UAE's Clean Energy Investments Hit Over AED 45 Billion Mark

The UAE has made notable strides in clean energy, with its share in the total energy mix reaching 27.83% in 2023. This progress is part of a broader goal to achieve 32% by 2030. Suhail bin Mohammed Al Mazrouei, Minister of Energy and Infrastructure, highlighted these achievements during an interview with the Emirates News Agency (WAM) ahead of the World Utilities Congress 2024 in Abu Dhabi.

Al Mazrouei emphasised the UAE's commitment to renewable energy, noting a significant increase in installed capacity from 2019 to 2022. "From 2019 to 2022, the UAE has succeeded in doubling its renewable energy capacity as part of the UAE Energy Strategy to triple the installed capacity by 2030, towards our commitment to achieve the energy transition targets as per the UAE Consensus at COP28," he said.

The minister detailed several key projects under the UAE Energy Strategy 2050. These include Phase VI of the Mohammed bin Rashid Al Maktoum Solar Park (1.8 GW), Dubai’s waste-to-energy project’s second phase, and two major photovoltaic projects: Al Ajban and Al Khazna (both 1.5 GW) in Abu Dhabi. Additionally, a hydroelectric power plant in Hatta and Sharjah’s fourth reactor at Barakah plant are set to contribute significantly.

Highlighting investment efforts, Al Mazrouei stated that completed new and renewable energy projects are valued at over AED45 billion. This figure excludes recent projects now operational. He remarked on the UAE's impressive growth in renewable energy capacity, which saw a 70% increase in 2023, reaching 6.1 GW.

The World Utilities Conference 2024 will commence tomorrow in Abu Dhabi, serving as a platform for global utility experts to exchange knowledge. The event will feature advanced technologies and innovative solutions addressing sustainability and water security challenges. This conference aims to bolster both national and international efforts towards sustainable development.

Al Mazrouei also noted ADNOC’s pivotal role in the UAE’s climate strategy through its carbon management projects. ADNOC is leading efforts in carbon capture and storage technologies with an aim to achieve climate neutrality by 2045. The company plans to double its carbon capture capacity to 10 million tonnes annually by 2030.

Green Hydrogen Leadership

The UAE has achieved top rankings in green hydrogen production competitiveness according to the Green Hydrogen Report 2024 by Alvarez & Marsal. It also leads in hydrogen market readiness within the Middle East and North Africa region, as recognised by the World Economic Forum's Enabling Measures Roadmap for Low-Carbon Hydrogen 2023.

In April 2023, the UAE Cabinet approved a policy regulating the energy services market. This policy aims to streamline interactions between energy service companies, government entities, and private sector players with clear guidelines for energy efficiency projects.

Federal Energy Management Regulation

The Federal Energy Management Regulation targets a reduction of energy demand in industrial facilities by 33% by 2050. It also aims to improve air quality by reducing carbon emissions by 63 million tonnes and is expected to save AED14 billion by that year.

"The policy encourages private sector investment in government energy and water conservation projects," said Al Mazrouei. "It aids in achieving energy and water reduction goals while minimising carbon footprints and lowering building operational costs."

The new policy seeks to cut energy and water use in federal buildings by 25% and operational costs by 20%. Supported by AED500 million from private sector investments, it covers improvements across 422 government buildings.

This comprehensive approach aligns with national goals under the National Energy and Water Demand Side Management Programme for sustainable economic development through public-private partnerships.

With inputs from WAM