the United Arab Emirates, considerable growth in the solar PV is expected to drive solar power market in Middle-East region over the forecast period.
Saudi Arabia to Dominate the Market
- The installed solar power capacity for Saudi Arabia in 2019 was 394.4 MW and is likely to increase in the coming years. Also, the solar photovoltaic installed capacity for Saudi Arabia in 2019 was 344.4 MW.
- In 2018, the ambitions of Saudi Arabia’s National Renewable Energy Program (NREP) were substantially increased with a 5-year target of 27.3GW and a 12 years target of 58.7 GW, including 40 GW of PV and 2.7 GW of CSP.
- On April 8th, 2020, The Ministry of Energy has issued the “Request for Proposals” (RFP) for round three ‘Category B’. Round Three is comprised of four Solar PV projects with a combined generation capacity of 1,200 megawatts (MW). The projects, which are located on four sites in the central region of the Saudi Ariba.
- The Ministry of Energy, through the National Renewable Energy Program, has pre-developed and tendered 2,170 MW of renewable energy capacity in the Saudi Ariba, of which 700 MW was awarded in 2019 and a further 1,470 MW will be awarded in 2020.
- Therefore, based on the above-mentioned facts, Saudi Arabia is expected to witness significant demand for the solar power market in Middle-East region over the forecast period.
The Middle-East solar power market is moderately fragmented. Some of the key players in this market include JinkoSolar Holding Co. Ltd, First Solar Inc, Enerwhere Sustainable Energy DMCC, ACWA POWER BARKA SAOG, and Alsa Solar Systems LLC.
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