Electricity consumption in the Middle East and North Africa has soared in recent decades and is set to keep rising sharply, with a range of sources expected to meet the growing demand as countries seek to diversify their power supplies, according to a new International Energy Agency (IEA) report.

Between 2000 and 2024, the region’s electricity demand tripled due to population growth and income increases.

The report predicts that electricity consumption will rise by another 50 per cent by 2035, equivalent to Germany and Spain combined.

The region’s climate is characterised by extreme heat and water scarcity, with around 40 per cent of the projected increase in electricity demand coming from cooling and desalination.

Urbanisation, industrialisation, electrification of transport, and digital infrastructure expansion are also driving up electricity consumption.

Currently, natural gas and oil dominate the region’s electricity mix, accounting for over 90 per cent of total generation.

However, many countries, including Saudi Arabia and Iraq, are pursuing policies to reduce the role of oil in their power systems.

As a result, natural gas is expected to meet half of electricity demand growth to 2035, reducing oil-fired output to just 5 per cent of total generation.

Solar PV capacity is set to increase tenfold by 2035, pushing the share of renewables in the region’s electricity generation to around 25 per cent.

Nuclear power is also set to expand strongly.

Power sector investment in the region reached $44 billion in 2024 and is projected to rise by another 50 per cent by 2035. Grid modernisation and expanding regional interconnections will be critical to underpin electricity security in the region.

A balanced approach to integrating renewables is also crucial. Improving air conditioner efficiency could reduce peak electricity demand growth by an amount equivalent to Iraq’s total power capacity today.