Market Trends of GCC Solar Photovoltaic (PV) Industry
This section covers the major market trends shaping the GCC Solar Photovoltaic Market according to our research experts:
Utility Sector as a Significant Sector
- The utility sector is estimated to hold the majority share in GCC solar PV market. Over, last five years, the sector grew with the commissioning of various large-scale projects like Noor Abu Dhabi, Sheikh Mohammed Bin Rashid Al Maktoum Solar Park, and Sakaka PV IPP among others.
- As per Middle-East Solar Industry Association, the region has four under-construction projects, and more than fifteen upcoming solar PV projects.
- Noor Energy 1 solar tower in Phase 4 of MBR Solar Park is one of the prominent upcoming projects. As of April 2021, the project is 87% complete, and is expected to provide clean electricity for approximately 320,000 residences and will help to reduce 1.6 million tonnes of carbon emissions every year.
- Manah Solar I & II in Oman, and Al-Rass in Saudi Arabia are few upcoming projects, which are in various stages of development.
- With such projects in hand the segment would act as significant contributor to the region solar PV market, which has an installed capacity of around 2.9 GW in 2020.
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United Arab Emirates to Dominate the Market
- The United Arab Emirates is one of the largest countries of natural gas usage for electricity production in the Middle East. The United Arab Emirates, being a major oil and gas producer, finds it more economical and cost-efficient to use gas as its primary energy generation.
- In recent years, the country has undertaken significant steps toward adopting renewable energy, particularly in the solar energy sector. To meet the rising energy demand, the country embarked on a challenging mission to increase its energy security by diversifying its energy sources and increasing the share of solar energy in its power mix in the coming years.
- Further, the country witnessed an increase in the solar power installed capacity from 1,818 MW in 2019 to 2,439 MW in 2020, registering a growth of 32%.
- Furthermore, factors like favorable geographical conditions have converged to make solar energy an attractive option to meet the country's energy needs. The country is geographically well-positioned, with solar irradiance of approximately 2,285 kWh/m2. The country has one of the highest solar exposure rates globally, thereby, holding tremendous potential for renewable energy development.
- With various upcoming projects like Al Dhafra, and Abu Dhabi solar PV projects, the country is expected to dominate the solar PV market during the study period.
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