UAE Power Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 44.37 gigawatt |
| Market Volume (2029) | 51.96 gigawatt |
| CAGR (2024 - 2029) | 3.21 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
UAE Power Market Analysis
The UAE Power Market size in terms of installed base is expected to grow from 44.37 gigawatt in 2024 to 51.96 gigawatt by 2029, at a CAGR of 3.21% during the forecast period (2024-2029).
- Over the medium period, factors such as supportive government policies, investments and projects in the power sector, and transition toward renewable energy are expected to drive the market during the forecast period.
- On the other hand, inadequate transmission and distribution networks and weak private sector investments are expected to hinder the growth of the UAE power market.
- Nuclear and waste-to-energy projects are gradually gaining momentum in the country, apart from solar power, which, in turn, is expected to create ample opportunity for the power sector as new projects.
UAE Power Market Trends
The Thermal Segment to Dominate the Market
- The United Arab Emirates possesses significant natural gas reserves, making it a reliable and cost-effective energy source for power generation. The country has invested in exploration and development activities to enhance its gas production capacity, ensuring a stable supply for the power sector.
- Natural gas has been the primary source of power generation in the United Arab Emirates, accounting for a substantial majority of the electricity produced. The country has significant natural gas reserves, and this resource has been relatively cost-effective and reliable.
- According to the United States Energy Information Administration, the United Arab Emirates held an estimated 290 trillion cubic feet (Tcf) of proven natural gas reserves at the beginning of 2023, up from the previous year's 273 trillion cubic feet (Tcf).
- At present, United Arab Emirates (UAE) generates 82% of its electricity from natural gas. The rest includes nuclear, solar, and wind power. According to data from the Energy Institute Statistical Review of World Energy 2023, there was an increase in electricity generation in the United Arab Emirates in 2022.
- The United Arab Emirates Energy Strategy 2050 aims to achieve a well-balanced energy mix that addresses the country's economic needs and environmental objectives. The strategy targets a combination of renewable, nuclear, and clean energy sources, intending to comprise 44% clean energy, 38% gas, 12% clean coal, and 6% nuclear in the overall energy composition.
- For instance, as of 2024, the United Arab Emirates has 37 gas-fired power plants. The country is focused on expanding the fleet of natural gas-fired power plans, which is expected to create tremendous opportunities in the transmission and distribution segment. For instance, in October 2023, GE Vernova, the Sharjah Electricity, Water and Gas Authority (SEWA), and Sharjah Hamriyah Independent Power Company (SHIPCO) began commercial operations at the 1.8GW Hamriyah independent power plant (IPP) in Sharjah, United Arab Emirates (UAE).
- For instance, in February 2023, Fujairah Terminals successfully managed the transportation of three of the largest gas turbines ever deployed in the United Arab Emirates. The Fujairah F3 Power Plant Project will likely be the largest Combined Cycle Power Plant (CCPP) facility in the United Arab Emirates, which was expected to be operational in 2023. Its substantial capacity is expected to generate enough electricity to meet the needs of approximately 380,000 households nationwide.
- Owing to these developments, the natural gas-fired power generation segment will likely have a significant share in the future.
Transition Toward Renewable Energy to Drive the Market
- The United Arab Emirates, renowned for its substantial oil reserves and significant contributions to the global oil and gas industry, is at a crossroads marked by a rapidly evolving global energy landscape. The pervasive shift toward renewable energy sources driven by mounting environmental concerns and the imperative to mitigate climate change has cast a shadow over the future of traditional fossil fuel industries.
- The Energy Ministry of the United Arab Emirates announced in July 2023 that the country aims to produce 1.4 million tonnes of hydrogen annually by 2031. Projections suggest that this amount will increase tenfold to 15 million tonnes by 2050.
- As part of its updated energy strategy, the nation aims to substantially augment its renewable energy capacity, targeting a threefold surge from 3.2 GW to an impressive 14 GW by 2030. This strategic initiative is poised to significantly reduce total energy generation costs, with estimates anticipating a decline ranging from AED 100 to 150 billion by the end of 2030.
- In line with its Energy Plan for 2050, the United Arab Emirates (UAE) is actively pursuing diversification of its power mix. The plan outlines an ambitious vision that includes generating 44% of the country's electricity from renewable sources, 6% from nuclear energy, 12% from clean coal, and the remaining portion from natural gas by 2050. To support this transition and meet the increasing energy demand while fostering sustainable economic growth, the United Arab Emirates aims to invest USD 160 billion by 2050.
- The United Arab Emirates is also expected to increase the power generation capacity from onshore wind farms. The UAE's electricity grid saw its first large-scale utility wind power project in 2023. The 103.5-megawatt (MW) landmark project is spanned in four locations, including Sir Bani Yas Island in Abu Dhabi, where a 45 MW capacity wind farm plus 14 MWp (megawatt peak) solar farm has been developed, expanding on existing wind power facilities on the island. The other wind farm locations include Delma Island (27 MW), Al Sila in Abu Dhabi (27 MW), and Al Halah in Fujairah (4.5 MW).
- Several of the UAE's private companies in the renewable energy segment are preparing to invest to achieve net zero by 2050. For instance, in January 2024, the Renewable EPC arm of Larsen & Toubro’s Power Transmission & Distribution business was chosen as the turnkey engineering, procurement, and construction contractor to establish an 1800 MWac Solar Photovoltaic Plant in Dubai, United Arab Emirates. The project is the sixth phase of the Mohammed bin Rashid Al Maktoum Solar Park, spread over 20 sq. km. In addition to the photovoltaic plant, the scope includes related evacuation and interconnection arrangements, including two gas-insulated substations, high-voltage underground cabling, and medium-voltage distribution networks.
- According to the International Renewable Energy Agency, the country's installed renewable energy capacity has grown significantly. In 2023, the total installed renewable energy capacity was 6,052 GW, with a growth rate of almost 68.3% compared to 2022.
- These developments to increase renewables' share in the power generation segment will likely bolster market growth.
UAE Power Industry Overview
The UAE power market is semi-fragmented. Some of the major companies (in no particular order) include Abu Dhabi National Energy Company PJSC (TAQA), Abu Dhabi Transmission & Despatch Company (Transco), Dubai Electricity and Water Authority (DEWA), Emirates Nuclear Energy Corporation (ENEC), and Emirates Water & Electricity Company.
UAE Power Market Leaders
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Abu Dhabi National Energy Company PJSC (TAQA)
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Abu Dhabi Transmission & Despatch Company (Transco)
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Emirates Nuclear Energy Corporation
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Emirates Water and Electricity Company
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Dubai Electricity and Water Authority(DEWA)
*Disclaimer: Major Players sorted in no particular order
UAE Power Market News
- April 2024: The Emirates Water and Electricity Company (EWEC) issued a request for a proposal (RFP) to develop a 1.5 GW solar photovoltaic (PV) power project in the Ajban area for the Emirates of Abu Dhabi. The company anticipates bidders' responses to the RFP by the third quarter of 2024. The project’s scope includes the development, construction, financing, ownership, and maintenance of the power plant and its associated infrastructure.
- March 2023: The first wind turbine in the region was installed on Sir Bani Yas Island. The 65-meter-tall turbine features three rotor blades, each with a 52-meter wingspan, and has an 850-kilowatt-hour production capacity. Masdar and Abu Dhabi's Tourism Development and Investment Company (TDIC) intend to develop a 30-MW onshore wind farm on this island.
UAE Power Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Installed Power Generation Capacity and Forecast in GW, till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 Investments and Projects in the Power Sector
4.5.1.2 Transition Toward Renewable Energy
4.5.2 Restraints
4.5.2.1 Inadequate Transmission and Distribution Network
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 Power Generation Source
5.1.1 Thermal
5.1.2 Renewables
5.1.3 Other Sources
5.2 Transmission and Distribution (Qualitative Analysis only)
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Abu Dhabi National Energy Company PJSC (TAQA)
6.3.2 ACWA Power Company SJSC
6.3.3 Abu Dhabi Transmission & Despatch Company (Transco)
6.3.4 Dubai Electricity and Water Authority (DEWA)
6.3.5 Emirates Nuclear Energy Corporation
6.3.6 Emirates Water and Electricity Company
6.3.7 Beta Green Solar Energy Systems Installation LLC
6.3.8 Siraj Power Contracting LLC
6.3.9 Al Jaber Energy Services LLC
6.3.10 Etihad WE
- *List Not Exhaustive
6.4 List of Other Prominent Companies (Company Name, Headquarters, Revenue, Relevant Products and Services, Operating Sector, Recent Trends, Technology or Projects, Contact Details, etc.)
6.5 Market Ranking Analysis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Grid Modernization and Smart Grid Technologies
UAE Power Industry Segmentation
Power is generated through various primary sources such as coal, hydro, solar, and thermal. In utilities, it is a step before its delivery to its end users. Then, the process is followed by transmission and distribution. Under this system, the generated power is distributed through high-voltage lines (transmission lines) and low-voltage lines (distribution lines) based on the end user's requirements.
The UAE power market is segmented by power generation source and transmission and distribution (T&D). By power generation source, the market is segmented into thermal, renewables, and other sources. Only qualitative analysis is provided for power transmission and distribution. For each segment, the market sizing and forecasts are based on installed capacity, except for power transmission and distribution, for which only qualitative analysis will be provided.
| Power Generation Source | |
| Thermal | |
| Renewables | |
| Other Sources |
UAE Power Market Research Faqs
How big is the UAE Power Market?
The UAE Power Market size is expected to reach 44.37 gigawatt in 2024 and grow at a CAGR of 3.21% to reach 51.96 gigawatt by 2029.
What is the current UAE Power Market size?
In 2024, the UAE Power Market size is expected to reach 44.37 gigawatt.
Who are the key players in UAE Power Market?
Abu Dhabi National Energy Company PJSC (TAQA), Abu Dhabi Transmission & Despatch Company (Transco), Emirates Nuclear Energy Corporation, Emirates Water and Electricity Company and Dubai Electricity and Water Authority(DEWA) are the major companies operating in the UAE Power Market.
What years does this UAE Power Market cover, and what was the market size in 2023?
In 2023, the UAE Power Market size was estimated at 42.95 gigawatt. The report covers the UAE Power Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the UAE Power Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
UAE Power Industry Report
The UAE Power Generation Companies report provides a comprehensive industry analysis, covering various power generation sources such as natural gas, nuclear, and renewables. This industry overview includes market data and trends, offering insights into the market size and growth rate. The report also delves into the transmission and distribution sectors, providing a detailed market forecast and industry outlook.
The market analysis highlights the industry statistics and research, emphasizing the market segmentation and value. This analysis report includes a market review and predictions, helping to understand the market leaders and their strategies. The report pdf can be downloaded for a more in-depth look at the industry profile and market structure.
Market growth is a key focus, with detailed industry research and information on the growth rate and market forecast. The report example includes industry reports and sales data, offering a comprehensive view of the market trends. The industry trends and market overview provide a clear picture of the current market conditions and future outlook.
The report also covers market segmentation and value, providing insights into the target market and market leaders. The industry statistics and market data are crucial for understanding the market size and growth. The report pdf and research companies sections offer additional resources for further analysis.
Overall, this report is an essential resource for understanding the UAE Power Generation Companies market, providing detailed market analysis, industry trends, and growth forecasts. The market outlook and overview sections offer valuable insights into the future of the industry, making it a must-read for anyone interested in this sector.
