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Solar PV demand in the Middle East and Africa will increase by 50% year-on-year in 2014

  • Author:John
  • Release on :2014-05-20

Saudi Arabia will become a leading PV country in 2016, driving the Middle East and Africa market to 4.4GW in 2018

NPD Solarbuzz Shanghai Office, April 28, 2014 -- According to NPD Solarbuzz's latest Middle East and Africa Emerging PV Market ReportEmerging PV Markets Report: Middle East and AfricaIn 2014, the Middle East and Africa (MEA) PV market demand will increase by 50% year-on-year, and as the MEA has become an important PV market, its annual demand will nearly triple from 2014 to 2018. In 2018, the annual demand for the MEA PV market is expected to reach 4.4 GW, while also having the potential to reach 10 GW.

In 2012, the total demand for MEA PV market was about 140MW, and the demand in 2013 increased by 670% compared with 2012. Before 2013, a significant proportion of the PV demand in the region was a small off-grid system; however, in 2013, the grid-connected system became the mainstream, driving total demand exceeded 1GW, and is expected to reach 1.6GW in 2014. By 2018, ground projects are expected to account for more than 70% of the MEA PV market demand.

So far, the growth in PV demand in the MEA region has been driven mainly by a few developed economies, especially South Africa and Israel. NPD Solarbuzz predicts that these two countries, together with Saudi Arabia, will provide stable demand for the MEA PV market in the coming years.

NPD Solarbuzz AnalysisdivisionSusanne von Aichbergertable“Solar energy is an ideal renewable energy source in the Middle East and Africa. But even so, the driving forces and constraints of the PV market in these two regions are very different.”

Figure: MEA Annual PV Demand Forecast


Source: Middle East and Africa Emerging PV Market Report: Emerging PV Markets Report: Middle East and Africa
In most Middle Eastern countries, renewable energy is seen as a means of protecting domestic oil and gas reserves. NPD Solarbuzz predicts that the demand for PV in the Middle East will reach 2.2GW in 2018 and has the potential to rise to 4GW. Israel is expected to become the largest PV market in the Middle East in 2014, relying on solar roof and ground power projects based on net electricity metering.
Saudi Arabia’s ambitious renewable energy plan will eventually be implemented this year, which will make it the largest PV market in the MEA region in 2016. From 2016 to 2018, Saudi Arabia is expected to add 2.4 GW of PV demand. In addition, other major PV markets in the Middle East are the United Arab Emirates, Jordan and Kuwait.
Solar photovoltaic power generation has become an important factor in helping to promote social and economic development in the region due to the severe shortage of electricity in Africa and the fact that there are still large numbers of people in sub-Saharan Africa who are unable to use electricity. By 2018, PV demand in Africa is expected to reach 2.2 GW and have the potential to rise to 6 GW.
In 2014, PV demand in Africa will continue to be dominated by South Africa. Driven by the Renewable Energy Independent Power Generation Procurement Plan (REIPPP), South Africa will build a large-scale photovoltaic power plant. Von Aichberger added: “In the past year, large-scale power plant projects have emerged in various regions of Africa, including sub-Saharan African countries such as Cameroon, Swaziland and Uganda. The 100MW PV project announcement has now become very It is common to rapidly expand Africa’s power generation capacity."




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