The Middle East is projected to attract $75.63 billion in investments for renewable energy projects by 2030, as highlighted in a recent report released by the Energy Industries Council (EIC), one of the largest global trade associations for companies providing goods and services to the energy sector.
These investments encompass 116 renewable energy initiatives, tracked by the EICDataStream database, set to become operational between 2025 and 2030. The projects cover a diverse range of technologies, including solar power, onshore wind, hydropower, hydrogen production, carbon capture utilization and storage (CCUS), geothermal energy, as well as battery and energy storage systems.
Investment distribution challenges
Despite the significant rise in clean energy investments, the International Energy Agency estimates that only 20 percent of the total energy investments in the Middle East will be directed towards renewables, with the majority still allocated to the oil and gas sector. The region continues to be a global leader in hydrocarbon production, bolstered by ample gas reserves and competitive pricing, which are anticipated to sustain their vital role as a transitional energy source.
Balancing traditional and clean energy
Aqilah Shahruddin, the author of the report, suggests that the strategy of investing in renewable projects alongside the enhancement of traditional energy infrastructure illustrates the complexity of the region’s transition. She notes that, although it is reasonable for most funding to be directed towards oil and gas, there are advancements being made in cleantech projects such as hydrogen, solar, wind, and carbon capture. This situation represents a delicate balancing act between promoting clean energy and maintaining the region’s leadership in the global hydrocarbon market.
EIC’s forecast data indicates that, although renewable energy sources are gradually being integrated, oil and gas are expected to remain dominant for many years to come.
Ryan McPherson, EIC’s regional director for the Middle East and Africa, stated that the Middle East is a key focus for the EIC, highlighting that the growing number of cleantech projects in the pipeline will keep it relevant for years to come. He emphasized that the EIC is actively involved in supporting the region’s energy transition through their project data, reports, and industry events.
For more news on sustainability, click here.
