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Middle East and Africa to add 40GW of wind by 2026: MAKE

Wind will add almost 40GW in the Middle East and Africa (MEA) region between this year and 2026, fuelled by “tremendous resources”, growing power demand, falling costs and “an increase in experience and best practices across the value chain”, according to consultancy MAKE.

The capacity additions – up from a cumulative 4.2GW in place at the end of 2016 and representing a compound annual growth rate of 22% – will be accompanied by a 15% regional fall in wind’s levelised cost of energy (LCOE) by 2022, said MAKE’s latest Middle East and Africa Wind Power Outlook.

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The report notes the fierce downward pressure on prices in the wind and solar sectors alike prompted by competitive auctions in markets such as Morocco, the UAE, South Africa and Egypt.

MAKE said: “Competition between solar and wind power is increasing, but since both segments are immature and given the large resources spread across the region, both technologies will have time to develop in parallel. This dynamic may change over the long-term primarily due to LCOE gains of solar power.”

The consulting group sees Saudi Arabia assuming “a leadership position” in the Middle East during the period in question, while Iran will contribute to medium-term growth despite the challenges it faces.

MAKE added: “Development of a local supply chain in North Africa, notably in Morocco and Egypt, is expected to support wind power development in the region by allowing for intra-regional exports.”

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