UAE Power EPC Market

The UAE Power EPC Market size was valued at USD XX Billion in 2022 and is expected to surpass USD XX Billion by 2031, expanding at a CAGR of 6.5% during the forecast period, 2023 – 2031. The growth of the market is attributed to the increasing industrialization, rising population, infrastructural development, rapid growth in construction sector and implementation of nuclear and waste-to-energy projects.

UAE power engineering, procurement, and construction (EPC) market is one of the most prominent sectors in the country. EPC contracts are typically a form of contract used to take on construction works by the private sector on large scale and complex infrastructure projects.  EPC contracts are sometimes called turnkey construction contracts which means contractor is obliged to deliver a complete facility to the developer who then only needs to turn a key to start operating the facility.

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EPC contractors majorly focus on overall engineering sector from manufacturing of main power equipment like turbines, boilers, and generators, to construction, engineering, and commissioning activities.

United Arab Emirates has one of the most advanced power sectors in the region, with distinctive regulations and government policies that are favorable. UAE’s energy mix include oil & gas, solar, nuclear, and fossil fuels. The country has 7% of global oil reserves, which is approximately 100 billion barrels. During the last decade, the country has heavily transitioned from gas powered plants to nuclear, solar, and other renewables in a bid to reduce its carbon emissions significantly.  

UAE power EPC Market Trends, Drivers, Restraints, and Opportunities

• Growing consumption of power due to rising urbanization and population are expected to drive the market growth during the forecast period.

• Rapid growth of the construction sector, industrialization, and infrastructural development are major factors pushing the market expansion in the coming years.

• UAE governments commitment towards reducing the distribution and transmission losses by enhancing the efficiency of the energy grid in the country is anticipated to spur the market growth during the forecast period.  

• Lack of privatization in the power sector across the country act as key challenge that can restrict the market growth during the forecast period.

•  Impact of covid-19 on the construction sector is expected to impede the market growth in the coming years.

• Advent of nuclear and other renewable energy projects are expected to create lucrative opportunities for the market players.

Scope of UAE Power EPC Market Report

The report on the UAE power EPC market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

UAE Power EPC Market Segment Insights

Natural gas segment is projected to account for hold a large market share

Based on generation sources, the UAE power EPC market is segmented into thermal power sources, renewable sources, nuclear, oil based, natural gas, and others. The natural gas segment is expected to account fora key share of the market in the coming years due to the rising energy consumption in many large cities across the country and rapid development in infrastructural sector in the recent years.

On the other hand, the renewable generation source segment is anticipated to expand at a rapid pace during the forecast period owing to the various government regulations and commitments promoting the generation of green energy to reduce carbon emissions which is expected to propel the market at a steady CAGR during the forecast period.

Gas turbines segment is expected to grow at a significant pace

In terms of equipment’s, the UAE power EPC market is segregated into gas turbines, steam turbines, boilers, solar photovoltaic systems, generators, and others. Gas turbines segment is expected to grow at a significant pace due to rapid rise in industrialization and increasing EPC projects in the country. Several major EPC companies are operating in the various popular cities of the country, this has resulted in surge for energy demand.

Gas turbines are the equipment that rotates by using the hot gas produced by burning compressed air and fuel and is considered as an essential item of equipment for combined cycle and cogeneration power plants. However, boilers are anticipated to register a significant CAGR in the coming years due to the rising demand for the equipment among major EPC companies in the recent years.

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Segments

Generation Sources

• Thermal Power Sources
• Renewable Sources
• Nuclear
• Oil Based
• Natural Gas
• Others

Equipments

• Gas Turbines
• Steam Turbines
• Boilers
• Solar Photovoltaic Systems
• Generators
• Others

Key Players

• Abu Dhabi National Energy Company PJSC (TAQA)
• ACWA Power
• Abu Dhabi Transmission & Despatch Company (Transco)
• Dubai Electricity and Water Authority (DEWA)
• Petrofac Limited

Competitive Landscape

Key players operating in the market include Abu Dhabi National Energy Company PJSC (TAQA), ACWA Power, Abu Dhabi Transmission & Despatch Company (Transco), and Dubai Electricity and Water Authority (DEWA), Petrofac Limited. The players are adopting various business strategies due to the competitiveness of the market. Strategies include, mergers, acquisitions, partnerships, collaborations, capacity expansion, and product launches to enhance their market shares. For instance, 

• On May 6^th, 2021, the chief financial officer of Abu Dhabi National Energy Company PJSC (TAQA) announced the company’s ambitions to buy power plants in Abu Dhabi and plans green bonds.

• On 2^nd June 2021, DEWA announced it has completed 23% of work on the 250MW Hatta pumped storage power plant in UAE. The plant is first of its kind and has investments of around USD 387 million.