An Analysis of Power Sector Investment by Technology in the Middle East and North Africa

Published: 2025-11-02

Abstract

The power sector in the Middle East and North Africa (MENA) is undergoing a profound structural transformation. Historically dominated by state-owned utilities and reliant on abundant, subsidized fossil fuels, the region is now pivoting towards a more diversified, sustainable, and technologically advanced energy mix. This manuscript provides a detailed, three-phase analysis of power sector investment by technology across the MENA region. It examines the fossil fuel-dominated landscape of 2010, assesses the transitional and increasingly diversified investment patterns of 2023, and projects the anticipated investment landscape for 2035, driven by national climate pledges, economic diversification plans, and plummeting renewable energy costs. The analysis reveals a clear and accelerating shift: from capital expenditure (CAPEX) locked in hydrocarbon-based generation towards massive investments in solar PV and wind, with growing allocations for grid modernization, battery storage, and nascent clean technologies like green hydrogen. This transition, however, is uneven across the region and faces significant geopolitical, regulatory, and financial challenges.

Keywords: MENA Power Sector Investment Renewable Energy Solar PV Natural Gas Energy Transition NDCs Grid Modernization Green Hydrogen

How to Cite

An Analysis of Power Sector Investment by Technology in the Middle East and North Africa . (2025). African Journal of Academic Publishing in Science and Technology (AJAPST), 1(4), 25-39. https://www.easrjournals.com/index.php/ajapst/article/view/59

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