Sanctions lifted! Are there opportunities in the Syrian electricity and solar markets?

After more than a decade of conflict and international sanctions, Syria's power system is on the verge of collapse. However, the variables that have emerged in the recent political and economic landscape - especially the expectation that US President Trump will visit Saudi Arabia on the 13th to announce the lifting of sanctions on Syria, and the active regional "power diplomacy" - are injecting hope of recovery into this extremely energy-deficient country. In the grand narrative of national reconstruction, solar energy and its supporting energy storage systems are ushering in an unprecedented development opportunity with their rapid deployment, distributed characteristics and cost-effectiveness.

Power crisis: data and latest developments under the grim reality

According to a statement by Syrian Minister of Electricity Omar Shaqrouq in early 2025, the current power generation is far from meeting demand, and it is expected to take three years to return to the level before 2010 (about 6,500 megawatts to ensure all-weather power supply), and the long-term goal is to reach an installed capacity of 12,000 megawatts by 2030.

The core reasons are persistent fuel shortages and extensive damage to power plants and transmission networks. International sanctions (especially financial sanctions) have long hindered the import of key components and international financing, making it difficult to carry out necessary repairs and upgrades.

Extreme power shortages and recent accidents

Reports by the Associated Press, NPR, AI Maialla and other media in the first quarter of 2025 pointed out that most areas can only get 2 to 4 hours of national power supply per day, and some areas are slightly better or worse. The supply is extremely unstable and many communities are plunged into darkness at night.

On April 2, 2025, a nationwide blackout caused by a technical failure of the national power grid once again exposed the extreme vulnerability of the power grid.

Although the interim government led by Ahmed al-Sharaa promised to improve power supply, the actual effect was limited. The people were disappointed with the unfulfilled promises, and basic services in some areas were even worse than before.

Dependence on alternative energy and high costs

People and businesses generally rely on expensive private generators to maintain basic electricity. Solar energy combined with energy storage batteries has become an alternative option for those who can afford it. The price of a lithium battery energy storage system ranges from $1,500 to $3,000.

The dawn of a breakthrough: expectations of sanctions adjustment and the new pattern of "electricity diplomacy"

"Electricity diplomacy" is becoming a new dimension of interaction between Syria and its neighbors-regional cooperation agreement

Qatar

In March 2025, an initiative was launched to transport natural gas to Syria through Jordan, with the goal of generating 400 megawatts of electricity at the Deir Ali power plant in southern Damascus.

Turkey

According to the Daily Morning Post on May 9, 2025, Turkey plans to transport 6 million cubic meters of natural gas to Syria every day in the next three months to support power generation. Turkey also plays a role in repairing power plants in Syria and supplying electricity to areas such as Idlib.

Jordan

As a potential channel country for regional electricity and natural gas transmission, its role has attracted much attention.

Kurdish region

In February 2025, reports indicated that the Syrian government and the Kurdish-led Syrian Democratic Forces (SDF) reached an agreement to restore oil supply from northeastern oil fields.

Russia

There are also reports that Russia is shipping oil to Syria.

International investment intentions

According to Enab Baladi, countries such as Turkey, Jordan, Qatar and even Germany have shown interest in investing in Syria's power industry.

Commitment of the new government

The government under Ahmed Shala has made improving power supply a priority, but faces multiple challenges in funding, fuel and infrastructure repair.

Solar energy and energy storage: "immediate" and "long-term" choices in crisis

Facing the power gap, the combination of solar energy and energy storage shows unique advantages:

1. Household and small commercial photovoltaic energy storage: the fastest "self-help" and empowerment

Market-driven

The daily power outage of more than 20 hours is the main driving force. Potential easing of sanctions is expected to reduce the cost of importing solar panels, inverters and energy storage batteries.

Government support

The Syrian government has eliminated import tariffs on renewable energy equipment and provided interest-free loans through the "Renewable Energy Utilization and Energy Efficiency Improvement Support Fund" established in 2021. As of early/mid-2024 (some data is extrapolated to 2025 based on previous years), the Syrian Commercial Bank and the People's Credit Bank have issued thousands of loans totaling tens of billions of Syrian pounds through the fund.

Current scale and potential

According to estimates cited by PVknowhow, at least 200,000 solar panels have been installed in the Damascus area alone. According to data from the International Renewable Energy Agency (IRENA), Syria has installed 60MW of solar energy in 2023 (58MW of which is grid-connected and 2MW is off-grid). Considering Syria's sunshine resources (direct standard sunshine DNI is about 2191 kWh/m2 year), the market potential is huge. Local companies such as Syria Solar have also played an active role in the deployment of solar energy in key facilities such as medical care.

2. Medium and large solar projects: strategic reconstruction at the national level

Government goals and plans

The Syrian Ministry of Electricity plans to add 300 MW of renewable energy installed capacity each year, striving to make renewable energy account for 20% by 2030. The Ministry of Electricity expects that by 2030, off-grid solar demand will reach 1,000 MW and grid-connected demand will reach 1,500 MW.

Latest project bidding

In February 2025, the Syrian Ministry of Electricity announced that it was seeking investors for a 100 MW photovoltaic power plant project in Wadi al-Rabi, a rural area of ​​Damascus. The project will adopt a finance, build, and operate (BOO) model with a franchise period of 25 years.

Existing project foundation

The government has licensed 157 photovoltaic projects (a total of 117 MW), of which 72 (19 MW) have been connected to the grid for power generation. Such as the 10 MW project in Adra Industrial City (planned to increase 90 MW) and the 42 MW project in Aleppo Province (planned to increase 58 MW).

Energy storage support

Given the fragility of the power grid, new medium and large solar projects are likely to be required to be equipped with energy storage systems to improve grid stability.

Market Opportunities and Severe Challenges

Short-term (1-3 years)

Household and small commercial photovoltaic energy storage systems will continue to grow with government loan support and urgent needs. Emergency power supply (such as floating power generation vessels, gas/power transmission from neighboring countries) will play a key role.

Medium-term (3-7 years)

With the gradual improvement of the investment environment (depending on the degree of sanctions relief and domestic stability), if the government's planned 300 megawatts of renewable energy projects are implemented, it will drive the medium and large photovoltaic and energy storage markets. Large-scale repairs to existing power plants and power grids remain the core task.

Long-term (7 years or more)

If the country achieves lasting peace and development, the power system is expected to be modernized and diversified, and the proportion of solar energy and energy storage will continue to increase in order to achieve the 2030 target.

Conclusion: The dawn has appeared, but the journey is long

Syria's power crisis is the result of many years of internal and external factors, but it has also created a historic opportunity to transform the energy structure towards a sustainable direction. Potential adjustments to US sanctions, deepening regional energy cooperation, and the Syrian government's positive attitude towards renewable energy (such as project bidding, loan support, and tariff exemptions) have jointly lit up the dawn of progress for the solar and energy storage markets.

For international investors and energy companies that can manage risks, have technical strength and strategic patience, Syria's solar energy storage market, although full of thorns, also contains unique opportunities for common development in reconstruction. In the coming months and even years, the actual direction of sanctions, the implementation of the new government's policies, and the specific results of regional cooperation will be the key to determining whether this "land of hope" can truly revitalize.