Good morning, friends. We have a brisk read this week, with an update from Morocco’s green investment plans, along with green debt and M&A news from the district cooling sector, leading the pack. But first, an update on Tesla’s chief dialing back his daily involvement in US politics…

THE BIG STORY ABROAD THIS WEEK- Tesla slump forces a Musk retreat from politics?

Tesla CEO Elon Musk has decided to take a step back from his role as head of the newly-minted Department of Government Efficiency (Doge) to focus on his EV company after his foray into politics caused “massive brand damage.”. The move comes after Tesla reported a staggering 70%y-o-y drop in 1Q profits on Tuesday, triggering investor backlash.

What Musk said: “I think starting probably next month, May, my time allocation to DOGE will drop significantly,” Musk said this week in a call with analysts, but he emphasized he would still be supporting the Trump administration, to whom he has already committed over USD 250 mn.

The slump: Musk’s unpopular political endeavors — including mass layoffs in essential federal agencies and the elimination of whole departments — have contributed to a massive customer backlash, with protests at Tesla dealerships and mass boycotts becoming a feature of the last few months. The backlash contributed to a mass slump in Tesla’s earnings, with the EV maker reporting its lowest quarterly profits since 4Q 2020 and losing USD 800 bn in market capital.

Seizing the opportunity: Competitors like Ford, Cadillac, and Polestar have picked up some of Tesla’s market shares, with their EV sales rising by a robust 32%, Bloomberg reports. PIF-backed luxury EV maker Lucid also saw its 1Q deliveries jump 58% y-o-y in 1Q. The shift away from Tesla is also reportedly driven by a rise in EV affordability and new models availability.

The story grabbed a lot of ink in the int’l press: Reuters | Associated Press | Bloomberg | Financial Times | Washington Post | New York Times | CNN | CNBC | CBS | BBC | The Guardian

COP WATCH-

Brazil pushes for ambitious NDCs ahead of COP30: COP30 host Brazil is planning a major push to convince nations to set ambitious emissions targets that would keep the world’s warming temperatures below 2 degrees Celsius, Reuters reports, citing three people familiar with the matter. The host has also reportedly called on nations to submit their new Nationally Determined Contributions (NDCs) by September after most countries missed a February deadline, Reuters reports, citing three people familiar with the matter. Brazil’s calls were made during a virtual meeting organized by UN Secretary-General António Guterres and President Luiz Inácio Lula da Silva that was attended by 17 other government leaders — including Small Island Nations head of states, the Chinese President Xi Jinping and European Commission President Ursula von der Leyen.

China to step up? China — the world’s biggest polluter — has yet to present its goals, but agreed to submit its NDCs before COP30 takes place in November, and Lula will meet with Xi at least twice before the September deadline for follow-ups. Xi Jinping also called out the US for its “protectionism” as Donald Trump’s tariff policies wreak havoc on supply chains that are necessary for climate progress. Representatives from the US were notably absent from the call, having not received an invitation, Bloomberg reported on Wednesday.

HAPPENING NEXT WEEK-

Qatar will inaugurate two solar power plants in Ras Laffan and Mesaieed on Monday, Al-Sharq reported last Monday. With a QAR 2.3 bn investment ticket, the combined generation capacity of the two plants stands at 875 MW — 417 MW at the Mesaieed plant and 458 MW at the Ras Laffan facility. The projects — expected to cut 28 mn tons of direct CO2 emissions over their lifecycle — will partially power QatarEnergy’s industrial operations in Mesaieed and Ras Laffan.

IN CONTEXT- Siraj Energy — a JV between QatarEnergy and Qatar Electricity and Water Company — announced the projects in 2023, following the launch of the 800 MW Al Kharsaah solar plant in 2022. Around 35 MW of electricity needed to power the under-construction USD 1.2 bn blue ammonia plant in Mesaieed will be sourced from the nearby solar facility.

Towards a goal: Qatar is looking to reach 4 GW of renewables power capacity by 2030 as part of its renewable energy strategy, which estimates that some USD 7.6 bn in capital expenditures will be needed to achieve this goal.

WHAT WE’RE TRACKING REGIONALLY-

#1- Morocco’s 580 MW Noor Ouarzazate III solar power plant has resumed operations after a hiatus of over a year, according to a statement issued on Thursday. The country is currently building a second energy storage unit for the facility, targeting completion date of 2026. The concentrated solar power (CSP) plant at Noor Ouarzazate had stopped working due to technical issues and disagreements with the operator over the tech deployed, with the government hinting it may abandon CSP technology due to high costs and maintenance issues.

IN OTHER MOROCCO NEWS- Rabat-based EV-maker Neo Motors is eyeing exports to US and Europe after it launches a new model this year, CEO Nassim Belkhayat told Asharq Business last week. The company is currently working on securing the certifications needed to enter both markets, and now produces and sells a small number of the EV model — around 30 units per month — to individuals, companies, and government agencies since June 2024. Production is expected to be ramped up next year to reach 20-30 EVs daily.

Exports outlook: US tariffs may play to Morocco’s advantage, Belkhayat said, noting that they position the country as a competitive manufacturing and exporting hub. On the other hand, the United Nations Economic and Social Commission for Western Asia expects Morocco to take a 0.32% y-o-y hit in exports if the tariffs go ahead, as they are set to dampen demand for goods everywhere.

Remember the IPO plans? The company said in 2023 it was planning a public offering on the Casablanca Stock Exchange by 2026 to ramp up its production.

#2- UAE eyes USD 6 bn India grid link to export surplus clean power: The UAE is pushing ahead with plans to export electricity to India via a subsea high-voltage direct current (HVDC) cable that could cost up to USD 6 bn, the Energy Ministry’s director of electricity and trade Adnan Al Hosani told AGBI on Wednesday. The two countries have been in talks since 2023 over the interconnector project, which is now undergoing feasibility studies.

In context: The link is part of a broader strategy to monetize the Emirates’ growing spare generation capacity — currently around 50% — driven by major solar and nuclear investments. The country’s clean energy output is also expected to nearly double by 2030, Al Hosani said, backed by large-scale projects like the 5.6 GW Barakah nuclear plant and the Noor Abu Dhabisolar project. The country has emerged as a regional leader in renewables, with 6.3 GW of installed capacity, as well as 3.5 GW in under-construction projects.

IN OTHER UPDATES FROM UAE- Masdar is reportedly preparing a USD 1 bn green bonds issuance, three sources told Reuters on Monday. If the plans are finalized, the green issuance will be Masdar’s third to date after its USD 750 mn green bond debut in 2023 and its latest issuance of USD 1 bn from last September.

In context: Masdar plan is the latest among Gulf players who are marshalling ahead with debt issuances despite the global market turmoil. “In the Middle East, the main concern is oil prices, but both corporates and governments have very strong fundamentals, reserve increase, everything’s doing well,” co-head of fixed income at Amwal Capital Partners Zeina Rizk told Reuters.

#4- Jordan’s cabinet is gearing up to launch a new tender for the development of battery energy storage systems (BESS), according to a statement issued on Monday. The new BESS will be connected to the country’s grid and comes as part of an effort to ensure grid reliability amid a push to increase renewables’ uptake in the country.

REMEMBER- Jordan’s Cabinet approved the 2025 electricity law draft in February, including provisions to attract investments in green hydrogen and energy storage. The draft was set to include provisions facilitating the ability of companies and households to establish and manage their own energy storage facilities.

#5- Algerian Group Elec and Chinese solar cell manufacturer Longi are close to inking a protocol to launch an Algeria-based solar panel production venture, according to a statement issued on Monday. The announcement came during Longi’s regional president James Jin visit to Algeria where he also discussed potential collaborations in green hydrogen and energy storage with Algerian officials, according to a separate statement published on Monday.

WHAT WE’RE TRACKING GLOBALLY-

#1-China seeks cross-border enforcement on its minerals export controls: The Chinese Commerce Ministry reportedly sent letters to multiple South Korean companies to warn them of exporting products containing its critical minerals to US companies and military contractors, government sources familiar with the matter told Korea Economic Daily on Tuesday. The letters — sent to firms spanning the EV, battery, display, aerospace, and medical device sectors — have threatened the firms with sanctions and other regulatory actions in cases of violations.

IN CONTEXT- China restricted exports of seven categories of medium and heavy rare earths two weeks ago as part of a countermeasure against renewed tariffs by US President Trump. Exports have ground to a halt since then, and exporters must now apply to the Commerce Ministry for licenses to ship materials, with approvals typically taking between six weeks and several months. This adds to a long list of export controls that China introduced in the past two years, including on graphite, gallium and germanium products, antimony, and the technology to make, extract, and separate rare earths.

#2- A leading competitor in the race to develop small modular nuclear reactors (SMRs) — Terra Innovatum — is going public after a merger with GSR III Acquisition Corp, according to a statement released on Tuesday. The merger — which gave the company a pre-money equity valuation of USD 475 mn — is set to close in 2H 2025 will see the company listed on Nasdaq under the NKLR ticker, Bloomberg reported on Monday. The transaction will generate up to USD 230 mn in gross proceeds.

Part of a trend: Several competitor startups have made moves to go public via special purpose acquisitions, including NuScale Power, and Sam Altman-backed Oklo, Bloomberg reported.

Commercialization ahead? The US-based company has finalized the design of its trademark SMR in 2024 and is currently in the process of securing regulatory approvals from the US’ Nuclear Regulatory Commission. The company — now targeting 2028 for its first commercial deployment — is claiming a versatile SMR design that can be used for many applications, including hospitals, data centers, industrial sites, and mining operations, according to its website.

The design: Terra’s reactor — trademarked under the name SOLO — is designed to be exceptionally small, coming in the form of a cube with about 33-foot sides. The reactor will be enclosed in concrete, with helium gas used for cooling instead of water, which is usually associated with risks of hydrogen explosions. SOLO is planned to deliver one MW of electricity.

#3- US hits again with new duties on solar imports: The US has finalized antidumping and countervailing duties of up to 3,521% on solar cells imported from Cambodia, Malaysia, Thailand, and Vietnam, according to a Commerce Department statement on Monday. The update caps a year-long probe that began under the Biden administation into alleged dumping that distorted the US solar market, with a final vote on the duties planned for 2 June.

On top of other tariffs: The solar duties will be in addition to the separate set of tariffs imposed by Trump. They vary depending on the company and country, however the average effective rate for each country would be 651% for Cambodia (with four firms slapped with rates as high as 3,403%), 34% for Malaysia (reaching 168.9% in some cases), 375% for Thailand (reaching 799.5%), and 395 for Vietnam (reaching 542.6%). China’s Jinko Solar and Trina Solar are among the highly affected firms.

But the decision did not catch the industry off guard, with several Chinese companiesalready in process of shifting operations to nations outside the scope, such as Indonesia and Laos.. But that safe haven status could be short-lived, as these locations could face scrutiny in a possible new round of duties later this year, Bloomberg reported on Monday, citing a note by Roth Industries.

US’ solar industry to take a major blow: The US imported about USD 12.9 bn in solar equipment last year from the four targeted countries, making up roughly 77% of its total module imports, according to BloombergNEF. While expected to boost US domestic production, the duties also challenge local renewable developers relying on foreign supplies as they could face higher costs and extended supply chain disruptions.

THE SCORECARD-

The global wind power capacity has hit 1.1 TW after adding 117 GW of new capacity in 2024, according to a Global Wind Energy Council (GWEC) report (pdf) issued on Wednesday. Of the new additions, 109 GW came from onshore wind and 8 GW from offshore. The GWEC expects a compound annual growth rate of 8.8% for the industry over the next five years, pushing global wind capacity up by another 981 GW by 2030.

Who’s leading? China once again dominated the market, contributing 80 GW of new capacity — two-thirds of the global total. The US came second, followed by Germany and India in the third and fourth place, and Brazil rounded up in the top five.

What about our region? The Middle East and Africa remained the smallest wind markets, contributing some 2% to the overall increase. However, the region’s capacity jumped 107% y-o-y, with 794 MW coming from Egypt and 390 MW from Saudi Arabia.

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CIRCLE YOUR CALENDAR-

Turkey will host the International Renewable Energy Conference from Wednesday, 7 May until Friday, 9 May in Istanbul. The conference facilitates a dialogue between industry professionals on renewables policy, hydrogen in the energy transition, renewable energy solutions, and others.

Oman will host the Oman Sustainability Week from Sunday, 11 May until Thursday, 15 May in Muscat. The exhibition, bringing together policymakers and stakeholders from the energy and sustainability sectors, will serve as a premier knowledge-sharing platform, where thought leaders will explore policies and strategies to advance Oman’s journey toward a net-zero future.

Saudi Arabia will host theInternational District Cooling Conference from Tuesday, 13 May until Wednesday, 14 May in Jeddah. The conference will spotlight district cooling solutions for the Kingdom, with a focus on policy, regulation, digital transformations, asset management, optimization, networking, and investment opportunities.

Saudi Arabia will host its first Green Energy Week from Wednesday, 14 May until Thursday, 15 May in Riyadh. Over 450 attendees, 50 speakers, and 15 exhibitors will come together to discuss solar PV, energy storage and green hydrogen.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.