UAE Power Market - Growth, Trends, and Forecast (2018 - 2023)
UAE Power Market Size
Owing to rising population, infrastructure development on the back of Expo 2020, and growing industrialization activities, the demand for electricity consumption has maintained 5% of average annual growth rate in the past few years. Being a country with seventh largest natural gas reserve and eight largest oil reserves, hydrocarbon-based power generation accounts for approximately 98% of the total power generation capacity in 2017. However, the United Arab Emirates (UAE) plans to invest GBP 119 billion (USD 150 billion) in renewable power by 2050, weaning the country from dependency on subsidized natural gas power in stages. Under ‘Energy Strategy 2050’, the UAE plans to incorporate a large chunk of clean energy sources to generate electricity, in a bid to meet much of its future energy needs. The UAE’s ministry of energy is considering tendering of at least a 1,000 MW of renewable-based mega-projects every year over the next few years to meet its energy targets. The expected increase in electricity consumption in coming years coupled with integration of large share of renewables, clean coal, and nuclear, and waste-to-energy in its energy mix is expected to project UAE as a hotspot for power sector development in the entire gulf region.
Increasing Adoption of Nuclear Power to Offer Growth Opportunity
Being the seventh largest holder of natural gas and eight largest holders of oil reserves across the globe, and for a nation, where oil exports account for approximately 25% of the GDP, it does not make economic sense to burn it, in order to generate electricity. The UAE government has identified energy sources diversification and removal of subsidies for gas-based power generation, as a way forward in ensuring sustainable energy growth.
In 2008, against the global trend of dismantling nuclear power plants, the UAE decided to build a nuclear power plant consisting of 4 reactors, of which first reactor was commissioned in March 2018. The USD 24.4 billion Barakah power plant is the world’s largest nuclear project under construction, and the first in the Arab world. When fully developed in 2020, its four reactors are expected to satisfy 25% of the combined electricity needs of the UAE, significantly reducing the demand for gas to feed power generation. As the industrial activities and population continue to expand, the demand for electricity is expected to increase at an annual rate of five to six percent in the coming years, and nuclear energy is expected to play a significant role in satisfying the country’s growing demand.
Government to Promote Transmission & Distribution Network Efficiency
The country is currently focusing on improving the grid efficiency and reducing the transmission and distribution losses from around 6% in 2017 to 4.5% in 2023. The country has taken part in the USD 1 billion plan to build a regional power grid throughout the GCC. Work has been completed on the Emirates National Grid to interconnect the electricity systems of all the emirates of the UAE. The government is planning to further strengthen transmission & distribution network as it integrates more of renewables, waste-to-energy, and clean coal into its energy mix.
Key Developments in the UAE Power Market
April 2018: ACWA Power signed EPC contract with Shanghai Electric to develop 700 MW DEWA CSP project in Dubai, the largest thermo-solar power plant in the world
The major players include - Abu Dhabi National Energy Company PJSC (TAQA), ACWA Power, General Electric Company, Abu Dhabi Transmission & Despatch Company (Transco), Dubai Electricity and Water Authority (DEWA), Korea Electric Power Corporation (KEPCO), JinkoSolar Holding Co., Ltd., among others.
Reasons to Purchase UAE Power Market Report
Current and future power market outlook in the United Arab Emirates
Analyzing various perspectives of the market with the help of PESTLE analysis
The fuel type that is expected to dominate the power generation market
Identify the latest developments, and strategies employed by the major market players
3-month analyst support, along with the Market Estimate sheet (in excel)
Customization of UAE Power Market Report
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