UAE, Saudi Arabia accelerate clean energy shift with landmark projects
Gulf nations ramp up solar and battery investments as renewable energy costs reach parity with fossil fuels
ABU DHABI, UAE (MENA) — The United Arab Emirates and Saudi Arabia are leading a renewable energy transformation in the Gulf, unveiling major solar and battery storage projects as part of their long-term strategy to reduce dependence on fossil fuels.
At a trade fair in Abu Dhabi, Masdar, the UAE’s state-owned renewable energy company, announced plans for a $6 billion, 5-gigawatt solar plant with 19GWh of battery storage.
The project, expected to provide a continuous 1 gigawatt of electricity—enough to power 700,000 homes—aims to deliver renewable baseload power without relying on gas-fired plants during non-sunny periods.
Masdar Chairman Sultan Al Jaber called the project a “game-changer” for the region’s energy sector, signaling a shift toward large-scale renewable power generation.
Mazin Khan, Masdar’s chief financial officer, highlighted the cost-effectiveness of the venture, stating, “The perfect recipe [for renewable energy] exists here,” and emphasizing that for the first time, “the cost of the new solar and battery plant would be comparable, if not cheaper, than conventional gas.”
Meanwhile, Saudi oil giant Aramco is making a strategic move into battery technology, announcing plans to produce lithium—a key component for energy storage—by 2027.
The initiative aligns with broader Gulf efforts to integrate renewable sources into their energy mix while freeing up oil and gas for export.
According to Rystad Energy, renewables will account for 30% of the Gulf’s total energy capacity by 2028, a major leap for a region historically dependent on hydrocarbons.
However, experts caution that integrating renewables into infrastructure designed for fossil fuels presents significant challenges.
Despite this, the International Renewable Energy Agency (IRENA) reports that while the Middle East currently holds less than 1% of the world’s renewable energy capacity, it is the fastest-growing region for clean energy expansion outside China.
With abundant solar resources, competitive regulatory frameworks, and increasing international interest, the UAE and Saudi Arabia are positioning themselves as key global players in the transition to sustainable energy.
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