UAE Power Market

UAE Power Market Overview:

The UAE power market is projected to exhibit a growth rate (CAGR) of 3.30% during 2024-2032. Rapid urbanization, economic diversification, significant investments in renewable energy, growing industrialization, technological advancements, increasing electricity consumption, and rising government initiatives on sustainable energy sources like solar and nuclear power are some of the major factors propelling the growth of the market.

UAE Power Market Trends:

Rapid Urbanization and Economic Growth

The UAE is experiencing significant urban expansion and economic development, leading to a higher demand for electricity. For instance, the Dubai 2040 Urban Master Plan maps out a comprehensive plan for sustainable urban development in Dubai. It focuses on enhancing people’s happiness and quality of life and reinforcing Dubai as a global destination for citizens, residents, and visitors over the next 20 years. The plan has a strategic structural layout, integrating all urban development master plans in the emirate and aligned it with Dubai’s strategic economic priorities and the needs of the future. Dubai 2040 Urban Master Plan is the seventh development plan for the emirate since 1960. Between 1960 and 2020, the population of Dubai has multiplied 80 times from 40,000 in 1960 to 3.3 Million while the urban and built area of the emirate increased 170-fold from 3.2 square km. As cities grow and industries expand, the need for reliable power supply to support residential, commercial, and industrial activities increases substantially. This increase is aptly catered to by initiatives, such as Dubai 2040 Urban Master Plan, and in turn, contributing to the market growth.

Increasing Investment in Renewable Energy

The UAE has committed to diversifying its energy mix with substantial investments in renewable energy, particularly solar power. For instance, in July 2024, Abu Dhabi Energy Services (ADES), a subsidiary of TAQA (Abu Dhabi National Energy Company), announced the commencement of a 9000-kilowatt peak (kWp) solar photovoltaic (PV) project for the United Arab Emirates University (UAEU) in Al Ain. This project is the largest solar energy initiative in the UAE's education sector and the first large-scale renewable energy endeavor for the UAEU. The project will install over 14,000 solar ground-mounted modules with tracking systems on the UAEU campus, covering 190,000 square meters. The panels are expected to provide 25% of the university's electricity demand and will be completed within 13 months of the agreement's start. The initiative is projected to reduce CO2 emissions by 8,187 tons annually, equivalent to removing 1,822 cars from the streets each year. Moreover, initiatives like the UAE Energy Strategy 2050 aim to increase the share of clean energy, reduce reliance on fossil fuels, and promote sustainability, driving growth in the renewable energy sector.

UAE Power Market News:

• In April 2024, US-based Statevolt launched plans to build a 40-gigawatt-hour battery gigafactory in the United Arab Emirates, in place of its Italvolt’s gigafactory project in Italy. The factory, to be developed by Statevolt Emirates, will be built at the Ras Al Khaiman Economic Zone (RAKEZ). The $3.2 Billion project is expected to start its first production line by the end of 2026 and gradually ramp up to full capacity.
• In October 2023, under the directives of the UAE President, the Crown Prince of Abu Dhabi and the Chairman of Abu Dhabi Executive Council inaugurated the UAE Wind Program. Through the support and vision of its leadership, the UAE demonstrates the latest technology and innovation to capture low wind speeds at a utility-scale. This inauguration of the UAE's first wind farms is spread across four locations, with a total combined capacity of over 100 megawatts, powering over 23,000 homes.

UAE Power 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 generation sources.

Generation Sources Insights:

• Thermal
• Hydro
• Renewable
• Others
   

The report has provided a detailed breakup and analysis of the market based on the generation sources. This includes thermal, hydro, renewable, and others.

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. 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 Power Market Report Coverage:

Key Questions Answered in This Report:

• How has the UAE power market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the UAE power market?
• What is the breakup of the UAE power market on the basis of generation sources?
• What are the various stages in the value chain of the UAE power market? 
• What are the key driving factors and challenges in the UAE power?
• What is the structure of the UAE power market and who are the key players?
• What is the degree of competition in the UAE power 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 power market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the UAE power 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 power 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.