UAE Power Market Size, Share, Growth & trend | Report 2031

Report Description

UAE Power Market Outlook 2031

The United Arab Emirates (UAE) power market size was valued at USD XX Billion in 2022 and is projected to reach USD XX Billion by 2031, expanding at a CAGR of 4.2% during the forecast period 2023 - 2031. The growth of the market is attributed to rising inclination toward deployment of solar energy infrastructure.

The energy mix for electricity generation in the country is dominated by fossil fuels such as coal, oil and natural gas. This three electricity generation source constitutes about 65% of the total electricity generation in the country.

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UAE has one of the most advanced and efficient power sectors in the Middle East & Africa. The country has distinct structures and favorable government policies. UAE is exploring its potential in renewable energy, particularly in solar power. With various projects being under construction, renewable energy is expected to drive the UAE power market significantly.

The country has several upcoming transmission and distribution network projects, including expansion and refurbishment of existing infrastructure. This factor is expected to drive the T&D infrastructure-related markets in the coming years.

The research report finds that the COVID-19 pandemic had a significant impact on the UAE power market. One of the main effects has been a decrease in demand for electricity due to the economic slowdown and reduced commercial activity. However, the UAE government has taken measures to support the sector and ensure stability, such as implementing relief measures for utility bills and investing in renewable energy sources. Overall, the power market in the UAE is expected to recover gradually as the economy improves and demand picks up.

Artificial Intelligence Impact on the UAE Power Market

Artificial intelligence (AI) plays a significant role in the generation of energy. AI optimizes the performance of renewable energy sources, such as solar and wind, by predicting the availability of energy. It helps to execute better planning and facility management, minimize environmental load, and optimize energy storage and distribution. AI-powered analytics tools are helping in real-time monitoring and control of power systems, reducing downtime and improving grid stability.

Additionally, AI is being used to optimize energy consumption in buildings, resulting in energy savings. The integration of AI in the UAE power market is expected to lead to increased operational efficiency, cost savings, and a more sustainable energy sector. For example,

• On August 8, 2022, the Dubai Electricity and Water Authority’s (DEWA) research and development center invested in artificial intelligence and machine learning. This investment is expected to improve efficiency and reduce carbon emissions and the cost of power to promote energy efficiency, performance of solar panels, and smart grid integration.

UAE Power Market Drivers, Restraints, Trends, and Opportunities

• Growing consumption of electricity owing to strong economic activity, rising population, infrastructure development, and industrialization is expected to boost the UAE power market growth.

• Nuclear and waste-to-energy projects are gradually gaining momentum in the country apart from solar power, which is expected to create ample opportunities for the power sector in the country.

• In 2017, the UAE launched 'Energy Strategy 2050', which aims to increase clean energy in the total energy mix to 50% by 2050 and reduce the carbon footprint of power generation by 70%. This, in turn, is expected to create significant market opportunities for the renewable energy companies in the projected timeline.

• Major industry players are diversifying their power generation business by providing renewable energy systems and deploying large-scale renewable projects, positively influencing the market growth.

Scope of UAE Power Market Report

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

UAE Power Market Segment Insights

Renewable segment to account a large market share

Based on generation sources, the UAE power market share is segregated into thermal, renewables, and others. The renewables segment is projected to account for a large market share during the forecasted period. With multiple government initiatives, the country's renewable power generation has grown at a significant rate in the recent years. In 2019, the nation reported 1.8 GW of installed renewable energy capacity.

As of May 2020, the UAE power market share of clean energy in Dubai's energy mix increased to around 9%. The UAE power market is further expected to grow in the future with ongoing renewable policies that are anticipated to create new avenues for industry players. Conversely, the thermal segment is projected to expand at a rapid pace during the forecasted period.

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Transmission & distribution segment to grow at a steady rate

The transmission & distribution segment is expected to play a major role in the UAE market. Increasing number of government policies to deploy transmission and distribution infrastructure for solar energy is expected to drive the segment growth. Moreover, the deployment of renewable energy systems by local players is anticipated to foster the transmission & distribution segment.