A top level market overview on the UAE water and electricity sector produced by our Market Research analyst, Loubna El Hassan.
- The UAE water and power sector is set to grow over the next decade, driven by the government's efforts to expand its water and power capacity, which is anticipated to increase by 40% in order to meet the growing demand.
- UAE has one of the highest levels of per capita power consumption in the world, with soaring temperatures driving up air conditioner use during the summer months of June till September. As the country undergoes substantial population and economic growth, electricity consumption is expected to grow rapidly going forward, reaching 141 terawatt/hour in 2020, up from 103 terawatt/hour in 2014. Additionally, inefficient use of electricity and a reliance on energy intensive water desalination plants are key drivers for growth in power consumption in the UAE over the next decade.
- The UAE’s average per capita water consumption is about 740 cubic meters per year (m3 pcpa), which is approximately 50% higher than the world average of 500 cubic meters. On the other hand, water production remains a costly process for the UAE, considering that the amount of energy required to desalinate seawater stands at about 30% of the country’s total yearly power consumption.
- Government's projections for investment into the UAE power and water sector are promising. The nation has invested tens of billions of dollars in various power generation and water projects during 2011-2015. Additionally, till the year 2020, private sector is projected to be presented with an opportunity to invest up to USD 100bn into the power generation sector. The private sector is to be encouraged to invest in the energy sector, bringing technology, expertise and capital. DEWA will remain the single buyer of water and electricity in the Emirate. DEWA has launched a host of successful initiatives and have allocated over AED 2.6bn towards the development of electricity and water infrastructure in the Emirate, ahead of the World Expo 2020, aiming to have a more efficient generation, transmission, and distribution of electricity and water.
This report contains:
i. An overview of the water and power sector to include top line figures (annual production, consumption, growth outlook etc..), major challenges faced in the sector and key market players
ii. UAE’s Future Plans and Investments in the sector
iii. Future projects by UAE’s water and electricity authorities and
iv. A list of tenders related to this sector.
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