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Middle East

United Arab Emirates

With a power score of 1.99, the United Arab Emirates ranks number 46 among Emerging Markets and number 5 in the Middle East region

Power score

1.99/5

12345

Score over time

2021 - 2024

10
2021
25
2022
54
2023
46
2024

Overview

The United Arab Emirates has a power score of 1.99, which puts it at rank 46 in the Emerging Markets power ranking. In comparison to 2023, the United Arab Emirates has improved in the power rankings by 8 places, from rank 54, to rank 46.

At 1.99, the power score of the United Arab Emirates is better than than the regional average of 1.84 in the Middle East region and puts it at rank 5 in the region.

Regional comparison chart

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United Arab Emirates

Power

Power policy

The United Arab Emirates implements policies in 3/9 power policy categories tracked by Climatescope, including Renewable energy target, Renewable energy auction, and Feed-in tariff.

Power policies

Renewable energy target
Renewable energy auction
Feed-in tariff
Net metering
Import tax incentives
VAT incentives
Priority grid access
Renewables mandate
Renewable Energy Certificates

Power prices and costs

The average electricity price in the United Arab Emirates has remained the same since 2022. Since 2017, the average electricity price in the United Arab Emirates has fluctuated between 62.62 USD/MWh (2020) and 76.23 USD/MWh (2019).

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Power market

The top amount of capacity installed in the United Arab Emirates in 2023 was in Natural Gas at 71.85%, down from 75.08% in 2022. The technology with the biggest increase in capacity installed in 2023 was Nuclear at 10.41%, up from 7.56% in 2022.

Installed capacity (in MW)

20002005201020152020010K20K30K40K MW

Electricity generation (in GWh)

20002005201020152020050K100K150K GWh

The top amount of electricity generated in the United Arab Emirates in 2023 was in Natural Gas at 70.91%, down from 81.43% in 2022. The technology with the biggest increase in electricity generated in 2023 was Nuclear at 21.72%, up from 13.95% in 2022.

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Investment in clean energy in the United Arab Emirates was around $1.83 million in 2023, a decrease of 98.93% from 2022 ($170.37 million). Between 2018 and 2023, the highest investment in clean energy was in 2019 at $4,404.80 million, while the lowest was in 2023 with $1.83 million.

Utility privatisation

Which segments of the power sector are open to private participation?

generation: Yes
transmission: No
retail: No

Doing business and barriers

Type

Question

Availability

Currency of PPAs

Are other PPAs (eg. corporate PPAs) signed in or indexed to U.S. Dollars or Euro?

No

Type

Question

Availability

Bilateral power contracts

Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?

No

Type

Question

Availability

Fossil fuel price distortions - Subsidies

Does the government keep the wholesale price of electricity from fossil fuels artificially low through subsidies?

Yes

Type

Question

Availability

Fossil fuel price distortions - Taxes and carbon prices

Does the government significantly increase the wholesale price of electricity from fossil fuel through targeted taxes and/or carbon prices?

No

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