Market Size of UAE Power Industry
| 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 |
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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 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 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.
UAE Power Market Size - Table of Contents
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1. MARKET OVERVIEW
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1.1 Introduction
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1.2 Installed Power Generation Capacity and Forecast in GW, till 2028
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1.3 Recent Trends and Developments
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1.4 Government Policies and Regulations
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1.5 Market Dynamics
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1.5.1 Drivers
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1.5.1.1 Urbanization and Infrastructure Development
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1.5.1.2 Increasing Renewable Power Generation
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1.5.2 Restraints
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1.5.2.1 Grid Infrastructure Challenges
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1.6 Supply Chain Analysis
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1.7 PESTLE Analysis
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2. MARKET SEGMENTATION
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2.1 Power Generation Source
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2.1.1 Natural Gas
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2.1.2 Nuclear
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2.1.3 Renewables
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2.2 Transmission & Distribution
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UAE Power Market Size 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.
