As a trend, renewable energy companies in UAE, which was once a tiny niche segment of the wider energy market, is today becoming an increasingly important source of electricity in most areas and countries around the world. Companies in this sector offer clean and renewable energy sources, such as solar, wind, hydropower, biomass, and geothermal.
Leading renewable energy companies in Dubai by market share:
A global survey by the International Renewable Energy Association (IROA) found that in 2021 only seven percent of the planet’s power was provided by commercially accessible renewable energy sources, with the bulk of the energy supplied by fossil fuels. Although the projects percentage will rise as more countries begin to increase their use of cleaner energy sources, its report points out that only a small proportion of new applications are developed in response to this need. Even then, it says, developing countries may lag behind their industrialized counterparts in the production of solar panels or other clean energy technologies.
Market shares by renewable energy companies by region
Among leading renewable energy companies, General Electric (GE) leads the market in overall market shares, with a 22% share. The second-biggest provider is biomass firm, with a 13% share. By contrast, oil giant Shell ranks third with a 7% share. The top five markets are dominated by players from the developed world – although global market shares are also influenced by governmental support for these sectors.
Leadership in the clean energy sector
The research points out that the key to the renewable energy companies’ success is a strong balance between research, development, and commercialization. A company that is able to balance these aspects has the distinct advantage over its rivals. Leading companies have a clear strategy and are able to respond quickly to market trends and fluctuations. They are also able to make investments in clean-energy technology that are effective in their area of activity. Leading players are able to take advantage of technological developments.
Strong balance of financing
The research report notes that some of the leading renewable energy companies have an impressive mix of long-term and short-term financing. Some of them have significant long-term funding. Others have access to funding through utility firms and financial institutions, which make it easier for them to execute deals confidently.
The R&D expenditures of the leading renewable energy companies have steadily grown over time. However, they are now within striking distance of the leading companies in terms of market cap.