Middle East Energy Transition Market Analysis by Sectors (Power, Electrical Vehicles, Renewable Fuels, Hydrogen and CCS/CCU) and Trends

Recent initiatives set by Middle Eastern countries show a gradual shift in trend from a fossil fuel-dominated market into one that embraces renewable sources. Steps taken to support the energy transition include investing in solar and wind power generation, electric vehicles, carbon capture technology and hydrogen production. The main regional policies and projects across all energy transition strategies have been identified, along with the key parties involved.

The Middle East's power market continues to be dominated by traditional fossil fuels and this is unlikely to change for the foreseeable future, with gas based thermal power providing the majority of power generation into 2035. However, the power generation outlook shows that renewables will experience a strong growth, increasing at a CAGR of 11.3% between 2023 and 2035. Most of the increase will come from solar energy, reaching 18% of the total mix by 2035. Meanwhile, the adoption of electric vehicles as a means of reducing CO2 emissions has progressed in the region in the last few years. This progress is still heavily concentrated in the Gulf region, however. Given the extensive scale of oil and gas operations in the region and the need for achieving zero-emissions targets, the CCS/CCU projects are gaining more momentum. The CCS capacity in the Gulf countries currently stands at 4mtpa, representing 10% of the global annual capacity. Similarly, the Middle East region is situated in an advantageous position when it comes to potential hydrogen production due to its abundant gas reserves, land, and solar radiation. There are currently multiple hydrogen projects in the feasibility phase, with most of them are expected to be operational around the middle of the current decade.

Key Highlights

• Renewable energy policies and targets from Middle Eastern Countries
• Renewable share in Middle East's power capacity share
• Major players in the Middle East's renewable energy market
• Regional electric vehicle policies
• CCUS capacity in the Middle East 2018 - 2030
• Upcoming hydrogen plants and their end use sectors

Scope

• Renewables shares of GCC countries from 2020 to 2035
• Regional policies supporting renewable energy, electric vehicles and CCS technology
• Regional partnerships and financial incentives in hydrogen production
• Decommissioning and upcoming thermal capacity outlook from 2023-2030

Reasons to Buy

• Obtain the most up to date information on recent developments and policies in the Middle East energy transition
• Identify opportunities in upcoming projects involving electric vehicles, solar and wind power generation, EVs, CCS and hydrogen production in the Middle East
• Assess competitors based on their active and pipeline capacities for renewable energy generation, CCS/CCU projects and hydrogen projects
• Develop business strategies by identifying the most promising sectors for future growth