Middle East Projected To Invest US$75 Billion In Renewable Energy By 2030

The Middle East is poised to attract US$75.63 billion in renewable energy investments by 2030, as highlighted in a recent report by the Energy Industries Council (EIC). This organisation is a major global trade association for companies providing goods and services to the energy sector. The investments cover 116 renewable projects tracked by the EICDataStream database, expected to commence between 2025 and 2030.

These projects encompass various renewable sources such as solar power, onshore wind, hydroelectricity, hydrogen production, carbon capture utilisation and storage (CCUS), geothermal energy, and battery and energy storage systems. Despite this growth in clean energy investments, the International Energy Agency indicates that only 20 percent of the Middle East's energy investments will go towards renewables. The majority of funds continue to support the oil and gas industry.

The region remains a significant player in hydrocarbon production due to its abundant gas reserves and competitive pricing. These factors are expected to sustain their importance as transitional energy sources. Aqilah Shahruddin, the report’s author, notes that while most spending targets oil and gas, there is a noticeable increase in cleantech projects involving hydrogen, solar, wind, and carbon capture technologies.

"Most spending is understandably going to oil and gas, but we are seeing cleantech projects in hydrogen, solar, wind, and carbon capture. So, it's a balancing act between producing clean energy and maintaining the region's dominance in the global hydrocarbon market," Shahruddin stated.

The dual strategy of investing in both renewable projects and traditional energy infrastructure highlights the complexity of the Middle East's transition. Forecasts from EIC suggest that while renewables are gradually being integrated into the energy mix, oil and gas will remain dominant for many years.

Ryan McPherson, EIC’s Regional Director for the Middle East and Africa, remarked on the significance of this transition: "The Middle East is a key focus for the EIC and the number of cleantech projects in the pipeline makes it more relevant for years to come." He emphasised their active role in supporting this shift through project data, reports, and industry events.

The ongoing investment in both renewable energies and traditional hydrocarbons reflects a strategic approach to maintaining regional influence while adapting to global energy trends. This balanced investment strategy aims to ensure that while clean technologies grow steadily, traditional resources continue to play a crucial role during this transitional phase.

With inputs from WAM