United Arab Emirates Power EPC Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The United Arab Emirates power EPC market is expected to grow at a CAGR of more than 6.2% during the forecast period 2020-2025. The energy mix for electricity generation is dominated by fossil fuels like coal, oil, and natural gas, with the three constituting almost over 65% of the global energy mix. However, the lack of privatization in the power sector in the northern emirates is expected to restrain the development of the power sector in the coming years.

Key Highlights

• The United Arab Emirates has one of the most advanced power sectors in the region, with distinct structures and government policies that are favorable. The country has several upcoming transmission and distribution network projects including expansion and refurbishment of existing infrastructure. This factor is expected to drive the T&D infrastructure-related markets in the coming years.
• The country has witnessed strong growth in electricity consumption at an annual rate of 5.5% over the past five years. The growing consumption is mainly driven by strong economic activity, rising population, infrastructure development, and industrialization. At the same time, the government is also committed to reducing the transmission and distribution losses by improving the efficiency of the grid.
• Nuclear and waste-to-energy projects are gradually gaining momentum in the country apart from solar power, which, in turn, is expected to create an ample opportunity for the power sector as new projects come online.

Key Market Trends

Growth in Renewable Energy Sector to Drive the Market

• The United Arab Emirates has undertaken significant strides over the past several years and is leading the region’s drive toward renewable energy, particularly in the solar sector. To meet rising demand, the country has embarked on a challenging mission to increase energy security, diversify its energy sources, and increase the share of solar in its power mix.
• The United Arab Emirates has proven that it holds some of the best solar resources in the world while supporting economic and regulatory policies that have helped its clean energy program to excel.
• The USD 13.6 billion (AED 50 billion) Mohammed bin Rashid Al Maktoum Solar Park has a planned capacity of 5,000MW by 2030.
• The plant will provide clean energy to more than 270,000 residences in Dubai, reducing 1.4 million tonnes of carbon emissions a year. The project will feature the world’s tallest solar tower, measuring 260m, with the world’s largest thermal energy storage capacity.

Growing Electricity Demand to Drive the Market

• The United Arab Emirates with nearly 16,622 megawatts (MW) of generation capacity and 14,788 MW of peak demand in 2017, Abu Dhabi ranks first among the United Arab Emirates (UAE) and third among GCC countries in terms of generation assets and peak demand.
• Abu Dhabi’s rising population and growing economy have been the key factors driving the increase in peak demand, which grew by an average of 8.53% per year between 2007 and 2018.
• The Abu Dhabi Transmission and Despatch Company (TRANSCO) expects the compounded future annual growth rate of peak demand to be 3.5% for the period 2016- 2030, significantly lower than the actual increase in the past 10 years.
• The electricity peak demand including supplies to Abu Dhabi and the Northern Emirates is projected to increase from 14.2 gigawatts (GW) in 2016 to 20 GW-26 GW by 2030.

Competitive Landscape

United Arab Emirates power EPC Market is moderately fragmented. Some of the key players are Abu Dhabi National Energy Company PJSC (TAQA), ACWA Power, Abu Dhabi Transmission & Despatch Company (Transco), and Dubai Electricity and Water Authority (DEWA), Petrofac Limited.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support