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IEA: Middle East’s renewable energy sector set for 14% annual growth by 2027
Solar photovoltaic is expected to lead this growth, with its share of renewable generation rising from roughly 55% to nearly 70% by 2027.
The Middle East, led by the UAE, is emerging as a global leader in clean energy transition. The International Energy Agency’s (IEA) Electricity 2025 report projects significant growth in the region’s renewable energy sector in the coming years.
According to the report, renewable energy generation in the Middle East is set to grow by 14% annually from 2025 to 2027, albeit from a low base. The share of renewables is expected to increase from 5% to 7%, with solar photovoltaic (PV) driving this expansion. Solar PV’s share of renewable generation is projected to climb from around 55% to nearly 70% by 2027.
The IEA report highlights the UAE’s leading role in solar PV expansion, driving most of the region’s growth with an expected 23% annual increase in solar generation from 2025 to 2027.
It also mentioned, “Nuclear also played a more prominent role in power generation in 2024, up 20% year-on-year, led by the UAE,” noting the country’s ongoing efforts to enhance nuclear power’s contribution to a more diversified and sustainable energy mix.
The report also highlights the continued dominance of gas-fired generation, which grew by 2.9% in 2024 and remains the region’s primary power source. Driven by a policy shift from oil to gas, it is projected to accelerate to an average annual growth of 5.3% from 2025 to 2027. As a result, gas’s share of the electricity mix is expected to rise from 68% to 73%.
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