Power Investment Needs Are Rising Faster Than Policy and Delivery Capacity
Meeting rapidly rising electricity demand in the Middle East and North Africa will require a sharp increase in power sector investment. The International Energy Agency’s report The Future of Electricity in the Middle East and North Africa shows that while policy ambition for clean power is growing, investment levels and implementation capacity remain misaligned with future electricity needs.
In Numbers
● Electricity demand rises ~50% by 2035: Current policy settings imply a major expansion in generation, grids, and system flexibility.
● Clean power dominates new capacity plans: Most announced capacity additions are in solar and wind, supported by national energy strategies.
● Grid investment lags generation plans: Network expansion and modernisation are identified as a key bottleneck to system reliability and integration.
What Changed
The IEA highlights a widening gap between policy ambition and delivery readiness. Governments have set strong renewable energy targets and procurement programmes. However, investment in grids, system flexibility, and market institutions has not kept pace. As electricity demand and peak loads grow, this imbalance increases the risk that capacity additions alone will not deliver reliable power.
Why It Matters
In the IEA’s global electricity futures analysis, investment quality matters as much as investment volume. Clean power targets without parallel spending on grids, storage, and system management raise the risk of congestion, curtailment, and outages. Closing the policy to delivery gap is therefore central to achieving reliable, affordable, and lower-emissions electricity systems worldwide.
Why Africa Should Care
African power systems face similar challenges, with ambitious clean energy plans often constrained by financing and implementation capacity. Rising electricity demand means underinvestment in grids and system institutions can quickly translate into reliability problems. Mobilising long-term capital for networks, flexibility, and access is as important as building new generation. Without coordinated policy, regulatory clarity, and funding, energy transitions risk stalling while electricity demand continues to rise.
