Research firm Frost and Sullivan has issued a new report exploring trends within the renewable energy market in the Middle East.
The region is expected to expand its renewables capacity from solar and wind by 18 times by 2025.
The region, including United Arab Emirates, Saudi Arabia, Qatar, Oman, Kuwait, Bahrain, Iran, Iraq, Jordan, and Lebanon, is expected to invest $182.3 billion to add up to 57GW of capacity by 2025.
Efforts by governments and uitlities in the region to embrace renewable energy as part of efforts to reduce greenhouse gas emissions are driving market growth.
Despite the anticipated growth, COVID-19 has adversely impacted the renewable energy market through supply chain disruptions, delays in tendering processes, crashing oil prices, and government restrictions.
However, as traditional fossil fuel reliant industries turn to solar, there is immense growth prospects for the market participants, such as:
- Exploring, innovating, and investing in new storage solutions.
- Integrating waterless robotic solar panel cleaners that don’t cause damage to solar panels.
- Lobbying to make local investments more profitable. More subsidies, incentives, exemptions, and preferential pricing for local procurement are areas to explore.
Using artificial intelligence (AI) and digital analytics will mitigate renewable power generation’s intermittency. Hence, vendors can tap into opportunities exposed by the penetration of technology in the solar PV space.
Saraswathi Venkatesan, energy & environment research analyst at Frost & Sullivan, said: “Capabilities in solar are more pronounced compared to wind energy as most countries in the region fall under the Sun Belt.
“Going forward, with wind making less than 20% of the total renewable energy installed capacity by 2025, solar energy investments are relatively more attractive.
“Qatar and Saudi Arabia are hubs of polysilicon production. Solar cell manufacturing and solar panel assembly are key areas to consider for investment. Going forward, in terms of value, solar PV investments are expected to contribute the most, at 67.4% of the opportunity size for the next five years, followed by solar CSP investments at 17.5%.”
For further information on this analysis, please visit: http://frost.ly/4fd