Middle East power demand to hit 2,000 TWh by 2030

The residential sector comprises 40% of the total demand.

The Middle East’s power demand is expected to reach around 2,000 terawatt-hours (TWh) driven by strong industrial development and population growth, according to a report by Rystad Energy.

Rystad added that the electrification of transport and other sectors will also drive the power demand which currently stands at around 1,200 TWh.

The residential sector leads the power demand, comprising 40% of the total, followed by the commercial sector at 26%, and the industrial sector at 22%, with the remaining 12% including other sectors such as agriculture and transport.

Currently, 93% of the region’s power generation and demand is met by fossil fuels at 93% at the end of 2023, with renewables accounting only for 3%.

Rystad, on the other hand, projected solar power generation will lead the renewables sector as it is expected to surpass 100 gigawatts from the current more than 16 GW.

“With nearly 40% of its power consumed by a growing residential sector, the Middle East faces surging power demand. This, coupled with the need for economic diversification and freshwater through desalination, underscores the urgency for a transition to renewables,” Nishant Kumar, Renewables and Power Analyst, Rystad Energy, said.

“Additionally, the anticipated rise in electric vehicles in the long term hints at a future spike in energy demand, making the shift towards renewable sources not just necessary but inevitable for the region’s long-term sustainability,” Kumar added.