The Middle East Economic Digest reported on June 9 that according to GlobalData's latest report "UAE Power Market Outlook (Updated to 2035) - Market Trends, Regulations and Competitive Landscape", the UAE's annual power generation is expected to grow at a compound annual growth rate (CAGR) of 3.8% between 2024 and 2035 to reach 281.3TWh.
The report said that the UAE has one of the most secure and stable power supply systems in the region. With its abundant natural gas and oil reserves, the UAE's power supply is sufficient to meet domestic demand.
The UAE mainly uses natural gas to generate electricity and injects it back into oil fields to increase production, while a considerable portion of oil is exported. Driven by the growth in electricity demand, the GlobalData report said that the UAE's power generation capacity is expected to reach 79.1GW in 2035, with a compound annual growth rate of 3.4% between 2024 and 2035.
Conditions in the UAE are extremely favorable for solar power generation, prompting the government to allocate large tracts of undeveloped land for the construction of solar parks, including photovoltaic (PV) and concentrated solar power (CSP) installations. These developments will not only cater to local demand but also to export needs.
