What are energy storage systems (ESS)?
Energy Storage Systems (ESS) play a critical role in the integration of VRE into the power grid, as these systems manage the intermittencies of renewable energy resources and mitigate potential power supply disruptions.
Why are energy storage systems being integrated in MENA?
The pace of integration of energy storage systems in MENA is driven by three main factors: 1) the technical need associated with the accelerated deployment of renewables, 2) the technological advancements driving ESS cost competitiveness, and 3) the policy support and power markets evolution that incentivizes investments.
Which energy storage technology has the most installed capacity in MENA?
Pumped hydro storage (PHS) has the largest share of installed capacity in MENA at 55%, as compared to a global share of 90%. Pumped hydro storage is one of the oldest energy storage technologies, which explains its dominance in the global ESS market.
Which energy storage solutions will be the leading energy storage solution in MENA?
Electrochemical storage (batteries) will be the leading energy storage solution in MENA in the short to medium terms, led by sodium-sulfur (NaS) and lithium-ion (Li-Ion) batteries.
Will energy storage expand in MENA?
The current utility business model limits the prospects of energy storage expansion opportunities, unless driven by direct governmental support. Auctions in MENA have been a major driver for renewable energy deployment, most notably for solar and wind, but only a few have included energy storage.
How much does a solar PV project cost in Saudi Arabia?
In Saudi Arabia, each of the two awarded rounds of the Renewable Energy Project Development Ofice (REPDO) auctions, totaling 2.17 GW, in addition to the PIF-led projects, has received record-low prices. The 300 MW Sakkaka solar PV project, the first project under REPDO, set a record tarif of 1.34 USD cents/kWh in February 2018.
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Biggest renewable energy projects in the Middle East
International Renewable Energy Agency (IRENA) has also launched the Pan-Arab Clean Energy Initiative.During the 2013 Arab Economic and Social Development Summit, the Arab League adopted the initiative, with leaders pledging to increase the region''s renewable power generation capacity from 12 gigawatts (GW) in 2013 to 80 GW by 2030.
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In the Middle East, burning oil had provided the majority of electricity generation up to the late 1980s, but natural gas overtook it in 1989 and it has been the dominant fuel ever since. Gas accounted for 72% of total electricity production in the Middle East in 2022. Oil-fired power stations provided a further 22%, down from 36% a decade earlier.
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The list of successful bidders includes prominent companies from the Middle East and abroad, such as Masdar, headquartered in Dubai, Saudi Arabia''s ACWA Power, and France''s EDF and TotalEnergies. Leading renewable energy and energy storage companies from China, South Korea, and Japan are also among the selected bidders.
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ABOUT THE MIDDLE EAST INSTITUTE The Middle East Institute (MEI) is a center of knowledge dedicated to narrowing divides between the peoples of the Middle East and the United States. With over 70 years'' experience, MEI has established itself as a credible, non-partisan source of insight and policy analysis on all matters concerning the Middle ...
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