UAE Renewable Energy Market

UAE Renewable Energy Market Overview:

The UAE renewable energy market size reached US$ 4.3 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 11.2 Billion by 2032, exhibiting a growth rate (CAGR) of 11.20% during 2024-2032. The implementation of various government initiatives, including Vision 2021 and Energy Strategy 2050, abundant solar resources, technological advancements in solar photovoltaic (PV) and wind energy, competitive bidding processes, supportive regulatory frameworks, and rising consumer awareness are some of the factors creating a positive outlook for the market.

UAE Renewable Energy Market Trends:

Government Initiatives and Policies: The UAE government has introduced vigorous programs and policies to open up new sectors of its energy mix and reduce reliance on fossil fuels. Chief among these are the UAE Vision 2021 and the Energy Strategy 2050, which include significant targets dedicated to growing the portion of renewable energy in the total energy mix. All of the above strategies are roadmap that target the development and implementation of distributed renewable energy projects and supportive policy. As a result, the government supports the market growth by providing various incentives including feed in tariffs, tax breaks and subsidies to encourage investment in renewable energy projects. Moreover, it introduces up-to-date regulatory frameworks and standards to facilitate smooth project development and attract investors.

Abundant Solar Resources: The UAE has the geographical advantage of one of the highest levels of solar irradiation in the world during the year, with strong solar radiation available 350 days a year. With so much solar energy potential, the country is perfectly suited for a solar power generation. The government has used this to great benefit with many significant projects, benefiting humanity in the process — the Mohammed bin Rashid Al Maktoum Solar Park which is amongst the largest solar parks in the world. The park uses world class solar photovoltaic (PV) technology to capture solar power effectively; The UAE also benefits from an ideal climate for circumstances related to solar with clear sunny skies and limited cloud cover, therefore solar power systems offer a very reasonable certainty of the available performances. The ample solar resources and solar technology enable the UAE to tap, allowing them to develop large scale solar energy projects.

Advancements in Technology: Rapid advancements in renewable energy technologies, particularly in solar PV and wind energy, have significantly contributed to the growth of the renewable energy market in the UAE. Technological innovations have led to increased efficiency, reliability, and affordability of renewable energy systems, making them more competitive with conventional energy sources. In the solar energy sector, advancements such as the development of high-efficiency solar panels, innovative tracking systems, and energy storage solutions have improved the performance and cost-effectiveness of solar power projects. Similarly, advancements in wind turbine technology, including larger rotor diameters and taller towers, have enhanced the efficiency and output of wind farms, particularly in areas with favorable wind conditions. The UAE has been at the forefront of adopting these technological innovations, incorporating them into its renewable energy projects to maximize energy generation and optimize resource utilization. By embracing technological advancements, the UAE strengthens its position as a leader in the global renewable energy transition, driving further growth and innovation in the sector.

UAE Renewable Energy Market News:

• In 2024, Emirates Water and Electricity Company (EWEC), a leading company in the integrated coordination of planning, purchasing and supply of water and electricity across the UAE, announced the award for its 1.5 gigawatt (AC) Al Ajban Solar PV Independent Power Project. The development of the utility-scale solar power plant was awarded to an international consortium of EDF Renewables and Korea Western Power Company (KOWEPO), and Masdar as the local shareholder.
• In 2023, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, inaugurated the 900 megawatt (MW) fifth phase of the Mohammed bin Rashid Al Maktoum Solar Park, the largest single-site solar park in the world with a planned capacity of 5,000 MW by 2030. The fifth phase of the project will provide clean energy to around 270,000 residences in Dubai, reducing 1.18 million tons of carbon emissions annually. Featuring a total investment of AED 50 billion, based on the Independent Power Producer (IPP) model, the Solar Park is expected to reduce 6.5 million tons of carbon emissions annually when fully completed.

UAE Renewable Energy Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for ​2024-2032​. Our report has categorized the market based on type and end user.

Type Insights:

• Hydro Power
• Wind Power
• Solar Power
• Bioenergy
• Others
   

The report has provided a detailed breakup and analysis of the market based on the type. This includes hydro power, wind power, solar power, bioenergy, and others.

End User Insights:

• Industrial
• Residential
• Commercial
   

A detailed breakup and analysis of the market based on the end user have also been provided in the report. This includes industrial, residential, and commercial.

Regional Insights: 

• Dubai
• Abu Dhabi 
• Sharjah 
• Others 
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Dubai, Abu Dhabi, Sharjah, and Others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

UAE Renewable Energy Market Report Coverage:

Key Questions Answered in This Report:

• How has the UAE renewable energy market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the UAE renewable energy market?
• What is the breakup of the UAE renewable energy market on the basis of type?
• What is the breakup of the UAE renewable energy market on the basis of end user?
• What are the various stages in the value chain of the UAE renewable energy market? 
• What are the key driving factors and challenges in the UAE renewable energy?
• What is the structure of the UAE renewable energy market and who are the key players?
• What is the degree of competition in the UAE renewable energy market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the UAE renewable energy market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the UAE renewable energy market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the UAE renewable energy industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.