The International Renewable Energy Agency (IRENA) said that the Middle East and North Africa (MENA) region could produce approximately 26% of its total primary energy supply from renewables by 2050.
This came in IRENA’s World Energy Transitions Outlook (WETO), which revealed a strong trend in MENA towards adopting renewable energy solutions, in conjunction with the region’s continued efforts to achieve transformation in this field.
The report indicated that the potential share of renewables could reach 53% of MENA’s energy sector.
The IRENA estimated that hydrogen could meet up to 12% of global energy demand by 2050, with the Middle East as its main supplier.
The entire flight to renewables will have a widespread impact also on the technology sector, according to consultants Frost & Sullivan.
Frost & Sullivan predicts that the solar and hybrid energy sector in the region will grow by $980m by 2025. It is further expected that the overall trend towards renewable energy sources will have a broad impact on the technology sector.
Moreover, Frost & Sullivan predicted great growth opportunities will emerge for emerging technologies to meet the requirements of the high demand for renewable energy solutions.
The expectations are that the distributed solar photovoltaic energy sector will account for $530-550m of potential investments in the technology sector in the Middle East alone and that the renewable hybrid energy systems technologies sector will acquire $400-430m of that investment over the next two years.
The IRENA highlighted its optimistic outlook which reflects advanced and ambitious investment and diversification plans in the energy sector in the region, driven by growing demand for energy, boosting economic growth, and a desire to increase social and economic benefits and achieve carbon neutrality goals.
“Aspirations differ between countries, as well as the size of the market and readiness, but it can be said that the general scene is witnessing rapid changes,” the agency added.
“ We believe that the region will intensify its efforts in the field of renewable energy sources to fulfil the commitment of the Paris Agreement on achieving carbon neutrality and its own ambitions in the energy transition. The current level of renewable energy capacity is still much lower than the levels planned by countries of the region, despite recent progress that has been made in renewable energy sources. However, expectations indicate faster progress in the future.”