Some of the key highlights from the report “Renewables, Hydrogen and Energy Storage developments in the MENA region” published by Dii Desert Energy are:
• The deployment of renewable energy in the MENA region is accelerating at an unprecedented pace, driven by the competitiveness of solar and wind technologies. The region’s operational capacity has surged to 43.7 GW, with 34.5 GW coming from solar PV and 7.4 GW from wind.
• The current project pipeline has surged to 202 GW, a figure that already exceeds the 165 GW baseline of our ‘Conservative’ scenario and nearly matches the region’s aggregated 2030 ambition of 235 GW (‘Balanced’ scenario). While execution challenges remain, the massive volume of announced capacity means the implementation gap has narrowed significantly to just 33 GW. Under a “Green Revolution” scenario, the region has the potential to reach 290 GW by 2030.
• More record low prices were achieved with projects awarded at prices below 1 EUR cent/kWh1: the Najran PV project was awarded at 1.09 USDcent/kWh. The Dwadmi Wind project in KSA was awarded at 1.33 USDcent/kWh
• UAE continues to set global benchmarks, most notably by starting construction on a 5.2GW solar park coupled with 19 GWh of battery storage to deliver 1 GW baseload renewable power, developed by Masdar in partnership with EWEC. The UAE has grown its operational capacity to reach 7.5 GW (from 6.2 GW in 2024), a momentum reinforced by a newly increased national target of 22 GW by 2031.
• A powerful new demand driver has emerged with the rise of AI. Data centers are positioning themselves as the region’s “super offtakers,” creating a symbiotic relationship where their massive, long-term energy requirements directly unlock financing and bankability for giga-scale renewable developments.
• For hydrogen, the initial surge of announcements has settled into a phase of rationalization. While the project pipeline has grown to 127 active projects, the pace of execution has slowed significantly. Only 5 major projects have reached financial close or the construction phase, most notably the NEOM Green Hydrogen Project.
• While official 2030 production targets of approximately 10 Mtpa remain in place, execution has not matched ambition. Many early-stage ventures face indefinite delays due to high financing costs, regulatory fragmentation and the absence of secured offtake.
• From a base of approximately 25 GWh in 2025, the region’s operational storage capacity is projected to expand six-fold by 2030, reaching over 156 GWh. A key driver is the fact that national grids are being prepared for large % of renewable energy over the coming years.
• Battery technologies have emerged as the dominant energy storage solution, currently capturing 50% of the operational market, followed by Thermal Energy Storage at 37% and Pumped Hydro (PHES) at 13%. This trend is set to accelerate: by 2030, Battery Energy Storage Systems are projected to increase their share to 73% of the region’s total capacity.
Access the report here