United Arab Emirates Power Market Size
|Study Period:||2018- 2028|
|CAGR:||> 6.5 %|
*Disclaimer: Major Players sorted in no particular order
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United Arab Emirates Power Market Analysis
The United Arab Emirates power market is expected to register a CAGR of greater than 6.5% during the forecast period.
- Over the long 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 in the country.
- 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, as it has resulted 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 commissioning of the first nuclear power generation unit happened in 2020 in Abu Dhabi, and currently, around 4 GW of more nuclear power capacity is under construction. The country has recognized nuclear power as one of the best opportunities to achieve its net-zero emission goals in the long run.
United Arab Emirates Power Industry Segmentation
Power plants are facilities that generate electricity by converting various types of energy into electrical power. The most common types of power plants use fossil fuels such as coal, natural gas, and oil, or nuclear energy, but there are also renewable energy power plants that use sources such as solar, wind, hydro, and geothermal energy.
The United Arab Emirates power market is segmented by power generation, transmission, and distribution (T&D). By power generation, the market is segmented into natural gas, nuclear, and renewables. For each segment, market sizing and forecasts have been done based on capacity (MW).
United Arab Emirates Power Market Trends
Natural Gas segment Expected to Dominate the market
- Natural-gas-fired power production is expected to have the highest share during the forecast period due to the upcoming natural-gas-based power projects.
- The share of natural gas in the electricity mix of the United Arab Emirates was around 89% in 2021, with a generation of 139.4 TWh. According to the BP Statistical Review of World Energy 2022, the United Arab Emirates consumed 4.53 petajoules of primary energy in 2021, of which 55.2% was natural gas.
- In December 2021, Mitsubishi Power shipped three M701JAC gas turbines to the Fujirah F3 gas-fired power plant in the UAE. The project is believed to be the largest gas turbine combined cycle (GTCC) facility in the UAE, equipped with combined cycle technology. The power plant using this highly efficient gas turbine is expected to be operational by 2023.
- Further, in February 2022, Dubai's government announced that it would convert a planned USD 3.4 billion coal-fired power plant to use natural gas, in line with the UAE's broader pledge to have net-zero carbon emissions by 2050.
- 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.
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Renewable Power Generation Expected to Drive the Market
- Hydrocarbons have long driven the United Arab Emirates' power sector. However, in recent years, the country has been focusing on clean power to cater to its rising power demand.
- According to the country’s Energy Plan for 2050, it aims to diversify its power mix. Further, it envisages the production of 44% of power from renewables, 6% from nuclear, 12% from clean coal, and the rest from natural gas by 2050. Moreover, the United Arab Emirates aims to invest AED 600 billion by 2050 to meet the growing energy demand and ensure sustainable growth for the country’s economy. This energy transition is expected to trigger the massive deployment of smart grid networks in the country.
- The United Arab Emirates has undertaken significant strides over the past several years, leading the region’s drive toward renewable energy, particularly in the solar power sector. According to the International Renewable Energy Agency, the cumulative solar PV capacity in the United Arab Emirates was expected to reach about 2.94 GW in 2022, up from 2.63 GW in 2021. The country holds one of the best solar resources globally while supporting economic and regulatory policies, helping its clean energy program excel.
- Further, according to the International Renewable Energy Agency, the United Arab Emirates is expected to install more than 18 GW of solar energy by 2030, which, in turn, is expected to drive demand for grid connectivity to integrate the renewable power sources.
- In July 2022, Dubai Electricity and Water Authority (DEWA) announced that the company aims to develop 4 GW of renewable energy projects with the Independent Power Producer (IPP). The total investment required for the projects would be more than AED 40 billion. DEWA is developing a solar project IPP model, the Mohammed bin Rashid Al Maktoum Solar Park. The project will have a production capacity of 5,000 MW by 2030.
- In March 2022, Masdar announced that it had initiated construction for its 230 MW Garadagh solar PV plant in Azerbaijan. The project will start commercial operation in 2023. After completion, the project would generate half a billion kWh of electricity annually. These investments in solar energy projects are expected to be attractive markets for market players in the near future.
- These developments to increase renewables' share in the power generation sector are likely to bolster market growth.
United Arab Emirates 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.
United Arab Emirates Power Market Leaders
Abu Dhabi National Energy Company PJSC (TAQA)
Abu Dhabi Transmission & Despatch Company (Transco)
Emirates Nuclear Energy Corporation
Emirates Water and Electricity Company
Dubai Electricity and Water Authority(DEWA)
*Disclaimer: Major Players sorted in no particular order
United Arab Emirates Power Market News
- 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 as well as to increase output, efficiency and availability. In the UAE, 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. This project is being developed by Acwa Power, Air Products, and Neom. 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
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.2 Power Market Size and Forecast, UAE, in GW, till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 Power Generation-Source
5.1.1 Natural Gas
5.2 Transmission & Distribution
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
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
UAE Power Market Research FAQs
What is the study period of this market?
The United Arab Emirates Power Market is studied from 2018 - 2028.
What is the growth rate of United Arab Emirates Power Market?
The United Arab Emirates Power Market is growing at a CAGR of >6.5% over the next 5 years.
Who are the key players in United Arab Emirates Power Market?
Abu Dhabi National Energy Company PJSC (TAQA), Abu Dhabi Transmission & Despatch Company (Transco), Emirates Nuclear Energy Corporation , Emirates Water and Electricity Company , Dubai Electricity and Water Authority(DEWA) are the major companies operating in United Arab Emirates Power Market.
United Arab Emirates Power Industry Report
Statistics for the 2023 United Arab Emirates Power market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. United Arab Emirates Power analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.