Renewable generation in Middle East forecast to grow by approximately 14% per year during 2025-2027: IEA

The International Energy Agency (IEA), in its latest ‘Electricity 2025’ report, predicted the renewable energy sector in the UAE and across the Middle East will have significant growth over the coming years.

Renewable generation is forecast to grow by approximately 14% a year during 2025-2027, albeit from a low baseline, with its share rising from 5% to 7%, it noted.

The report stated that solar PV dominates growth, with its share of renewable generation increasing from around 55% to almost 70% by 2027.

According to IEA report, the United Arab Emirates saw significant gains in solar PV generation, accounting for the majority of the solar growth in the region, with an annual average growth of 23% for solar in 2025-2027.

It went on to say, “Nuclear also played a more prominent role in power generation in 2024, up 20% y-o-y, led by the UAE,” which continues to enhance the contribution of nuclear power to a diversified and sustainable energy mix.

The report further stated that gas-fired generation grew by 2.9% in 2024, the primary source of power in the region, and is forecast to accelerate to an average annual 5.3% during 2025-2027, as further fuel switching from oil to gas takes place in line with government policies, with its share of the electricity mix rising from 68% to 73%.