The Middle East and North Africa (MENA) region is poised to significantly expand its solar manufacturing capacity, aiming to reach 44 gigawatts (GW) by 2029, according to projections by Wood Mackenzie. This ambitious target reflects the region’s commitment to harnessing its abundant solar resources and transitioning towards a more sustainable energy future.
MENA’s Solar Ambitions
The MENA region has witnessed substantial growth in solar energy deployment. As of 2024, the region’s solar capacity reached 24 GW, marking a 25% year-on-year increase. This growth is predominantly concentrated in countries like Saudi Arabia, the United Arab Emirates (UAE), and Egypt, which collectively account for over 80% of the region’s solar capacity.
Despite this progress, solar power still represents a small fraction of MENA’s overall energy mix, with fossil fuels dominating at 87%. However, the region’s high solar irradiance exceeding 2,000 kWh per square meter annually positions it uniquely to capitalize on solar energy.
Key Players Driving Solar Manufacturing Growth
Saudi Arabia: Leading the Charge
Saudi Arabia is at the forefront of MENA’s solar expansion. The kingdom’s largest project, the 2.06 GW solar power complex in Al-Shuaibah, is set to be operational by the end of 2025. Developed jointly by ACWA Power and Badeel, this $2.2 billion facility exemplifies Saudi Arabia’s commitment to renewable energy.
Saudi Arabia’s Public Investment Fund (PIF) and its partners are constructing five projects with a combined capacity of 8 GW, investing over $6 billion. These initiatives are part of the kingdom’s broader strategy to develop a robust green energy ecosystem, including ventures into green hydrogen production.
Morocco A Solar Pioneer
Morocco has been a trailblazer in solar energy within the MENA region. The Noor Ouarzazate Solar Complex, comprising 510 MW of concentrated solar power (CSP) and 135 MW of photovoltaic (PV) capacity, stands as a testament to the country’s renewable energy ambitions.
The complex’s innovative design includes energy storage capabilities, allowing it to supply electricity even during non-sunny periods. Morocco’s strategic investments have positioned it as a leader in North Africa’s solar landscape.
Egypt Scaling Up Rapidly
Egypt’s Benban Solar Park, with a total capacity of 1.65 GW, ranks among the world’s largest solar installations. Located in the Aswan Governorate, the park contributes approximately 3.8 TWh annually, bolstering Egypt’s renewable energy portfolio.
The country’s focus on large-scale solar projects underscores its commitment to diversifying its energy sources and reducing reliance on fossil fuels.
Challenges and Opportunities Ahead
While MENA’s solar manufacturing prospects are promising, several challenges persist. The region’s solar component manufacturing capacity, estimated at over 3 GW by the end of 2024, still relies heavily on imports, particularly from China.
Economic factors, including unfavorable exchange rates and the dominance of established fossil fuel infrastructures, hinder the rapid expansion of renewable energies. Additionally, the limited availability of skilled personnel and supply chain constraints pose obstacles to scaling up local manufacturing.
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Initiatives like the Desertec concept aim to address these challenges by promoting trans-Mediterranean energy cooperation. By exporting green electricity, North African countries can balance their trade deficits and invest in developing local supply chains for energy technology.
Reaching the 44 GW solar manufacturing capacity by 2029 will require coordinated efforts across key sectors:
- Policy Alignment: Harmonizing regulations across MENA countries to facilitate cross-border collaborations and investments.
- Infrastructure Development: Investing in grid infrastructure to accommodate increased solar capacity and ensure stability.
- Capacity Building: Enhancing local expertise through training programs and educational initiatives to support the growing solar industry.
- Financial Incentives: Implementing subsidies and tax incentives to attract private sector investments and reduce reliance on imports.
By addressing these areas, MENA can not only achieve its solar manufacturing goals but also emerge as a global leader in renewable energy.
