The Middle East and North Africa (MENA) region is accelerating its push toward renewable energy, with clean power investments on the rise. According to the International Energy Agency’s World Energy Investment 2025 report, the region is expected to pour nearly USD 9 billion into clean electricity generation this year—a notable uptick in a region historically reliant on fossil fuels.
This surge in investment marks a broader shift in MENA’s energy landscape. Renewables and nuclear sources now account for 15% of the region’s power mix, up from less than 8% a decade ago. Solar power, in particular, is emerging as a cornerstone of this transformation, thanks to plummeting technology costs and MENA’s naturally abundant sunlight. Countries such as Saudi Arabia, the UAE, and Egypt are leading the charge with large-scale solar initiatives.
Yet, while renewable generation is expanding, the infrastructure needed to support it—especially modernized power grids and battery storage systems—remains underdeveloped. Across the region, outdated or insufficient grid capacity is delaying the integration of completed renewable projects, stalling their impact.
Natural gas continues to dominate, supplying roughly two-thirds of MENA’s electricity. Moreover, persistent fossil fuel subsidies in countries like Iran, Saudi Arabia, and the UAE present a significant barrier to cleaner alternatives. These subsidies distort market dynamics, making it difficult for renewables to compete on cost and slowing the pace of transition.
This infrastructure gap mirrors a global trend: for every USD 1 invested in new power generation worldwide, only USD 0.40 is spent on grid enhancements—down from USD 0.60 in 2016. MENA faces similar constraints, with many renewable ventures awaiting grid connectivity.
Battery storage—a critical component for balancing intermittent solar and wind energy—is another area where MENA lags. Although global investment in storage is forecast to hit USD 66 billion in 2025, the region captures only a minimal share of that. High borrowing costs and a lack of supportive policy frameworks remain key deterrents.
Still, signs of progress are emerging. The UAE and Saudi Arabia are initiating efforts in energy storage and green hydrogen, while Egypt continues to drive forward with public-private collaborations in solar and wind power.
To truly unlock its renewable energy potential, experts say the MENA region must prioritize modernizing its grids, scaling up storage solutions, and reforming fossil fuel subsidies.
The path forward is clear: while MENA’s ambitions are commendable, building the infrastructure to support them is now the region’s most urgent challenge.
