1. Background and Overview

As a pioneer in energy transition in the Middle East, the United Arab Emirates (UAE) has achieved remarkable accomplishments in the photovoltaic (PV) industry in recent years. Being one of the countries with the richest oil and gas resources in the world, the UAE is actively promoting the diversification of its energy structure, reducing its reliance on fossil fuels, and realizing sustainable economic development. According to the 2025 Solar Energy Outlook Report released by the UAE News Agency in January 2025, the UAE is leading the development of the solar energy industry in the Middle East, with its clean energy strategy goals including increasing the proportion of clean energy in power generation to 75% by 2050. Against the backdrop of global energy transition, the UAE, leveraging its unique solar energy resources and strong government support, has become a crucial force in the global PV industry development.

This report will conduct an in-depth analysis of the development trends and technological applications of the UAE's PV industry over the past five years (2020-2025), focusing on the expansion of industry scale, changes in market structure, and the driving role of technological innovation in industry development, so as to provide a comprehensive perspective for understanding the development of the PV industry in the Middle East.

1.1 Background of Energy Transition Strategy

The development of the UAE's PV industry is an important part of its national energy strategy. In 2017, the UAE government launched the National Energy Strategy 2050, aiming to increase the proportion of clean energy in total energy consumption to 50% and reduce carbon footprint by 70% by 2050. In July 2023, the UAE government approved the Update to the National Energy Strategy 2050, further clarifying the goal of more than doubling the installed capacity of renewable energy by 2030 and increasing the share of clean energy in the total energy structure to 30%. In addition, the UAE approved the National Hydrogen Strategy in 2023, targeting to produce 1.4 million tons of hydrogen per year by 2031 and increase the output to 15 million tons per year by 2050, thereby becoming one of the world's top ten green hydrogen producers. These strategic plans provide clear policy guidance and goal orientation for the rapid development of the UAE's PV industry.

1.2 Endowment of Solar Energy Resources

The UAE is endowed with abundant solar energy resources, which lay a solid natural foundation for the development of its PV industry. The UAE has a tropical desert climate, with an annual average sunshine duration of 3,000-4,000 hours, and the PV power generation efficiency is 20% higher than the global average level. The annual average solar irradiance in the UAE exceeds 2,000 kWh/m², and the annual solar radiation in some regions is 50% higher than that in areas such as the Qinghai-Tibet Plateau and northern Gansu in China, providing a solid natural basis for the development of the PV industry. According to the latest data from the Energy Research Institute, the UAE currently ranks second in the world in terms of per capita solar energy consumption. Making full use of this resource advantage is of great strategic significance for the UAE's energy transition.

2. Development Scale and Market Trends of the UAE's PV Industry (2020-2025)

2.1 Rapid Growth of PV Installed Capacity

The UAE's PV industry has experienced explosive growth over the past five years. According to the analysis data from Rystad Energy (Norway), the installed capacity of renewable energy in the UAE has grown from 2.3 GW at the end of 2020 to over 5 GW in 2023, with a compound annual growth rate (CAGR) of more than 30%. Among them, solar PV dominates, accounting for approximately 91% of the total installed capacity of renewable energy.

According to the latest data, the UAE plans to add 800 MW of solar power generation capacity in 2025. This goal will be led by the Emirates Water and Electricity Company (EWEC) through two 400 MW solar PV projects, namely Al Ajban and Al Khazna. This expansion plan is an important part of the UAE's clean energy transition strategy, which will further promote the diversification of the UAE's energy structure and reduce its dependence on fossil fuels.

It is worth noting that the UAE's position in the global PV market has significantly improved in 2024. According to the forecast in the latest Electricity 2025 report released by the International Energy Agency (IEA), the annual growth rate of PV power generation in the UAE will reach 23% during 2025-2027, accounting for most of the PV power generation growth in the Middle East. This forecast indicates that the UAE's leading position in the Middle East PV market will be further consolidated.

The following table shows the growth of PV installed capacity in the UAE from 2020 to 2025:

Source:

2.2 Scale of PV Power Plant Construction and Project Layout

The rapid development of the UAE's PV industry mainly relies on the construction of a series of large-scale PV power plant projects. Over the past five years, the UAE has successively completed a number of world-class PV projects, significantly increasing its PV installed capacity and power generation capacity.

Noor Abu Dhabi Solar Park: As one of the world's largest solar parks, this project has an installed capacity of 1.19 GW and can supply electricity to approximately 90,000 households. Officially put into commercial operation in 2020, it is an important milestone in the development of the UAE's PV industry.

Al Dhafra PV Power Plant: Constructed by China Machinery Engineering Corporation (CMEC), the Al Dhafra PV2 Power Plant is currently the world's largest single PV power plant and an important project in the field of green energy under the "Belt and Road" Initiative. Covering an area of approximately 21 square kilometers, it has an installed capacity of 2.1 GW. Its power generation can meet the electricity demand of about 200,000 households in the UAE and reduce carbon emissions by more than 2.4 million tons annually. The project officially started construction in January 2021 and entered commercial operation in June 2023.

Mohammed bin Rashid Al Maktoum Solar Park: Planned by the Dubai Electricity and Water Authority (DEWA), this solar park has a total installed capacity of 5 GW and is a benchmark project in the Middle East. As of 2023, the park has completed an installed capacity of 1.8 GW. The project adopts a variety of advanced technologies, including solar thermal hybrid technology. Its Phase IV project with 950 MW is equipped with 15-hour energy storage capacity, significantly improving the stability and reliability of PV power generation.

The World's Largest PV-Storage Integrated Project: In January 2025, Masdar, the UAE's state-owned renewable energy company, announced the launch of the world's largest PV-storage integrated project. With an investment of 6 billion US dollars, the project integrates 5.2 GW of PV installed capacity and 19 GWh of energy storage system, and is expected to achieve stable supply of 1 GW of renewable energy around the clock by 2027. Located in the Abu Dhabi desert and covering an area of 90 square kilometers, it will become the world's largest combined solar energy and battery energy storage system (BESS), providing up to 1 GW of baseload power generated by renewable energy every day.

In addition, the UAE is also actively planning more large-scale PV projects. In December 2024, EWEC secured land for the development of three solar power plants (Al Faya, Al Khazna, and Al Zarraf) and one wind farm (Sila). These projects will add 4.5 GW of solar installed capacity and 140 MW of wind power capacity, supporting EWEC's goals of installing 10 GW of PV capacity by 2030 and 18 GW by 2035.

2.3 Market Share and Regional Influence

The UAE's influence in the global PV market is constantly increasing. According to IEA data, in 2023, the proportion of solar power generation in the UAE's total power generation increased from 4.5% in 2022 to 8.3%, compared with only 0.3% in 2014. This data indicates that the UAE's PV industry has achieved leapfrog development in just a few years.

In the regional market, the UAE has become a leader in the Middle East's PV industry. According to the 2025 Solar Energy Outlook Report, the UAE is leading the development of the solar energy industry in the Middle East. Driven by technological progress, government support, and the growth of private sector investment, the share of solar energy in the energy structure of this region has significantly increased. In 2023, the installed solar capacity in the Middle East grew by 23% to 32 GW, and is expected to exceed 180 GW by 2030.

The UAE also ranks among the top in global competitiveness indicators, with per capita solar energy consumption ranking second in the world. According to the IEA's forecast, during 2025-2027, the renewable energy power generation in the UAE and the entire Middle East region will grow by approximately 14% annually, and its proportion will increase from 5% to 7%. PV power generation will dominate the growth, and its share in renewable energy power generation will increase from about 55% to nearly 70% by 2027.

From the perspective of market structure, the UAE's PV market is highly concentrated. According to data from the UAE Ministry of Energy, state-owned enterprises and international giants dominate the UAE's PV market. TAQA, DEWA, and Masdar together account for more than 70% of the installed capacity. Among them, Masdar, relying on its extensive layout and investment in the renewable energy field, has become a leading enterprise in the UAE's PV market. International players such as Saudi Arabia's ACWA Power hold a 15% share through the Bid 3 project (900 MW).

2.4 Government Policies and Support Measures

The policy support from the UAE government is a key factor driving the rapid development of the PV industry. Over the past five years, the UAE government has introduced a series of policy measures to create a favorable development environment for the PV industry.

National Energy Strategy 2050: Launched by the UAE government in 2017, it aims to increase the proportion of clean energy in total energy consumption to 50% and reduce carbon footprint by 70% by 2050. This strategy provides a long-term policy framework for the development of the UAE's PV industry.

Net Metering Policy: Implemented by DEWA, this policy allows households and enterprises to feed excess electricity into the grid with a subsidy rate of 30%. It has effectively promoted the surge in the installation of distributed PV systems. For example, the 50 MW rooftop PV project in the Dubai Silicon Oasis Park saves more than 5 million US dollars in electricity bills annually.

Abu Dhabi Renewable Energy Target (ADRET): This policy provides tax relief for renewable energy projects and has attracted a large amount of investment. For instance, Masdar's Sweihan project (1.17 GW) was successfully implemented with policy support and became a model of low-cost PV after being put into operation in 2019.

In-Country Value (ICV) Program: At the end of 2017, the UAE government announced the implementation of the ICV Program nationwide, aiming to encourage private enterprises to increase employment of local residents, promote the diversification of gross domestic product (GDP), and enhance the localization of key value chains in specific fields. Applicable to procurement by all government departments and enterprises, this program requires suppliers and partners to meet a certain proportion of local value, strongly promoting the localization of the PV industry chain.

National Hydrogen Strategy: Approved by the UAE government in July 2023, it targets to produce 1.4 million tons of hydrogen per year by 2031 and increase the output to 15 million tons per year by 2050. This strategy will further promote the development of the UAE's PV industry, as green hydrogen production requires a large amount of renewable energy power.

In addition, the UAE government also supports the development of the PV industry through a series of financial incentives, including providing financial subsidies, implementing the feed-in tariff policy for PV, and simplifying the approval process for PV power generation projects. These policy measures have jointly created a favorable development environment for the UAE's PV industry and promoted the rapid expansion of the industry scale.

3. Analysis of Technological Applications and Innovations in the UAE's PV Industry (2020-2025)

3.1 Application of High-Efficiency PV Module Technology

The UAE is at the forefront of the world in the application of PV module technology, actively adopting the latest high-efficiency PV module technologies to improve solar energy conversion efficiency and reduce the levelized cost of electricity (LCOE).

Monocrystalline Silicon Bifacial Double-Glass Modules: A number of large-scale PV projects in the UAE have adopted monocrystalline silicon bifacial double-glass module technology. These modules can generate electricity not only on the front side but also on the back side by receiving sunlight reflected from the environment, significantly improving energy efficiency. For example, the Al Dhafra PV Power Plant project uses nearly 4 million solar panels, all of which are monocrystalline bifacial double-glass PV modules, greatly improving power generation efficiency.

TOPCon Technology: Tunnel Oxide Passivated Contact (TOPCon) technology is an important technological breakthrough in the PV industry in recent years, and a number of projects in the UAE have begun to adopt this technology. As a leader in N-type technology, Daqo New Energy's latest generation of TOPCon 4.0 Plus cells has achieved a mass production average efficiency of over 26.7% and an open-circuit voltage of up to 742 mV, breaking world records multiple times. Longi Green Energy's Hi-MO 9 modules, based on TOPCon technology, have a mass production efficiency of 24.8% and a power output 30W higher than that of mainstream TOPCon modules in the industry.

Back Contact (BC) Technology: The Hi-MO X10 modules launched by Longi in the UAE market adopt back contact technology, with a mass production efficiency of 24.8%, fully releasing the power generation potential of limited installation areas. The back-contact heterojunction (HBC) solar cells independently developed by Longi have achieved a photoelectric conversion efficiency of 27.30%, setting a new world record for monocrystalline silicon PV cell efficiency.

Heterojunction (HJT) Technology: The HITOUCH 6H 730W modules launched by Hanwha Q Cells in the UAE market adopt 210mm high-efficiency heterojunction cell technology, fundamentally reducing the balance of system (BOS) and LCOE costs, and providing customers with a highly competitive long-term investment return solution. The Cyber TOPCon series bifacial modules of Seraphim also feature innovative technologies such as passivated contacts and ultra-fine multi-busbars. Combined with the application of N-type high-efficiency cells, they have lower BOS and LCOE, with a power output of up to 720W.

Rectangular Wafer Technology: The DAON rectangular modules exhibited by Daqo New Energy in Abu Dhabi adopt optimized size design and leading technical routes. Through unified standardized sizes, they lay a solid foundation for the coordinated development of the upstream and downstream of the industrial chain, and highlight intensive advantages in terms of efficiency, power, manufacturing, process, transportation, etc., which can effectively reduce system BOS costs and LCOE.

Self-Cleaning Technology: To meet the special needs of the desert environment in the Middle East, Daqo New Energy has launched self-cleaning modules. The innovative short-side frame-less design effectively prevents dust accumulation, demonstrating excellent product performance in the desert environment. These modules have successfully passed the rigorous 5,400-hour/2,400-cycle static load test, verifying their excellent stability under extreme load conditions.

The following table summarizes the application of major PV module technologies in the UAE:

Source:

3.2 Application of PV Tracking Systems

To maximize the utilization of solar energy resources, PV projects in the UAE widely adopt PV tracking system technology, allowing PV modules to adjust their angles with the movement of the sun and improve solar energy capture efficiency.

Tracking Bracket Technology: Multiple large-scale PV projects in the UAE have adopted tracking bracket technology, enabling PV panels to rotate automatically with sunlight and enhance solar energy conversion efficiency. The Al Dhafra PV Power Plant project uses tracking PV panel brackets, which allow the panels to rotate automatically with sunlight, achieving a solar energy conversion rate of over 22%. This technology can significantly increase PV power generation, especially in areas with large variations in solar altitude angles.

Single-Axis and Dual-Axis Tracking Systems: Single-axis and dual-axis tracking systems are widely used in the Middle East. These systems automatically adjust the angle of PV modules to face the sun at all times, increasing power generation efficiency by 15%-25%.

Intelligent Tracking Control Technology: Huawei's intelligent PV-storage solutions launched in the UAE include an intelligent PV management system, which can real-time manage the operating parameters of PV and energy storage systems, monitor the operating status of modules and batteries, and achieve refined management. This technology can optimize the operation of tracking systems and further improve PV power generation efficiency.

The application of PV tracking systems in the UAE has achieved remarkable results. According to Wang Jinwei, General Manager of China Machinery Engineering Corporation Abu Dhabi Branch, the tracking PV panel brackets used in the Al Dhafra PV Power Plant project allow the panels to rotate automatically with sunlight, significantly improving power generation efficiency. The application of this technology enables large-scale PV power plants in the UAE to achieve higher power generation under sufficient sunlight conditions and reduce the levelized cost of electricity (LCOE).

3.3 Application of Energy Storage Technology and PV-Storage Integration

Energy storage technology is a key solution to address the intermittency of PV power generation. The UAE has made significant progress in the application of energy storage technology, particularly leading the world in PV-storage integrated projects.

Large-Scale Battery Energy Storage Systems: The UAE is developing multiple large-scale battery energy storage system projects. In January 2025, Masdar, the UAE's state-owned renewable energy company, announced the launch of the world's largest PV-storage integrated project. With an investment of 6 billion US dollars, the project integrates 5.2 GW of PV installed capacity and 19 GWh of energy storage systems, and is expected to achieve 24/7 stable supply of 1 GW of renewable energy by 2027. The energy storage system of this project, provided by CATL, has a capacity of up to 19 GWh, making it the world's largest PV-storage integrated project.

Wind-Liquid Intelligent Cooling Energy Storage Technology: Huawei adopted wind-liquid intelligent cooling energy storage technology in the UAE desert farm project. Designed for high-temperature environments, this technology features multiple heat dissipation modes to ensure stable output operation of equipment. It can maintain the performance stability of energy storage systems under extreme temperature conditions and improve system reliability.

Diesel-PV-Storage Microgrid System: The diesel-PV-storage microgrid project developed by Shanghai Electric in Dubai includes a 400 kW PV power generation system, a 500 kW/1182 kWh energy storage system, and two diesel generators with a total capacity of 900 kW. Equipped with an Energy Management System (EMS), an intelligent operation and maintenance platform, and a PV module cleaning robot system, the project realizes integrated and intelligent control of the microgrid, with stable, reliable, efficient, and economical operation as its main goals.

PV-Storage Microgrid Technology: Huawei adopted the latest generation of intelligent PV-storage solutions in the UAE desert farm project, including string inverters and wind-liquid intelligent cooling energy storage, to build a PV-storage microgrid. In the high-temperature and dusty environment, the system ensures the power demand for agricultural production through stable and efficient clean energy supply. In daily management, farmers can check parameters such as soil moisture content through a mobile APP, remotely control light, temperature, and humidity, and the system can automatically calculate and accurately implement operations such as irrigation and fertilization. Meanwhile, with the help of the intelligent PV management system, the operating status of PV modules and energy storage batteries can be real-time monitored, and the energy usage of the farm is also clearly visible.

Dubai "PV-Storage" Demonstration Power Plant: Relying on the site of the Dubai Phase IV CSP-PV project, Shanghai Electric Group built a microgrid demonstration power plant with intelligent integrated remote control of "PV + Energy Storage" in Dubai, including a 400 kW PV power generation system, a 1 MWh battery energy storage system, and a smart cloud platform. In June 2021, the project completed the functional commissioning test of the entire power plant and realized remote intelligent management.

The UAE government has also implemented a mandatory energy storage policy, requiring PV projects to be equipped with energy storage systems of a certain proportion. According to the research report of CIC Consulting, the UAE mandates that PV projects be equipped with 15% energy storage (for 4 hours), and the installed energy storage capacity is expected to reach 8 GW by 2025. This policy has effectively promoted the application of energy storage technology in the UAE's PV industry and improved the stability and reliability of PV power generation.

3.4 Application of Smart Grid Integration Technology

The UAE has actively explored and applied smart grid integration technology. Through advanced information technology and intelligent control technology, it has improved the grid's capacity to accommodate and absorb PV power generation.

Application of Artificial Intelligence (AI) in Grid Management: The smart grid transformation plan of the Dubai Electricity and Water Authority (DEWA) uses AI technology to monitor energy consumption patterns, real-time analyze electricity consumption data, predict changes in energy demand, thereby adjusting power generation and transmission-distribution capacity in a timely manner and reducing energy waste. This technology can improve the grid's adaptability to PV power generation and optimize the operation of the power system.

Smart PV Cloud Platform: Huawei's smart PV cloud platform can real-time monitor key indicators such as the voltage and temperature of each battery cell, realize accurate monitoring and efficient management of energy, and simplify daily operation and maintenance. This platform can be integrated with smart grid systems to achieve intelligent scheduling and control of PV power generation.

Smart Microgrid Technology: The diesel-PV-storage microgrid project developed by Shanghai Electric in Dubai adopts an Energy Management System (EMS) to realize integrated and intelligent control of the microgrid, with stable, reliable, efficient, and economical operation as its main goals. This technology can realize coordinated control and optimized operation of distributed energy resources and improve energy utilization efficiency.

PV-Storage Integrated Intelligent Control Technology: CATL has established a Dubai industrial park in cooperation with the UAE, realizing vertical integration from materials to systems. Sungrow Power Supply has adopted the "technology investment + capacity sharing" model to conduct in-depth cooperation with local enterprises, which not only enhances its competitiveness in the Middle East market but also promotes the development of the local energy storage industry. The application of these technologies provides support for the development of smart grids.

Intelligent PV Management System: The intelligent PV management system adopted by Huawei in the UAE desert farm project can real-time manage the operating parameters of PV and energy storage systems, monitor the operating status of modules and batteries, and achieve refined management. This system can exchange data with smart grids to realize optimized scheduling and management of energy.

Digital Twin Technology: The UAE has begun to apply digital twin technology in grid planning and operation. By establishing a digital model of the grid, it simulates and optimizes grid operation and improves the reliability and efficiency of the grid. This technology can help the grid better accommodate and absorb PV power generation and increase the penetration rate of renewable energy.

3.5 PV-Coupled Seawater Desalination Technology

As a country with an extreme shortage of freshwater resources, the UAE has combined seawater desalination with PV power generation, creating a unique energy-water synergy development model.

Reverse Osmosis (RO) Seawater Desalination Technology: In recent years, the development and application of reverse osmosis (RO) technology have reduced the energy consumption of seawater desalination. Renewable energy power generation has provided new impetus for seawater desalination, and the combination of the two has significantly improved energy efficiency and reduced the cost of seawater desalination. For example, the Taweelah Independent Water Project (IWP) in Abu Dhabi is currently the world's largest reverse osmosis seawater desalination project. Equipped with a supporting PV power plant, it has a daily water production capacity of approximately 900,000 tons.

PV-Driven Seawater Desalination Systems: Egypt's seawater desalination plant powered by PV has reduced the cost to \(0.5/m³, compared with \)1.2/m³ for traditional diesel power generation. This technology has also been widely applied in the UAE, realizing the coordinated management of energy and water resources.

Energy-Water Decoupling Technology: The UAE's peak electricity demand in summer is twice that of the off-peak period and three times that of the winter peak period. The country's relatively stable freshwater demand and large seasonal peak-valley differences in load have forced the authorities to consider energy-water decoupling, replacing traditional energy with renewable energy. By combining PV power generation with seawater desalination, the UAE has realized the independent supply of energy and water resources and improved the stability and reliability of the system.

Application of Intelligent Control Technology in Water-Energy Systems: Farmers can check parameters such as soil moisture content through a mobile APP, remotely control light, temperature, and humidity, and the system can automatically calculate and accurately implement operations such as irrigation and fertilization. Meanwhile, with the help of the intelligent PV management system, the operating status of PV modules and energy storage batteries can be real-time monitored, and the energy usage of the farm is also clearly visible. This technology realizes the intelligent management of water and energy resources and improves resource utilization efficiency.

4. The Driving Role of Technological Applications in the Development of the UAE's PV Industry

4.1 Improving Power Generation Efficiency and Reducing LCOE

The application of advanced PV technology has significantly improved the efficiency of PV power generation in the UAE, reduced the levelized cost of electricity (LCOE), and enhanced the market competitiveness of PV power generation.

Improved Module Efficiency: Through the application of high-efficiency PV module technology, the efficiency of PV power generation in the UAE has been significantly improved. The mass production average efficiency of Daqo New Energy's TOPCon 4.0 Plus cells has exceeded 26.7%, and the efficiency of Longi's back-contact cells has reached 27.30%. The application of these high-efficiency cell technologies has significantly increased the power generation per unit area. The monocrystalline bifacial double-glass modules used in the Al Dhafra PV Power Plant have a conversion rate of over 22%, which is approximately 2-3 percentage points higher than that of traditional modules.

Increased Power Generation by Tracking Systems: The application of tracking bracket technology allows PV modules to adjust their angles with the movement of the sun, maximizing solar energy capture efficiency. According to industry data, the use of tracking systems can increase PV power generation by 15%-25%, significantly improving the economic benefits of projects.

Reduced Operation Costs by Intelligent O&M: Through the application of intelligent operation and maintenance (O&M) technology, PV power plants in the UAE can achieve early detection and rapid repair of faults, reducing O&M costs. DEWA deployed an AI prediction system in the Solar Park, reducing O&M costs by 20%. Huawei's smart PV cloud platform can real-time monitor key indicators such as the voltage and temperature of each battery cell, realize accurate monitoring and efficient management of energy, and simplify daily O&M.

Declining LCOE: Technological progress and economies of scale have jointly driven down the LCOE of PV power generation in the UAE. According to industry data, the LCOE of large-scale PV projects in the UAE has dropped from approximately \(0.08/kWh in 2015 to approximately \)0.015/kWh in 2023, a decrease of over 80%. This cost level is already lower than that of traditional fossil fuel power generation, giving PV power generation significant economic competitiveness in the UAE.

Improved System Efficiency: Through the optimization of system design and integration, the overall efficiency of PV systems in the UAE has been improved. For example, Masdar's Sweihan project adopts bifacial module technology, increasing power generation by 25%. The application of these technologies has improved the overall efficiency of PV power generation systems and further reduced the LCOE.

4.2 Enhancing System Stability and Reliability

The application of energy storage technology and smart grid integration technology has significantly enhanced the stability and reliability of PV power generation systems in the UAE, addressing the intermittency and volatility of PV power generation.

Smoothing Power Fluctuations by Energy Storage Systems: By integrating energy storage systems into PV systems, the UAE has achieved smooth output and continuous supply of PV power generation. The world's largest PV-storage integrated project combines 5.2 GW of PV installed capacity with 19 GWh of energy storage systems, enabling 24/7 stable supply of 1 GW of renewable energy. This project will become the world's largest combined solar energy and battery energy storage system (BESS), solving the intermittency problem of renewable energy and providing stable and reliable power supply.

Improved System Resilience by PV-Storage Microgrids: The PV-storage microgrid system adopted by Huawei in the UAE desert farm project ensures the power demand for agricultural production through stable and efficient clean energy supply in the high-temperature and dusty environment. This system can operate independently in the event of grid failures or extreme weather conditions, improving system resilience and reliability.

Optimized Grid Scheduling by Smart Grids: The smart grid transformation plan of DEWA uses AI technology to monitor energy consumption patterns, real-time analyze electricity consumption data, predict changes in energy demand, thereby adjusting power generation and transmission-distribution capacity in a timely manner and reducing energy waste. This technology can optimize the grid's acceptance and absorption of PV power generation and improve system stability.

Enhanced Reliability by Multi-Energy Complementary Systems: The diesel-PV-storage microgrid project developed by Shanghai Electric in Dubai combines PV power generation, energy storage, and diesel power generation, realizing the complementarity and coordinated control of multiple energy sources and improving system reliability and stability. This system can automatically adjust energy supply according to load demand and weather conditions to ensure continuous and stable power supply.

Guaranteed System Stability by Mandatory Energy Storage Policies: The UAE mandates that PV projects be equipped with 15% energy storage (for 4 hours), and the installed energy storage capacity is expected to reach 8 GW by 2025. This policy ensures that PV systems have a certain energy storage capacity, improves system stability and reliability, and enhances the market competitiveness of PV power generation.

4.3 Promoting Energy Structure Diversification and Energy Security

The widespread application of PV technology has promoted the diversification of the UAE's energy structure, reduced its reliance on fossil fuels, and improved energy security.

Reduced Reliance on Fossil Fuels: As one of the countries with the richest oil and gas resources in the world, the UAE has long relied on oil and natural gas as its main sources of electricity. Through the development of the PV industry, the UAE has achieved the diversification of its energy structure and reduced its reliance on fossil fuels. In 2023, solar power generation accounted for 7% of the UAE's total power generation, and it is expected that by 2050, solar power generation in the UAE will account for 25% of its total power generation.

Increased Energy Self-Sufficiency Rate: The development of PV power generation has improved the UAE's energy self-sufficiency rate and reduced its reliance on imported energy. Especially in emirates such as Dubai, where oil resources are gradually depleted, the development of PV power generation is of great significance for ensuring energy security. The oil industry in the Emirate of Dubai is in a depletion stage, and it is estimated that oil can be mined for another 20 years; other emirates are still in the stage of oil development and exploration.

Optimized Energy Import Structure: The natural gas produced in the UAE is mainly used for gas-fired power generation. In 2020, the total natural gas consumption in the UAE was approximately 69.6 billion cubic meters, accounting for about 59.90% of the country's total primary energy consumption, while the total natural gas production was approximately 55.4 billion cubic meters, with a domestic self-sufficiency rate of 79.60%, and about 20% needed to be imported from other countries. Through the development of PV power generation, the UAE has reduced its reliance on imported natural gas and optimized its energy import structure.

Addressing Climate Change:

As a signatory to the Paris Agreement, the UAE had a per capita carbon emission of 20.7 tons in 2020, ranking 6th in the world. In the UAE National Energy Strategy 2050, the UAE government set an environmental target of reducing carbon emissions by 70% by 2050. The development of PV power generation contributes to achieving this goal. For example, the Solar Park in Dubai is expected to have a power generation capacity of 5,000 MW by 2030, reducing carbon emissions by approximately 6.5 million tons annually.

Energy Security Assurance: Although the UAE is rich in oil and gas resources, it faces a continuously growing population, a relatively affluent daily life, and huge freshwater demand, resulting in massive daily consumption of oil and gas resources. The development of renewable energy such as PV power generation helps ensure the UAE's energy security and reduce the impact of energy price fluctuations on the economy.

4.4 Promoting Industrial Upgrading and Economic Diversification

The application of PV technology has promoted industrial upgrading and economic diversification in the UAE, creating new economic growth points and employment opportunities.

Development of the PV Industry Chain: With the development of the PV industry, the UAE has gradually established a relatively complete PV industry chain. Enterprises such as Longi Green Energy and Trina Solar have established factories in the UAE and Saudi Arabia, accounting for 75% of the PV module market in the Middle East. The investment and operation of these enterprises have promoted the development of the UAE's manufacturing industry and driven industrial upgrading.

Enhancement of Localized Manufacturing Capacity: Through the implementation of the In-Country Value (ICV) Program, the UAE government has encouraged PV projects to increase the proportion of local procurement and employment of local employees, promoting the localization of the PV industry chain. For example, the Al Dhafra project achieved a local procurement rate of 40% and employed trainees from the UAE Engineer Training Program.

Creation of Employment Opportunities: The development of the PV industry has created a large number of employment opportunities in the UAE. According to World Bank data, the UAE's PV industry contributed 300 million US dollars to GDP in 2022 and created more than 10,000 jobs. The Al Dhafra PV Power Plant project provided approximately 5,000 local jobs, and the world's largest PV-storage integrated project is expected to create more than 10,000 new jobs.

Development of High-Value-Added Industries: The application of PV technology has promoted the development of high-value-added industries in the UAE, such as smart grids, energy storage systems, and hydrogen energy. The UAE plans to establish a hydrogen hub to accelerate the adoption of hydrogen in industry, cultivate supply chains and infrastructure, and attract global energy enterprises. The development of these high-value-added industries helps the UAE achieve economic diversification and sustainable development.

Technological Innovation and Talent Cultivation: The application of PV technology has promoted technological innovation and talent cultivation in the UAE. For example, the innovative technologies exhibited by Daqo New Energy at the Abu Dhabi World Future Energy Summit have attracted the attention and cooperation intentions of many Middle Eastern customers. Through cooperation with international enterprises, the UAE has cultivated a group of professionals proficient in advanced PV technology, providing talent support for industrial development.

4.5 Enhancing International Competitiveness and Regional Influence

The development of the PV industry has enhanced the UAE's international competitiveness and regional influence, strengthening its voice in the global energy transition.

International Cooperation and Investment: The UAE has actively participated in international PV cooperation and attracted a large amount of international investment. For instance, the UAE signed a tripartite partnership framework with Italy and Albania to develop large-scale renewable energy projects in Albania, focusing on solar PV, wind energy, and hybrid solutions, with part of the electricity to be exported to Italy. This kind of international cooperation has enhanced the UAE's international influence.

Technology Export and Standard Setting: The successful experience of the UAE in PV technology application has provided a reference for other countries, enhancing its voice in the international PV field. For example, the experience of the UAE's PV-storage integrated projects is regarded as a global model and provides a reference for other countries.

Leader in International Climate Action: The UAE has actively participated in international climate action and become a leader in climate action in the Middle East. The UAE hosted the 28th Conference of the Parties (COP28) to the United Nations Framework Convention on Climate Change, demonstrating its achievements and commitments in the field of renewable energy. This international role has enhanced the UAE's international image and influence.

Regional Energy Cooperation: The UAE has promoted energy cooperation in the Middle East and facilitated regional energy integration. For example, the GCC Grid Integration Program will export electricity to neighboring countries. This regional cooperation has strengthened the UAE's influence in the Middle East.

Enhancement of Global Competitiveness: The UAE ranks among the top in global competitiveness indicators, with per capita solar energy consumption ranking second in the world. The development of the PV industry has enhanced the UAE's global competitiveness and strengthened its position in the global economy.

5. Future Development Trends and Outlook

5.1 Sustained Growth of PV Installed Capacity

The UAE's PV industry will continue to maintain a rapid growth trend in the future, with the installed capacity continuing to expand. According to industry forecasts, the UAE's PV installed capacity will grow from 8.5 GW in 2025 to approximately 19.8 GW in 2030, with a compound annual growth rate (CAGR) of over 18%. This growth will be mainly driven by the following factors:

Continuous Advancement of Large-Scale Projects: The UAE has planned a number of large-scale PV projects, such as the Mohammed bin Rashid Al Maktoum Solar Park (with a planned total capacity of 5 GW) and multiple future solar projects in Abu Dhabi. These projects will be completed and put into operation in the next few years, driving the continuous growth of installed capacity.

Increased Policy Support: The UAE government will continue to support the development of the PV industry and introduce more preferential policies and incentive measures to create a favorable policy environment for PV projects. For example, the Dubai Clean Energy Strategy 2050 aims to source 50% of energy from clean sources, with PV subsidies reaching 200 million US dollars per year.

Increased Investment from the Private Sector: With the maturity of PV technology and the reduction of costs, investment in PV projects from the private sector will continue to increase. For example, the UAE plans to invest 500 billion dirhams (approximately 136 billion US dollars) in PV and energy storage, which will attract a large amount of private sector investment.

Deepened Regional Cooperation: The UAE will strengthen PV cooperation with neighboring countries and promote regional energy integration. For example, the UAE signed a tripartite partnership framework with Italy and Albania to develop large-scale renewable energy projects in Albania. This regional cooperation will expand the development space of the UAE's PV industry.

5.2 Deepening of Technological Innovation and Application

In the next few years, the UAE will continue to deepen PV technological innovation and application, promoting industrial upgrading and technological progress.

Popularization of High-Efficiency Cell Technology: High-efficiency cell technologies such as TOPCon, heterojunction, and back contact will be more widely applied in the UAE, further improving the efficiency and performance of PV modules. The mass production average efficiency of Daqo New Energy's TOPCon 4.0 Plus cells has exceeded 26.7%, and this figure is expected to further increase in the future.

Promotion of Intelligent PV Systems: Technologies such as artificial intelligence and big data will be more widely applied in PV systems to achieve intelligent management and optimized control. For example, the smart grid transformation plan of the Dubai Electricity and Water Authority (DEWA) uses AI technology to monitor energy consumption patterns, real-time analyze electricity consumption data, and predict changes in energy demand.

Innovation in Energy Storage Technology: With the advancement of PV-storage integrated projects, energy storage technology will be more widely applied and innovated in the UAE. CATL has established a Dubai industrial park in cooperation with the UAE, realizing vertical integration from materials to systems. This model will be more widely promoted in the future.

Synergistic Development of Hydrogen Energy and PV: The UAE will promote the synergistic development of PV and hydrogen energy, using PV power generation for water electrolysis to produce hydrogen, and realizing the diversification and sustainable development of energy. The UAE plans to produce 1.4 million tons of hydrogen per year by 2031 and increase the output to 15 million tons per year by 2050.

Development of PV-Coupled Seawater Desalination Technology: The UAE will continue to develop PV-driven seawater desalination technology, realizing the coordinated management of energy and water resources. For example, Egypt's seawater desalination plant powered by PV has reduced the cost to \(0.5/m³, compared with \)1.2/m³ for traditional diesel power generation.

5.3 PV-Storage Integration and Smart Grid Integration

PV-storage integration and smart grid integration will become important trends in the future development of the UAE's PV industry.

Increase in Large-Scale PV-Storage Integrated Projects: The UAE will develop more large-scale PV-storage integrated projects, such as the announced world's largest PV-storage project, which integrates 5.2 GW of PV installed capacity and 19 GWh of energy storage systems. Such projects will solve the intermittency problem of PV power generation and improve system stability and reliability.

Acceleration of Smart Grid Construction: The UAE will accelerate the construction of smart grids to improve the grid's capacity to accommodate renewable energy. For example, the Saudi Ministry of Energy will invest 1 trillion riyals in grid construction and equipment upgrading; the UAE has launched multiple PV projects in recent years, and the PV installed capacity is expected to reach 8.5 GW by 2025. Driven by policies such as simplified approval procedures, many global energy storage enterprises have been attracted.

Expansion of Microgrid Applications: Microgrid technology will be more widely applied in the UAE, especially in remote areas and islands. The diesel-PV-storage microgrid project developed by Shanghai Electric in Dubai is a typical case, including a 400 kW PV power generation system, a 500 kW/1182 kWh energy storage system, and two diesel generators with a total capacity of 900 kW.

Introduction of Virtual Power Plant (VPP) Concept: The UAE may introduce the concept of virtual power plants, which integrate distributed energy resources to achieve optimized scheduling and management of energy. This model will improve energy utilization efficiency, reduce system costs, and enhance the flexibility and reliability of the energy system.

Advancement of Power Market Reform: The UAE will advance power market reform and establish a more market-oriented electricity trading mechanism, providing a broader development space for distributed energy resources such as PV and energy storage. With the continuous increase in the types of auxiliary service markets and the completion of the national unified power market system, the revenue channels for energy storage projects will be further diversified, and the economic value of projects will also be significantly enhanced.

5.4 International Cooperation and Market Expansion

The UAE will continue to strengthen international cooperation, expand the PV market, and enhance its influence in the global PV industry.

Deepened "Belt and Road" Cooperation: The UAE will deepen PV cooperation with China and other countries under the framework of the "Belt and Road" Initiative. For example, the Al Dhafra PV2 Power Plant, constructed by China Machinery Engineering Corporation, is an important project in the field of green energy under the "Belt and Road" Initiative. This kind of cooperation will be further deepened in the future.

Strengthened Regional Energy Cooperation: The UAE will strengthen energy cooperation with countries in the Middle East and North Africa (MENA) region and promote regional energy integration. For example, the GCC Grid Integration Program will export electricity to neighboring countries. This cooperation will expand the development space of the UAE's PV industry.

Technology Export and Standard Setting: The successful experience of the UAE in PV technology application will provide a reference for other countries. The UAE will strengthen technology export and standard setting, enhancing its voice in the international PV field.

Increased International Investment: The UAE will attract more international investment to promote the development of the PV industry. For example, enterprises such as Longi Green Energy and Trina Solar have established factories in the UAE and Saudi Arabia, accounting for 75% of the PV module market in the Middle East. This kind of investment will continue to increase in the future.

Implementation of Green Hydrogen Export Strategy: The UAE will implement a green hydrogen export strategy, using PV power generation for water electrolysis to produce hydrogen and exporting it to regions such as Europe. Oman plans to export hydrogen produced by PV to Europe, with a target capacity of 1 million tons per year by 2030. The UAE may follow this model to develop the green hydrogen export industry.

5.5 Challenges and Countermeasures

Although the UAE's PV industry has broad development prospects, it still faces some challenges that need to be addressed with effective strategies.

Desert Environment Challenges: The desert environment in the UAE poses challenges such as high temperatures and sandstorms to PV systems. Solutions include developing PV modules and systems that are resistant to sandstorms and high temperatures. For example, Daqo New Energy's self-cleaning modules adopt an innovative short-side frame-less design to effectively prevent dust accumulation.

Grid Acceptance Capacity Limitations: With the rapid growth of PV installed capacity, the grid's acceptance capacity may become a limiting factor. Solutions include strengthening grid upgrading and transformation to improve the flexibility and stability of the grid. For example, the Saudi Ministry of Energy will invest 1 trillion riyals in grid construction and equipment upgrading.

Financing Challenges: Large-scale PV projects require a large amount of capital investment, and financing may face challenges. Solutions include innovating financing models, such as the proportion of Islamic bonds (Sukuk) financing increasing to 25% (pilot project of DEWA).

Non-Unified Technical Standards: The non-unified PV technical standards in the Middle East region bring difficulties to project construction and operation. Solutions include promoting the unification of regional technical standards and strengthening international cooperation and exchanges.

Water Resource Management: The cleaning and cooling of PV systems require a large amount of water resources. In the UAE, which is short of water resources, this may become a challenge. Solutions include developing water-free cleaning technologies and high-efficiency water-saving technologies. For example, the Al Dhafra project adopts remotely controlled automatic cleaning robots and fully dry water-free cleaning, ensuring cleaning efficiency without causing any damage to the modules.

6. Conclusions and Recommendations

6.1 Main Conclusions

This report conducts a comprehensive analysis of the development trends and technological applications of the UAE's PV industry from 2020 to 2025, and draws the following main conclusions:

Rapid Growth of Industry Scale: The UAE's PV industry has experienced explosive growth over the past five years. The PV installed capacity has grown from 2.3 GW at the end of 2020 to 8.5 GW in 2025, with a CAGR of over 30%. The proportion of solar power generation in the UAE's total power generation has increased from approximately 4.5% in 2020 to 8.3% in 2023, and is expected to reach 25% by 2050.

Leading Technological Application: The UAE is at the forefront of the world in the application of technologies such as high-efficiency PV modules, PV tracking systems, energy storage technology, smart grid integration, and PV-coupled seawater desalination. For example, the mass production average efficiency of Daqo New Energy's TOPCon 4.0 Plus cells has exceeded 26.7%, and the efficiency of Longi's back-contact cells has reached 27.30%.

Large-Scale Projects Driving Development: The development of the UAE's PV industry mainly relies on the construction of a series of large-scale PV power plant projects, such as the Noor Abu Dhabi Solar Park (1.19 GW), the Al Dhafra PV Power Plant (2.1 GW), and the Mohammed bin Rashid Al Maktoum Solar Park (planned 5 GW). These large-scale projects have significantly increased the UAE's PV installed capacity and power generation capacity.

Government Policies as Key Drivers: The policy support from the UAE government is a key factor driving the rapid development of the PV industry. Policies such as the National Energy Strategy 2050, the net metering policy, and the Abu Dhabi Renewable Energy Target (ADRET) have created a favorable development environment for the PV industry.

Significant Economic and Environmental Benefits: The development of the PV industry has brought significant economic and environmental benefits to the UAE. In 2022, the PV industry contributed 300 million US dollars to GDP and created more than 10,000 jobs. At the same time, PV power generation reduces a large amount of carbon emissions annually. For example, the Al Dhafra PV Power Plant can reduce carbon emissions by more than 2.4 million tons annually.

6.2 Policy Recommendations

Based on the above analysis, the following policy recommendations are put forward to further promote the development of the UAE's PV industry:

Strengthen Policy Support and Planning Guidance: Continue to improve and implement the National Energy Strategy 2050, formulate more detailed PV industry development plans and roadmaps, and provide clear guidance for industrial development. For example, clarify the PV installed capacity targets for 2030 and 2040, and refine support policies and measures.

Optimize the Power Market Mechanism: Advance power market reform, establish a more market-oriented electricity trading mechanism, and provide a broader development space for distributed energy resources such as PV and energy storage. For example, establish a direct trading mechanism for PV power, allowing PV projects to directly trade electricity with large users.

Increase Investment in Technological Innovation and R&D: Increase investment in PV technological innovation and R&D, support industry-university-research cooperation, and promote key technological breakthroughs and industrial application. For example, establish a national-level PV technology R&D center to support the R&D of key technologies such as high-efficiency cells, smart grids, and energy storage.

Promote Localization of the Industry Chain: Further improve the In-Country Value (ICV) Program, set higher local procurement ratio targets, support the development of local PV manufacturing industries, and enhance the autonomy and resilience of the industry chain. For example, provide preferential policies such as tax incentives and land support for local PV component manufacturing enterprises.

Promote International Cooperation and Market Expansion: Strengthen PV cooperation with countries along the "Belt and Road" and in the Middle East and North Africa (MENA) region, promote regional energy integration, and expand the development space of the PV industry. For example, participate in the construction of cross-border PV power generation and grid interconnection projects, and explore the export of green hydrogen produced by PV power.

6.3 Recommendations for Enterprises

For enterprises participating in the UAE's PV market, the following recommendations are put forward:

Strengthen Technological Innovation and Differentiated Competition: Increase investment in technological innovation, develop differentiated products and solutions that meet the needs of the UAE market. For example, develop PV modules and systems that are resistant to sandstorms and high temperatures for the desert environment, and launch integrated solutions for PV-storage-hydrogen coupling.

Deepen Localization Strategy: Strengthen cooperation with local enterprises, improve localization levels, including local procurement, local R&D, and local talent cultivation. For example, establish joint ventures with local enterprises to jointly develop PV projects, and hire and train local technical and management personnel to enhance local market adaptability.

Expand PV-Storage Integrated Business: Seize the development trend of PV-storage integration, expand PV-storage integrated business, and provide one-stop solutions. For example, develop comprehensive energy solutions integrating PV, energy storage, and hydrogen energy to meet the diversified energy needs of customers.

Strengthen Application of Smart Grid Technology: Strengthen R&D and application of smart grid technology, improve the intelligence level and grid adaptability of PV systems. For example, develop intelligent operation and maintenance systems and energy management systems to improve system efficiency and reliability, and enhance the compatibility with the UAE's smart grid construction.

Focus on Green Hydrogen Development Opportunities: Pay attention to the opportunities brought by the UAE's green hydrogen development strategy, explore business models for the synergistic development of PV and green hydrogen, and participate in the green hydrogen industrial chain. For example, develop PV-powered hydrogen production systems and solutions, and cooperate with local enterprises to build green hydrogen production bases.

The UAE's PV industry is in a stage of rapid development with broad prospects for the future. Through policy support, technological innovation, and international cooperation, the UAE is expected to become a global leader in the PV industry and make important contributions to the energy transition in the Middle East and around the world.