UAE to invest $54 billion to meet growing energy demand

The nation’s cabinet ministers, meeting this week, adopt ambitious energy policy to triple contribution of renewable power to 2030, with new hydrogen strategy and electric vehicle policies; prioritizing energy efficiency and tech R&D

The United Arab Emirates (UAE) approved an updated National Energy Strategy, which aims to triple the contribution of renewable energy to 2030, and invest AED150 to AED200 billion ($54.5 billion) during the same period to meet the country’s growing demand for energy.  

The strategy, approved during a UAE Cabinet meeting on Monday, 3 July, aims to align with efforts to mitigate climate change and achieve climate neutrality, according to a report by the official news agency WAM.

The meeting was chaired by Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE, and Ruler of Dubai.

"As a result of the accelerated economic growth, we approved the updated UAE National Energy Strategy, which aims to triple the contribution of renewable energy over the next seven years, and invest AED150 to AED200 billion during the same period to meet the country's growing demand for energy," he stated.

“We also approved the National Hydrogen Strategy,” he continued.

“The strategy aims to promote the UAE’s position as a producer and exporter of low-emission hydrogen over the next eight years through the development of supply chains, the establishment of hydrogen oases and a national research and development centre.”

Another key energy policy approved by the Cabinet is a National Electric Vehicles Policy, which aims to build a national network of electric vehicle chargers that supports the needs of owners of electric vehicles and regulates its market in the UAE.

Going to 30 percent

The WAM report highlighted the energy strategy's objectives, including achieving up to AED100 billion ($27 billion) in financial savings by 2030 and increasing the share of clean energy in the total energy mix to 30 percent by 2031.

Furthermore, UAE National Energy Strategy will prioritise enhancing energy efficiency, supporting research and development programmes in energy technologies, bolstering the country's global competitiveness in the energy sector, and solidifying its position as a top destination for energy innovations and investments.

According to the report, the strategy provides new investment opportunities in renewable energy, supports efforts to strengthen cooperation with international partners to achieve sustainability goals in the energy sector, and constitutes a long-term national programme to balance meeting energy needs with ensuring the sustainability of natural resources for future generations.

Energy & Utilities reported on Middle East Energy in Dubai last March, which offered critical industry insights in its strategic conference.