UAE’s Power Capacity to Hit 79.1 GW by 2035, Driven by Renewables and Gas

The UAE’s  total power capacity is expected to grow to 79.1 gigawatts (GW) by 2035, marking a CAGR of 3.4 percent, according to GlobalData’s latest report, 'UAE Power Market Outlook to 2035, Update 2025 – Market Trends, Regulations, and Competitive Landscape.'

As per the report, the annual power generation is projected to grow at a compound annual growth rate (CAGR) of 3.8 percent between 2024 and 2035, reaching 281.3 terawatt hours (TWh) by the end of the period,

The report highlights the UAE’s robust and secure electricity system, bolstered by vast reserves of natural gas and oil. These resources not only enable the country to meet its domestic electricity needs but also support enhanced oil recovery through gas reinjection, while preserving oil reserves primarily for export.

Driven by increasing electricity demand, most of this new capacity will be gas-based thermal power, with oil-fired capacity remaining largely stable.

“The UAE’s power sector presents immense opportunities for investors,” said Attaurrahman Ojindaram Saibasan, Power Analyst at GlobalData. “With the government focused on modernising infrastructure and expanding capacity, gas turbine manufacturers are likely to see a spike in demand.”

Alongside gas-fired power, the UAE is accelerating its clean energy efforts. The country's geographic and climatic conditions offer ideal settings for solar power generation. As a result, large swathes of land have been earmarked for photovoltaic (PV) and concentrated solar power (CSP) installations, both for domestic use and potential energy exports.

To reduce reliance on imported gas, particularly from Qatar, the UAE is diversifying its energy mix. Over the past decade, the nation has pivoted towards renewable and nuclear energy sources, strengthening energy security and sustainability.

The surge in electricity demand is closely linked to rapid population growth and urbanisation. The UAE’s population, currently estimated at 11 million, is expected to touch 11.9 million by 2030. With expatriates making up 88 percent of the population, residential and commercial energy usage continues to rise sharply.

“Massive urban developments like Masdar City and Expo City Dubai are shaping the future of sustainable living,” Saibasan added. “But they also bring higher power consumption, making it critical to expand the grid and invest in smart infrastructure that can adapt to tomorrow’s energy needs," he added.