Installed renewable energy capacity in the United Arab Emirates will increase fourfold by the end of 2025, reaching nine gigawatts according to research firm Rystad Energy.

Solar photovoltaic projects will drive this expansion, projected to reach 8.5 gigawatts over the next five years. Total installed renewable capacity reached 2.3 gigawatts at the end of 2024, with 91% coming from PV projects.

This acceleration reflects evolving Gulf investment models that prioritize long-term infrastructure sustainability alongside commercial returns.

How Is Dubai Expanding Its Solar Infrastructure?

The Mohammed bin Rashid Al Maktoum Solar Park will add 800 megawatts of clean energy capacity in 2025.

Dubai Electricity and Water Authority will complete the 300 megawatt first stage of the fifth phase and the 500 megawatt start of the sixth phase. The expansion forms part of the world’s largest single-site solar park.

With investments totaling AED 50 billion, the project aims to reach 5,000 megawatts of production capacity by 2030. The mega solar park will reduce annual carbon emissions by over 6.5 million tonnes upon completion.

What Makes the Sixth Phase Strategically Significant?

Phase six will provide clean energy to 540,000 residences in Dubai and reduce approximately 2.36 million tonnes of carbon emissions annually.

DEWA selected Masdar as the preferred bidder for this 1,800 megawatt solar PV project in August 2023. The facility will become operational in stages between 2024 and 2026.

The project attracted what was then the lowest ever tariff bid for solar PV when DEWA closed the 900 megawatt Phase V in 2020. This pricing competitiveness demonstrates the commercial viability of utility-scale renewable projects.

Which Abu Dhabi Projects Are Reshaping Regional Energy Markets?

Abu Dhabi inaugurated the 2 gigawatt Al Dhafra Solar PV project in 2023, creating the world’s largest single-site solar power plant.

The facility opened ahead of the UAE hosting COP28, signaling the nation’s commitment to climate leadership. In 2024, Emirates Water and Electricity Company awarded the 1,500 megawatt Al Ajban solar PV power project, expected operational before the end of 2026.

EWEC secured four new sites covering approximately 75 square kilometers to develop 4.5 gigawatts of additional solar PV and wind capacity.

How Will These Projects Support Clean Energy Targets?

The solar PV projects support EWEC’s delivery of 10 gigawatts of installed solar capacity by 2030 and 18 gigawatts by 2035.

This trajectory aligns with Abu Dhabi’s Clean Energy Strategic Target 2035 for electricity production and the UAE Net Zero by 2050 Strategic Initiative. The landmarks represent a major milestone in accelerating renewable energy deployment across the nation.

Eng. Ahmed Mohamed Al Rumaithi, Undersecretary of the Abu Dhabi Department of Energy, emphasized the regulatory framework’s importance. “Securing land for EWEC to accelerate development of new world-leading renewable energy projects aligns with the DoE’s regulatory and policy framework, which is pivotal for achieving a sustainable economic future,” Al Rumaithi stated.

Once these plants become commercially operational, Abu Dhabi will host five of the world’s largest single-site solar power plants.

What Economic Impact Will Renewable Expansion Generate?

The UAE government targets generating 30% of energy from clean sources by 2030, including renewable energy and nuclear power.

Energy Minister Suhail Al Mazrouei indicated the country will initiate “one or two” solar farms annually until the end of the decade. “We are seeing probably the highest demand ever because of the economic growth that we’re seeing in the country,” Al Mazrouei told the RAK Energy Summit.

The country currently operates around six gigawatts of renewable capacity and targets developing 15 gigawatts and potentially more by 2030.

How Is UAE Renewable Energy Expanding Internationally?

UAE-based companies are financing and executing solar projects across multiple continents in 2025.

Masdar accelerated international expansion with acquisitions in Spain, including a 49.99% stake in four Endesa photovoltaic plants totaling 446 megawatts. In Saudi Arabia, Masdar and consortium partners reached financial close for the 2 gigawatt Al Sadawi solar PV project.

Global South Utilities, part of Abu Dhabi’s Resources Investment Company, signed agreements to expand renewable projects in Madagascar, Egypt, Yemen, and the Central African Republic. These include a 50 megawatt solar plant with 25 megawatt-hour battery storage in Madagascar and a $220 million solar manufacturing facility in Egypt.

The UAE signed a tripartite partnership with Italy and Albania to develop large-scale renewable projects focusing on solar photovoltaic, wind, and hybrid solutions.

Why Does Project Scale Matter for Energy Transition?

Large-scale solar projects achieve cost advantages that make renewable energy commercially competitive without subsidies.

The 1,500 megawatt Al Ajban project will provide electricity to approximately 160,000 homes annually and reduce carbon emissions by 2.4 million metric tonnes. Construction began in September 2024 with grid connection expected by April 2026.

The project employs over 50 Chinese management personnel and more than 100 foreign workers, with peak employment projected to exceed 4,000. Over its development lifecycle, the initiative will generate over 10,000 jobs and contribute to regional GDP growth.

These workforce requirements demonstrate how renewable infrastructure delivers economic diversification alongside environmental benefits. The integration of massive solar installations with battery energy storage systems creates reliable baseload power that transforms renewable energy from intermittent generation to consistent supply.

As Gulf capital shifts toward measurable impact metrics and governance frameworks, the UAE’s renewable energy portfolio illustrates how infrastructure investments can simultaneously advance climate objectives, economic growth, and regional energy security.