COVER COVER STORY STORY Major Development in the Middle East's Solar Sector in 2022

The Middle East has experienced another sweltering summer, with continuous temperatures above 50°C in numerous of the world's hottest cities The Middle East is successfully moving toward being one of the world's top centers for renewable energy. By 2025, solar projects in the area are anticipated to install over several GW of power In line with this, storage projects are picking up, pilot projects have already been carried out, and green hydrogen projects are moderately expanding

Power plants are essential for everything from air conditioning to sewage treatment, seawater desalination, and manufacturing, therefore electricity providers are working nonstop to keep them running

The Middle East may be crucial in the transition to a carbon-neutral future; major fossil fuel-dependent corporations are embracing the transformation and creating numerous opportunities for international investment Etihad Airways of the UAE sold a $600 million sustainability-linked susuk in 2020, while Saudi Electricity Company released $1 3 billion in Islamic bonds to fund green capital projects Huge amounts of oil, gas, and coal are burned to power the area, with residential use accounting for half of the energy demand, mostly due to air conditioning

But solar is pushing its way in more and more

According to the study, the region's most vulnerable areas are currently in danger as a result of the difficulty of maintaining air conditioning when temperatures spike However, the expanding use of solar electricity may lessen this hazard.

The UAE boosted its production of renewable energy by around 20 times between 2015 and 2021, going from 136 MW to 2 7 GW It is also considering some of the largest renewable energy projects in the world, such as the Mohammed bin Rashid Al Maktoum Solar Park, which could be the biggest solar power plant ever built and have a 5 GW capacity.

In the gulf region's energy revolution, the UAE has been a pioneer Dubai aims to meet 75% of its energy demands from renewable sources by 2050, and the UAE aims to meet 50% of its energy needs by 2030 through carbon-free technology, primarily solar.

With a capacity of 1 18 GW, the solar park at Noor is one of the biggest solar park in the world Over 3 2 million panels are used in the project, which is operational and covers an area of 8 km2 Al Darah will receive a 2 GW solar project, which was decided at the beginning of 2019.

The Northern Emirates, which include Ras al-Khaimah, Sharjah, Ajman, Fujeirah, and Umm al-Quwain, have also expressed interest They intend to develop 300 MW of solar projects Additionally, the establishment of a 200 MW solar park is proposed for the emirate of Umm Al-Quwain

Emirates Water and Electricity Company (EWEC) issued a Request for Qualification (RFQ), for companies interested in developing the 1,500 MW Al Ajban Solar PV Independent Project in Ajban, Abu Dhabi In May 2022, Abu Dhabi issued the EOI for this project It is stated to be Abu Dhabi’s third solar PV IPP, after Al Dhafra and Noor Abu Dhabi.

A new joint venture, HYPR is formed by the leading on-demand refueling and vehicle services company, CAFU, the largest regional distributed solar energy company, SirajPower, and climate impact investor, Creek.

Even though Saudi Arabia has a population that is around five million and uses some of its oil and gas reserves to fuel thermal power plants, the country's summer demand has increased to 64 GW

The largest solar power plant in the Middle East will be built by Saudi Arabia's private utility ACWA Power and a division of the sovereign wealth fund Public Investment Fund (PIF) and will be commissioned in the fourth quarter of 2025, the 2,060 MW project, which will be built in Al Shuaibah in the province of Mecca, is anticipated to be completed. The project is anticipated to produce enough electricity to power 350,000 families

Under its National Renewable Energy Program (NREP), Saudi Arabia has set lofty goals to raise its renewable energy capacity from 9.5 GW to 27.3 GW, of which 20 GW will come from solar energy Large-scale utility projects are primarily responsible for driving the Saudi Arabian market for solar energy New Saudi Arabian laws that go into effect in 2020 will require power distributors to assist with the installation of rooftop PV systems for homes and businesses that range in size from 1 kW to 2 MW

In 2022, LONGi has announced an agreement to provide 1,292 MW of PV modules to Larsen & Toubro (L&T) an EPC provider for two solar projects under construction in Saudi Arabia The first, located in Jeddah and part of REPDO round II, has a capacity of 388 MW, with the second, located in the industrial city of Sudair, having a total capacity of 1 5 GW, for which LONGi was awarded a contract for the first 904 MW LONGi Solar also announced the delivery completion of 406 MW of its bifacial PV panels Hi-MO 5, for the Solar plant developed by PowerChina SEPCO III for Saudi Arabia’s Red Sea Solar PV Project

Alfanar was awarded a 110 MW solar photovoltaic project by the Saline Water Conversion Corporation (SWCC). This will be part of a floating panel system A 380 kV substation is also included in the project, as well as 172 kms overhead transmission lines

Saudi Power Procurement Company launches a tender for a 3 3 GW capacity of renewable energy. Saudi authorities plan to build three wind power stations of around 1.8 GW, and two solar parks of 1 5 GW capacity, one of the two solar power plants will have a total installed power of 1 1 GW It will be located in Al Hanakia in Medina province, west-central Saudi Arabia A 400 MW solar project will be built in Tabarjal, the northernmost town

Jinko Power was awarded the Saad 300 MWp Solar PV Project in the recent public auction for Round 3 Category “B” solar PV projects by Saudi Arabia’s Ministry of Energy The Saad 300 MWp project is to be located in Central Province, around 80 km from Riyadh. Electricity generated from the project will be acquired by Saudi Power Procurement Company (SPPC) through a 25-year PPA The construction is scheduled to spread from 2022 to 2023

One of the nations in the Middle East with the greatest levels of solar irradiation is Oman. Despite this, it has just recently begun to invest in solar energy. After a year of development, Oman's first independent solar energy plant, which is also the country's largest utility-scale renewable energy project, recently went online The Ibri 2 solar field is 500 MW in size This bifacial panel installation will assist Oman to reach its goal of having 20% of its electricity come from renewable sources by 2030. While Oman Power and Water Procurement Company (OPWPC) issued an RfP for financial consulting services in support of the development of the 500-MW Ibri III project It is located in the northwest region of the country

Petroleum Development Oman (PDO), the largest producer of Oil & Gas in Oman plans to establish a new utility-scale solar-based power plant and a battery storage facility in the northern portion of Block 6 concession in the Sultanate of Oman

Total Energies and Veolia have signed an agreement to start the construction of the largest solar PV system providing power for a desalination plant in Oman, in the city of Sur The power plant will be located on the site of the Sharqiyah Desalination plant, which is a reference in Oman and in the Gulf region, supplying drinking water to more than 600,000 inhabitants of the Sharqiyah region

A consortium consisting of ACWA, Gulf Investment Corporation (“GIC”), and Alternative Energy Projects Co. (“AEPC”), inaugurated Ibri 2, the first solar IPP to be launched under the country’s national renewable energy program and connected to the main national grid The consortium will produce renewable energy over 15 years for the Oman Power and Water Procurement Company (OPWP)

A crucial component of Jordan's energy mix is solar energy, which is expanding there as well This is because the country's population is growing at a rate of 4-5 % per year, which will require an increase in power production Masdar has signed an MoU with Jordan’s Ministry of Energy and Mineral Resources to explore collaboration in renewable energy projects with a total capacity of up to 2 GW

Jordan plans to grow its renewable energy production, primarily solar energy, to 3 2 GW by 2025, with a peak demand of about 3 5 GW at the moment That would put the monarchy close to the UAE, Egypt, and Morocco, which are the region's top solar producers Other nations in the region also have large-scale initiatives to enhance the production of renewable energy

Egypt's capacity for renewable energy is anticipated to rise from 3.51 GW in 2020 to 13.7 GW in 2030, with PV accounting for up to 7 71 GW of the total To significantly speed up the growth of renewable energy in the nation, the Egyptian government has been establishing new feed-in tariffs and other programs By 2022, 10 GW of solar and wind energy projects are anticipated to be developed These initiatives will lessen the nation's reliance on oil and gas while also assisting the nation in achieving its targets under the Paris Climate Agreement

Iraq offers a cautionary tale to other governments whose need is likewise constantly increasing, as the country's rising annual demand has outpaced supply quickly, in part because of rapid population development

Solar power could be useful since it is less expensive, easier to install, and can be set up in huge communities, small factories, or rooftops in a modular fashion.

The summertime surge in electricity demand in Iraq has long been a significant issue Blackouts are frequent because usage increases from roughly 22 6 GW in winter to up to 34 8 GW in summer, which is almost 12 GW more than what the nation can supply. Those who cannot afford backup generators must endure hardships and frequently demonstrate in public

Kuwait is currently working to enhance its installation capacity as a result of its current installation backlog for PV facilities

Installations are heavily reliant on the public sector, like most of the nations in the Middle East region The epidemic has had a significant impact on the solar industry, but the county is adopting incentives for power rates and raising awareness of rooftop solar systems Kuwait may have had a slow start, but it is anticipated that it will soon catch up with other gulf nations and its renewable energy targets

The total amount of electricity produced in Lebanon using fossil fuels would more than treble with just that one power plant A total of ten companies received permits from Lebanon in May 2022 to erect solar power plants with a combined capacity of 10 MW, or at least 10,000 houses

Utilizing their vast abundance of natural resources, several Middle Eastern countries have a natural advantage when it comes to satisfying power demand Going green with large-scale solar projects in the oil-exporting states can reduce the number of hydrocarbons currently burned in thermal power plants While many of the Middle East's main oil exporters used the windfall to construct infrastructure, such as power plants, Iraq and Libya are two nations whose electricity sectors are outdated and in disrepair due to decades of conflict and corruption

The household sector, followed by the industrial and commercial sectors, uses the most electricity in the Middle East region Although the Middle East is currently far behind other regions of the world in terms of the use of rooftop systems, the countries are actively working to ensure they entirely phase out the use of fossil fuels and enhance their output of renewable energy

The switch to clean energy might be the difference between economic calamity and sustainable growth for the major oil importers, including Tunisia, Jordan, Egypt, and Lebanon, which are dealing with rising energy expenses as a result of the recent spike in oil prices.

Some nations are moving quickly, such as the UAE, Saudi Arabia, Morocco, and Egypt, which are now leading the area in solar installations Others have no such restrictions, with Saudi Arabia's Neom project attempting to become the first city in the world to run solely on renewable energy sources, particularly solar.