2026-09-02
The UAE has raised its clean energy target to 35% of the national energy mix by 2030-31, counting both nuclear and renewable power. Minister of Energy and Infrastructure Suhail Al Mazrouei announced the new figure in an interview with the Emirates News Agency (WAM) on the sidelines of Middle East Energy 2026 at Dubai World Trade Centre, reported on 2026-09-02. The updated UAE Energy Strategy 2050, approved in July 2023, had set 30% for installed clean capacity and 32% for clean generation by 2030, so the bar moves up by three to five percentage points. According to the minister, reaching 35% will require new projects, stronger competition and broader opportunities for the private sector in power generation. The technical argument behind the decision is storage: batteries can now hold power for up to 24 hours at competitive prices, compared with two or three hours previously, which turns solar plants into round-the-clock generators comparable to natural gas and nuclear.
The new target and the figures behind it
The table below puts the announcement next to the official targets and the latest reported results of the UAE clean energy programme.
| Indicator | Figure | Source and date |
|---|---|---|
| New clean energy target | 35% of the energy mix by 2030-31, nuclear and renewables combined | Minister Al Mazrouei to WAM, reported 2026-09-02 |
| Previous 2030 targets | 30% of installed clean capacity and 32% of clean generation | UAE Energy Strategy 2050, update of July 2023 |
| Installed clean capacity plan | from 14.2 GW to 19.8 GW by 2030 | u.ae, strategy page |
| Clean capacity outlook | more than 22 GW by 2031, about 35% of baseload | minister at the Emirates Energy Forum, 2025-12-16 |
| Actual clean share | 27.83% of the energy mix in 2023 | minister at the World Utilities Congress, September 2024 |
| Installed renewable capacity | 6.1 GW in 2023, 6.8 GW at the end of 2024 | ministry figures reported by The National |
| Investment envelope | AED 150-200 billion by 2030 | strategy update of July 2023 |
| Barakah nuclear plant | 4 units, 5.6 GW, about 25% of national electricity needs | ENEC, unit 4 in commercial operation since 2024 |
The 35% figure refers to the share of clean sources in the electricity mix. Nuclear power from the four Barakah units already covers roughly a quarter of national demand, so the increase from the current level to the new target will come almost entirely from solar plants and the batteries attached to them. The minister first mentioned a 35% baseload share for 2031 at the Emirates Energy Forum in Abu Dhabi in December 2025; the September 2026 statement makes it the official national target for 2030-31.
Why storage changed the maths
In the WAM interview the minister explained the upgrade through the economics of storage. Renewable energy prices continue to fall as projects expand and technology improves. Battery systems that used to cover two or three hours of demand can now store power for up to 24 hours at competitive prices. As a result, a solar plant with a large battery can supply electricity around the clock, which makes it comparable to gas, nuclear and other baseload sources, without carbon dioxide emissions.
The reference project is already under construction in Abu Dhabi. Masdar and the Emirates Water and Electricity Company (EWEC) broke ground on 2025-10-23 on a facility that combines 5.2 GW of solar photovoltaic capacity with 19 GWh of battery storage to deliver 1 GW of continuous renewable power day and night. Masdar puts the investment at more than AED 22 billion, expects commercial operation in 2027, more than 10,000 jobs during construction and 5.7 million tonnes of carbon dioxide avoided per year. In Dubai, DEWA and Masdar have reached financial close on the 1,800 MW sixth phase of the Mohammed bin Rashid Al Maktoum Solar Park, which takes the park to 4,660 MW by 2026 on the way to the 5,000 MW planned for 2030; in December 2025 the minister said the 2030 plan for the park would rise to 8 GW, as reported by The National.
The UAE is also building storage abroad: the Masdar programme in the United Kingdom that we covered in Masdar switches on its second UK battery storage plant shows the same technology being exported by a national company.
Where the private sector comes in
The minister said the UAE power generation sector has long been open to private participation and that the decision to privatise it decades ago helped reduce costs, strengthen competition and apply high governance standards. He added that this is one of the reasons the UAE is among the world’s leading countries in terms of electricity costs, and that national companies such as Masdar now win competitive projects in other countries.
In practice the private route into UAE generation is the independent power producer (IPP) model. The state utility, EWEC in Abu Dhabi or DEWA in Dubai, tenders a plant, international consortia bid a tariff, and the winner builds and operates the plant under a long-term power purchase agreement. The recent solar tenders illustrate the scale:
- Al Dhafra Solar PV, 2 GW, developed by a consortium of EDF Renewables and Jinko Power with Masdar and TAQA, inaugurated in 2023.
- Al Ajban Solar PV, 1.5 GW, awarded in April 2024 to EDF Renewables and Korea Western Power with Masdar as the local shareholder, 30-year power purchase agreement, commercial operation targeted for the third quarter of 2026.
- Khazna Solar PV, 1.5 GW, tendered in October 2024 near the Khazna data centre cluster, three bids received (Engie; EDF Renewables with Korea Western Power; Jinko Power with JERA), operation planned for 2027, which will raise EWEC’s solar capacity to about 5.5 GW.
New projects, stronger competition and a broader role for private investors, the three conditions named by the minister, translate into more tenders of this type, more storage components in each tender and more room for consortium partners, contractors and suppliers. The same logic applies to the acquisitions that UAE energy companies make abroad, such as the deal described in Abu Dhabi’s ePointZero acquires 90% of Azura Power.
Middle East Energy 2026 in numbers
The announcement was timed to the 50th edition of Middle East Energy, held on 1-3 September 2026 at Dubai World Trade Centre and organised by Informa Markets. The minister said the exhibition brings together 1,500 exhibitors from 70 countries and called on participants to exchange experience, noting that the Ministry of Energy and Infrastructure is presenting its strategies and legislative framework while the exhibiting companies focus on technical solutions. The show hosts three specialist events under one ticket: Intersolar Middle East, Energy Storage Middle East and The Battery Show.
At the opening on 2026-09-01, attended by Sheikh Ahmed bin Saeed Al Maktoum, the minister linked the target to system resilience: diversification and resilience across the whole chain from generation to distribution matter under the geopolitical changes in the region, and, in his words reported by Khaleej Times, the diversification toward cleaner forms of energy will continue “not because we are biased, but because it makes sense”.
What the target means for business in the UAE
The 35% target is a policy statement rather than a new procedure, so nothing changes overnight for existing companies. The practical consequences appear in the project pipeline that the target requires:
- Developers and investors: more IPP tenders from EWEC and DEWA for solar plants with storage, with consortium structures in which a local partner such as Masdar holds a stake.
- Contractors and suppliers: engineering, procurement and construction contracts for solar modules, batteries, cables, transformers and grid equipment, plus long-term operation and maintenance work; the minister also named grid efficiency and international interconnections as growth areas.
- Energy-intensive users: data centres and industrial plants gain a clearer view of long-term supply, with Khazna Solar PV planned next to the data centre cluster of the same name.
- Owners of commercial buildings: rooftop solar connected to the grid under DEWA’s Shams Dubai programme remains the entry point for smaller companies.
- Consultancies and service firms: a UAE legal entity is normally required to be listed as a supplier or subcontractor on these projects, and the choice between a mainland licence and a free zone licence depends on whether the company will contract directly with government utilities.
How Atlant Capital can help
Atlant Capital helps entrepreneurs and companies establish and operate businesses in the UAE. We register companies with the right legal form and business activities for energy, engineering and equipment trading through our company setup service, support corporate bank account opening with UAE banks so that a new entity can receive project payments and pay suppliers locally, and arrange residency visas for shareholders, engineers and managers relocating for a project.
Conclusion
The UAE has moved its clean energy target from 30-32% to 35% of the energy mix by 2030-31, a decision announced by Minister Suhail Al Mazrouei on 2026-09-02 at Middle East Energy 2026 in Dubai. The gap will be closed mainly by solar plants with 24-hour battery storage, of which the 5.2 GW and 19 GWh Masdar-EWEC project due in 2027 is the first at gigawatt scale. For businesses the message is a larger and longer pipeline of IPP tenders, contracts and supply orders, in a sector that the minister described as open to private participation for decades.
FAQ
What is the UAE’s new clean energy target?
The UAE is targeting 35% clean energy in its energy mix by 2030-31, including nuclear and renewable power. Minister of Energy and Infrastructure Suhail Al Mazrouei announced the figure to the Emirates News Agency at Middle East Energy 2026 in Dubai, as reported on 2026-09-02. The previous targets under the 2023 update of the UAE Energy Strategy 2050 were 30% of installed clean capacity and 32% of clean generation by 2030.
How much clean energy does the UAE produce today?
Clean sources accounted for 27.83% of the UAE energy mix in 2023, according to the minister’s statement at the World Utilities Congress in September 2024. Installed renewable capacity was 6.1 GW in 2023 and 6.8 GW at the end of 2024, while the four Barakah nuclear units add 5.6 GW and cover about 25% of national electricity needs.
Why does the UAE link the new target to battery storage?
According to the minister, batteries can now store power for up to 24 hours at competitive prices, compared with two or three hours previously, so a solar plant with storage can supply electricity around the clock like a gas or nuclear plant. The Masdar-EWEC project in Abu Dhabi, with 5.2 GW of solar and 19 GWh of batteries, is designed to deliver 1 GW of continuous power from 2027 at an investment of more than AED 22 billion.
How can a private company take part in UAE power generation?
Through the independent power producer model: EWEC in Abu Dhabi and DEWA in Dubai tender plants such as Al Ajban (1.5 GW) and Khazna (1.5 GW), consortia of international developers bid a tariff and sign long-term power purchase agreements, usually with a local partner such as Masdar. Suppliers, contractors and service firms join these projects through procurement, for which a UAE-registered company with matching business activities is normally required.
