MENA Set For Solar And Energy Storage Boom By 2060 – DNV

The Middle East and North Africa (MENA) region is set for a major transformation in its energy sector, driven by a rapid shift toward renewable energy. According to a report by energy expert DNV, the region is expected to see a tenfold increase in installed energy storage capacity by 2030. This growth is closely linked to the expansion of solar power, which is leading the clean energy transition across the Gulf.

Historically known for oil and gas, the MENA region is now realizing the economic advantages of renewable energy. DNV projects that by 2040, the region will add around 860GW of solar photovoltaic capacity, a twelvefold increase from current levels. Despite this significant growth, gas-fired power will continue to play a role until about 2040, as electricity demand is expected to triple by 2060. This increase is driven initially by cooling and desalination needs, and later by electric vehicles and green hydrogen development.

Energy storage is a key element of this transition. Currently, the MENA region has about 36GWh of storage, but this is expected to rise dramatically to nearly 9.5TWh by 2060. This would make the region responsible for about 12% of the world’s total energy storage, up from just 1.4% today. The expansion is supported by falling costs of lithium-ion batteries and the growing trend of combining storage with large-scale solar farms. These hybrid systems enable a continuous supply of clean energy, ensuring grid stability even as renewable generation increases.

Several major projects already illustrate this commitment. In the United Arab Emirates, a $5.9 billion project is underway that will combine 5.2GW of solar capacity with 19GWh of battery storage. Saudi Arabia and Egypt are also pursuing gigawatt-scale initiatives, with Saudi Arabia recently commissioning some of the world’s largest standalone battery systems to support the national grid.

The region has avoided many of the grid bottlenecks seen in other parts of the world, such as Europe, thanks to its current infrastructure, which is capable of handling additional capacity. However, DNV notes that further investment in grid upgrades will be necessary after 2035 to keep pace with the rapid growth of solar and wind energy.

This transformation is largely driven by economics. Renewables now provide the lowest cost electricity in the region, making them the most competitive choice for powering industries and meeting the growing energy demand of a modernizing economy. As the Gulf moves from planning to large-scale deployment, it is reshaping its energy systems for a future less dependent on hydrocarbons, marking a significant step in the global clean energy transition.