According to the recent report by Arab Petroleum Investments Corporation, total 2021-25 MENA energy investments register a modest increase of just USD13 billion over last year’s 5-yr outlook – from USD792 billion to USD805 billion – a clear indication of the magnitude of the 2020 crisis’ impact across MENA despite the region’s relative resilience. Power sector investments in MENA are expected to continue to flourish, characterized by an accelerating shift towards renewables. Collectively, the region is expected to add 3 GW of solar power in 2021, double the estimated 1.5 GW added in 2020, and nearly 20 GW over the next five years. However, given the intermittency of renewables and the lack of utility-scale grid storage solutions to date, fossil fuels and nuclear will remain indispensable in the power supply mix in the foreseeable future.
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