UAE Power Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 4.20 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
UAE Power Market Analysis
The United Arab Emirates Power Market size is expected to grow from 56.50 gigawatts in 2023 to 69.40 gigawatts by 2028, registering a CAGR of 4.20% during the forecast period (2023-2028).
- Over the medium term, the country's power market is largely driven by factors such as the increase in power demand due to the rising population, the increasing adoption of renewable energy, and the expansion of power transmission projects.
- On the other hand, the lack of privatization in the power sector has created bottlenecks in the growth of the United Arab Emirates power market, resulting in a lack of investments by independent companies to upgrade the country's power infrastructure.
- Nevertheless, the United Arab Emirates Clean Energy Strategy 2050 had set the target of around 50% electricity supply from nuclear and renewable sources by 2050. The country has recognized nuclear power as one of the significant opportunities to achieve its net-zero emission goals in the long run.
UAE Power Market Trends
Natural Gas segment Expected 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.
- According to the International Energy Agency (IEA), the United Arab Emirates (UAE) had a total electricity generation capacity of approximately 35 GW in 2021. Out of this capacity, gas-fired power plants accounted for around 31 GW, contributing over 88% to the nation's electricity production. Despite efforts to integrate renewable energy sources into the energy mix, the IEA anticipates that gas will still contribute approximately 65% to the country's electricity generation by 2025.
- 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 percent clean energy, 38 percent gas, 12 percent clean coal, and 6 percent nuclear in the overall energy composition.
- Moreover, the United Arab Emirates has a well-developed natural gas infrastructure, including pipelines and storage facilities. This infrastructure enables efficient and reliable delivery of natural gas to power plants nationwide. The existing infrastructure provides a competitive advantage for natural gas utilization in the power sector.
- 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 region. Expected to be operational in 2023, the Fujairah F3 Power Plant Project will likely be the largest Combined Cycle Power Plant (CCPP) facility in the United Arab Emirates. Its substantial capacity is expected to generate enough electricity to meet the needs of approximately 380,000 households nationwide.
- Owing to these developments, it can be predicted that the natural gas-fired power generation segment will have a significant share in the near future.
Renewable Power Generation Expected to Drive the Market
- Historically, hydrocarbons have played a pivotal role in fueling the power sector of the United Arab Emirates (UAE). The nation has heavily relied on its abundant oil and gas reserves to meet its growing electricity demand. However, recognizing the pressing need for sustainable energy solutions, the United Arab Emirates has embarked on a transformative path in recent years, placing greater emphasis on developing and integrating clean power sources.
- The United Arab Emirates' escalating power demand primarily drives the motivation for this shift towards clean power. As the country's population expands and its economy flourishes, the need for electricity rises exponentially. To cater to this surging demand, the United Arab Emirates acknowledges the imperative to diversify its energy mix and reduce its reliance on hydrocarbons.
- 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 the year 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.
- In July 2022, Dubai Electricity and Water Authority (DEWA) declared its objective of collaborating with the Independent Power Producer (IPP) to create 4 GW worth of renewable energy projects. The total investment needed for these initiatives is estimated to exceed USD 11 billion. DEWA is currently working on developing the Mohammed bin Rashid Al Maktoum Solar Park, which will serve as a solar project IPP model. By 2030, the park is expected to have a production capacity of 5,000 MW.
- According to International Renewable Energy Agency, the country has grown significantly in its installed renewable energy capacity. In 2022 the installed renewable energy capacity was 3058 GW, with a growth rate of almost 12% compared to 2021.
- These developments to increase renewables' share in the power generation sector will likely bolster market growth.
UAE Power Industry Overview
The United Arab Emirates power market is moderately 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, among others.
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
- February 2023: United Arab Emirates announced plans to establish a new solar park at Tawazun Industrial Park (TIP) in Abu Dhabi. The park will boast an impressive installed capacity of 4,382 kilowatt-peak. The project involves the installation of over 7,600 solar panels, which will be used for rooftop and carport applications. The installation process is scheduled to commence in the second quarter of 2023, with the park expected to become operational by the end of the same year.
- May 2022: Emirates Global Aluminium (EGA) and GE Gas Power signed an agreement to upgrade four existing GE 9F gas turbines at EGA's Al Taweelah power plant. GE's Advanced Gas Path (AGP) upgrade was expected to include hardware and software improvements for the four 9F gas turbines to improve operational flexibility and increase output, efficiency, and availability. In the United Arab Emirates, the technology is, for the first time, being applied to F-class gas turbines, following the successful implementation of it on six smaller E-class turbines.
- April 2022: Saudi-based Acwa Power signed a USD 900 million engineering, procurement, and construction agreement to develop a green hydrogen project for Neom City in Saudi Arabia. Acwa Power, Air Products, and Neom are developing this project. After compilation, it would be the largest green hydrogen project in the world. The project would produce green hydrogen with over 4 GW of combined renewable energy.
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
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4.5 Market Dynamics
- 4.5.1 Drivers
- 4.5.1.1 Urbanization and Infrastructure Development
- 4.5.1.2 Increasing Renewable Power Generation
- 4.5.2 Restraints
- 4.5.2.1 Grid Infrastructure Challenges
- 4.6 Supply Chain Analysis
- 4.7 PESTLE Analysis
5. MARKET SEGMENTATION
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5.1 Power Generation Source
- 5.1.1 Natural Gas
- 5.1.2 Nuclear
- 5.1.3 Renewables
- 5.2 Transmission & Distribution
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
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6.3 Company Profiles
- 6.3.1 Abu Dhabi National Energy Company PJSC (TAQA)
- 6.3.2 ACWA Power Co.
- 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
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Grid Modernization and Smart Grid Technologies
UAE Power Industry Segmentation
Power generation is generated through various primary sources such as coal, hydro, solar, thermal, etc. In utilities, it's a step before its delivery to its end users. Then the process is followed by Transmission and distribution. Under this, the power generated is distributed via high-voltage lines (transmission lines) and low-voltage lines (distribution lines) as per the requirement of the end user.
The United Arab Emirates power market is segmented by power generation source, Transmission, and distribution (T&D). By power generation source, the market is segmented into natural gas, nuclear, and renewables. Only qualitative analysis is provided for power transmission and distribution (T&D). For each segment, market sizing and forecasts are based on capacity (GW), except for Power Transmission and Distribution (T&D), for which only qualitative analysis will be provided.
| Power Generation Source | Natural Gas |
| Nuclear | |
| Renewables |
UAE Power Market Research FAQs
What is the current UAE Power Market size?
The UAE Power Market is projected to register a CAGR of 4.20% during the forecast period (2024-2029)
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?
The report covers the UAE Power Market historical market size for years: 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.
