Energy storage in the United Arab Emirates
Energy storage in the United Arab Emirates
Current regulatory developments
Updated September 2026
DEWA Phase 7: 2,000 MW PV + 8,400 MWh BESS (global top-3 single site)
EWEC 400 MW greenfield BESS procurement
Hatta 250 MW/1,500 MWh PHES operational (first GCC)
Net Zero 2050 / 14.2 GW renewable target by 2030
Five things to know about BESS in the UAE.
No specific regulatory framework or classification for batteries exists, though the market is evolving at pace. In the absence of specific regulations relating to the battery sector, there is no regulatory classification of batteries and no special licenses required to operate a battery. A battery storage project company would need to obtain the same licenses as applicable to a company engaged in the business of electricity generation.
Revenue will derive from optimization-based stacking, though the market structure differs from liberalized European models. Battery storage revenues are anticipated to derive from a combination (or "stack") of revenue streams, typically managed via an optimization agreement with an energy aggregator/offtaker. However, given the predominance of government-owned utilities (DEWA, EWEC), procurement-based models dominate.
The UAE's pipeline has transformed from nascent to globally significant. Masdar and EWEC is developing the world’s largest solar-plus-storage project, combining 5.2GW of solar power with 19GWh of battery storage to provide 1GW of 24/7 clean energy. The 250 MW/1,500 MWh Hatta pumped hydro storage project commenced operations in 2025 as the first PHES in the GCC. The UAE has over 25 GWh of planned or announced projects through 2027.
Extreme temperatures pose specific technology and performance risks. Temperatures regularly exceeding 45°C in summer create concerns about lithium-ion battery performance degradation and fire risk, requiring careful technology selection and thermal management design.
No financial or regulatory incentives are currently available for battery storage. There are currently no financial or regulatory incentives available for battery storage plants. However, the lack of regulatory framework may evolve as the market grows and the UAE targets 14.2 GW of installed renewables by 2030.
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