In the first half of 2021, there were no contracts awarded for oil and gas power stations in the Middle East, with renewable energy taking centre stage.
That is according to a new report from GlobalData, which claims that during this period renewable energy projects worth $2.8 billion (£2.02bn) were awarded in the Middle East and North Africa region.
This demonstrates a swift change from recent years, as between 2017 and 2020, GlobalData claims that the value of contracts for oil and gas-fuelled power stations in the Middle East was around $4.8 billion (£3.4bn) per year.
Around $104 billion (£75.3bn) worth of renewable energy projects are planned in the Middle East, of which $21.5 billion (£15.5bn) are close to contract agreement or tendering stage for 2021 and 2022.
Richard Thompson, Editorial Director at GlobalData’s MEED, said: “Doubts about long-term demand for oil products and growing confidence in the cost effectiveness of renewable energy are also fuelling the region’s energy transition.
“Energy transition is now among the highest policy priorities for the Middle East’s oil producers, which have been hard hit by low oil prices since 2015 – a knock that may be exacerbated by the decline in oil demand growth that is predicted by 2040.”