Key Takeaways:
- 404GW: Projected 2035 cumulative solar and wind capacity in MENA, up from 49GW today
- 4GW/16GWh: Forecast battery capacity additions in MENA in 2026, double last year’s capacity
- $22 billion: Renewable energy investment in MENA in 2025, a third consecutive annual record
Executive summary
The Middle East and North Africa (MENA) installed a record 16 gigawatts of solar and wind capacity in 2025, with additions set to rise by 37% in 2026. The Iran war has heightened concerns over energy security and fossil fuel exposure, reinforcing the role of renewables in freeing hydrocarbons for export in producing countries and reducing import dependence in others.
- Solar remains the main engine of clean power growth. Additions are set to reach a record 18 gigawatts (GW) in 2026, with utility-scale projects continuing to dominate as government-led procurement expands. Deployment is also broadening geographically, with five markets exceeding 1GW of installations this year.
- Wind and storage enter a phase of sustained additions. Wind deployment remains more concentrated than solar, with Egypt and Saudi Arabia accounting for 86% of forecast additions over 2026- 2035. Storage is beginning to scale through co-located projects and a growing pipeline of standalone battery auctions.
- Record investment is supporting a broader and increasingly regional clean power market. Renewable energy investment reached $22 billion in 2025, its third consecutive record year, while regional investors accounted for 85% of 2025 financing activity.
- Approach: This publication uses BloombergNEF’s proprietary wind, solar and storage assets database to update clean power additions forecasts for MENA markets. We incorporate country targets, regional economics and electricity demand growth.
