Middle East Solar Outlook 2026 Reveals Shift to Intelligent Infrastructure
Abu Dhabi, Thursday, 15 January 2026.
The region is entering a “Green AI economy,” with utility-scale battery storage projected to surge from under 3 GW to over 29 GW by 2030, redefining energy resilience.
Strategic Shift to Integrated Systems
The narrative of solar energy in the Middle East has evolved rapidly from simple capacity addition to the development of sophisticated, resilient networks. According to the Middle East Solar Industry Association (MESIA) report released this week at the World Future Energy Summit (WFES), the region is no longer just catching up but is actively setting the terms for a renewable-dominant energy system [1]. This strategic pivot is underpinned by substantial financial commitment; in 2025 alone, the Gulf Cooperation Council (GCC) awarded over US$19 billion in new solar contracts [1]. Hinde Liepmannsohn, MESIA’s Executive Director, emphasizes that solar is now being engineered as part of an integrated system that includes storage and advanced forecasting, rather than being planned in isolation [1].
Surging Storage and Manufacturing Capacity
A critical component of this infrastructure hardening is the rapid expansion of battery storage. The report projects that utility-scale Battery Energy Storage Systems (BESS) capacity in the MENA region will skyrocket from under 3 GW currently to over 29 GW by 2030 [1]. This represents a staggering growth rate of 866.667% over the next four years. Simultaneously, the region is localizing its supply chain to support this expansion. On January 12, 2026, Abunayyan Holding and Nextpower Arabia announced a joint venture to construct a manufacturing facility in Saudi Arabia [3]. Scheduled to open in the second quarter of 2026, this Jeddah-based plant aims to produce up to 12 GW of solar tracking systems annually [3].
Milestones in Capacity and Future Projections
As the infrastructure matures, major regional entities are reporting historic capacity milestones. On January 13, 2026, Masdar announced it had reached a portfolio capacity of 65 GW, a figure that reinforces its trajectory toward a 100 GW target by 2030 [6]. This growth is reshaping the energy mix; Jad Abdel Masri, a senior director at Masdar, noted that battery storage is increasingly positioned to replace thermal power plants as the primary source of short-term power flexibility [6].