Middle East: A Hot Market for BESS or Just Hot Air?

I recently came across an article from the Apricum team titled “The MENA Region: The Next Hot Market for Energy Storage”. While it's from November last year, not much has changed since. The authors suggest that the Middle East is on the verge of a battery energy storage boom, with Saudi Arabia and the UAE leading the charge.

Well… I beg to differ.

Let’s unpack this—because hype is cheap, and batteries are not.

1. Hydrogen, NEOM, and Boozy Tourists

The article cites mega-projects like NEOM, large-scale hydrogen ventures, and shiny new tourist resorts as key BESS drivers. Now, I don’t know about you, but when I hear “NEOM,” I hear “McKinsey cash cow.” This is a textbook vanity project, a mirage in the desert. And hydrogen? Even without batteries, it’s economically shaky. Add BESS to the mix, and you’re basically burning money for fun. (More on that in my previous post on green hydrogen’s business case collapse.)

Tourism could be a wildcard—but as Patrick Boyle brilliantly put it, if you're planning a relaxing vacation, you probably aren't prioritizing "maximum autocracy, desert climate, and zero booze."

2. Middle East + BESS + Renewables = Meh (For Now)

Apricum argues for the integration of BESS with renewables in the region. That’s cute. But without strict co-location rules or robust and large-scale net-metering policies, that dog won’t hunt. Saudi Arabia and the UAE have some small-time net metering, but no strict co-location rules. And then, to be effective, you’d need at least 60% renewables in the mix, which might be achieved in these countries only after 2030.

Let’s not forget Turkey—my current home—which does have co-location and net metering. Has it triggered a BESS gold rush? Nope. The economy’s in shambles and investors are spooked. Storage needs more than policy—it needs real market signals and money that’s not running for cover.

As someone who has lived and worked in multiple authoritarian regimes, I’ve developed a finely tuned detector for hot air disguised as state-backed “vision.” Announcements from authorities like the Saudi Power Procurement Authority should be read as press releases, not project pipelines.

3. Flexibility: The Right Direction, But How?

I’ll give the Apricum team credit for highlighting Independent Flexibility Providers (IFPs) as the right structural path forward for storage. But here’s the rub: the article glosses over what that would take. Legal frameworks? Non-existent. Market rules? Not yet. Investor certainty? Forget about it.

So what we’re left with is a great-sounding idea floating above a regulatory vacuum.

Reality Check

Is the Middle East a promising BESS market? Potentially. But what I see right now is more sizzle than steak.

KSA and UAE are shaping up to be hype markets for energy storage—plenty of announcements, renderings, and press coverage, but not much actual deployment. Let’s keep the champagne on ice.

That said, I’ll be flying to Dubai on April 7th for the Middle East Energy expo to sniff around in person. Sometimes, you have to see the mirage yourself to know if there's actually water.

Until then, keep your lithium dry.

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Want help navigating hype markets and finding real opportunities in energy storage or other cleantech segments? I advise startups and investors on how to scale smartly—without getting lost in the desert.