The UAE renewable energy market is projected to exhibit a growth rate (CAGR) of 11.20% during 2024-2032, a latest report from Imarc said.
It said that 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.
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.
