Even with cloudy skies, we can get energy directly from the sun. Solar energy is largely used to produce electricity and heat or desalinate water. When it comes to the UAE, this industry is particularly interesting. Weather conditions in the UAE are ideal for solar power generation. Because of its geographical location, the country enjoys high exposure to solar energy.
The UAE receives more than 10 hours of sunlight every day on average. The average of 350 sunny days yearly is substantial for the total solar energy.
On the other hand, The Emirati leadership realizes the significance of its solar resources. Moving to a greener mix, the government is allocating vast swaths of arid land for solar parks, which helps meet both local and export demand.
According to the latest GlobalData report on the United Arab Emirates (UAE) Power Market Outlook to 2035, the largest source of clean energy prospects in the region is likely to arise from the renewables sector, especially solar.
How does a solar panel work?
Solar panels convert sunlight's energy into electricity to power electrical loads. Solar cells are used to create solar panels. Solar cells are composed of elements such as silicon, phosphorus, and boron.
These compounds combine to produce energy via the Photovoltaic Effect. The panel’s phosphorus generates a negative charge. The panel's boron generates a positive charge.
This allows photons from the sun to be absorbed by the cells. The cells then release energy that can generate electricity. Although the science behind solar energy is deep, using solar panels is not difficult.
Solar panels have become a more popular option to power homes and business facilities in the UAE. They may also be installed as a backup electricity source.
Two ways of generating solar power
Solar energy is produced in two ways: photovoltaic [PV] and concentrated solar power [CSP].
Solar photovoltaic (PV) technology converts sunlight directly into electricity using electrical devices known as solar cells. It is one of the fastest-growing renewable energy technologies, and its position in the global energy transformation is becoming more vital. It is also the most often used technique in the UAE. The majority of installed solar energy generation capacity in the UAE is from PV.
Solar PV systems are very flexible and range in size from tiny solar home kits and rooftop installations of 3-20 kW capacity to systems with hundreds of megawatts. Solar panel production costs have dropped drastically in the last decade, making them affordable and frequently the cheapest source of electricity.
Concentrated solar power (CSP) utilizes mirrors to concentrate sun rays. These rays heat water to produce steam, which powers a turbine to generate power. CSP is only employed in large-scale power plants to deliver energy.
CSP systems are divided into: "linear concentrating" and "point concentrating." Most CSP current systems employ linear concentrating devices known as parabolic trough collectors.
Although CPS systems' storage duration extends to 12 hours after sunset, it is not as popular as PV panels in the UAE for many reasons.
One reason aside from the cost, PV systems are much simpler to build. It doesn't cost much to construct them, it also doesn't take a long time like CSP. CSP, on the other hand, features dispatchability and requires larger spaces.
Investing in solar energy: A fast growing business
In recent years, the UAE has made significant progress in employing solar energy and the construction of multiple power plants. Various projects are now in progress in Dubai and Abu Dhabi.
The UAE's solar energy industry is expected to develop at a compound annual growth rate of more than 15% by 2025.
Government policies, incentives, and tax breaks are the primary drivers of its expansion. Also, the urge to achieve high power demand from renewable energy resources, reduce the country's reliance on fossil fuels and decrease carbon footprints is one of the major drivers of the UAE's solar market growth.
Furthermore, the steady decrease in solar system costs encourages individuals to convert to solar electricity for either home or business applications.
Solar technologies are getting increasingly efficient in defeating fossil fuel sources as their prices fall and demand increases.
Strengths facing the solar power sector in UAE
The UAE has strengths like solar resource abundance, a large quantity of open land, and appropriate end-use applications for decentralized solar energy systems. The following are the distinctive strengths of solar energy growth in the UAE:
- The UAE government focuses on developing renewable energy resources, particularly solar energy.
- Infrastructure and industrial bases in the UAE are constantly growing.
- This energy source is unlimited, with the UAE having a lot of radiation and enough area to utilize it.
- The UAE has one of the most stable governments in the Middle East.
- The UAE receives many investments in this area, which motivates the private sector worldwide.
- The UAE government provides the essential swaths for solar energy plants due to a large amount of land available.
- The country offers proper funding for solar energy research and development.
- The majority of operational solar initiatives in this country have been a success.
- The UAE is particularly well-known for its dedication to the global Greenhouse gas mitigation goal, with targets to reduce CO2 emissions by 30% by 2030.
Opportunities for the solar power sector in UAE
The country also has opportunities like narrowing the growing gap between energy demand and supply, raising awareness of the effects of climate change, and the significant cost decline of solar technology. Moreover, the UAE holds an influential role in green transformation by setting a global example. The following are the unique opportunities ahead for solar energy growth in the UAE:
- Investing in the UAE is simple and profitable.
- The UAE has a favorable renewable energy market, particularly solar hydrogen.
- Private sector engagement in solar energy is increasing in the UAE, and private enterprises have developed most of Abu Dhabi's power and water-producing capacity.
- The UAE has put an auction process to fund several solar energy projects.
- The UAE government strongly supports the solar labor market.
- The country focuses on and invests in a wide range of energy storage technologies.
Given the UAE's solar energy industry strengths and opportunities, with the right strategy, businesses can contribute to
- Reducing fossil fuel demand by increasing solar panels supply.
- Mitigating greenhouse gas emissions through solar energy production
- Transforming the UAE into a carbon market center of the Gulf Cooperation Council countries.
The UAE can achieve the sufficiency of self-produced solar energy. Imports and exports, Along with pure consumption, play a vital influence on the Emirati economy.
What next?
If you are searching for paying-off investment ideas in the Solar Energy sector in the UAE, do not miss out on our next article.
