Market Research and Feasibility Study for Renewable Energy Company in Dubai UAE and KSA

The global energy landscape is undergoing a significant transformation driven by environmental concerns, resource scarcity, and technological advancements. Renewable energy sources like solar and wind have emerged as viable and economically attractive alternatives to conventional fossil fuels.

The Gulf Cooperation Council (GCC) region, blessed with an abundance of solar energy potential and vast land resources, has started to embrace renewables as part of their economic diversification and sustainable development strategies. The United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA) are at the forefront of this transition in the region.

This feasibility study examines the opportunities and viability of establishing renewable energy generation capacity focused on the UAE and Saudi markets. The objectives are:

  • Assess the market size, growth prospects, and segment dynamics of renewable energy in the region
  • Understand the regulatory environment, policies, and support mechanisms
  • Evaluate the competitive landscape and positioning for a new player
  • Conduct technical assessments of resource availability and technology options
  • Define project development, operations, and organizational requirements
  • Develop financial models projecting costs, revenues, returns, and financing needs
  • Identify critical risks and formulate mitigation strategies
  • Outline an implementation roadmap along with key activities and milestones

Leveraging industry expertise, on-ground intelligence, and rigorous analysis, this study aims to provide comprehensive insights into establishing a commercially successful renewable energy business producing electricity and fulfilling sustainability objectives.

The findings will determine if the market conditions, policy environment, technical feasibility, and financial returns justify investment into utility-scale solar, wind or other relevant renewable projects in the UAE and Saudi Arabia. Recommendations will guide strategic decisions on the pursuit of such opportunities in the rapidly evolving regional energy sector.

Renewable Energy Market Analysis in Dubai UAE and KSA:

Market Size and Projections: The GCC renewable energy market was valued at $3.2 billion in 2021 and is forecasted to grow at a CAGR of 12.5% to reach $7.8 billion by 2027 (Source: Frost & Sullivan). The UAE market was estimated at $1.1 billion in 2021 while Saudi Arabia’s market stood at $0.9 billion (Sources: IRENA, Saudi Energy Efficiency Center).

Segment Breakdown Solar Photovoltaic (PV): 63% Concentrated Solar Power (CSP): 12% Wind: 20% Other (Waste-to-Energy, Geothermal): 5%

Growth Drivers

  • Government strategies to diversify energy mix and increase renewables share
  • Declining costs of solar PV and wind technologies
  • Emissions reduction targets and commitments under the Paris Agreement
  • Energy demand growth outpacing conventional supply capabilities
  • Private sector interest driven by improving economics

Regulatory Landscape

  • Renewable energy targets (UAE 50% by 2050, Saudi 50% by 2030)
  • Feed-in-tariffs, tax incentives, and soft loans for renewable projects
  • Competitive procurement via reverse auctions and tenders
  • Grid integration policies, net metering, and distributed generation
  • Environmental regulations and carbon pricing mechanisms

Competitive Environment: The market is currently dominated by government-backed utilities and a few large IPPs. However, the introduction of tenders and the private purchase agreement (PPA) model is attracting increased participation from international renewable developers and investors.

Key players include Masdar, ACWA Power, Softbank, EDF, SB Energy, Yellow Door Energy among others. Competition is primarily based on pricing/tariff as well as experience in large utility-scale projects.

Overall, the renewable energy markets in the UAE and Saudi Arabia exhibit immense potential driven by government ambitions, regulatory support, technological advancements, and improving economics of solar and wind power. New competitive opportunities are emerging as demand grows and the markets transition beyond the initial government-driven phase.

Operations and Execution Plan for Renewable Energy Company in Dubai UAE and KSA:

Project Development Lifecycle

  • Site prospecting and land acquisition
  • Resource assessment and measurement
  • Environmental and grid interconnection studies
  • Technology selection and design
  • Permitting and regulatory approvals
  • Power purchase/off-take agreements
  • Financial closure and investment mobilization
  • Engineering, procurement and construction (EPC)
  • Testing, commissioning and operations handover

EPC Contractor Selection and Management

  • Identify and prequalify regional/global EPC contractors
  • Evaluate based on experience, track record, capabilities
  • Negotiate turnkey EPC contract with performance guarantees
  • Oversee and monitor EPC execution across design, procurement, and construction
  • Employ independent engineer for quality assurance and controls
  • Manage contractor payments through banking instruments

Operations and Maintenance

  • Evaluate self-perform vs. outsourced O&M strategy
  • Define maintenance policies, procedures and KPIs
  • Implement CMMS, monitoring and analytics platforms
  • Spare parts planning and inventory management
  • Ongoing performance optimization and monitoring
  • Grid management, scheduling, off-take and settlements

Health, Safety and Environment

  • Develop comprehensive HSE policies and manuals
  • Conduct risk assessments and mitigation planning
  • Implement safety management systems
  • Environmental monitoring and compliance reporting
  • Emergency response and crisis preparedness
  • Community engagement and social impact management

Organizational Structure

  • Program and project management office
  • Engineering and technical services team
  • EPC management and construction oversight
  • Plant operations, maintenance, and performance engineering
  • HSSE, compliance and quality management
  • Support functions – HR, finance, procurement, IT
  • Training, capability building, and knowledge management

This execution blueprint covers the full lifecycle from development, contracting, construction oversight, to operations and maintenance – providing a foundation for safe, efficient, and reliable delivery of renewable energy generation assets and their performance optimization.

Risk Assessment Plan for Renewable Energy Company in Dubai UAE and KSA:

Resource Intermittency and Variability

  • Solar and wind resources exhibit intermittent patterns based on time of day, weather, and seasonal variations
  • Potential mismatch between generation output and electricity demand profiles
  • Mitigation: Co-locate hybrid projects, energy storage, geographic diversification

Regulatory and Policy Risk

  • Frequent changes or uncertainty in government policies, incentives, tariffs and regulations
  • Risk of offtake agreements or PPAs being revised or renegotiated
  • Mitigation: Advocacy, contractual protections, efforts to stabilize policy regimes

Technology Performance Risk

  • Failure to achieve projected energy yields or plant performance metrics
  • Equipment defects, underperformance, or excessive degradation over time
  • Mitigation: Thorough design validation, performance guarantees, warranties, O&M practices

Construction Delays and Cost Overruns

  • Delays in land acquisition, permits, approvals and rights of way
  • Supply chain disruptions impacting equipment deliveries and costs
  • Failure of EPCcontractors to deliver per schedule and budget
  • Mitigation: Implement strict project controls, milestones tracking, contractor oversight

Environmental and Social Impact Risks

  • Habitat loss, water usage, visual impacts, noise pollution
  • Community resistance over land usage or impacts
  • Mitigation: Environmental impact assessments, community engagement, compensation

Financial Risks

  • Inability to secure adequate investment or financing at viable terms
  • Escalating project costs eroding returns and payback period
  • Currency fluctuations impacting costs and revenues
  • Mitigation: Robust financial modeling, scenario analysis, hedging strategies

Operational Risks

  • Health, safety and environmental incidents
  • Equipment failure, grid disruptions, curtailment events
  • Underperformance of O&M contractors
  • Mitigation: Comprehensive safety programs, redundancies, service level agreements

A comprehensive risk management plan identifying key risks across different project phases, evaluating their likelihood and impact, and establishing corresponding mitigation strategies will be essential to the long-term success and sustainability of renewable energy investments.

Market Research and Feasibility Study for Renewable Energy Company in Dubai UAE and KSA

Implementation Strategy for Renewable Energy Company in Dubai UAE and KSA:

Project Roadmap and Milestones Phase 1 (0-6 months): Initiation

  • Conduct detailed resource measurement and validation
  • Undertake environmental and grid interconnection studies
  • Finalize project locations and initiate land acquisition process
  • Define technology configuration and design specifications
  • Develop financial models and initiate investor engagement

Phase 2 (6-12 months): Development and Contracting

  • Secure land rights, permits and regulatory approvals
  • Conduct procurement and finalize EPC contractor selection
  • Establish special purpose vehicles and finalize investment
  • Negotiate and execute power purchase agreements
  • Achieve financial closure to enable start of construction

Phase 3 (12-24 months): Construction and Commissioning

  • EPC contractor to complete detailed engineering and procurement
  • Construction of plant facilities and infrastructure
  • Testing, commissioning and performance validation
  • Transition to operations and handover to O&M teams

Phase 4 (24+ months): Commercial Operations

  • Ramp up to stabilized commercial operations
  • Implement performance monitoring, analytics and optimization
  • Manage offtake agreements and revenue streams
  • Continuously improve processes, reduce costs, extend asset life

Critical Success Factors:

  • Obtain cost-effective financing at optimal terms
  • Timely execution with minimal schedule overruns
  • Meet energy yield/performance guarantees
  • Secure viable, long-term power offtake arrangements

Partnerships and Strategic Alliances

  • Co-development with regional utilities/energy companies
  • Collaborate with global renewable energy developers
  • Strategic investors, equity partners, and lenders
  • Equipment/technology providers and integration partners
  • EPCcontractors and specialized subcontractors
  • Engage local partners for development and operations

Localization and Human Capital

  • Progressively build internal capabilities across technical, commercial and managerial roles
  • Comprehensive training and development programs in partnership with local institutions
  • Localize the supply chain through local manufacturing and service providers
  • Support research and academic programs in renewable energy

This implementation roadmap and strategy establishes the critical path for project realization while prioritizing financing, contracting, asset delivery, and capability building. Cultivating strategic partnerships and nurturing local talent will be vital for sustainable long-term success.


Contact us today for a free consultation and let’s discuss how we can help you turn your Renewable Energy vision into a sustainable success story.

Feasibility Study Services


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