UAE Solar Photovoltaic Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 12.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
UAE Solar Photovoltaic Market Analysis
United Arab Emirates Solar Photovoltaic (PV) market is expected to record a CAGR of more than 12% in the forecast period.
The market was negatively impacted by COVID-19 in 2020. Presently the market has now reached pre-pandemic levels.
- Over the medium term, factors such as encouraging government policies and pressure to meet the power demand using renewable energy to decrease dependency on fossils and decrease carbon footprints are significant contributors to the market's growth.
- On the other hand, the rising adoption of alternate clean energy sources is expected to restrain market growth.
- Nevertheless, with the adaption of the visionary UAE Energy Strategy 2050, the country is set to increase its clean energy share to 44% by 2050 by investing in nuclear and solar energy. This, in turn, is expected to create several opportunities for United Arab Emirates solar photovoltaic (PV) market in the future.
UAE Solar Photovoltaic Market Trends
This section covers the major market trends shaping the UAE Solar Photovoltaic Market according to our research experts:
Commercial and Industrial Segment is Expected to Witness Significant Growth
- Commercial and industrial solar power refers to any ground-mounted or rooftop distributed solar generation system or systems designed and installed for commercial or industrial applications,
- The UAE government has set out various initiatives, such as the Dubai Clean Energy Strategy 2050, a strategy to produce 75% of its energy from renewable sources by 2050. Under this strategy, interim targets of 7% solar power by 2020 and 25% by 2030 have also been set. Achieving these goals is also dependent on commercial and industrial installments.
- Further, the solar PV capacity installed was 2605 MW in 2021, with a growth rate of nearly 18% over the previous year.
- In July 2021, Dubai Electricity & Water Authority (DEWA) launched the Shams Dubai Solar program to facilitate the Dubai Clean Energy Strategy. Based on the net metering principle, Shams allowed customers to install solar panels to produce power, reducing their monthly electricity bill. Moreover, any surplus electricity not consumed immediately is sold back to the grid at the same price, and the end of the month, only the net amount is billed to the consumer. This was a massive incentive for the commercial and industrial sectors, wherein they could do cost-saving while assisting the Clean Energy Strategy 2050.
- Recent developments in building-integrated photovoltaics (BIPV) have opened many opportunities for commercial and industrial solar energy producers. However, BIPV applications are still in the development phase with very few installations; distribution generation across commercial and industrial establishments is the key target segment for BIPV.
- Notable projects in the commercial & industrial sector include Nurai Island's Floating Solar PV (FPV), an 80-kW project aimed to provide solar power energy to the nearby Zaya Nurai resort, which already has 1,000 kilowatts of rooftop and ground-mounted photovoltaic (PV) systems.
- Further, in January 2023, Emerge, a joint venture between EDF and Masdar, announced signing an agreement with Coca-Cola Al Ahlia Beverages to develop a 1.8 MW solar PV plant for its Al Ain facility. This commercial and industrial project is located at the Coca-Cola Al Ahlia Beverages facility in Al Ain. This plant would combine the rooftop, ground-mounted, and car park installations.
- Government plays a vital role in developing the commercial and industrial solar power sector since the market is driven by the cost of subsidies, a regulatory framework for wheeling and net metering, and incentive policies such as Shams. The government of the UAE has been an active supporter of the use of solar power. However, not many policies are in place for distributed solar power generation.
- The commercial and industrial have been fairly small shareholders in UAE's solar energy mix. However, with rising awareness for clean energy and supporting government policies and technological developments such as BIPV and FPV, the segment is expected to grow significantly during the forecast period.
Declining Prices and Installation Cost of Solar PV to Drive the Market
- The solar industry has dramatically cut costs over the past five years through the economies of scale. As the market was flooded with equipment, the prices plummeted. The cost of solar panels is dropping exponentially.
- Solar photovoltaic (PV) modules are now more than 80% cheaper than they were in 2009. The cost of electricity from solar PV fell significantly between 2016 and 2021, and it continues to decline due to various technological developments and mass production. In 2021, the cost of Solar PV is 857 USD per kW.
- The cost reductions are driven by continuous technological improvements, including higher solar PV module efficiencies. The industrialization of these highly modular technologies has yielded impressive benefits, ranging from economies of scale and greater competition to improved manufacturing processes and competitive supply chains.
- Moreover, competitive costs and a strong regulatory framework have led to the adoption of solar power by many private companies in the country. For instance, in January 2022, ACWA Power got the green light to start work on the first 217-MW phase of the Noor Energy 1 solar project in Dubai after receiving a certificate of commercial operation.
- Rapid declines in installed costs and high-capacity factors have also improved the economic competitiveness of solar PV. For new generation build, the LCOE of solar PV plants is below coal-fired plants and is projected to undercut a typical combined-cycle gas turbine in the next five years.
- Also, the infrastructure requirements for a grid-connected solar rooftop plant are often very limited, as the solar panels are being installed on an existing roof, and the electricity is fed into the same cables that bring electricity to the equipment. The solar power plant is connected to the grid and does not require any batteries, which has, in turn, reduced the cost of overall installation of solar panels. Thus, the improved cost-effectiveness of batteries or modules is expected to further propel the use of the solar PV in the country in the coming future.
- Therefore, owing to the above points, declining prices and installation cost of solar PV is expected to drive the market during the forecast period.
UAE Solar Photovoltaic Industry Overview
The UAE solar photovoltaic (PV) market is partially fragmented. The major companies in the market (not in particular order) include Masdar (Abu Dhabi Future Energy Company), Sunergy Solar LLC, Maysun Solar FZCO, ACWA Power, and CleanMax Mena FZCO., among others.
UAE Solar Photovoltaic Market Leaders
-
Masdar (Abu Dhabi Future Energy Company)
-
ACWA Power
-
CleanMax Mena FZCO
-
Maysun Solar FZCO
-
Sunergy Solar LLC
*Disclaimer: Major Players sorted in no particular order
UAE Solar Photovoltaic Market News
- In January 2023, the Emirates Water and Electricity Company (EWEC) issued a request for a proposal (RfP) to develop a Solar photovoltaic (PV) power project of 1.5 GW capacity in the Ajban area for the Emirates of Abu Dhabi. The bidders must submit their responses to the RfP by the end of the first quarter of 2023. The project's scope includes the development, construction, financing, ownership, and maintenance of the power plant and its associated infrastructure.
- In January 2023, Suntech delivered all 680MW solar modules for China Machine Engineering Corporation (CMEC)'s Al Dhafra PV2 Solar Power Plant in the United Arab Emirates, further advancing the construction of the world's largest single-site solar power plant.
UAE Solar Photovoltaic 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 Capacity and Forecast, in MW, till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 Deployment
5.1.1 Utility
5.1.2 Commercial and Industrial
5.1.3 Residential
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 Panel Manufacturers
6.3.1.1 Canadian Solar Inc.
6.3.1.2 JinkoSolar Holding Co. Ltd
6.3.1.3 Trina Solar Co. Ltd
6.3.1.4 First Solar Inc.
6.3.1.5 Sunergy Solar LLC
6.3.1.6 Echo Solar Panels Manufacturing LLC
6.3.2 EPC Companies/ Developers
6.3.2.1 Masdar (Abu Dhabi Future Energy Company)
6.3.2.2 City Solar
6.3.2.3 CleanMax Mena FZCO
6.3.2.4 MAYSUN SOLAR FZCO
6.3.2.5 ACWA Power
6.3.2.6 Enerwhere
6.3.2.7 Shanghai Electric Power Generation Engineering Co.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
UAE Solar Photovoltaic Industry Segmentation
Solar photovoltaic energy (PV) converts sunlight directly into electricity through a technology based on the photovoltaic effect. Solar radiation that strikes one face of a photoelectric cell (many of which are installed on a solar panel) produces a voltage differential between both faces, allowing electrons to travel from one face to the other, generating an electric current.
The United Arab Emirates solar photovoltaic (PV) market is segmented by deployment. By deployment, the market is segmented by residential, commercial and industrial, and utility. The market size and forecasts have been done for each segment based on installed capacity (MW).
| Deployment | |
| Utility | |
| Commercial and Industrial | |
| Residential |
UAE Solar Photovoltaic Market Research FAQs
What is the current United Arab Emirates Solar Photovoltaic (PV) Market size?
The United Arab Emirates Solar Photovoltaic (PV) Market is projected to register a CAGR of greater than 12% during the forecast period (2024-2029)
Who are the key players in United Arab Emirates Solar Photovoltaic (PV) Market?
Masdar (Abu Dhabi Future Energy Company), ACWA Power, CleanMax Mena FZCO, Maysun Solar FZCO and Sunergy Solar LLC are the major companies operating in the United Arab Emirates Solar Photovoltaic (PV) Market.
What years does this United Arab Emirates Solar Photovoltaic (PV) Market cover?
The report covers the United Arab Emirates Solar Photovoltaic (PV) Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the United Arab Emirates Solar Photovoltaic (PV) Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
United Arab Emirates Solar Photovoltaic (PV) Industry Report
The United Arab Emirates Solar Photovoltaic (PV) market is experiencing significant industry growth. The market size has been expanding rapidly, driven by increased adoption across utility, commercial, industrial, and residential sectors. This market growth is supported by favorable market trends and an optimistic industry outlook. The market share of solar photovoltaic systems is on the rise, reflecting the growing preference for renewable energy sources in the region.
The industry analysis indicates a positive growth rate, with substantial investments being made in solar PV projects. Research companies are actively engaged in providing insights and data, contributing to a comprehensive industry overview. The market forecast suggests continued expansion, with market leaders playing a crucial role in driving the industry's progress.
Industry reports and industry research highlight the significant industry sales and industry size, underscoring the market's potential. Industry statistics provide valuable information on the current state and future prospects of the solar PV market in the UAE. The market outlook remains positive, with market predictions indicating sustained growth and development.
Market segmentation reveals the diverse applications of solar PV systems, catering to various segments such as utility, commercial, industrial, and residential. The market value of solar PV installations is expected to increase, reflecting the growing investment in renewable energy infrastructure. The market review and market overview provide a detailed analysis of the industry's dynamics and key trends.
The report example and report pdf offer a comprehensive view of the market, including detailed insights and data. Research companies continue to play a vital role in providing industry information and market data, aiding stakeholders in making informed decisions. The industry trends and market trends indicate a shift towards sustainable energy solutions, with solar PV leading the way.
In conclusion, the United Arab Emirates Solar Photovoltaic (PV) market is poised for significant growth, driven by favorable market conditions and increasing adoption across various sectors. The market leaders and research companies are instrumental in shaping the industry's future, providing valuable insights and data to support informed decision-making.
United Arab Emirates Solar Photovoltaic (PV) Report Snapshots
