MENA’s cumulative renewable energy capacity increased by 13.4 GW YoY to 43.7 GW in 2025, with solar PV making up 34.5 GW
Capacity additions accelerated sharply in 2025, with nearly 15 GW added in one year, compared to the 5 years it took for capacity to grow from about 14 GW in 2020 to 30 GW in 2024
Saudi Arabia leads the region with over 11.1 GW of operational solar PV capacity, followed by the UAE at around 6.6 GW, while Egypt tops North Africa with 2.52 GW, highlighting uneven progress across the region
The region’s renewable energy pipeline has expanded to 202 GW, including 130 GW of solar PV
The Middle East and North Africa (MENA) region saw its cumulative installed renewable energy capacity grow by 13.4 GW or 44% year-on-year (YoY), according to a new Dii Desert Energy report. Solar accounts for the lion’s share of 34.5 GW, having expanded by 12.2 GW or 55% annually. Wind energy follows next with 7.4 GW capacity.
In its report titled MENA Energy Outlook 2026—Renewables, Hydrogen and Energy Storage Insights 2030, Dii notes that it took 5 years for MENA’s renewable energy capacity to grow from around 14 GW in 2020 to 30 GW in 2024, accelerating with nearly 15 GW of new capacity added in just 12 months in 2025.
“2025 can be described as a breakthrough year for the energy transformation in the MENA region, with an unprecedented surge in new capacity for both solar PV, wind and BESS, all purely driven by market factors with the lowest prices globally,” said Dii Desert Energy CEO Cornelius Matthes.
As of November 2025, Saudi Arabia led with the largest operational solar PV capacity in the region, accounting for over 11.1 GW, thanks to the commissioning of several GW-scale projects last year (see ACWA Power Commissions 2.79 GW Solar In Saudi Arabia).
The UAE follows next with close to 6.6 GW capacity, thanks mainly to the growth of the Mohammed bin Rashid Al Maktoum Solar Park (MBR). Oman also more than doubled its PV capacity, reaching approximately 1.7 GW.
Egypt leads the pack for solar PV capacity among the North African nations, with 2.52 GW operational, followed by Jordan’s 2.13 GW, Tunisia’s 625 MW, Morocco’s 587 MW, and Algeria’s 411 MW, according to the report.
This reflects the uneven growth of renewables across the region, the writers stress, as it shows the complex implementation environment in North Africa.
While Saudi Arabia, Egypt, and other nations push forward large-scale projects, the pipeline is headed by Masdar and EWEC’s 5.2 GW solar and storage project in the UAE. It is currently under construction (see Masdar Zeroes In On Contractors & Suppliers For Gigascale RE Project).
Along with these GW-scale projects that have become the new norm here, Dii also sees improved efficiency and established supply chains boosting the momentum. AI and data centers are likely to become the region’s ‘super offtakers’, which the analysts see as unlocking financing and bankability of these projects.
“The MENA region is well positioned to become a global powerhouse for clean energy exports. Leveraging the world’s lowest-cost solar and wind energy - the region’s "new green currency" - nations are positioning themselves not just as energy suppliers, but as competitive hubs for energy-intensive industries like data centers and green manufacturing,” reads the report.
Further growth is imminent as the region’s actual renewable energy project pipeline has risen to 202 GW, up from 131 GW identified a year ago, including 75 GW solar PV (see MENA Region May Sport 75 GW Solar PV Capacity By 2030).
Dii says this exceeds its balanced transition scenario forecast for last year, at 165 GW. It now matches the region’s aggregate 2030 national ambition of 235 GW, which significantly narrows the implementation gap.
Of the 202 GW of renewables capacity in the pipeline, solar PV comprises 130 GW. Of the total, 43.7 GW is now operational, 38 GW is under construction, 34 GW is under development, and 87 GW of projects have either been announced or a memorandum of understanding (MoU) has been signed.
The report writers see the region’s renewable energy capacity expanding to 165 GW under a conservative baseline scenario, growing to 235 GW under a balanced transition scenario, and 290 GW under a green revolution scenario.
In 2025, the region’s utility-scale energy storage market grew to around 25 GWh. Dii projects this segment to expand 6-fold to 156 GWh by 2030, implying a 44% CAGR. The energy storage segment has shifted from traditional thermal sources to battery energy storage systems (BESS). The latter now capture 50% of the operational capacity as these are developed as standalone projects as well as co-located with solar PV.
The Dii Desert Energy report is available for free download on its website.