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UAE’s investment in clean energy reaches over $12.25 billion, says minister Al Mazrouei

The country has significantly increased its clean energy share to 27.83 percent in 2023, aiming for 32 percent by 2030 
UAE’s investment in clean energy reaches over $12.25 billion, says minister Al Mazrouei
The UAE's installed renewable energy capacity grew by 70 percent in 2023, reaching 6.1 GW, according to the minister. (Photo Credit: WAM)

Suhail Al Mazrouei, UAE minister of energy and infrastructure, indicated that the UAE has made notable strides in enhancing the share of clean energy in its overall energy mix, which reached 27.83 percent in 2023, aligning with the target of 32 percent by 2030.

In a recent interview with the Emirates News Agency (WAM), Al Mazrouei remarked that from 2019 to 2022, the UAE successfully doubled its renewable energy capacity as part of its Energy Strategy aimed at tripling installed capacity by 2030, reflecting the country’s commitment to the energy transition goals established at COP28.

Increase in installed capacity

The minister noted that the UAE experienced a significant 70 percent increase in installed renewable energy capacity in 2023, reaching 6.1 GW. Furthermore, the country advanced in competitive renewable energy indicators, moving from sixth to second place in per capita energy consumption from renewable sources, as noted in the most recent Statistical Review of World Energy published by the Energy Institute.

Investment in renewable projects

Moreover, Al Mazrouei emphasized the UAE’s dedication to attracting investment in clean and renewable energy, estimating the total value of completed renewable energy projects at over AED45 billion ($12.25 billion), excluding the latest operational projects.

He elaborated on the UAE Energy Strategy 2050, mentioning several key renewable and clean energy initiatives currently underway and in development, including the 1.8 GW Phase VI of the Mohammed bin Rashid Al Maktoum Solar Park, the innovative second phase of Dubai’s waste-to-energy project, and two major photovoltaic projects: the 1.5 GW Al Ajban and the 1.5 GW Al Khazna in Abu Dhabi. Other significant contributions are expected from the hydroelectric power plant in Hatta, Sharjah, and the recently commissioned fourth reactor at the Barakah plant.

The World Utilities Conference 2024, commencing today in Abu Dhabi, was described by Al Mazrouei as a vital platform for sharing knowledge and insights among global utility experts. The conference is set to showcase advanced technologies and innovative solutions aimed at addressing sustainability and water security challenges, reinforcing both national and international efforts toward sustainable development and highlighting the UAE’s essential role in shaping the future of energy and water.

Leadership in green hydrogen production

Al Mazrouei pointed out that ADNOC’s carbon management initiatives are crucial to the UAE’s climate strategy, with the company leading the charge in adopting carbon capture and storage technologies, targeting climate neutrality by 2045. ADNOC also plans to double its carbon capture capacity to 10 million tons annually by 2030.

He remarked that the UAE has emerged as a leader in green hydrogen production competitiveness, as per the Green Hydrogen Report 2024 by Alvarez & Marsal. Additionally, it ranks first in hydrogen market readiness within the Middle East and North Africa, according to the World Economic Forum’s Enabling Measures Roadmap for Low-Carbon Hydrogen 2023.

Energy management in industrial facilities

He mentioned that the Federal Energy Management Regulation in Industrial Facilities aims to reduce energy demand in the industrial sector by 33 percent by 2050, while also enhancing air quality by 32 percent through a decrease in carbon emissions by 63 million tons, potentially saving AED14 billion by 2050.

In April 2023, the UAE Cabinet approved a policy intended to regulate the energy services market, promoting smoother interactions among energy service companies, government entities, and the private sector, with clear guidelines for energy efficiency projects.

UAE clean energy

Encouraging private sector investment

Al Mazrouei explained that this policy encourages private sector investment in government energy and water conservation initiatives, contributing to energy and water reduction objectives, minimizing carbon footprints, and lowering operational costs for buildings. It is particularly supportive of cities lacking regulatory frameworks, aligning their aims with the national energy and water management program.

Read more: UAE, U.S. ink $100 billion deal in clean energy projects

Developing the energy services market

The policy is designed to develop the UAE’s energy services market through public-private partnerships, fostering investment in energy efficiency and renewable projects, and supporting the National Energy and Water Demand Side Management Programme 2050, thus promoting sustainable economic development.

He added that the Ministry’s new policy seeks to decrease energy and water consumption in federal buildings by 25 percent and operational costs by 20 percent, backed by AED500 million from private sector and energy service companies, covering 422 government buildings.

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