The UAE depends on gas imports to power its plants and water desalination facilities, but it aims to achieve gas self-sufficiency by 2030.

With the discovery of new reserves, the UAE reportedly plans to invest significantly in hydrocarbon infrastructure and explore new production techniques.

According to GlobalData, thermal power generation accounted for approximately 77.7% of the country’s total power generation mix in 2023. It predicts that thermal power will remain the primary component of the UAE’s power generation mix until 2035, given the region’s substantial gas and oil reserves.

The report, UAE Power Market Size, Trends, Regulations, Competitive Landscape and Forecast, 2024-2035, emphasized that thermal power accounted for 80.40% of the installed capacity share in the UAE in 2023.

Specifically, gas-based thermal power capacity dominated the power capacity mix, holding an 80.20% share. 

Currently, the country is selecting new locations for infrastructure development and exploring unconventional methods for hydrocarbon production. Last year, gas accounted for approximately 99.80% of thermal capacity. By 2035, the cumulative thermal power capacity is expected to increase to 46.1 gigawatts (GW) from 41.2 GW in 2023, growing at a compound annual growth rate (CAGR) of 0.9%.

Annual generation from thermal power sources is projected to increase from 135.5TWh in 2023 to 155.9TWh in 2035, with a CAGR of 1.2%. Experts indicate that most of the capacity increase will occur in gas-based thermal power rather than oil, which is expected to see minimal change in capacity.