The Middle East and North Africa’s clean energy market is expected to continue expanding rapidly in 2026, driven primarily by solar power, with wind and battery storage also beginning to scale more consistently across the region. According to BloombergNEF’s MENA Clean Energy Market Outlook 2026, the region installed a record 16 gigawatts of solar and wind capacity in 2025, and annual additions are projected to increase by 37% in 2026.
Solar remains the main source of growth. Utility-scale projects continue to lead deployment as governments expand procurement programs, and solar additions are forecast to reach a record 18 gigawatts in 2026. The market is also becoming more geographically diverse, with five countries expected to surpass 1 gigawatt of installations this year.
Battery storage is starting to play a larger role in the region’s power mix. BloombergNEF forecast 4 gigawatts, or 16 gigawatt-hours, of battery capacity additions in MENA in 2026, which would be twice the level added last year. Storage growth is being supported by co-located projects as well as an increasing number of standalone battery auctions.
Wind development remains more concentrated than solar, with Egypt and Saudi Arabia expected to account for 86% of forecast wind additions between 2026 and 2035. Over the longer term, BloombergNEF projects cumulative solar and wind capacity in MENA will reach 404 gigawatts by 2035, compared with 49 gigawatts today.
The report also points to continued strength in regional renewable energy investment. MENA attracted $22 billion in renewable energy investment in 2025, marking a third consecutive annual record. Regional investors were responsible for 85% of financing activity during the year. BloombergNEF linked the broader clean power outlook to energy security concerns, including the Iran war, which has intensified attention on fossil fuel exposure and the role of renewables in reducing import dependence and freeing hydrocarbons for export.
Source: BloombergNEF
