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.

How AI is Reshaping the Future of UAE Power Market

• AI is making UAE's power grids about 20% more efficient by predicting maintenance, forecasting demand, and balancing loads in real-time, reducing operational costs significantly.
• The government’s National AI Strategy and energy infrastructure projects have driven investments of AED 36 billion, with 75% directed toward renewable and conventional power generation.
• ADNOC and Microsoft’s partnership powers AI data centers using renewable energy, cutting carbon emissions while optimizing energy-heavy AI operations in the UAE’s oil and gas sector.
• UAE is building around 5GW of AI data center capacity, equating to significant gas demand equivalent to 1 billion cubic feet per day, fueling AI’s rapid energy needs.
• Smart grids powered by AI and machine learning enhance reliability by analyzing consumption and weather data, enabling better integration of renewable energy like solar and wind.

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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.

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.

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