The International Energy Agency (IEA) has predicted the renewable energy sector in the UAE and across the Middle East will have significant growth over the coming years.
Renewable generation is forecast to grow by approximately 14 per cent a year during 2025-2027, albeit from a low baseline, with its share rising from 5 per cent to 7 per cent, it noted.
The report stated that solar PV dominates growth, with its share of renewable generation increasing from around 55 per cent to almost 70 per cent by 2027.
Renewable energy in the UAE
According to IEA report, the UAE saw significant gains in solar PV generation, accounting for the majority of the solar growth in the region, with an annual average growth of 23 per cent for solar in 2025-2027.
It added: “Nuclear also played a more prominent role in power generation in 2024, up 20 per cent year-on-year, led by the UAE”.
This continues to enhance the contribution of nuclear power to a diversified and sustainable energy mix.
The report further stated that gas-fired generation grew by 2.9 per cent in 2024, the primary source of power in the region, and is forecast to accelerate to an average annual 5.3 per cent during 2025-2027, as further fuel switching from oil to gas takes place in line with government policies, with its share of the electricity mix rising from 68 per cent to 73 per cent.
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