Gulf states set to make big renewables investments: report

Gulf states set to make big renewables investments: report

Significant investment in renewables are likely to be made by the Gulf states during the current decade as they implement plans to decarbonise the power sector, according to a new report by S&P Global Ratings.

Despite their dependence on the oil and gas industry, the Gulf nations have all announced new targets or renewed their commitment to the Paris Agreement in the past two years, the report notes.

As one of the largest sources of emissions, the power sector looms large in most national plans for decarbonization.

Solar PV power is particularly well-suited to the region, but installed capacity remains low relative to many other regions. Capacity in the UAE and Saudi Arabia was 3 gigawatts (GW) in 2021; it had been just 165 megawatts (MW) in 2016.

Saudi Arabia and UAE

The two largest economies in the region -- the United Arab Emirates (UAE) and Saudi Arabia -- continue to lead climate-related efforts in the Gulf Cooperation Council (GCC). As of year-end 2021, about 90% of the region's established renewable energy capacity was in these countries, with the UAE alone representing 77%. They have also committed to updated targets as part of renewed efforts to reach net zero, the report highlights.

The governments of Saudi