- Clean energy contract awards overtake oil and gas’ in the MENA region.
- $21.5bn of clean energy projects currently at tender stage.
A research report on the energy transition in the Middle East and North Africa (MENA) indicates that clean energy project contract awards have overtaken deals for conventional power plants this year. The report published by MEED shows that there were no contract awards for oil-powered or gas-fuelled power stations in the MENA region in H1 2021. In contrast, about $2.8bn of renewable energy contracts were awarded in the region. This emphasises the energy transition in the region when compared to the preceding years. From 2017 to 2020, an average of $4.8bn per year was awarded for oil- or gas-fuelled power stations.
According to the report, this shift has been buoyed by increasing efforts of governments to reduce greenhouse gas (GHG) emissions. The doubts about the long-term demand for fossil fuels, the need to diversify the energy sources and the increasing cost-effectiveness of renewable energy also accelerate the transition in the region.
Renewable energy adoption is set for more growth in the region as about $104bn worth of projects are being planned, with about $21.5bn currently at the contract tendering stage and will likely lead to contract awards within the next 18 months. Saudi Arabia’s $18bn renewables projects pipeline offers the best prospects in the region as about $13bn of clean energy projects are at or close to the tendering stage.