Middle East and North African (MENA) countries will spend billions of dollars over the next decade to modernize their electric grids and add solar generation resources, infrastructure market intelligence firm Northeast Group LLC (Washington) reports.
This spending will include USD 9.8 billion cumulatively for smart grid infrastructure by 2024. Smart grid will enable the incorporation of USD 27.9 billion in new solar generation resources. MENA countries can save between USD1 billion to USD 3.5 billion per year by redirecting domestic energy consumption towards exports, according to a new study by Northeast Group.
Saudi Arabia to lead solar generation capacity deployment
"MENA countries are taking a two-pronged approach to addressing their power sector challenges," said Ben Gardner, president of Northeast Group.
"The first is the installation of over 26 GW of solar capacity by 2024, led by Saudi Arabia. This will allow them to reduce their reliance on oil and gas power generation. The second approach is to deploy smart grid infrastructure that will help incorporate this solar power, enable better electricity demand management and improve reliability."
Smart grid activity is picking up throughout the region. Wealthy Gulf countries are looking to better manage electricity demand. Countries such as Jordan and Lebanon are seeking to reduce electricity theft.