The Middle East energy sector is undergoing a significant shift toward renewable energy and low-carbon alternatives, moving beyond traditional oil-based systems. Regional experts outlined this transition at the Energy Trading Week Middle East conference in Dubai last month, highlighting three key low-carbon products: renewable power itself, green ammonia produced from low-cost solar energy, and blue ammonia created with natural gas paired with carbon capture and storage infrastructure.
Renewable power capacity in Gulf countries is expected to grow to approximately one-third of the total energy mix by 2030. The region benefits from competitive advantages including world-lowest solar costs, established ammonia supply chains, and ample natural gas reserves. According to recent analysis, solar and wind power installations are projected to reach 860 GW by 2040, with an additional 2,200 GW added between 2040 and 2060. By 2060, non-fossil electricity generation is forecast to reach 92 percent of MENA’s total, up from 14 percent in 2024.
A critical turning point in the region’s energy transition is expected around 2040, when renewable generation growth is projected to outpace electricity demand growth. Battery energy storage systems have become increasingly central to enabling reliable renewable power supply. Current operational utility-scale battery projects total approximately 20,785 MWh across the region as of August 2026, with pipelines adding 128,573 MWh through 2030, representing an estimated sevenfold expansion.
Saudi Arabia, the UAE, and Oman are leading the development of battery infrastructure alongside solar projects. Major national initiatives including Saudi Arabia’s Vision2030, Oman’s Vision2040, and the UAE’s Net Zero by 2050 are driving investment. A landmark project in Abu Dhabi, a $6 billion initiative by Masdar and Emirates Water and Electricity Company slated to begin operations next year, will deliver 1 GW of continuous electricity through integrated solar and storage capacity, demonstrating the feasibility of round-the-clock clean power generation.
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