The Middle East is undergoing an energy revolution. Projections indicate that this trend will continue, with renewable power capacity reaching 21% of the region’s power mix by 2035. Industries, sectors and other major stakeholders are leading the transition to a more sustainable economy. Pioneering developers such as Acwa Power are at the forefront of driving solar photovoltaic (PV) technology costs downwards to historic lows.
As the region undergoes this energy transition, solar PV is projected to make up 18% of the region’s power mix. Acwa Power, a Saudi Arabian firm, has emerged as one of the world’s top renewable energy developers. More importantly, they help drive this growth by launching innovative, community-supported solar projects throughout the region. The continued commitment to solar energy runs deep in their power mix. It’s in line with the region’s stated aspiration to diversify its energy supply away from reliance on coal.
Beyond solar power, the Middle East is experiencing an extraordinary surge in low-carbon hydrogen capacity. Analysts predict a CAGR of 48% over about 84 projects from 2026-2030. This rapid growth is an encouraging sign that countries in the region are realizing the potential of low-carbon hydrogen. They understand it to be a key part of their state’s economic diversification efforts. Other countries are aggressively rolling out hydrogen-friendly policies to encourage this growth. This action will help the Middle East maintain its global competitiveness in the rapidly emerging hydrogen market.
Carbon capture, utilization, and storage (CCUS) technology are equally central to the region’s energy transition. Middle East’s CCUS capacity is about to skyrocket! It’s then set to continue growing at an even more impressive CAGR of 32% from 2026 – 2030, with a number of large-scale projects driving growth. Implementation of enhanced oil recovery techniques are rapidly shaping up to be a near-term CCUS-related revenue-generating opportunity for oil producers, while furthering the deployment of CCUS.
Energy storage technology, particularly battery storage, is quickly becoming another key pillar in the Middle East’s renewable energy transformation. As of now, most of this energy storage capacity is focused in Saudi Arabia, the United Arab Emirates and Israel. This technology is developing quickly. It will be a key component for managing the new imbalances introduced by the rapid growth of renewable generation.
The accelerating wave of electric vehicle (EV) adoption is another powerful driver shifting the region’s energy landscape. In 2024, EV penetration took off like a rocket. To counteract this trend, nations around the world are reconsidering their infrastructure and energy investments to facilitate the transition to a greener mode of transportation.
Furthermore, the Middle East is positioning itself as a hub for sustainable aviation fuel (SAF) production, with ten active and upcoming projects dedicated to enhancing SAF capacity. Production forecasts indicate that SAF production could reach 516 million gallons per year by 2030. This growth reflects the region’s commitment to pioneering and sustainable fuel alternatives.