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UAE Power Market Size (2024 - 2029)

The United Arab Emirates power market is anticipated to experience growth over the forecast period, driven by increasing power demand from a rising population, the adoption of renewable energy, and the expansion of power transmission projects. Despite these growth drivers, challenges such as the lack of privatization in the power sector have hindered investment in infrastructure upgrades. The country's commitment to its Clean Energy Strategy 2050, which aims for a significant portion of electricity supply from nuclear and renewable sources, highlights its focus on achieving long-term sustainability and net-zero emission goals.

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Market Size of UAE Power Industry

UAE Power Market Summary
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

UAE Power Market 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 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
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UAE Power Market Size Summary

The United Arab Emirates power market is poised for significant growth, driven by increasing power demand due to population growth and economic expansion. The country's strategic focus on diversifying its energy mix is evident in its commitment to the Clean Energy Strategy 2050, which aims to derive a substantial portion of electricity from nuclear and renewable sources. Despite challenges such as limited privatization in the power sector, which has hindered investment in infrastructure upgrades, the UAE is making strides in integrating renewable energy and enhancing its power transmission projects. The nation's abundant natural gas reserves continue to play a crucial role in its energy landscape, providing a reliable and cost-effective source for power generation. The development of projects like the Fujairah F3 Power Plant underscores the ongoing investment in natural gas infrastructure, which is expected to maintain a significant share in the power generation mix.

The UAE's Energy Strategy 2050 outlines an ambitious vision for a balanced energy portfolio, targeting a mix of renewable, nuclear, and clean energy sources. This strategy is supported by substantial investments aimed at achieving economic and environmental objectives. The country's efforts to increase its renewable energy capacity are exemplified by initiatives such as the Mohammed bin Rashid Al Maktoum Solar Park and the establishment of new solar projects like the one at Tawazun Industrial Park. These developments reflect the UAE's commitment to reducing its reliance on hydrocarbons and fostering sustainable economic growth. The power market in the UAE is moderately fragmented, with key players including Abu Dhabi National Energy Company, Dubai Electricity and Water Authority, and Emirates Nuclear Energy Corporation, all contributing to the nation's transformative energy landscape.

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UAE Power Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Installed Power Generation Capacity and Forecast in GW, till 2028

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

        1. 1.5.1.1 Investments and Projects in the Power Sector

        2. 1.5.1.2 Transition Toward Renewable Energy

      2. 1.5.2 Restraints

        1. 1.5.2.1 Inadequate Transmission and Distribution Network

    6. 1.6 Supply Chain Analysis

    7. 1.7 PESTLE Analysis

  2. 2. MARKET SEGMENTATION

    1. 2.1 Power Generation Source

      1. 2.1.1 Thermal

      2. 2.1.2 Renewables

      3. 2.1.3 Other Sources

    2. 2.2 Transmission and Distribution (Qualitative Analysis only)

UAE Power Market Size FAQs

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.

In 2024, the UAE Power Market size is expected to reach 44.37 gigawatt.

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