Renewables surge 44% across MENA as region accelerates energy transition

Renewable energy capacity across the Middle East and North Africa (MENA) expanded by an estimated 44 per cent year-on-year in 2025, signalling a decisive acceleration in the region’s transition towards low-carbon and more resilient energy systems.
The growth, driven primarily by large-scale solar deployments, reflects a broader structural shift in energy markets historically anchored in hydrocarbons. Across the region, governments are rapidly scaling up renewable energy programmes as part of long-term strategies aimed at economic diversification, emissions reduction and energy security.
Solar power continues to lead this expansion. Supported by some of the world’s highest solar irradiation levels, alongside a sustained decline in technology costs, solar has emerged as the most competitive source of new electricity generation in many parts of the region. Over the past decade, global solar costs have fallen dramatically, enabling countries across MENA to deploy utility-scale projects at record-low tariffs (IRENA).
Wind energy is also gaining traction, particularly in areas with strong and consistent wind resources, while hybrid systems combining solar, wind and battery storage are beginning to reshape how power is generated and managed. The growing integration of storage technologies is playing a critical role in addressing intermittency challenges, improving grid reliability and enabling higher shares of renewable energy within national power mixes.
The regional surge aligns with wider global momentum. Renewable energy continues to capture an increasing share of electricity generation worldwide, with solar expected to dominate new capacity additions over the coming decade (IEA). Major economies are accelerating deployment at scale, reinforcing a global shift that is both environmental and economic in nature.
Beyond electricity generation, MENA is positioning itself at the forefront of the emerging green hydrogen economy. By leveraging abundant renewable resources, countries in the region are developing large-scale projects aimed at producing green hydrogen and its derivatives, including ammonia, for export. These fuels are expected to play a key role in decarbonising hard-to-abate sectors such as heavy industry, shipping and aviation, where direct electrification remains challenging.
The increasing focus on hydrogen is also creating new industrial opportunities, linking renewable energy development with downstream sectors such as manufacturing, logistics and export infrastructure. As global demand for low-carbon fuels grows, the region’s ability to produce cost-competitive green hydrogen is attracting international partnerships and long-term investment commitments.
At the same time, energy security considerations are reshaping policy priorities. Recent disruptions to global oil and gas supply chains have underscored the risks associated with fossil fuel dependence, prompting governments to accelerate investments in domestically available renewable energy. In this context, renewables are no longer viewed solely as a climate solution, but as a strategic asset that enhances national resilience and economic stability.
Despite strong momentum, the transition is not without challenges. Infrastructure constraints, including grid capacity and transmission networks, remain a key bottleneck in several markets. Financing and regulatory frameworks also continue to evolve, particularly as projects become larger and more complex. In addition, land use considerations and community engagement are emerging as important factors in ensuring the long-term sustainability of renewable development.
In Oman, the expansion of renewable energy aligns closely with the objectives of Vision 2040, which emphasise sustainability, economic diversification and private sector growth. The Sultanate has already made progress through major solar and wind projects, while advancing ambitious plans to develop a globally competitive green hydrogen sector.
Oman’s geographic advantages, including high solar irradiation and access to strategic export routes, position it as a potential leader in the next phase of the energy transition. Continued investment in infrastructure, policy development and international collaboration will be critical in translating this potential into tangible economic value.
As renewable capacity continues to expand across MENA, the 44 per cent growth recorded in 2025 highlights not only the pace of change, but also a deeper transformation in how energy is produced, distributed and consumed. The region’s evolving energy landscape points towards a future defined by diversification, innovation and increasing integration with global clean energy markets.