2021 solar statistics in Europe, the Middle East, and Africa (EMEA) 0

2021 Solar Statistics in Europe, the Middle East and Africa

Based on this report, the growth of the solar PV market is expected to increase in popularity due to its ability to serve the vast majority of the population at an economical price. Several solar parks and distinct solar installations can supply power to a large number of people and even a single house.

The Solar Energy and Solar PV Market in EMEA

Solar installations help to decrease the rate of electricity per unit, and government incentives for solar energy generation have motivated consumers to install solar at a heightened level, curating opportunities in the solar PV market in Europe, the Middle East, and Africa. A combination of these factors has resulted in a rapid development of the solar PV market share worldwide due to the lack of emissions of carbon dioxide. The Middle East region is projected to experience an increase in solar power installations as a result of this. 

Solar photovoltaic (PV) technology was so popular in the Middle East and Africa in the year 2021 that the market which was previously valued at USD 2.19 billion in 2020, In the period 2022-2032, it is forecast to grow from USD 4.55 billion in 2022 to USD 67.72 billion in 2032 at a CAGR of 31%. 

The Solar Energy Market in the EU

The German solar market will be the largest in 2021 with 5.3 GW of new installations. Spain will install 3.8 GW, the Netherlands will install 3.3 GW, Poland will install 3.2 GW and France will install 2.5 GW. There are only two newcomers from northern Europe (Denmark and Sweden) among the Top 10 markets in the European Union in 2021, replacing two established PV markets, one in central Europe (Belgium) and one in the south (Portugal).

As of 2020, The Netherlands has overtaken Germany for installed capacity per capita, reaching 765 Watts per capita, a 42% increase over the previous year 

It is crucial that the EU meets a 2030 renewable energy target of at least 45% to ensure climate neutrality in 2050 and meet the 1.5°C Paris target. This can only be achieved if 870 GW of solar capacity is operated throughout the EU’s territory by 2030. 

Related article: Top Solar Statistics You Need to Know in 2019

The Leading Cities in Solar Energy in 2021

Several Middle Eastern nations, such as Egypt, Saudi Arabia, Tunisia, Namibia, Oman, Iraq, Ghana, Algeria, Nigeria, and the other nations in the region, are keeping a close eye on the regional market size. Solar power systems have grown in popularity over the past few years in United Arab Emirates (UAE), Egypt, South Africa, and Algeria.

In many African countries, electricity is scarce, so investors are encouraged to invest in such solar projects. Nigeria and Kenya, which contribute significantly economically, are one example of economically contributing countries with a mere 56.5% and 75% of the population having access to electricity. This factor would propel the growth rate of the solar photovoltaic (PV) industry in the Middle East and Africa. 

A large amount of funding is being provided by numerous companies to develop novel solar structures to provide power to a broad variety of commercial and industrial segments. This will contribute to upgrading the region’s electricity production technology, & affect sales of solar PV’ in Europe, the Middle East, and Africa.

Approximately 6 million households received electricity from the seven new solar power plants in Saudi Arabia in the spring of 2021 thanks to a novel power purchase agreement. The new developments in the country will have a capacity of nearly 3600 MW. 

Solar Growth Statistics in EMEA

A report by Emergen Research shows that the demand for solar photovoltaic (PV) is likely to witness immense market growth in the coming years.

Solar photovoltaic (PV) technology was so in demand in the Middle East and Africa in the year 2021 that the market which was previously valued at USD 2.19 billion in 2020. 

In the period 2022-2032, it is forecast to grow from USD 4.55 billion in 2022 to USD 67.72 billion in 2032 at a CAGR of 31%. 

What are the reasons behind the surge of the solar industry? 

The reasons are below:

  • Unlimited
  • Clean
  • An energy source with the potential to meet the growing energy demand
  • Strengthens the electricity system
  • Cost competitive
  • Energy control and choice are increased for consumers
  • Creates jobs.

The Economic Index of the Solar Industry in Europe, Middle East, and Africa

In addition to creating job opportunities, the surge in the solar industry has significantly contributed to the economy. 

The solar photovoltaic potential in less-developed countries continues to be enormous, but is yet to be fully realized due to low human development indexes, poor reliability of electricity supply, and lack of access to electricity.

Just 0.005% of Ethiopia’s land area is capable of generating enough energy for existing needs, while only 0.1% of Mexico’s land is capable of generating power.

Investment Statistics – Corporate Solar Investments Surge in EMEA

It is predicted that the solar PV sector in the Middle East will boom over the next five years as a result of ambitious renewable energy targets, increased market liberalization, and the enormous potential of solar energy. 

Finergreen’s Associate Manager Partner Antonie Poussard said the Middle East’s solar PV sector is on track to boom through ambitious renewable energy targets, increased market liberalization, and the enormous solar potential. As Poussard pointed out at Middle East Energy’s Intersolar Conference: “Saudi Arabia plans to add 9.5GW of PV capacity by 2023. This goal will be reached by reshaping the legal framework that governs foreign investments and renewable energies.

By continuing to liberalize the market, Saudi Arabia can realize its full potential in the solar energy sector.”

A major goal Jordan has set for 2030 is to generate 31 percent of its electricity from renewable resources, reducing its dependency on fossil fuel imports. A remarkable breakthrough was also revealed by the data between 2015 and 2020, as renewable energy increased from 1 to 14 percent in the electricity mix. However, bold actions will be needed in order to achieve targets, as well as collaboration between the public and private sectors.

Also, Egypt has been repositioned as a regional energy leader, investing heavily in the clean energy sector and serving as an example for neighbouring countries. Clean energy transition and meeting renewable energy targets will require the country to create conditions that attract investment and enhance business climates in order to succeed.

Solar Manufacturing Statistics in EMEA

In the next five years, the solar PV sector in the Middle East is expected to boom due to ambitious renewable energy targets, increased market liberalization, and an abundance of solar resources. 

The Middle East and Africa solar photovoltaics (PV) market is segmented by grid type as on-grid and off-grid. A large portion of projects now in operation or under construction are directly connected to the utility grid, which manages the power demand for numerous customers. This segment of the market has dominated the market due to its direct connection to the utility grid. As solar installations increase on rooftops, the off-grid segment will also grow due to the increasing penetration of solar.

Market share in the solar PV industry is dominated by solar PV manufacturers, who hold a significant lead over their competitors. Market share in the Middle East has also been dominated by players who have well-established supply chains. 

In the upcoming years, the market in the Middle East & Africa will have many players as the new companies are concentrating on enhancing their reach, thereby benefiting the whole solar PV industry.

Here is a list of solar PV companies that have some or all of their manufacturing units in Europe, Middle East, and Africa:

List of Solar Panel Manufacturers (as of 2021)

  • Heliene A.R.E Group (Egypt)
  • SARL Algerian PV Company
  • Aton Enerji (Turkey)
  • Aures Solaire (Algeria) 
  • Genergy (South Africa)
  • Specialized Battery Systems (South Africa)
  • Asunim Solar (Turkey)
  • Sinetech (PTY) Ltd. (South Africa)
  • Cleanergy (Morocco)
  • DuSol Industries (UAE)
  • Seraphim Solar (China)
  • Jetion Solar (China)
  • Aurasol (Tunisia)
  • Copex Solar (UAE)
  • Emirates Insolaire (UAE)

The Middle East market is dominated by manufacturers who have strong supply chains and are well-liked by customers. Jetion Solar, Seraphim Solar, and Asumin Solar are key players in this market.

Considering that the solar PV companies rising in the Middle East & Africa area are still fresh and are extending their reach across the market, the Middle East & Africa region is on track to have an abundance of players in the next few years, which will further promote the growth of the solar PV industry.

Solar Energy Production Statistics in EMEA

In the first half of 2021, the production of solar energy increased by 25.4%.

A fourfold increase in solar capacity will take place in the middle east by the year 2025 compared to the current installed capacity. 

In 2020, the Middle East had an installed renewable energy capacity of 2.3 GW, of which approximately 91% were photovoltaic. 

Despite Nigeria’s significant economic contribution in 2018, only 56.5% and 75% of its population are connected to electricity. This information demonstrates that in order to fill this gap, a large number of new energy generation technologies can be installed. 

Tax Credits Statistics in EMEA

The Solar Investment Tax Credit or ITC has boosted the growth of the solar PV industry in the US by providing stability and growth since it was rolled out in 2006.

Considering the seven MENA countries considered, a total technical solar power generation potential of 538,000TWh/yr has been calculated from remote sensing analysis. This huge potential means less than 0.2% of the land suitable for CSP plants would be enough to supply 15% of Europe’s electricity demand by 2050, or 15% of the global electricity demand.

In order to characterize 33 possible import routes to main European centers of demand, GIS analysis was conducted of potential future HVDC corridors. During off-peak hours in Europe, Middle East PV energy can be used as a source of energy. The distance from the Middle East to Europe is also longer, requiring more undersea cable for the transmission lines of high voltage direct current (HVDC)

Research on exporting electrical energy is also conducted in the Sahara Desert of North Africa (NA), in order to export electrical energy from the MENA region to Europe.

A road bridge over the Red Sea will allow the two Arab countries to be connected by road. Saudi Arabia and Egypt enjoy good political relations.

In addition to already connecting European countries, European grids are being improved. Researchers are working on the use of deserts for solar energy generation in China and Australia where energy export from the Gobi Desert in China to Japan is currently being studied, and energy export from Australia to Southeast Asia is currently being researched.

Solar systems installed between January 1, 2006, and December 31, 2016 are eligible for a 30% tax credit without an upper limit with the ITC. During the period since 2006, the number of solar installations has grown by 76% compounded annually.

This ITC has already proven useful, encouraging companies to develop long-term investments that increase market competition, drive technological innovation, and ultimately reduce consumers’ costs.

ITC, coupled with the US Production Tax Credit (PTC) was rolled out as a federal incentive to provide financial support for developing large-scale renewable energy facilities. The policy was implemented for solar electricity systems that were larger than 150 kW placed between October 22, 2004 and December 31, 2013. Qualified projects received 1.1¢/kWh tax credit during the first 10 years of operation.

Soft Costs Statistics in EMEA

In the solar industry, soft costs refer to non-hardware expenses. Soft costs include:

  • The cost of installation 
  • Permitting
  • Financing 
  • Installing Solar 
  • Cover Expenses such as Customer Acquisition
  • Supplier Payments
  • Profit Margins
  • Admin and marketing costs are also overhead expenses.

In addition to the hardware costs of solar energy systems, soft costs account for an increasing share of total solar system costs. In spite of the reduction in solar hardware costs in recent years, soft costs are increasing. These costs are hard to pinpoint and require a variety of solutions because they are affected by so many factors.

Closing Words

Several solar parks and distinct solar installations can supply power to a large number of people and even to one home, according to this report, which anticipates the growth of the solar PV market. Due to its ability to serve a large population at a reasonable price, the solar PV market is expected to grow in popularity. 

The United Arab Emirates (UAE), South Africa, Algeria, and Egypt are the countries in the region that have seen an increase in demand for solar power projects in recent years. 

Solar Photovoltaic Market in Europe, the Middle East, and Africa set to grow rapidly due to the increasing use of solar power for energy generation across countries.

European, Middle Eastern, and African solar PV markets will also be driven by their ability to be cost-effective and satisfy a large population.

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