The Middle East and North Africa (MENA) region is poised to emerge as a heavyweight in the global renewable energy arena over the next 25 years. With Morocco, the United Arab Emirates (UAE), and Jordan leading the charge, the landscape is shifting dramatically toward green energy ecosystems. These ecosystems are not just about generating renewable energy; they are about creating a full-fledged supply chain that encompasses everything from green hydrogen and ammonia to fertilizers and even industrial goods.
The concept of green energy ecosystems hinges on the synchronized development of renewable energy infrastructure alongside diverse offtake markets and the necessary storage and transportation mechanisms. This integrated approach allows countries to leverage their renewable energy resources more efficiently and effectively. For instance, Morocco is already setting the stage with its ambitious goal of generating 52% of its power from renewable sources by 2030. This is not merely a target; it’s a blueprint for a sustainable future where renewable energy fuels not just electricity generation but also agriculture and manufacturing.
Green ammonia is emerging as a game changer in this equation. It serves as a versatile energy carrier that can store and transport green hydrogen more cost-effectively. Given that ammonia is a primary input for fertilizer production, the existing demand for ammonia provides a ready market for this new, cleaner version. This is a win-win situation, as it allows countries to capitalize on their existing infrastructure while moving toward greener alternatives. The potential for MENA to generate an estimated $130 billion annually from clean hydrogen exports by 2050 underscores the financial incentive to develop these ecosystems.
Private sector investment is crucial in this transformation. As countries like Morocco and the UAE create environments conducive to foreign direct investment and joint ventures, they are less reliant on international aid and loans that often come with strings attached. This shift not only alleviates national debt burdens but also fosters a more sustainable and self-reliant energy landscape.
Cross-border electricity interconnections are another critical component. Projects like the Morocco-to-UK Xlinks interconnector exemplify the potential for exporting renewable energy to markets such as Europe and India. The ongoing discussions between India and Gulf countries to establish a 2.5 GW electricity interconnector highlight the enormous market opportunities that lie ahead. Such initiatives are vital for creating robust supply chains that can transport renewable energy on demand.
Morocco’s strides in green ammonia production are particularly noteworthy. The country is not just producing renewable energy; it’s integrating this energy into its agricultural sector, which consumes a staggering 89% of its water supply. By powering fertilizer production with renewable energy, Morocco is setting the stage for a new wave of international supply chains centered around green agriculture.
Egypt’s renewable energy journey, while promising, stands at a crossroads. After successfully transforming a capacity deficit into surplus through the development of natural gas alongside renewable power, the country now faces the challenge of sustaining momentum in its green energy initiatives. The potential for Egypt to integrate into the MENA green energy ecosystem is significant, but it will require strategic planning and investment to realize its full potential.
As MENA countries continue to develop their green energy ecosystems, the implications for the global energy landscape are profound. The region is not just looking to be a player; it aims to be a leader in the renewable energy revolution. With the right investments, policies, and international collaborations, MENA could very well redefine what it means to be a renewable energy powerhouse in the coming decades.
