The UAE has once again demonstrated its leadership in renewable energy, as investments in clean energy now exceed $12 billion, according to Suhail bin Mohammed Al Mazrouei, the UAE’s Minister of Energy and Infrastructure. These investments reflect the nation’s determination to transform its energy landscape and support the global shift towards a more sustainable future. In a statement released ahead of the 2024 World Utilities Congress in Abu Dhabi, Al Mazrouei highlighted the UAE’s progress, noting that clean energy accounted for 27.83% of the country’s total energy mix in 2023, moving toward a target of 32% by 2030.

Rapid Growth in Renewable Energy Capacity

Between 2019 and 2022, the UAE doubled its renewable energy capacity as part of its ambitious UAE Energy Strategy 2050, which aims to increase the country’s clean energy production and reduce carbon emissions by 70% over the next three decades. Al Mazrouei stated that 2023 was a milestone year, with the UAE achieving a 70% growth in installed renewable energy capacity, reaching 6.1 GW. This notable achievement not only placed the UAE on the global map for renewable energy but also catapulted the country from sixth to second place globally in terms of per capita energy consumption from renewable sources, according to the latest Statistical Review of World Energy prepared by the Energy Institute.

In the broader context of renewable energy investments, the UAE has invested over AED 45 billion ($12 billion) in clean and renewable energy projects. This excludes several major ongoing projects, including a focus on cutting-edge technologies and strategic initiatives that contribute to the country’s overall sustainability goals.

Key Projects Driving UAE’s Energy Transition

Central to the UAE’s energy transition are a number of major projects. The 1.8 GW Phase VI of the Mohammed bin Rashid Al Maktoum Solar Park is one of the largest single-site solar parks in the world, making significant contributions to the UAE’s renewable energy targets. Furthermore, the country is actively working on waste-to-energy projects, such as Dubai’s second phase of its waste-to-energy plant, aimed at reducing landfill waste and generating clean electricity.

In Abu Dhabi, two of the largest photovoltaic projects — the 1.5 GW Al Ajban and 1.5 GW Al Khazna projects — are pivotal to boosting the nation’s renewable energy output. Additionally, the Barakah Nuclear Energy Plant, with its newly commissioned fourth reactor, is another cornerstone of the UAE’s clean energy strategy, providing a stable, emissions-free electricity source.

The hydroelectric power plant in Hatta, Sharjah, is also notable as it introduces another form of renewable energy to the UAE’s growing portfolio. Together, these projects contribute to the UAE’s energy goals by incorporating a diversified energy mix to ensure long-term energy security and sustainability.

A Strategic Role in Global Energy Discussions

The World Utilities Congress 2024 serves as a platform for the UAE to engage with global experts and industry leaders in clean energy, water security, and sustainability. Al Mazrouei highlighted that the event will showcase the latest innovations in utilities management, which will not only drive national efforts but also strengthen international cooperation in tackling global energy and environmental challenges.

“By hosting this event, the UAE reinforces its role in shaping the future of energy and water management,” Al Mazrouei said. The country’s leadership in renewable energy has garnered global recognition, with various stakeholders acknowledging its efforts toward climate neutrality.

ADNOC’s Carbon Management Initiative

A key component of the UAE’s energy strategy is ADNOC’s carbon management projects, which align with the country’s goal to reach net-zero emissions by 2045. ADNOC is leveraging carbon capture, utilization, and storage (CCUS) technologies, aiming to double its carbon capture capacity to 10 million tonnes annually by 2030. These efforts will support both the national climate strategy and ADNOC’s broader ambition of leading the region in carbon management technologies.

Moreover, the Al Reyadah project, ADNOC’s first CCUS initiative launched in 2016, has already paved the way for further expansion of carbon capture infrastructure across the UAE. As of 2023, ADNOC’s carbon management system has been instrumental in reducing the UAE’s overall carbon footprint, further solidifying the country’s role as a pioneer in sustainable energy innovation.

UAE’s Dominance in Green Hydrogen

The UAE is also making strides in green hydrogen production, emerging as a key player on the global stage. Al Mazrouei pointed out that the UAE secured the top spot for green hydrogen production competitiveness according to the Green Hydrogen Report 2024 by Alvarez & Marsal. The country also ranked first in hydrogen market readiness in the Middle East and North Africa, as noted in the World Economic Forum’s Enabling Measures Roadmap for Low-Carbon Hydrogen 2023.

Hydrogen is seen as a crucial component in decarbonizing sectors that are hard to electrify, such as heavy industry and long-haul transportation. By investing in green hydrogen production, the UAE aims to capture a significant share of the global hydrogen market, which is expected to reach $2.5 trillion by 2050. The UAE’s hydrogen production will primarily serve as an export commodity, catering to the growing demand for sustainable energy in Europe and Asia.

Federal Energy Management Regulation: A Commitment to Efficiency

In addition to clean energy production, the UAE is focusing on improving energy efficiency. Al Mazrouei discussed the Federal Energy Management Regulation in Industrial Facilities, a policy that aims to reduce energy demand in the industrial sector by 33% by 2050. This regulation is expected to enhance air quality by reducing carbon emissions by 63 million tonnes, while also delivering AED 14 billion in savings by 2050.

Furthermore, the UAE Cabinet approved a new policy in 2023 to regulate the energy services market. This policy encourages private sector investment in energy and water conservation projects, fostering public-private partnerships. The initiative is aimed at improving energy efficiency in government and private buildings, supporting the National Energy and Water Demand Side Management Programme 2050.

“The policy aims to cut energy and water use in federal buildings by 25% and operational costs by 20%, backed by AED 500 million in funding from the private sector and energy service companies. It covers 422 government buildings,” Al Mazrouei said.

Towards a Sustainable and Resilient Future

The UAE’s clean energy investments underscore its commitment to building a resilient and sustainable economy. By focusing on renewable energy, carbon capture, and energy efficiency, the country is positioning itself as a leader in the global energy transition. The nation’s participation in key international forums like the COP28 further highlights its role in shaping policies and driving action on climate change.

As the UAE continues to expand its renewable energy capacity and adopt innovative technologies, its journey towards a sustainable future remains a model for other nations. With ongoing investments in clean energy, carbon management, and green hydrogen, the UAE is on track to meet its ambitious energy targets while contributing to global efforts to combat climate change.

Conclusion

The UAE’s progress in clean energy investment is not just a national success but a global beacon for sustainable development. With $12 billion invested, ambitious renewable energy projects underway, and leadership in green hydrogen production, the UAE is setting the standard for the future of energy. Its policies, investments, and international collaboration are propelling the country toward a cleaner, greener future, one that aligns with global climate goals and ensures long-term energy security for generations to come.

photo source: Google

By: Montel Kamau

Serrari Financial Analyst

16th September, 2024