By: Utilities Middle east

The United Arab Emirates (UAE) is enhancing its reputation for having one of the most secure and stable electricity supply systems in the region. Utilising its abundant natural gas and oil reserves, the UAE generates sufficient electricity not only for domestic consumption but also to support oil export activities.

According to GlobalData, the UAE’s power capacity is expected to reach 79.1GW by 2035, with a compound annual growth rate (CAGR) of 3.4% during 2024-35. Annual power generation is projected to increase at a CAGR of 3.8% to 281.3TWh.

Attaurrahman Ojindaram Saibasan, a Power Analyst at GlobalData, highlights the investment opportunities in the UAE’s power sector. The government is set to invest significantly in expanding and modernising its generation and supply infrastructure, focusing predominantly on gas-based thermal power. This shift will benefit manufacturers of gas turbines as gas-fired power capacity surges.

The UAE’s climate is ideal for solar power generation, prompting government initiatives to develop solar parks, including photovoltaic (PV) and Concentrated Solar Power (CSP) installations. These solar developments aim to meet local demands and cater to export needs, reducing dependency on imported natural gas.

The UAE’s population is projected to rise to 11.9 million by 2030, further driving electricity demand. The high expatriate population, which makes up around 88% of the total, contributes to increased residential and commercial energy consumption.

Saibasan notes that mega urban projects like Masdar City and Expo City Dubai exemplify the need for sustainable energy solutions. These smart cities, while innovative, also increase electricity consumption, necessitating the expansion of the electrical grid and smart infrastructure investments to meet evolving demands.