MENA Crosses 43.7 GW Milestone As Region Accelerates Toward A Renewable Energy Future

The energy landscape in the Middle East and North Africa region is changing at a record pace as renewable power continues to expand rapidly. According to the latest MENA Energy Outlook 2026, the region’s operational renewable capacity reached 43.7 GW by the end of 2025, showing a sharp 44 percent growth within a single year. Solar power is the main driver of this progress, with 34.5 GW installed, supported by 7.4 GW of wind power that has also grown steadily.

Saudi Arabia has taken the lead in this transformation by tripling its installed renewable capacity in just one year to reach 11.7 GW. The Kingdom has also set new global benchmarks for low-cost clean energy. The Najran solar project recorded a tariff of 1.09 US cents per kWh, while the Dwadmi wind project achieved 1.33 US cents per kWh, creating new global records. These extremely competitive prices have made giga-scale renewable projects common across the region and have encouraged more investment from both public and private sectors.

The United Arab Emirates continues to be a strong performer with 7.5 GW of operational capacity. It has also developed the world’s first gigascale round-the-clock renewable energy project by combining a massive 5.2 GW solar plant with 19 GWh of battery storage. Other countries like Oman and Qatar have also doubled their renewable capacity in 2025 due to major solar projects that came online during the year.

While renewable power is expanding quickly, the hydrogen sector is moving more slowly as it enters what experts call a rationalization phase. The region has 127 active hydrogen projects in the pipeline, but only five have reached construction, including the large-scale NEOM Green Hydrogen Project. High financing costs and the lack of confirmed buyers continue to slow progress toward achieving the target of producing 10 million tonnes per year by 2030.

Energy storage has become a key area of focus as countries prepare their grids for more renewable power. Battery Energy Storage Systems now account for half of the operational storage capacity and are expected to grow six times to reach 156 GWh by 2030. Saudi Arabia again stands out by installing 10,400 MWh of standalone BESS capacity in 2025. Pumped hydro storage also remains important, with the UAE’s Hatta project and large-scale plans in NEOM aimed at delivering reliable long-duration power.

The overall picture shows that the MENA region is emerging as a major global clean energy powerhouse. With some of the lowest-cost renewable power in the world and a project pipeline of 202 GW, the region is moving confidently toward meeting its 2030 sustainability goals.