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Gulf renewables gather pace

Hyphen Web Desk
Solar power capacity across the Gulf Cooperation Council has expanded at an exceptional rate, with a new GCC-Stat report showing average annual growth of 88.1 per cent between 2013 and 2024, underscoring how one of the world’s leading hydrocarbon-producing regions is accelerating investment in cleaner energy while also strengthening climate resilience measures. The same report said electricity generated from solar energy climbed from 0.13 thousand gigawatt-hours in 2013 to 23.5 thousand gigawatt-hours in 2023.

The findings point to a structural shift rather than a one-off jump. Wind power, while still much smaller than solar, also moved sharply higher, with installed capacity rising from 4.8 megawatts in 2015 to 567 megawatts in 2024. GCC-Stat said the broader picture was not limited to energy generation alone. Rainfall across the bloc in 2024 stood 49.4 per cent above the long-term 1980–2010 average, while temperature readings from 23 approved monitoring stations remained relatively stable, with no recorded extremes above 49C between 2012 and 2024.

That combination of stronger renewable deployment and greater attention to weather monitoring is important for a region facing rising electricity demand from cooling, desalination, industrial activity, urban growth and data infrastructure. The International Energy Agency has said cooling and desalination are on course to account for close to 40 per cent of projected growth in electricity demand across the wider Middle East and North Africa through 2035, adding urgency to efforts to diversify power systems away from an overwhelming reliance on gas and oil-fired generation.

The GCC-Stat report also suggests governments are trying to frame climate policy less as a distant environmental obligation and more as a matter of infrastructure planning and public safety. All GCC states now operate advanced mobile-based early warning systems using cell broadcast technology, according to the report, and climate change adaptation and awareness topics have been folded into school curricula. It added that the six member states had submitted 16 cumulative reports to the UN climate framework by November 2025, signalling a more institutional response to climate reporting and compliance.

Even so, the progress needs to be set against the scale of the challenge. The Gulf remains deeply tied to fossil fuels economically and financially. The IEA said the Middle East is set to invest about $130 billion in oil and gas supply in 2025, with Saudi Arabia alone accounting for a large share of upstream spending. That means the region’s energy transition is unfolding alongside, not instead of, continued hydrocarbon expansion. For policymakers, the immediate test is whether renewables can grow fast enough to meet domestic demand, free more hydrocarbons for export and reduce exposure to volatile fuel and power costs without disrupting revenue models built on conventional energy.

Broader market data indicate that the direction of travel is real. Reuters, citing IRENA, reported that global renewable capacity reached 5,149 gigawatts in 2025 after a record annual increase, driven mainly by solar. Separate regional reporting on IRENA data said the Middle East posted its largest year-on-year increase in renewable capacity, adding 12.7 gigawatts, with Saudi Arabia leading much of that growth. The IEA has also revised up its forecast for the Middle East and North Africa, calling it the biggest regional upgrade because of faster solar photovoltaic deployment, especially in Saudi Arabia.

Across the Gulf, that expansion is being carried by a mix of sovereign ambition, falling solar costs, state-backed developers and a growing need for energy security. Abu Dhabi’s Masdar said in January that its global clean-energy capacity had reached 65 gigawatts, reflecting how Gulf-based groups are using overseas acquisitions and domestic projects to build scale. Large utility-scale schemes, including the 1.5-gigawatt Khazna solar project in Abu Dhabi, also show how international developers and lenders now view the Gulf as a core renewables market rather than a peripheral one.
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Hyphen Web Desk

Hyphen Web Desk