UAE renewable capacity surges 63-fold over decade | AI-Generated Image

Al Olama Highlights 63-Fold Surge in UAE Renewable Energy Capacity Over Decade

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Eng. Sharif Al Olama, undersecretary for energy and petroleum affairs at the Ministry of Energy and Infrastructure, stated that the UAE has expanded its renewable energy capacity more than 63-fold over the last 10 years. The senior official outlined the progress in a statement distributed by the Emirates News Agency, linking the growth to sustained policy support and major infrastructure investments across the federation. Ministry of Energy and Infrastructure data shows this expansion has positioned the UAE as a regional leader in clean power deployment while aligning with broader sustainability objectives. Al Olama stressed that the country recognised the need for scale-up early in its planning process.

The International Renewable Energy Agency reported that the UAE reached 7,907 megawatts of renewable capacity by the end of 2025, reflecting a 15.4 percent annual increase driven almost entirely by solar additions. IRENA figures show solar photovoltaic capacity climbed to 7,525 megawatts that year after a net gain of more than 1,000 megawatts, while wind capacity held steady at 110 megawatts. The agency assessment found that renewables accounted for 15.3 percent of total installed power generation capacity in 2025, up from 14.3 percent in 2024. Pumped hydro storage also entered the mix with 250 megawatts added during the year to improve grid flexibility.

According to the Ministry of Energy and Infrastructure, installed renewable capacity grew 117 percent between 2022 and 2025, supported by flagship developments including the 2-gigawatt Al Dhafra Solar Park and expansions at the Mohammed bin Rashid Al Maktoum Solar Park in Dubai. The ministry noted that these projects have delivered record-low tariffs and substantial carbon reductions while creating local employment in construction and operations. Officials indicated that further capacity is under development to maintain this trajectory and meet rising domestic demand for clean electricity.

Al Olama announced that the UAE has raised its renewable energy target to more than 22 gigawatts by 2030 as part of an updated national strategy, with plans to reach 23 gigawatts by 2031. The undersecretary explained that this revision strengthens the contribution of clean sources to 35 percent of the electricity mix by the end of the decade. Ministry projections show the accelerated timeline will require continued private-sector participation and streamlined regulatory processes to bring additional projects online efficiently.

Masdar has contributed significantly to the capacity build-out, the company said in its operational updates, developing both domestic megaprojects and an international portfolio that reached 65 gigawatts of clean energy capacity with a goal of 100 gigawatts by 2030. The firm reported commissioning key UAE assets that have lowered the cost of solar generation and demonstrated hybrid integration with storage systems. Industry analysts tracking these developments noted that Masdar’s activities have enhanced the UAE’s reputation as an exporter of renewable expertise to markets across Asia, Africa and Europe.

A Dii Desert Energy outlook placed the wider MENA region on an accelerated path after adding nearly 15 gigawatts of renewable capacity in 2025, with the UAE ranking second regionally at approximately 7.5 gigawatts of operational assets. The think tank report indicated the projects pipeline across the Middle East and North Africa has expanded to 202 gigawatts, exceeding earlier forecasts and reflecting stronger policy momentum following COP28 hosted by the UAE. Al Olama said, “In light of the dual challenges of climate change and energy security, a rapid and sustained scale-up of renewable energy is no longer optional it is essential.”

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Financial Arabia NewsDesk is the desk responsible for Financial Arabia's daily news coverage, monitoring and reporting developments across the Gulf from official sources, including national news agencies and government communications. Its focus is accurate, timely and factual coverage of the region.