New solar demand from the Middle East and Africa (MEA) region is forecast to reach 1GW in 2013, according to Solarbuzz. This represents an increase of 625% on year from 136MW in 2012.
"Historically, the MEA region lagged behind global solar markets but is starting to catch up," said Susanne von Aichberger, analyst at Solarbuzz. "By 2017, the region is forecast to account for 3.7GW of annual solar demand, with the potential to reach up to 9GW."
Although the MEA region benefits from very high solar insolation levels, existing solar deployment has been confined mainly to development projects. In fact, the MEA region accounted for just 0.5% of global solar demand in 2012, despite comprising 17% of the world's population.
Recently, there has been a strong increase in solar applications across the MEA region following the introduction of ambitious funding schemes, most notably in South Africa, Israel, and Saudi Arabia. As a result, solar contributions from the MEA region are now poised for rapid growth, and the region is expected to account for 6% of global solar demand by 2017.
In the near term, South Africa is forecast to become the largest solar market within the MEA region, having completed the first two bidding rounds of the Renewable Energy Independent Power Producer Program (REIPPP) in 2012. Already, this program has created a solar project pipeline of 1GW that will be installed by the end of 2014. Ultimately, this will result in 1.45GW of new solar capacity.
Israel is expected to be the region's second largest market in 2013, driven by quotas, tenders, and a newly implemented net-metering scheme. Collectively, Israel and South Africa are projected to account for more than 80% of all solar demand across the MEA region this year.
Solar funding in Saudi Arabia is based on a renewable purchase program that targets a solar capacity of 16GW by 2032. Saudi Arabia accounted for just 5% of total solar demand in the MEA region during 2013, but the country is forecast to become the region's largest solar market by 2017.
Over the next five years, a greater number of countries across the MEA region will start to contribute to overall solar market, decreasing the share from Israel, Saudi Arabia, and South Africa to below 50%. By 2017, Solarbuzz forecasts that ground-mount solar applications will account for over 70% of solar demand across the MEA region.
