UAE a hub for alternative energy

Within a few years the UAE has become one of the world’s leading hubs, producing and developing alternative energy sources, especially after the country won the right to host the headquarters of the International Renewable Energy Agency (Irena) and the establishment of Masdar City in Abu Dhabi.

Thus it has turned into a global centre that contributes effectively not only to producing and financing alternative energy projects, but also develop and devise technologies related to this industry, including a reduction in production costs. In this regard, the country’s strategy has been based on two main pillars.

The first is to locally develop alternative energy sources to account for 50 per cent of its energy needs by 2050 through implementing several projects, including generating electricity via nuclear power, which is expected to happen quite soon in Abu Dhabi. The world’s largest concentrated solar power plant is being built in Dubai and other projects in the various emirates are being — or will be — implemented, making the UAE third in the world when it comes to production of concentrated solar energy. Such a transition is not only associated with importing technologies, as it used to be in the past, but also in developing new ones.

Our country, thereby, had a remarkable accomplishment last November by reducing the cost of solar energy production by 5.84 cents per kilowatt/hour. This rate is indeed lower than that through producing energy with natural gas, which will, therefore, encourage and speed up the use of solar energy across many countries.

The other pillar of such a futuristic strategy is helping other countries develop projects to tap alternative energy, even in advanced economies such as the United Kingdom, Spain and Austria, which have signed a cooperation agreement with the UAE in the environment protection and alternative energy fields.

Paradigm shift

Secondly, the UAE has also helped develop those in Jordan, Oman and Malawi through the United Nations programmes or by enhancing bilateral cooperation. Since 2013, it has allocated more than $750 million (Dh2.75 billion) to UN programmes to help develop alternative energy sources, including solar, wind, water and waste resources.

It has also earmarked $50 million to implement 11 projects in partnership with Pacific Ocean countries. The UAE’s efforts in this regard have not been limited to cooperation with the public sector, but also created opportunities for the private sector by providing investment opportunities worth $100 billion for countries to invest in alternative energy.

The country’s approach has gone beyond financing projects to include contributions to creating scientific and technical infrastructure for alternative energy. The Zayed Future Energy Prize was launched for that purpose, offering awards worth $4 million not to mention the establishment of the Zayed Solar Academy in Malawi. This clearly vindicates the UN’s choice of the UAE as a centre for Irena, and has proved within a short time its competence and gained the international community’s trust. Its renewable energy strategy will help, within the next three decades, change the structure of the global energy balance, providing one of the most important elements in sustainable development and improving living standards.

Such a humanitarian and development achievement is to be added to the country’s record of accomplishments.

■ Dr Mohammad Al Asoomi is a UAE economic expert and specialist in economic and social development in the UAE and the GCC countries.