Smart grids to support USD 28bn in MENA solar investments

Jun 26, 2014 - Heavy investments in smart grids by 2024 will allow Middle East and North African (MENA) countries to add some USD 27.9 billion (EUR 20.5bn) in new solar capacity, a new study by Northeast Group LLC shows.

The US research and consulting firm expects countries in the MENA region to invest billions of dollars over the next 10 years in modernising their electric grids and installing solar projects, including about USD 9.8 billion for smart grid infrastructure.

The first step needed to address power sector challenges in the MENA region is to add more than 26 GW of solar capacity by 2024 so the countries there can lower their reliance on oil and gas, Northeast’s president Ben Gardner stated. The installation of smart grid infrastructure comes second. "Smart metering is the leading segment, but distribution automation will also be very important for these countries", Gardner added.

Through the redirection of domestic energy consumption towards exports, MENA countries will be able to save between USD 1 billion and USD 3.5 billion a year, the researcher noted.

(USD 1.0 = EUR 0.734)

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