Dii Desert Energy, an energy transition think tank in the Mena region, has identified a definitive breakthrough: the region has officially entered an exponential phase of renewable energy deployment.
While it took five
years for the region’s installed renewable capacity to grow from roughly 14GW
in 2020 to 30 GW in 2024, the market surged in 2025, adding nearly 15GW of new
capacity in just 12 months, according to its annual report, Mena Energy
Outlook 2026 – Renewables, Hydrogen and Energy Storage Insights 2030.
Key findings indicate
that the region added nearly 15GW of capacity in 2025 alone—a massive leap
compared to the growth recorded between 2020 (14GW) and 2024 (30GW).
The report also
highlights a sharp surge in the project pipeline, which has reached a total of
202 GW, surpassing the ‘Balanced Transition’ scenario of 165GW forecast in the
previous edition.
This represents
significant acceleration, with the identified pipeline growing by 54 per cent
from the 131 GW recorded just one year earlier.
In addition, the UAE
has further consolidated its position as a renewable energy leader, ranking
second in the region with 7.5GW of operational capacity.
This leadership is
underpinned by ambitious plans to reach 22GW by 2031 and world-record
execution.
Masdar, in partnership
with EWEC, is developing a 5.2GW solar park integrated with 19GWh of battery
storage—the largest and most technologically advanced system of its kind and a
world-first breakthrough in delivering clean, around-the-clock power at
giga-scale.
The key findings of
the report were launched at the World Future Energy Summit.
Sharif Al Olama,
Undersecretary for Energy and Petroleum Affairs, Ministry of Energy and
Infrastructure, said,: “In light of the dual challenges of climate change and
energy security, a rapid and sustained scale-up of renewable energy is no
longer optional — it is essential. The UAE recognised this early, and we have
committed to tripling our renewable energy capacity by 2030, strengthening our
ambition by increasing the renewable energy target from 14.2 gigawatts to a
clear target of more than 22 gigawatts of installed renewable energy capacity,
including solar, concentrated solar power (CSP), wind, and waste-to-energy
within the next five years.”
He added: “As we
accelerate this transformation, access to reliable, high-quality data and
forward-looking analysis becomes critical to sound policymaking, investment
decisions, and regional coordination. In this context, the Mena Energy Outlook
2026 provides valuable and timely insights into the trends, risks, and
opportunities shaping the energy future of our region, supporting
evidence-based decisions as we build a more secure, resilient, and sustainable
energy system.”
Cornelius Matthes, CEO
of Dii Desert Energy, said: “2025 can be
described as a breakthrough year for the energy transformation in the Mena
region, with an unprecedented surge in new capacity for both solar PV, wind and
BESS, all purely driven by market factors with the lowest prices globally.”
Mohammed Al Ramahi,
CEO of global clean energy leader, Masdar, said: “The MENA Energy Outlook 2026
clearly shows that the region has reached a decisive inflection point. The
acceleration of renewable energy deployment now underway demonstrates the
potential of renewables to outperform conventional energy on cost, speed of
deployment, resilience, and returns. This reinforces MENA’s position as global
leader in delivering affordable, scalable clean energy, while supporting energy
security and long-term economic growth.” -TradeArabia News Service