The UAE leads regional solar PV growth, with a 23 percent annual average growth rate through 2027
The International Energy Agency (IEA), in its most recent ‘Electricity 2025’ report, has forecasted that the renewable energy growth in the UAE and throughout the Middle East will experience substantial expansion in the upcoming years.
Renewable generation is anticipated to increase by approximately 14 percent annually from 2025 to 2027, starting from a low baseline, with its share expected to rise from 5 percent to 7 percent, as noted in the report.
Solar PV dominance in growth
The report highlighted that solar photovoltaic (PV) technology is the leading contributor to this growth, with its share of the renewable generation projected to elevate from about 55 percent to nearly 70 percent by 2027.
According to the IEA report, the United Arab Emirates has achieved notable advancements in solar PV generation, representing the majority of solar growth in the region, with an annual average growth rate of 23 percent for solar from 2025 to 2027.
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Nuclear power’s increasing role
It further stated, “Nuclear also played a more prominent role in power generation in 2024, up 20 percent year-over-year, led by the UAE,” as the country continues to bolster the contribution of nuclear energy to a diversified and sustainable energy portfolio.
The report also indicated that gas-fired generation saw an increase of 2.9 percent in 2024, remaining the primary source of power in the region. This sector is expected to accelerate to an average annual growth of 5.3 percent during 2025-2027, facilitated by ongoing fuel switching from oil to gas in accordance with government policies, with its share of the electricity mix projected to grow from 68 percent to 73 percent.
