Solar energy projects in the Middle East are witnessing rapid growth rates, especially in the Gulf countries.

Analytical reports expect that the share of renewable energy sources in the region’s electricity generation mix will reach 70% by 2050, driven by rising demand for green hydrogen.

Electricity generation in the Middle East currently relies heavily on fossil fuels. It constituted 93% of the total electricity production in 2023.

The share of natural gas, the main source of energy currently, is expected to decrease to 46% by 2040, then to 22% by 2050, while the share of solar and wind energy will rise to 70% by 2050.

Solar energy in the Middle East has become increasingly important, with its lower costs compared to other sources of electricity generation. It is estimated that the cost of solar energy in Saudi Arabia has reached $10.4 per megawatt-hour, making it the cheapest source of generation.

Green hydrogen, produced through the electrolysis of water using renewable energy, is a new driver of solar energy growth in the region. The Gulf countries plan to become among the world's largest producers of green hydrogen, which will increase demand for solar and wind energy.

Despite the rapid developments, there are still some challenges facing the growth of solar energy in the Middle East, such as: the need for more investments, infrastructure development, and integrating renewable energy sources with the electrical grid.