Renewable energy posts a strong year

Renewable energy made a killer year last year, with the Kingdom’s installed renewable capacity surging 87% to 12.3 GW, up from 6.6 GW, according to a recent report by the International Renewable Energy Agency (pdf). The increase, which marks the largest addition in the region, is almost entirely solar.

Part of a global push: 692 GW were added last year, making up 85.6% of all new capacity additions. The Middle East’s capacity (excluding Egypt) rose 28.9% from 43.8 GW in 2024 to 56.4 GW in 2025

The world is becoming a solar-heavy system: Globally, solar snatched the lion’s share of 510 GW — around 73.7% — while wind added 159 GW. Regionally, solar jumped 48% from 26.4 GW to 38.9 GW — since it’s relatively fast and cheap, on the back of the growing relationship between the Middle East and Chinese manufacturers dominating across panels, inverters, and upstream units — while wind capacity stayed flat at 1.9 GW.

How the region is doing

Oman and Qatar rose as the underdogs: Oman’s capacity increased to 1.7 GW from 722 MW, a 138% increase, adding 1 GW entirely from solar. Qatar rose to 1.7 GW from 824 MW, again with solar accounting for all additions.

UAE is playing a steady expansion game: Capacity rose to 7.9 GW, adding 1 GW during the year.

Along with Iran: Total capacity rose from 12.9 GW to 13.9 GW, with hydropower dominating the system, but remaining flat at 12.8 GW, while solar jumped from 782 MW to 1.78 GW.

Bahrain is picking up the pace, while Kuwait is benchwarming: Bahrain’s renewable capacity rose 66.7% to 115 MW, while Kuwait recorded no growth remaining flat at 114 MW.

Egypt is Africa’s striker: Total renewable capacity rose from 7.7 GW to 9.3 GW — a 20% increase. Wind capacity surged from 2.2 GW to 3 GW, while solar grew from 2.6 GW to 3.3 GW — showing parallel expansion across both segments.

Our take

The regional disruptions may pressure renewables in the short-term: Solar and wind buildouts are heavily dependent on predictable supply chains. Solar remains reliant on imported hardware mainly from China, while wind components are a logistics headache even in stable times. These components all move through the same trade arteries now being hit by ins. premiums, rerouting, and vessel hesitation, with delays creating sequencing problems across installation schedules.

BUT- It makes the case in the long-term: The disruptions exposed the vulnerability of an energy system still structurally anchored to fossil fuel chokepoints. Every supply disruption, shipping scare, and oil-price spike reinforces the economic case for accelerating clean energy at home.