UAE is a rapidly growing economy whose electricity sector needs are anticipated to increase upto 50% in order to meet its growing demand for power, by the year 2020. UAE also has one of the highest levels of per capita power consumption across the globe. The electricity consumption in the UAE region is slated to cross 100 TWh by 2012, putting pressure on the supply side. In fact, the power demand is expected to increase at one of the highest rate in the Middle East region till 2020.
In 2011, more than 90% of total electricity generated came from thermal based sources in UAE, which is expected to reduce to 90% by 2015. Most of the power in UAE is fuelled by oil and natural gas. At the same time, government is also keen to develop renewable sources of power for future, included investment into nuclear based energy.
Government’s projections for investment into the UAE power sector are promising. The nation plans to invest more than USD 70 Billion of funds in the sector till around 2015.In fact, till the year 2020, private sector is projected to be presented with an opportunity to invest upto USD 100 Billion into the power generation sector.
Some of the prominent players in the UAE energy market are Abu Dhabi Water and Electricity Authority, Dubai Electricity and Water Authority, Sharjah Electricity and Water Authority and Federal Electricity and Water Authority. The seven Emirates in the UAE are catered by these above mentioned four electricity and water authorities.