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

emirates7 - The International Energy Agency (IEA), in its latest Electricity 2025 report, forecasted significant growth in the renewable energy sector across the UAE and the broader Middle East in the coming years.

Renewable energy generation is expected to grow by around 14% annually between 2025 and 2027, although from a relatively low base, with its share increasing from 5% to 7%. The report highlights solar photovoltaic (PV) as the dominant driver of growth, with its contribution to renewable generation set to rise from approximately 55% to nearly 70% by 2027.

The IEA noted that the UAE has made substantial progress in solar PV generation, leading the region with an average annual growth rate of 23% in solar capacity from 2025 to 2027.

The report also mentioned that nuclear power played a more significant role in power generation in 2024, increasing by 20% year-over-year, with the UAE taking the lead in enhancing nuclear power's contribution to a diversified, sustainable energy mix.

Additionally, gas-fired generation grew by 2.9% in 2024, remaining the primary energy source in the region. The report predicts that gas generation will accelerate to an average annual growth rate of 5.3% between 2025 and 2027, driven by further shifts from oil to gas in line with government policies, and its share of the electricity mix is expected to rise from 68% to 73%.