UAE Power Market Overview

Market Size in 2024: 183.67 TWh

Market Size in 2033: 240.86 TWh

Market Growth Rate 2025-2033: 3.04%

According to IMARC Group's latest research publication, "UAE Power Market Size, Share, Trends and Forecast by Generation sources, and Region, 2025-2033", the UAE power market size was valued at 183.67 TWh in 2024. Looking forward, IMARC Group estimates the market to reach 240.86 TWh by 2033, exhibiting a CAGR of 3.04% from 2025-2033.

Our report includes:

• Market Dynamics
• Market Trends and Market Outlook
• Competitive Analysis
• Industry Segmentation
• Strategic Recommendations

Grab a sample PDF of this report: https://www.imarcgroup.com/uae-e-commerce-market/requestsample

UAE Power Market Trends & Drivers:

One of the biggest forces behind the UAE’s power market growth is its rapid push into renewable energy, especially solar. The country has launched some of the world’s most ambitious projects—like the Mohammed bin Rashid Al Maktoum Solar Park and Al-Ajban Solar Park—increasing clean energy’s share of national capacity. For example, the Al-Ajban park alone boasts a 1,500MW capacity, powering around 160,000 homes and slashing 2.4 million metric tonnes of CO2 emissions annually. Government strategies such as the Net Zero by 2050 and the UAE Energy Strategy 2050 are setting bold targets, with investment in next-gen infrastructure cementing the UAE as a regional leader in sustainable power.

Growing electricity demand, fueled by population expansion, urbanization, and new industrial zones, is another major trend reshaping the market. Utilities are responding with significant investments—total UAE electricity output now exceeds 180TWh with expectations to reach much higher as cities expand. Notably, over 43% of household consumption is driven by cooling needs, which has prompted a strong focus on energy efficiency. Data centers are rapidly ramping up power requirements as the digital economy takes off. These dynamics are pushing utilities to modernize and expand capacity so that both commercial and residential growth stay powered without disruption.

Smart grid and digital transformation are quietly revolutionizing how energy is delivered and managed across the UAE. The rollout of advanced metering and DEWA’s multibillion-dirham smart grid program mean both businesses and consumers are getting real-time insights into usage. These upgrades allow for time-of-use tariffs and better demand management, helping flatten consumption peaks and improve overall grid stability. Utilities like TAQA and DEWA are investing in AI-powered asset management and predictive maintenance, which not only cut operational costs but boost reliability. The ongoing adoption of rooftop PVs and smart-home tech is empowering users to generate and monitor their own energy, easing strain during peak periods and contributing to a more efficient, resilient national power system.

How AI is Reshaping the Future of UAE Power Market

AI is powering a new era for the UAE energy market, bringing smarter, cleaner, and faster solutions to every corner of the sector. Abu Dhabi’s Department of Energy, for instance, is teaming up with AIQ and Presight to roll out advanced AI-driven control centers, boosting real-time monitoring and improving the efficiency of power and water networks. Utilities like DEWA are using AI for predictive maintenance, which slashes unplanned outages by up to 50% and helps optimize costs. These intelligent systems also make it easier to balance unpredictable renewables, with AI helping to integrate solar and wind into the national grid for greater reliability. With national strategies like the UAE AI Strategy and Net Zero pledges guiding the way, AI-driven platforms are now essential for achieving operational excellence and ambitious sustainability goals.

Our report provides a deep dive into the market analysis, outlining the current trends, underlying UAE power market demand, and growth trajectories.

UAE Power Industry Segmentation:

The report has segmented the market into the following categories:

Analysis by Generation Sources:

• Thermal
• Hydro
• Renewable
• Others

Regional Analysis:

• Dubai
• Abu Dhabi
• Sharjah
• Others

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in UAE Power Market

• July 2025: The UAE added 800MW of new solar capacity with the latest phase of the Mohammed bin Rashid Al Maktoum Solar Park, reinforcing the country’s position as a regional leader in clean energy and moving closer to its ambitious sustainability goals.

• May 2025: Masdar launched the world’s first large-scale solar PV and battery storage project, combining 5.2GW of solar capacity with 19GWh storage to ensure stable, round-the-clock clean electricity, directly tackling the challenge of renewable intermittency.

• April 2025: TAQA and EWEC announced a new 1GW open-cycle gas turbine plant at Al Dhafra and rolled out an energy system that combines solar power with battery storage, showing a shift toward hybrid solutions and a total investment of AED36 billion in new UAE power infrastructure.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

About Us:

IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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