40GW of new wind capacity expected in MEA by 2026
MAKE’s recent research report on the Middle East and Africa Wind Power Outlook, published on 19 June 2017 suggests that nearly 40GW of new wind power capacity will be installed in the Middle East from 2017 to 2026
The Middle East is fast adopting wind power with capacity reaching 676MW in 2016 according to a recent report by MAKE Consulting.
The report has also suggested that nearly 40GW of new wind power capacity will be installed in the Middle East from 2017 to 2026.
MAKE’s recent research report on the Middle East and Africa Wind Power Outlook, published on 19 June 2017 analyses the wind power market in the MEA, providing updates on policy recommendations, economic trends and the potential advantages and disadvantages for new wind installations in the region.
MAKE’s report observes that the total wind power capacity in the region has reached up to 4.2 GW, from one gigawatt at the end of 2010.
According to the report, the new capacities in South Africa and Morocco accounted for more than 80 per cent of the MEA’s total capacity additions in 2016, reported Technical Review Middle East.
In terms of wind power development, South Africa and Morocco led African region precedes the Middle East, representing 91.3 per cent of the total cumulative capacity in 2016.
MAKE shows that the renewable energy independent power producer procurement program (REIPPPP) in South Africa supports the new wind power capacity additions in the country.
However, the ongoing delay in the government’s signing of power purchase agreements (PPA) has impacted the REIPPPP Round 4.
The report further describes that Morocco’s Law 13-09, which allows private power producers to supply electricity to the grid or to a third party via a PPA, remains a strong driver of new wind power growth in the country.
The increasing amount of wind resources and advancement across the market value chain are expected to support the new wind-power capacity growth in the entire region. According to MAKE’s forecast, the growth will result in a gradual reduction of wind power’s levelled cost of electricity (LCOE), down 15 per cent from 2017 to 2022.
The report emphasises that the auctions in South Africa, Egypt, Morocco and the UAE have resulted in some of the cheapest bidding prices globally for both wind and solar projects.