Feasibility Study for Renewable Energy Installation (Solar, Wind) in the UAE

As the United Arab Emirates (UAE) continues its transformation into a diversified and sustainable economy, renewable energy—particularly solar and wind power—has emerged as a critical pillar of national development. With visionary strategies such as the UAE Energy Strategy 2050 and mega projects like Mohammed bin Rashid Al Maktoum Solar Park, the country is investing heavily in clean energy solutions.

For entrepreneurs, developers, government agencies, and investors considering entry into the renewable energy sector, conducting a detailed feasibility study for renewable energy installations is a crucial first step. This helps evaluate the project’s technical, economic, environmental, and legal viability before significant investments are made.

In this blog, we explore the importance of feasibility studies for solar and wind energy projects in the UAE, key components to consider, and how Aviaan can help organizations make data-driven decisions.

Feasibility Study for Renewable Energy Installation (Solar, Wind) in the UAE

Why Renewable Energy Is Booming in the UAE

The UAE’s commitment to sustainability is driven by both environmental and economic factors:

Abundant Solar Resources: The UAE receives around 10 hours of sunshine per day on average, making it ideal for solar photovoltaic (PV) and solar thermal projects.
Government Incentives: Initiatives like Net Metering in Dubai (Shams Dubai) allow consumers to generate electricity through solar panels and reduce electricity bills.
National Policies: The UAE Energy Strategy 2050 aims to achieve 44% clean energy in the national energy mix by 2050.
Energy Demand Growth: The UAE’s rapid urbanization and industrialization continue to drive demand for clean and sustainable electricity sources.
Wind Resources: In specific locations like Al Gharbia and coastal areas, consistent wind patterns make wind turbines viable.

What Is a Feasibility Study for Renewable Energy Projects?

A renewable energy feasibility study is a comprehensive assessment that determines the practicality of implementing solar or wind energy solutions at a given location. It identifies the potential energy output, financial viability, legal constraints, and environmental implications.

Key Objectives:

Determine resource availability (solar irradiance or wind speed)
Assess technical suitability of the location
Evaluate economic feasibility, including ROI, payback period, and NPV
Analyze regulatory and legal compliance
Estimate capital and operational costs
Identify environmental and social impacts

Key Components of a Feasibility Study for Solar and Wind Installations in the UAE

1. Site Resource Assessment

Solar Feasibility: Using satellite data, pyranometers, and solar maps to analyze solar irradiance (kWh/m²/day).
Wind Feasibility: Conducting wind measurements using anemometers and analyzing wind speed, direction, and turbulence for turbine placement.
Tools Used: RETScreen, HOMER, SAM, PVsyst, WindPRO.

2. Technical Feasibility

System Design: Selection of PV modules, wind turbines, inverters, batteries, controllers, and mounting structures.
Grid Integration: Can the system connect to DEWA, SEWA, or FEWA grids?
Infrastructure Needs: Land access, proximity to transmission lines, transportation logistics.

3. Economic and Financial Feasibility

CAPEX and OPEX Analysis: Total cost of ownership, including installation, maintenance, and replacement.
Revenue Forecasting: Based on energy generation potential and savings.
ROI, IRR, NPV, Payback Period: Financial metrics to evaluate investment value.
Sensitivity Analysis: Understanding how variables (e.g., tariffs, maintenance costs) impact financial returns.

4. Legal and Regulatory Analysis

Evaluation of:
- Licensing requirements
- Land use permits
- Interconnection agreements
- Renewable energy incentives and policies
Compliance with:
- Dubai Electricity and Water Authority (DEWA)
- Emirates Authority for Standardization and Metrology (ESMA)
- Abu Dhabi Department of Energy (DoE)

5. Environmental and Social Impact Assessment (ESIA)

Estimating:
- Land disruption
- Wildlife risks (especially for wind farms)
- Carbon offset benefits
- Noise and visual impacts
Engaging communities and obtaining necessary environmental permits.

Benefits of Conducting a Feasibility Study Before Investing

Minimized Risk: Avoid costly mistakes by identifying technical or regulatory roadblocks early.
Informed Investment Decisions: Understand expected returns and potential risks.
Optimized System Design: Tailor energy systems to maximize efficiency and minimize costs.
Regulatory Compliance: Ensure smooth approvals from local authorities.
Sustainability Alignment: Ensure your project supports long-term environmental and policy goals.

Aviaan: Your Trusted Partner for Renewable Energy Feasibility Studies in the UAE

At Aviaan, we bring deep industry expertise, local regulatory knowledge, and advanced analytical tools to deliver robust feasibility studies for solar and wind projects across the UAE. Our tailored studies provide decision-makers with the actionable insights needed to move confidently from planning to implementation.

Our Services Include:

Site selection and resource analysis (solar irradiance, wind mapping)
System configuration and energy modeling (using PVsyst, SAM, HOMER)
Financial modeling and ROI analysis
Regulatory compliance assistance
Environmental impact studies
Risk mitigation planning
Business plan development

Whether you’re an investor, government body, or private developer, Aviaan ensures your renewable energy project is strategically planned, financially sound, and legally compliant.

Case Study 1: Solar PV Feasibility Study for a Real Estate Developer in Abu Dhabi

Client:

A leading real estate developer aiming to integrate solar rooftop systems across multiple residential and commercial buildings.

Scope:

Assess solar potential for 10 sites across Abu Dhabi
Evaluate energy generation vs. consumption
Analyze financial feasibility under Shams Abu Dhabi program

Outcome:

Average solar irradiance: 5.8 kWh/m²/day
ROI: 14% with a 6-year payback period
System sizes ranged from 25kW to 200kW per site
Recommended hybrid systems with battery backup for 3 sites
Facilitated regulatory submissions and approval from ADWEA

Impact:

The project is expected to reduce grid dependency by 30% and cut carbon emissions by 1,500 tons/year.

Case Study 2: Wind Energy Feasibility for a Tourism Project in Ras Al Khaimah

Client:

A coastal eco-resort looking to install on-site wind turbines to promote green energy use.

Scope:

Conduct 12-month wind resource assessment using met masts and anemometers
Design wind turbine layout
Evaluate noise, shadow flicker, and bird migration impact

Outcome:

Identified consistent wind speeds of 6.5 m/s at 50m height
Recommended two 100 kW turbines with an annual output of 620,000 kWh
ROI of 12.5% over 20 years
Navigated approvals with RAK Municipality and environmental agencies

Impact:

The wind energy system powers 60% of the resort’s operations and enhances its eco-branding.

Conclusion

The UAE is well-positioned to be a global leader in renewable energy adoption, with ideal climatic conditions and strong government support. However, unlocking this potential requires thorough planning and analysis through comprehensive feasibility studies. Whether you aim to install solar panels on rooftops in Dubai, develop wind farms in Ras Al Khaimah, or integrate hybrid systems in remote areas, a feasibility study will ensure your project is grounded in data, compliant with regulations, and financially viable.

Aviaan is your trusted consulting partner, offering deep local expertise, technical know-how, and tailored strategies to make your renewable energy vision a reality.