The latest OPEX report by the Energy Industries Council (EIC) highlights a surge in renewable energy capacity across the Middle East, with key contributions from companies like EDF Renewables and Masdar. The region saw significant projects like the Rashid bin Mohamed Al-Makhtoum Solar Park (Phase 5) and the UAE Wind Programme come online in 2023, helping to triple solar power capacity from 3.4 GW in 2020 to 9.3 GW by 2023. Onshore wind also expanded from 0.9 GW to 1.97 GW over the same period.

This upward trend is expected to continue, driven by strategic initiatives like Saudi Arabia’s National Transformation Plan and Oman’s Wind 2025. Masdar continues to play a crucial role in the region’s energy transition, with the Masdar City Green Hydrogen Demonstration Project entering its first phase in 2023 and plans for decarbonized maritime fuels underway.

Additionally, the report highlights the region’s growing focus on carbon capture and hydrogen plants. Saudi Arabia inaugurated its second carbon capture facility, with four more CCS projects set to begin operations in 2024. Nations like Saudi Arabia and Oman are rolling out national hydrogen initiatives to further support the sector’s expansion.

Despite these advances, the energy landscape in the Middle East remains dominated by the oil and gas sectors. In 2023, seven new oil fields became operational, alongside midstream and downstream projects as the demand for oil and gas products surged due to international sanctions on Russia. The region is also focusing on the decommissioning of aging hydropower, thermal power plants, and refineries, as the cost of maintaining these facilities now exceeds decommissioning expenses.

The ongoing shift reflects the Middle East’s dual approach to energy, balancing traditional oil and gas production with an accelerated push toward renewable energy and carbon reduction technologies. EDF Renewables and Masdar, alongside other key players, are positioning the region as a leader in global renewable capacity.

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