United Arab Emirates Power Market Size (2024 - 2029)

The UAE power market is poised for growth, driven by a dominant natural gas energy mix and upcoming natural gas-fired projects. Despite a temporary decline in electricity consumption due to the COVID-19 pandemic, the market is expected to expand, although challenges such as the lack of privatization in the northern Emirates may hinder sector development. The thermal energy segment remains predominant, while nuclear, waste-to-energy, and solar projects are emerging, offering new opportunities. The UAE's advanced power sector, supported by favorable government policies, is set to benefit from several renewable energy initiatives, contributing to the market's expansion.

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Market Size of United Arab Emirates Power Industry

United Arab Emirates Power Market: Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 6.00 %
Market Concentration Medium

Major Players

United Arab Emirates Power Market Major Players

*Disclaimer: Major Players sorted in no particular order

UAE Power Market Analysis

The UAE power market is expected to register a CAGR of more than 6% during the forecast period, 2022-2027. The COVID-19 pandemic led to a decline in electricity consumption in 2020, which led to a slowdown in the market. However, this effect is expected to be short-term, and the market is expected to grow during the forecast period. The energy mix for electricity generation is dominated by natural gas, which constitutes almost around 95% of the energy mix. Further, with the upcoming natural gas-fired projects, the market is likely to grow during the forecast period. However, the lack of privatization in the power sector in the northern Emirates is expected to restrain the development of the power sector in the coming years.

  • The thermal energy segment has maintained its dominance in the country in recent years, and it is expected to continue to do so during the forecast period.
  • Nuclear and waste-to-energy projects are gradually gaining momentum in the country, apart from solar power, which, in turn, is expected to create an ample opportunity for the power sector as new projects.
  • The United Arab Emirates has one of the most advanced power sectors in the region, with distinct structures and government policies that are favorable. The country has several upcoming renewable energy projects, which are expected to drive the power market in the country.

UAE Power Industry Segmentation

The UAE power market report includes:

Generation - Source
Thermal
Renewable
Other Sources
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United Arab Emirates Power Market Size Summary

The UAE power market is poised for growth, driven by a robust energy mix predominantly fueled by natural gas, which constitutes a significant portion of the country's electricity generation. Despite a temporary setback in electricity consumption due to the COVID-19 pandemic, the market is expected to recover and expand, supported by upcoming natural gas-fired projects. The thermal energy segment remains dominant, with natural gas-fired thermal power production anticipated to maintain a substantial share. However, the lack of privatization in the northern Emirates poses a challenge to the sector's development. The UAE's power industry is characterized by advanced infrastructure and supportive government policies, with a focus on diversifying energy sources and enhancing energy security.

Renewable energy projects, particularly in solar power, are gaining traction, offering new opportunities for the power sector. The UAE's commitment to increasing the share of clean energy is evident in its ambitious 'UAE Energy Strategy 2050,' which aims to elevate the contribution of renewable energy to the national energy mix. Financial innovations, such as the Dubai Green Fund, are facilitating investments in clean energy initiatives. The market is moderately consolidated, with key players like Abu Dhabi National Energy Company PJSC (TAQA) and Dubai Electricity and Water Authority (DEWA) playing pivotal roles. Recent developments, including the commissioning of the Barakah Nuclear Energy Plant and the inauguration of new electricity transmission substations, underscore the UAE's strategic efforts to enhance its power infrastructure and transition towards a more sustainable energy future.

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United Arab Emirates Power Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Utility Power Installed Capacity, by Source, in Mega Watt, 2010-2020

    3. 1.3 Electricity Generation and Consumption Forecast, in Terawatt Hours, UAE, till 2027

    4. 1.4 Recent Trends and Developments

    5. 1.5 Government Policies and Regulations

    6. 1.6 Market Dynamics

      1. 1.6.1 Drivers

      2. 1.6.2 Restraints

    7. 1.7 Supply Chain Analysis

    8. 1.8 PESTLE Analysis

  2. 2. MARKET SEGMENTATION

    1. 2.1 Generation - Source

      1. 2.1.1 Thermal

      2. 2.1.2 Renewable

      3. 2.1.3 Other Sources

    2. 2.2 Transmission and Distribution

United Arab Emirates Power Market Size FAQs

The United Arab Emirates Power Market is projected to register a CAGR of greater than 6% during the forecast period (2024-2029)

Abu Dhabi National Energy Company PJSC (TAQA) , Abu Dhabi Transmission & Despatch Company (Transco) , Dubai Electricity and Water Authority (DEWA) , Honeywell International Inc and ACWA Power Company are the major companies operating in the United Arab Emirates Power Market.

UAE Power Market Report Snapshots

UAE Power Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)