Qatar may be known for its massive gas reserves and world-class LNG exports, but its energy story is starting to shift. 

 

Fangfang Niu - Social Media Specialist 

Qatar’s Emerging New Energy Market: Small, Selective, but High-Value

Policy & Market Environment

• Targets

1. The latest ambition aims to secure 20% of power generation from renewables by 2030–2035.
2. Officials have recently indicated a new target of 5 GW of installed solar capacity by 2035, equivalent to 10–20% of projected electricity demand (2022 peak demand ~10 GW).
3. In its 2020 updated Nationally Determined Contribution (NDC), Qatar committed to a 25% emissions reduction by 2030, with a strong emphasis on CCS and solar deployment.

• Drivers

1. Global reputation—Qatar hosted the world's first "carbon-neutral" FIFA World Cup in 2022.
2. Domestic benefit—using solar at home frees up more gas for export.

• Key relevant institutions

1. Kahramaa acts as both the utility and the offtaker. It oversees renewable development and leads national renewable strategy.
2. Siraj Energy (a Kahramaa–QatarEnergy JV) is the central developer of solar assets.
3. Qatar's renewable sector remains state-led. Any IPP project typically requires Kahramaa/Siraj to retain a majority share.

Solar Energy Landscape

Qatar is beginning large-scale solar deployment to diversify its power mix.

• Flagship Project: Al-Kharsaah Solar PV Plant (800 MW)

1. Qatar's first utility-scale solar plant, developed by TotalEnergies and Marubeni in partnership with Siraj Energy.
2. Commissioned in 2022 and fully operational in 2023.
3. Equipped with ~2 million modules and a tracking system, covering ~10% of Qatar's peak power demand.

• Future Build-out

1. Qatar has announced Phase II of its solar expansion, expected to exceed another 800 MW, with potential sites in Ras Laffan or Mesaieed.
2. Qatar is also piloting distributed solar such as car-park PV and rooftop systems—widely deployed during the FIFA World Cup.

• Market Opportunities

1. Qatar's next utility-scale PV tender will offer significant opportunities for module suppliers, EPC contractors, and technology providers—especially those with experience from Al-Kharsaah.
2. QatarEnergy is also co-investing in overseas renewables, such as Oman's 800 MW Manah solar project, creating opportunities for global EPC partners.
3. Growing PV capacity is driving interest in battery energy storage systems (BESS) to support grid stability.

• Challenges

1. The electricity market is not liberalized—Kahramaa tightly controls planning, procurement, and partnerships.
2. Local content requirements are rising, but industrial capacity remains limited, heavily relying on imports.
3. Tendering is complex; previous experience and strong relationships significantly increase the likelihood of success.

Hydrogen Development

• Blue Hydrogen / Blue Ammonia

1. Given Qatar's vast gas resources, its hydrogen strategy centers on blue hydrogen (natural gas reforming + CCS). QatarEnergy plans to integrate CCS into the North Field Expansion, boosting LNG production by 40% by 2027 and enabling "blue LNG" with future hydrogen extraction.
2. Qatar and Japan's Mitsui are exploring a blue ammonia plant, which could reach several million tonnes per year in the 2030s if long-term offtake agreements materialize.

• Green Hydrogen

Qatar has excellent solar resources but limited wind, coupled with fast-growing domestic power demand. As a result, green hydrogen is not a near-term priority.

• Still:

1. Qatar University and QatarEnergy are conducting R&D on solar-based hydrogen production.
2. Small-scale applications (green methanol, lab-scale electrolysis, oxygen by-products) may appear over time.Currently, no major green hydrogen projects are publicly announced.

• Opportunities

1. Potential blue ammonia development will require CO₂ capture technologies, ammonia synthesis systems, catalysts, and engineering design.
2. If QatarEnergy invests in hydrogen projects abroad (Australia, Africa), EPC firms can participate as project partners.

• Integrated Energy Infrastructure

Qatar is upgrading its grid to support renewable expansion:

1. Kahramaa is rolling out smart meters and building a national energy management system.
2. Studies are underway to integrate BESS with large PV plants, including the Al-Kharsaah site, to enhance grid stability and renewable penetration.

• Challenges & Considerations

1. Qatar is technologically strong in LNG and may prefer familiar Western partners for CCS and hydrogen integration (e.g., Shell).
2. Its hydrogen investments are demand-driven—large blue ammonia projects will progress only if Japan/Korea secure long-term purchase agreements.

Legal & Business Environment

1. Onshore foreign businesses typically require a local sponsor or partner, except for strategic projects.
2. For Al-Kharsaah, TotalEnergies and Marubeni participated through a JV with Siraj Energy.
3. Market entry usually requires partnering with a local entity or serving as a subcontractor to an international developer.

Qatar also operates Qatar Free Zones (QFZ) in Ras Bufontas and Umm Al Houl, offering 100% foreign ownership for logistics and manufacturing companies—ideal bases for renewable companies targeting the Gulf region.