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UAE Renewable Energy Market, By Type (Hydroelectric Power, Wind Power, Bioenergy, Solar Energy, and Geothermal Energy) and End Use (Residential, Commercial, Industrial, and Others), By Region, Competition, Forecast and Opportunities, 2028


Published on: 2024-12-05 | No of Pages : 320 | Industry : Power

Publisher : MIR | Format : PDF&Excel

UAE Renewable Energy Market, By Type (Hydroelectric Power, Wind Power, Bioenergy, Solar Energy, and Geothermal Energy) and End Use (Residential, Commercial, Industrial, and Others), By Region, Competition, Forecast and Opportunities, 2028

Forecast Period2024-2028
Market Size (2022)USD 512.66 Million
CAGR (2023-2028)21.75%
Fastest Growing SegmentHydroelectric Power
Largest MarketAbu Dhabi

MIR Renewables

Market Overview

The UAE Renewable Energy Market, valued at USD 512.66 million in 2022, is poised for substantial growth in the forecast period, with an anticipated Compound Annual Growth Rate (CAGR) of 21.75% through 2028. Renewable energy encompasses energy sources that are naturally replenished and sustainable over time, unlike finite fossil fuels. It derives from abundant resources such as sunlight, wind, water, and organic matter, harnessing the Earth's natural processes to generate usable power without depleting the Earth's reserves or causing lasting environmental harm.

Solar energy involves capturing sunlight through photovoltaic cells or solar thermal systems to generate electricity or heat. Wind energy harnesses the kinetic energy of moving air through wind turbines, converting it into electrical power. Hydropower utilizes the gravitational force of flowing water to turn turbines and produce electricity. Biomass energy derives from organic materials like wood, crop residues, and waste, which can be burned or converted into biofuels for energy production. Geothermal energy taps into the Earth's internal heat, using steam or hot water from underground to generate power. Renewable energy technologies offer numerous benefits, including reduced greenhouse gas emissions, improved air quality, and decreased dependence on fossil fuels. As technology advances and economies of scale improve, renewable energy is becoming increasingly affordable and efficient, playing a crucial role in the global transition to a more sustainable and resilient energy future.

Key Market Drivers

The UAE's Commitment to Renewable Energy Development

The United Arab Emirates (UAE) is actively pursuing the development of its renewable energy market, driven by several key drivers that align with its sustainability, energy diversification, and economic development objectives. These drivers reflect the UAE's commitment to a more sustainable and diversified energy landscape. Here are the primary drivers behind the UAE's renewable energy market

1. Energy Diversification and SecurityThe UAE aims to reduce its reliance on fossil fuels and diversify its energy sources, ensuring a stable and secure energy supply. This diversification enhances energy security and mitigates risks associated with fluctuating oil prices.

2. Abundant Solar ResourcesThe UAE benefits from abundant sunlight year-round, making solar energy a natural and viable choice for electricity generation. This solar potential supports the development of large-scale solar projects.

3. Global Leadership and ReputationBy investing in renewable energy, the UAE enhances its global leadership in sustainability and clean energy initiatives. These efforts positively impact the country's international image and reputation.

4. Economic Diversification and Job CreationRenewable energy projects contribute to economic diversification by creating new industries, generating jobs, and attracting investments in the green technology sector.

5. Environmental StewardshipThe UAE recognizes the importance of addressing climate change and reducing greenhouse gas emissions. Transitioning to renewable energy aligns with global climate goals and demonstrates the country's commitment to environmental stewardship.

6. Rising Energy DemandPopulation growth and urbanization in the UAE are driving an increase in electricity demand. Renewable energy helps meet this growing demand sustainably while minimizing environmental impacts.

7. Government Policies and VisionThe UAE's Energy Strategy 2050 outlines ambitious goals, including achieving 44% clean energy capacity by 2050 and promoting energy efficiency. Favorable policies and regulatory frameworks support the growth of the renewable energy sector.

8. Technological InnovationInvestment in renewable energy drives technological advancements, innovation, and research, positioning the UAE as a hub for cutting-edge clean energy solutions.

9. Desalination and Water SecurityRenewable energy can power desalination plants, crucial for ensuring water security in a desert climate. Integrating renewables with water infrastructure enhances sustainability.

10. Infrastructure DevelopmentRenewable energy projects contribute to the development of modern and efficient energy infrastructure, supporting the UAE's overall economic and social progress.

11. International CollaborationThe UAE engages in partnerships with international organizations, research institutions, and industry leaders to exchange knowledge, expertise, and resources in the renewable energy sector.

12. Cost CompetitivenessAdvances in renewable energy technology have made solar and wind power increasingly cost-competitive with conventional energy sources, making renewable projects financially attractive.

In summary, these drivers collectively shape the UAE's renewable energy landscape, driving its commitment to a more sustainable, diversified, and environmentally conscious energy future.

Supportive policies and Regulations are Likely to Propel the Market

The United Arab Emirates (UAE) has established several supportive policies and regulations to encourage the development of its renewable energy market. These policies aim to attract investments, promote sustainable energy practices, and facilitate the growth of clean energy projects. Here are some key supportive policies and regulations in the UAE's renewable energy market

UAE Energy Strategy 2050


MIR Segment1

Renewable Energy Law

Renewable Energy Project Contracts

Independent Power Producers (IPP) Model

Solar Rooftop Regulations


MIR Regional

Net Metering Scheme

Renewable Energy Certificates (RECs)

Incentives and Subsidies

Green Building Regulations

Research and Innovation Support

Carbon Pricing and Emissions Reduction

International Collaboration and Partnerships

Key Market Challenges

Intermittency and Grid Integration

Water and Land Use

Technical Expertise and Workforce Development

Financing and Investment

Regulatory and Policy Consistency

Infrastructure Development

Local Manufacturing and Supply Chain

Environmental Considerations

Project Costs and Competitiveness

Public Awareness and Behavioral Change

Legacy Infrastructure and Fossil Fuel Subsidies

Local Regulations and Permitting

Segmental Insights

Solar Energy Insights

The Solar Energy segment established its dominance in the renewables energy market in 2022 and is projected to maintain its position throughout the forecast period. The UAE benefits from extensive sunlight throughout the year, making solar energy a reliable and cost-effective option for electricity generation. The high solar irradiance levels contribute to the efficiency of solar installations. The UAE has implemented utility-scale solar projects, including photovoltaic (PV) solar farms and concentrated solar power (CSP) installations. The iconic Noor Abu Dhabi Solar Plant, one of the world's largest single-site solar projects, exemplifies the country's commitment to solar energy. Rooftop solar installations have gained popularity, especially in commercial and industrial sectors. Net metering and other supportive policies allow consumers to generate their electricity and feed excess energy back into the grid. The UAE has used competitive bidding processes to attract private investments and secure competitive pricing for solar projects. Auctions contribute to driving down costs and encouraging efficient project development.

Residential Insights

The residential segment established its dominance in the renewable energy market in 2022 and is projected to maintain

Regional Insights

Abu Dhabi is the largest emirate in the UAE and has the most ambitious renewable energy goals. The emirate has set a target of generating 70% of its electricity from renewable energy sources by 2050. On the other hand, Dubai holds the second largest market share of the UAE renewable energy market. Dubai is the second-largest emirate in the UAE and has also set ambitious renewable energy goals. The emirate has set a target of generating 15% of its electricity from renewable energy sources by 2030.

Recent Developments

  • In July 2022, the Abu Dhabi National Energy Company (ADNOC) announced that it was investing USD 20 billion in renewable energy projects over the next five years. This investment will be used to develop solar and wind power projects in the UAE.
  • In June 2022, the UAE sovereign wealth fund, Mubadala Investment Company, announced that it was investing USD 1 billion in a solar power project in the UAE. This project will be developed by Masdar, a subsidiary of Mubadala.
  • In May 2022, the UAE government announced that it was awarding contracts worth USD 1.4 billion for solar and wind power projects. These projects will be developed by a consortium of companies, including Engie, Siemens Gamesa, and ACWA Power.
  • In April 2022, the UAE government announced that it was setting up a USD 10 billion fund to invest in renewable energy projects. This fund will be managed by the Abu Dhabi Investment Authority.

Key Market Players

  • Masdar
  • Abu Dhabi National Energy Company
  • ACWA Power
  • Engie Middle East
  • Beta Green Solar Energy Systems Installation LLC
  • Enviromena Power Systems LLC
  • EDF United Arab Emirates
  • Canadian Solar Middle East Limited

 By Type

By End Use

By Region

  • Hydroelectric Power
  • Wind Power
  • Bioenergy
  • Solar Energy
  • Geothermal Energy
  • Residential
  • Commercial
  • Industrial
  • Others
  • Dubai
  • Abu Dhabi
  • Sharjah
  • Rest of UAE

Table of Content

To get a detailed Table of content/ Table of Figures/ Methodology Please contact our sales person at ( chris@marketinsightsresearch.com )
To get a detailed Table of content/ Table of Figures/ Methodology Please contact our sales person at ( chris@marketinsightsresearch.com )