New Energy World™
New Energy World™ embraces the whole energy industry as it connects and converges to address the decarbonisation challenge. It covers progress being made across the industry, from the dynamics under way to reduce emissions in oil and gas, through improvements to the efficiency of energy conversion and use, to cutting-edge initiatives in renewable and low-carbon technologies.
Long way to go for renewables in the Middle East
8/11/2023
8 min read
Feature
The Middle East energy transition tends to be slow and piecemeal compared to momentum in many other countries. But there are signs of development, tempered by the need for new policy and regulation, and the urgency for a calmer political and investment environment. New Energy World Features Editor Brian Davis reports.
Despite the promise of major additions of renewable capacity in coming years, the Middle East and North Africa (MENA) region remains wedded to its fossil fuel reserves and oil wealth. Although there are signs of change on the horizon.
In 2022, thermal power provided by coal, oil and gas accounted for about 90% of the region’s power capacity, according to GlobalData. Looking ahead, its analysts expect fossil fuels will continue to dominate and forecast that thermal power will still account for 70% of capacity in 2035.
According to the International Energy Agency’s (IEA) World Energy Outlook 2023 report, natural gas and oil made up 94% of the region’s electricity mix last year. Its Stated Policies Energy Scenario (STEPS) suggests this figure is likely to dip to just over 60% for MENA by 2050, still lagging well behind the net zero ambitions of leading players in Europe and the US.