According to the MEED Insights’s report, in the H1 of 2021, the Middle East and North Africa (MENA) countries were given $2.8 billion renewable energy projects in comparison to no contract given for gas or oil-fueled power stations.
As per the report, between 2017 to 2020, the average value of contract awards for gas or oil-fueled power stations was $4.8 billion every year. In 2020, $6.2 billion were awarded to these stations. Now, the goal is reducing emissions and using more renewables in the MENA region.
With 21 GW of hydropower, MENA has renewable energy capacity of 28 gigawatts (GW) installed. Now UAE and Saudi Arabia who are giant oil producers and exporters are planning to install solar power capacity in the future.
In the MENA countries, green hydrogen is now a new trend. Renewable energy of around 98 GW is planned to be added in the MENA region and nearly 39 GW will come online in this decade.
The Middle East is the biggest oil-exporting region across the globe and now it has set the goal of becoming a major exporter of green hydrogen. Hydrogen is the future of energy as it lowers carbon emissions and as the market leader of crude oil, the Middle East would not miss such an opportunity.
In particular, tapping the region’s abundant supply of low-cost solar energy to sustainably produce green hydrogen from water is generating huge interest from governments and investors.
As per the report, the world’s largest and cheapest solar projects are in Saudi Arabia, Abu Dhabi, and Dubai.
Governments must ensure adequate power and water to meet the needs of rising populations and expanding economies.