UAE power capacity to reach 79.1GW by 2035

Annual electricity generation is projected to reach 281.3TWh by 2035.

The UAE’s power capacity is expected to hit 79.1GW by 2035, growing at a compound annual growth rate (CAGR) of 3.4% from 2024, according to GlobalData.

Annual electricity generation is projected to reach 281.3TWh by 2035, at a CAGR of 3.8%, driven by rising demand from population growth, urban development, and mega projects like Masdar City and Expo City Dubai.

"The anticipated increase in capacity is projected to occur predominantly in gas-based thermal power, as opposed to oil, where capacity is expected to remain stable. Manufacturers of gas turbines stand to benefit from this surge in gas-fired power capacity,” said GlobalData power analyst Attaurrahman Ojindaram Saibasan.

The UAE relies on its large natural gas reserves for electricity generation and oil field re-injection, whilst exporting most of its oil. Although gas will continue to dominate, the country is scaling up its renewable and nuclear energy capacity to reduce dependence on imported fuel.

To meet growing electricity needs, the UAE has also allocated large areas for solar power projects, including PV and CSP installations.

Over the past decade, the country has increasingly imported gas from Qatar to meet demand, Saibasan noted. As of 2024, the UAE’s population stands at around 11 million and is forecast to reach 11.9 million by 2030. Expatriates account for 88% of the population, significantly driving up residential and commercial energy use.

“This trend necessitates the expansion of the electrical grid and investment in smart infrastructure to meet the evolving demands,” said Saibasan.