UAE Power Industry Analysis, Abu Dhabi Power Industry Research Report

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Uae Boosting Its Visionary Power Projects for
Clean Energy Ken Research
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Power market in UAE is one of the most impressive
economies in the Middle East. The constituent
states of Dubai and Sharjah are the key players
in the countrys economic performance in terms of
Gross Domestic Product (GDP). UAE is not a highly
industrialized country but it was observed that
there is a rapid growth in the service industry.
The country possesses huge investments in real
estate which has indirectly led to the growth of
electricity consumption. The thermal power in
UAE accounts for almost all of the countrys
total installed capacity contributed by gas-based
power capacity, oil-based thermal power capacity
and other renewable sources such as solar power
or solar thermal power. The countrys power
market also includes solar photovoltaic (PV) and
onshore wind power. The thermal power sources
dominate the power sector and renewable energy is
expected to witness a substantial growth over the
coming years. The UAE government is emphasizing
on development of both solar and wind projects.
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The renewable power generation is less than 1 TWh
and the country is striving to to reach 1 TWh in
the coming years. The upcoming solar power
projects in UAE are the 100 Megawatt (MW) Shams 1
solar thermal power plants which are already in
pipeline. The leading power companies in UAE are
Abu Dhabi Water Electricity Authority, Dubai
Electricity and Water Authority, Sharjah
Electricity Water Authority. According to the
study UAE Power Market Outlook to 2030, Update
2017-Market Trends, Regulations, and Competitive
Landscape, to accommodate the increasing demand
for power consumption in UAE has directed the
government to add nuclear, renewable, and coal
-fired electricity generating capacity. The
countrys rapid economic growth and demographic
growth over the decade has saturated the UAEs
electricity grid to its limits. The power
generation capacity continues to rise with
utilization of natural gas.
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The country is the highest electricity consumer
around the world with a double demand for
electricity compared to the past decade. All the
power sectors are regulated by the state agencies
except Abu Dhabi. Independent power producers
(IPPs) and independent water and power producers
(IWPPs) are joint ventures in Abu Dhabi. Water
and electricity in Abu Dhabi is sold to a single
state owned buyer under a 20 year power and water
purchase agreement. Dubai Electricity and Water
Authority (DEWA) own and operate all power
production and water desalination plants in Dubai
and Emirates. UAE plans to increase its power
generation capacity to around 21 GW by the year
2030 through various visionary projects. These
projects are under development and planning that
include solar, nuclear, coal -fired, and gas
fired power generation. The countrys first
domestic nuclear reactor was test operated in the
year 2017 to add to the countrys growing power
needs. The remaining three nuclear power reactors
at the Barakah site are due to completion and
International Atomic Energy Agency (IAEA)
approval by the end of the year 2020.
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These nuclear projects are committed to provide
domestic enriched and reprocessing of nuclear
fuel within UAE. The country is also investing in
renewable energy technologies and is committed to
produce7 of its total power generation from
renewable sources by the year 2020. Solar power
generation within the country has boosted the
development of small and large new solar
projects. Dubai has an ambitious target to
produce power from clean energy by the year 2050.
The government has planned to spend huge amount
in the next three decades on various power
sources such as solar, nuclear and clean coal
initiatives. This is to wean the country from
finite fossil fuel resources and to create new
economic sectors while reducing carbon emissions.
Several large-scale infrastructure power projects
are already in the pipeline to meet the countrys
power target.
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UAE is making efforts to create awareness on the
high levels of domestic power consumption. It is
promoting more environmentally friendly building
standards with solar facilities, sustainable
water desalination and clean vehicle fuels. These
trends are taken up seriously by the UAE
government to promote the commitment to greening
its energy sector. It focuses on the production
of clean energy and the need to be consumed more
efficiently. A combination of renewable, nuclear
and clean energy sources in the country was
proposed to meet the UAEs economic requirements
and environmental goals, ensuring a comfortable
economic environment across the sectors.
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