Dii Desert Energy projects MENA’s utility-scale battery storage capacity to reach 43 GW by 2030, led by Saudi Arabia
It sees regulatory maturity and improving project economics as shaping the region’s battery storage growth
Analysts caution the near-total dependence on Chinese battery cells expose MENA to supply and price risks
The Middle East and North Africa (MENA) region’s utility-scale battery storage capacity is expected to rise nearly eightfold to 43 GW by 2030, from 5.5 GW in August 2026, according to a report by Dii Desert Energy.
In its whitepaper, The Battery Boom: Scaling Giga-Scale Storage Across MENA, Dii estimates that cumulative capacity will reach 43.06 GW/149.4 GWh by 2030, representing a compound annual growth rate (CAGR) of 64% from the 2025 level. The region’s installed capacity grew nearly 16-fold, from 808 MWh in 2024 to 12,765 MWh by the end of 2025.
Saudi Arabia is the largest market in terms of existing operational capacity. By August 2026, MENA had 33 operational utility-scale projects with a combined power capacity of 5.5 GW and energy capacity of 20.8 GWh. Of these, 11 projects with 4.9 GW/19.3 GWh capacity were located in Saudi Arabia.
Dii says Saudi Arabia will also lead the projected expansion by the end of 2030. The region currently has 84 planned projects totaling 37.6 GW/128.6 GWh out of which 23.7 GW/77.05 GWh of projects are currently under development. Saudi Arabia represents 11.7 GW/45.4 GWh of this pipeline.
The country accounts for a significant share of the pipeline, supported by its Independent Storage Provider (ISP) procurement program, which makes it the ‘most bankable’ market in the region.
The Saudi Power Procurement Company (SPPC) is developing 20 GWh of BESS capacity across 10 standalone sites under the first two rounds of the ISP procurement program. This capacity is spread across 10 standalone sites, each 2,000 MWh. SPPC plans to procure 8,000 MWh each under rounds 3 and 4.
Egypt, Oman, Türkiye, and Kuwait are among the other leading markets for planned storage deployment. The UAE, despite its significant existing storage capacity, has a comparatively smaller pipeline of new projects.
The report identifies regulatory frameworks, financing, grid codes, and local manufacturing as important factors shaping the market's expansion. While pointing out that market maturity varies across countries, Dii identifies Saudi Arabia and South Africa (even though it is geographically outside MENA region) as tier I markets in terms of having grid-level frameworks in place.
While Saudi Arabia operates a competitive standardized procurement framework for BESS, other regional markets such as Egypt and Kuwait rely on negotiated, project-by-project contracts, highlights Dii.
Analysts also point out that technology deployment is advancing faster than regulations. While countries in the region are still formulating their grid codes and safety standards to accommodate BESS solutions, long-duration storage and grid-forming capabilities are already entering commercial use.
Third, and ‘most consequential’ is that project economics are increasingly supporting BESS deployment rather than policy alone. Dii whitepaper offers an example. It says a standalone 500 MW/2,500 MWh BESS model in the GCC has a levelized cost of storage (LCOS) of around $74/MWh, making renewable energy supply more competitive and dispatchable.
“PV generation energy shifting in GCC is an economically viable opportunity. At roughly $74/MWh, BESS converts the world’s cheapest solar into firm, dispatchable power that can be competitive with new-build gas in selected GCC applications, depending on gas prices, utilization, financing and system requirements,” reads the report.
Even as the region expands its BESS portfolio, it has a near-total reliance on Chinese battery suppliers. China accounts for more than 80% of global cell manufacturing capacity, while its six leading suppliers (CATL, HiTHIUM, EVE, BYD, CALB, REPT) represent about three-quarters of shipments. This concentration exposes the market to supply and price volatility,
“Every operational gigawatt-hour in MENA today sits on Chinese cells,” according to the report. Analysts caution that this concentration carries real pricing risk.
Dii sees planned manufacturing capacity of around 20 GWh annually in Türkiye and Egypt, alongside Saudi Arabia’s ambitions, could improve regional supply resilience and support exports, although it remains small compared with China’s manufacturing base.
The report stress that while capital and core technology are increasingly available across MENA, disciplined execution and local capability are becoming the binding constraints. The complete analysis is available for free download on Dii Desert Energy’s website.
Speaking of BESS, TaiyangNews has published a New Balance of System (BOS) Components 2026 Report that presents an overview of new inverters, energy storage systems and batteries showcased at the leading global solar shows this year—SNEC and Intersolar Europe. The report is available for free download here.
