The United Arab Emirates (UAE) is set to exceed its renewable energy capacity ambitions for 2030, according to the International Energy Agency (IEA) in its Renewables 2024 report.
The report highlights that the combined renewable energy goal for countries in the Middle East and North Africa (MENA) region is to achieve 201 gigawatts (GW) of renewable capacity by 2030. However, the IEA’s main-case forecast suggests that this goal may fall 26 percent short. Notably, countries such as Saudi Arabia, Egypt, and Algeria account for nearly 60 percent of the region’s total ambitions. Despite a more optimistic outlook for these markets compared to last year, the forecast still indicates that installed capacity may not meet their stated 2030 targets.
The IEA identifies three critical challenges that could enable a 60 percent increase (approximately 152 GW) in growth, bringing the region closer to achieving its 2030 aspirations.
Accelerated Auction Processes: The report emphasizes the need for faster implementation of auction processes. Currently, opening tenders, selecting winners, and signing Power Purchase Agreements (PPAs) can take over a year. Streamlining these processes would enable more projects to come online sooner.
Improved Regulatory Environment: Enhancing the regulatory and policy framework for distributed solar photovoltaic (PV) systems is essential. The IEA recommends reforms that would allow for self-consumption and provide remuneration for excess electricity generation. Although some countries have established legal frameworks for self-consumption and net metering, significant deployment in commercial and residential sectors remains elusive, with the UAE being an exception.
Increased Market Participation: The report suggests that growth could be further accelerated through greater industrial electrification and by eliminating barriers for new market entrants. This would facilitate the wider adoption of corporate PPAs, promoting a more inclusive renewable energy market.
