Gulf States pioneering in renewable energy revolution


The Gulf states are embarking on a monumental journey towards economic diversification, steering their focus towards the development of robust renewable energy infrastructure. With burgeoning urbanization and population growth in the region, the demand for electricity is escalating at an unprecedented rate. Projections indicate a need for an additional 100 gigawatts of power over the next decade to satiate this surging demand. Moreover, various avenues for economic diversification such as artificial intelligence, smart cities, and tourism rely heavily on electricity, further accentuating the imperative for sustainable energy sources.

With population growth and soaring temperatures, the need for electricity, especially for air conditioning, intensifies. Renewable energy is pivotal in meeting this escalating demand. According to the International Energy Agency, renewable sources are projected to contribute 35 percent to global power generation by 2025. This underscores the critical role renewables play in mitigating the challenges posed by population expansion and climate conditions, ensuring a sustainable and resilient energy future.

Evidencing a positive trajectory in this realm, the Gulf states have proactively forged cross-border, regional, and international collaborations to foster renewable energy infrastructure development. Recently, on May 1, the UAE’s state-owned renewable energy behemoth, Masdar, inked a partnership pact with Bahrain’s energy and investment arm, Bapco Energies, to spearhead the development of near-shore and offshore wind farms in Bahrain.

In parallel developments, Oman’s groundbreaking green hydrogen venture, Hydrom, has solidified monumental agreements totaling an astounding $11 billion with global conglomerates, among them France’s state-owned EDF. These landmark deals mark the genesis of two groundbreaking green hydrogen initiatives in Dhofar. Concurrently, the Kuwait Oil Company has forged a memorandum of understanding with the Kuwaiti Ministry of Electricity, Water, and Renewable Energy, signaling a collaborative effort to establish solar energy generation capacity of 1 gigawatt (GW).

Endowed with copious sunlight and wind resources along with vast expanses of untapped land, the Gulf states are strategically poised to harness natural resources for sustainable energy production. The abundant sunlight exposure enables solar plants to operate for extended durations. Notably, within the Gulf Cooperation Council, solar photovoltaic power generation costs less than 2 cents per kilowatt-hour, making it the most economical option for power generation.

Ramping up renewable energy generation also aligns with the Gulf states’ commitment to curbing carbon emissions and achieving net-zero targets. Actively participating in prominent international environmental summits such as the UN Framework Convention for Climate Change’s Conference of the Parties gatherings, Saudi Arabia, Bahrain, Kuwait, and the UAE have pledged to achieve net-zero emissions by 2050. Ratifying the Paris Agreement and acknowledging their heavy reliance on fossil fuels, the Gulf states have embarked on meticulously crafting infrastructure and plans to slash emissions.

This commitment is enshrined in the states’ national vision statements. Saudi Arabia, as part of its Vision 2030, is diligently steering towards energy diversification and fostering a circular carbon economy wherein renewable sources will contribute 50 percent of the Kingdom’s energy needs by 2030. The country’s total installed renewable energy capacity tripled in 2023, with continued substantial investments in solar and wind projects. Similarly, the UAE’s Energy Strategy 2050 endeavors to achieve carbon neutrality by 2050.

Beyond fortifying energy security and sustainability domestically, the Gulf states’ dedication to renewable energy has propelled them to bolster international relations and attract foreign investments. In the first week of May alone, Saudi Arabia inked renewable energy collaborations with Azerbaijan, Mauritania, and Uzbekistan. Noteworthy engagements include ongoing discussions with the EU to explore avenues for renewable energy cooperation and carbon capture. The Kingdom also hosted the Saudi Arabia Green Energy Week, drawing local and international industry leaders to deliberate on the energy value chain’s opportunities and challenges.

The region is steadfastly progressing towards erecting a resilient and sustainable renewable energy infrastructure capable of not only meeting domestic demand but potentially underpinning international consumption as well. State-owned enterprises have been at the vanguard, furnishing indispensable financial and regulatory support. While the private sector has also played a pivotal role, there exists ample scope for fostering further public-private partnerships. For instance, the UAE’s Nationally Determined Contributions under the Paris Agreement stipulate an investment requirement of approximately $36 billion to fulfill climate targets by 2030.

Renewable energy has evolved from a choice to a vital catalyst, propelling socioeconomic metamorphosis in the Gulf region. It infuses sustainability into economic advancement, creating substantial opportunities for employment, skill development, and bolstering international investor trust in the region’s capacity for sustainable progress and prosperity. As a fundamental driver of change, renewable energy not only addresses immediate energy needs but also lays the foundation for long-term economic resilience and inclusive growth.


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