UAE floating photovoltaics market is projected to witness a CAGR of 10.90% during the forecast period 2024-2031, growing from USD 63.69 million in 2023 to USD 145.72 million in 2031. The market has experienced significant growth and is expected to maintain a strong pace owing to sustainability goals, economic diversification, and investments.
Significant investments in renewable energy reveal the adoption of floating photovoltaic technology. The main benefits of floating photovoltaic systems, including their positive effects on the environment, economy, and society, make this technology significant and adaptable in the renewable energy sector. The technique is anticipated to enhance the process of generating renewable energy by exploiting the spaces over water since it makes the most of the surface areas of bodies of water.
Floating photovoltaics (FPV) systems contribute to the diversification of UAE’s energy portfolio, reducing dependency on fossil fuels and enhancing energy security in the country. The floating photovoltaic systems enhance solar energy generation and are resilient to climate change, which drives the demand for floating photovoltaics in the forecast period. Furthermore, the government is investing in research and development to improve systems design and reduce the cost of PV modules, which will enhance the adoption of floating photovoltaic systems.
Exploration of Solar Panel Applications on Water Bodies to Drive Market Growth
The government of UAE is looking forward to recent methods to produce clean and renewable energy while ensuring environmental sustainability. Solar panel manufacturing companies are looking to discover new applications in the market. Utility providers continue to find alternative uses for solar panels, such as installing floating panels on bodies of water, which will help boost the country’s renewable energy production. The floating photovoltaic systems’ application is the ideal way of producing solar energy while limiting land use, boosting its market demand.
The floating photovoltaics technology utilizes normal water bodies such as ponds, lakes, dams, canals, water treatment plants, and reservoirs for renewable energy generation in UAE. The floating photovoltaic systems lowers the demand for land as the technology uses water surfaces to generate solar power. Compared with conventional land-based installations, floating photovoltaic systems have a higher efficiency of 11%. Moreover, UAE has geographical conditions suitable for power generation with solar photovoltaic systems, as the country receives an extremely high amount of solar radiation throughout the year.
Sustainability and Renewable Energy to Draw Market Demand
FPV technology is expected to be significantly influenced by the rising need for sustainability and renewable energy goals. The FPV systems design does not have any environmental impact on aquatic ecosystems. Moreover, floating photovoltaic systems can be installed on disturbed water bodies, such as reservoirs and wastewater treatment plants. This makes the technology a sustainable choice in energy production without additional environmental disruption.
The floating photovoltaic system creates a hybrid system as technology could be joined with other renewable energy sources such as hydropower. The system could use the same transmission and distribution line as the existing plant, which makes the floating photovoltaics system cost-effective. Floating photovoltaic (FPV) systems mounted on reservoirs assure maximum exploitation of renewable energy production by combining solar generation with hydroelectricity. The system is stable and dependable in pursuing energy security and sustainability.
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Moreover, the floating photovoltaics system contributes to a diversified energy portfolio in UAE, consequently decreasing reliance on fossil fuels and enhancing energy security. Energy diversification is of utmost importance when considering long-term sustainability for the country, apart from resilience against global energy market fluctuations. In addition, the floating photovoltaics system will enable UAE to reduce carbon emissions and support the commitment of the country to addressing climate change and the transition towards renewable energy.
For instance, in 2023, UAE government introduced the strategy to increase the contribution of clean energy in the total energy mix to 50% by 2050.
Government Initiatives and Strategic Goals to Drive the Market Growth
Government policies and programs create an adaptive environment for new technologies to produce renewable energy. The government is looking to invest in technologies that could increase renewable energy production in sustainable ways.
The policies and programs offer financial incentives, easy legal frameworks, and strategic objectives to encourage investments in floating photovoltaic technologies. Financial incentives reduce the overall cost of execution, attracting investors and developers in the country towards floating photovoltaic projects.
UAE government has established numerous strategies in line with the reduction of climate change through the transition towards a low-carbon economy. About this, floating photovoltaics technology is perceived as a sustainable solution for using and producing clean energy. The government and higher authorities are signing agreements and partnering with international entities for the promotion of floating photovoltaics in UAE, which will create opportunities in the market.
For instance, in July 2023, UAE government announced to invest USD 54 billion in renewables by 2030 to reach the net zero emissions target by 2050.
Stationary Floating Solar Panels to Dominate Market Share
Stationary floating solar panels have a higher adoption rate compared to solar-tracking floating solar panels, leading the segment to dominate the market. The stationary floating solar panels can be installed with fewer civil engineering challenges compared to land-based systems, reducing initial installation costs. Moreover, floating photovoltaic systems are easier to maintain since installations are on water bodies and are easily accessible. Favorable policies supported the product in UAE, making the stationary floating solar panels economically viable for developers and investors. In addition, the adoption of renewable energy technologies has encouraged continuous support by governments and regulatory bodies, further encouraging the market demand for stationary floating solar panels.
Dubai is Expected to Dominate UAE Floating Photovoltaics Market Share
Dubai is expected to dominate the share of the UAE floating photovoltaics market in the forecasted years. Dubai experiences high levels of solar irradiance throughout the year, making the province ideal for solar energy projects. The rapid development and expansion of solar projects have shaped Dubai as an emerging hub for solar power generation in the UAE. The availability of consistent sunlight ensures floating photovoltaic systems operate optimally without any significant disruptions and produce more renewable energy.
The scalability of floating photovoltaic systems in Dubai is easy as abundant sunlight is generated. The province includes several water bodies consisting of major man-made reservoirs that are ideal for installing floating solar panels. The availability of advanced infrastructure, a strong network of logistics, and the latest technologies in Dubai facilitate smoother transportation and installation of floating photovoltaic systems.
For instance, in December 2023, the world’s largest concentrated solar power (CSP) project, Mohammed bin Rashid Al Maktoum Solar Park, was inaugurated in Dubai, which will include floating photovoltaics technology.
Future Market Scenario (2024 – 2031F)
1. Ongoing innovations in floating photovoltaics technology will lower the installation cost of the projects in UAE.
2. UAE is actively looking to enter into new ways of energy diversification by promoting renewable energy in the country, coupled with sustainability goals.
3. Supportive government policies and financial incentives related to renewable energy projects, including FPV, will help grow the floating photovoltaics market.
Report Scope
“UAE Floating Photovoltaics Market Assessment, Opportunities and Forecast, 2017-2031F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of UAE floating photovoltaics market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
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