• 4 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 7 minutes Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 13 minutes NordStream2
  • 3 days Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 50 mins California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 5 hours "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 1 day "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 1 day An Indian Opinion on What is Going on in China
  • 10 hours Nord Stream - US/German consultations
  • 2 days Can Technology Keep Coal Plants Alive and Well?
  • 3 days Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.
  • 3 days Succession Planning in Human Resources for Vaccinated Individuals in the Oil & Gas Industry
  • 4 days Perfect Energy Storm in Europe: turning our back on fossil fuels is easier said than done!
  • 1 day U.S. : Employers Can Buy Retirement Security for $2.64 an Hour
  • 2 days Storage of gas cylinders
Rystad Energy

Rystad Energy

Rystad Energy is an independent oil and gas consulting services and business intelligence data firm offering global databases, strategy consulting and research products. Rystad Energy’s…

More Info

Premium Content

UAE Aims To Triple Its Solar Installations By 2025

The installed renewable capacity of the United Arab Emirates, which until recently was nearly non-existent, concluded 2020 at 2.3 gigawatts (GW), around 91% of which comprises of solar PV projects, a Rystad Energy analysis shows. Solar PV additions are going to pile up, especially from 2022, and drive the country’s total renewable capacity to an impressive 9 GW by the end of 2025.

Rystad Energy, evaluating activity in the country, expects solar PV capacity to reach 8.5 GW in the UAE by the end of 2025, being by far the technology that will contribute the most to diversifying its energy mix. The share of renewable energy in the UAE’s power generation mix is set to increase from 7% in 2020 to 21% in 2030, and to 44% by 2050.

Previous targets for 2020 have already been achieved, and a robust project development pipeline suggests that the 2030 target is within reach. It is too early to predict the achievability of the country’s 2050 target, but the resilience and determination shown by the UAE’s renewable sector amid Covid-19 will surely make it attractive for investors and developers alike. This, together with some of the world’s lowest power purchase agreement (PPA) prices, suggests that 2050 targets are well within reach.

Given the country’s current project pipeline, UAE’s renewable capacity is on track for an impressive compound annual growth rate (CAGR) of more than 31% towards 2025. Among the seven emirates that make up the UAE, the majority of renewable activity is concentrated in Abu Dhabi and Dubai, which together account for over 90% (8.2 GW) of total capacity in 2025.

Major projects expected to drive this growth include four solar farms, the Al Dhafra (2GW), Abu Dhabi PV3 (1500MW), MBR Phase IVa and IVb (950MW) and MBR Phase V (900MW), all of which are in various stages of development. The remaining 0.9 GW of capacity will come from projects in other emirates, such as Umm Al Quwain, Ras Al Khaimah and Sharjah.

Related Video: The Silver Squeeze Conspiracy

Dubai currently has more than 1 GW of installed capacity, all of which comes from the MBR solar park’s three phases. Thanks to the MBR solar park, Dubai exceeded its 2020 target in June, increasing the share of renewable energy in the emirate’s energy mix to nearly 9%.

Abu Dhabi, the capital of UAE, has set itself a target of 5.6 GW of solar PV capacity by 2026. Abu Dhabi’s currently installed capacity stands at 1.3 GW, the majority of which comes from the 1.17 GW Noor Abu Dhabi (Sweihan) project, in addition to the Abu Dhabi virtual battery (108 MW) and the Shams solar CSP project (100 MW).

UAE is home to one of the lowest tariff prices in the world, with prices declining by more than 76% in the past four years. The country has gotten into a habit of breaking the world record for the lowest PPA prices and has set records nearly every time recent auction results have been announced. The Al Dhafra project, the latest solar PV award in UAE, recently agreed upon a tariff of $13.50 per megawatt-hour (MWh) – among the lowest solar PPA prices in the world. 

“Renewable energy seems to be a top priority in the UAE. Despite the Covid-19 shock, the government has provided a reasonable amount of investment to continue ongoing projects. UAE has already attracted big international players in the renewable sector – a healthy sign for future business,“ says Gaurav Metkar, senior analyst at Rystad Energy.

By Rystad Energy

More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News