Development of green energy in the UAE

Economic growth is impossible without an increase in energy demand. It is needed in all sectors, including industry, the public sector, tourism, agriculture, healthcare, transportation, and household appliances. Every sector consumes gigawatts of electricity. Therefore, the development of green energy in the UAE is considered a top priority task.

About the development of alternative energy in the UAE:

Members of the Organization of the Petroleum Exporting Countries (OPEC) state their interest in developing technologies that utilize renewable energy sources (RES). One of the driving forces behind this movement is the UAE. The country plans to invest $163 billion in green energy development by 2050. According to officials, by that time, half of the energy demand will be met by solar power plants. Currently, the country is almost entirely dependent on thermal power plants burning natural gas.

Furthermore, the UAE has adopted a national energy strategy aimed at increasing the use of RES. By 2031, the share of renewable sources in electricity generation is expected to reach 30%. An investment of $54 billion is planned for this purpose.

Minister of Energy and Infrastructure, Suhail Al Mazrouei, shared plans for energy development in the UAE. According to him, by the end of 2022, the country has seen an increase in the number of major clean energy projects to 11. The investment in these projects amounts to 159 billion dirhams. Additionally, the official noted that the government is working on ten green hydrogen projects, with 70% of them currently in the development stage.

The Minister of Energy highlighted that in 2021, over 7,000 megawatts of generated electricity came from clean energy sources in the country. He emphasized that this is a good indicator, demonstrating that the government is moving in the right direction.

The World's Largest Solar Park

The UAE is demonstrating its commitment to green electricity in practice. The corresponding infrastructure is rapidly developing there. For example, the country is building the world's largest solar park called the Mohammed bin Rashid Solar Park. The goal of this massive project is to reduce dependence on gas and diversify energy sources.

Upon completion of the construction, the park will be able to power over a quarter of a million homes, reducing carbon dioxide emissions by 1.8 million tons per year. Dubai will receive about 16% of its electricity from this park. Currently, the fifth phase of the park has been put into operation.

Global Leadership in Renewable Energy Usage

According to experts' forecasts, the demand for energy resources in the Middle East and North Africa will double. Several projects in the field of alternative energy are already being developed in the region. The total investment in these projects exceeds $100 billion.

The UAE has emerged as a leader among the countries in this region in terms of commitments to environmental preservation. The Emirates government has pledged to achieve a net-zero carbon balance by the middle of the century. The amount of investment in renewable and clean sources will reach $163 billion.

Dubai stands out against this backdrop, where the highest number of renewable sources is used among all the countries in the Persian Gulf. By 2050, the emirate will receive up to 75% of its energy from green sources.

All this makes the country attractive for investment and business operations. And our company, The Level Consulting, can assist with this. For the past 12 years, we have been helping to start businesses in the UAE from scratch. We provide conditions for a swift business start in this country: from registration to full legal and financial support.