• An aerial view of Mohammed bin Rashid Solar Park in Dubai in January 2022. Solar is essential to the UAE's new energy mix. All photos by Pawan Singh / The National
    An aerial view of Mohammed bin Rashid Solar Park in Dubai in January 2022. Solar is essential to the UAE's new energy mix. All photos by Pawan Singh / The National
  • The fifth phase of a clean energy project at the Mohammed bin Rashid Solar Park will further help reduce carbon emissions.
    The fifth phase of a clean energy project at the Mohammed bin Rashid Solar Park will further help reduce carbon emissions.
  • An aerial view of the Solar Park in the Dubai desert.
    An aerial view of the Solar Park in the Dubai desert.
  • Marco Garcia, chief commercial officer of Nextracker, a US company which has provided photovoltaic technology used in the project.
    Marco Garcia, chief commercial officer of Nextracker, a US company which has provided photovoltaic technology used in the project.
  • The Innovation Centre at the MBR Solar Park in Dubai, where machine learning is being utilised to track direct sunlight to maximise efficient energy capture, storage and transmission.
    The Innovation Centre at the MBR Solar Park in Dubai, where machine learning is being utilised to track direct sunlight to maximise efficient energy capture, storage and transmission.
  • The solar powered panels follow the path of the sun to help the emirate reach its clean energy transition goals.
    The solar powered panels follow the path of the sun to help the emirate reach its clean energy transition goals.
  • Omar Al Hassan, chief executive of Shuaa Energy 3, the company operating the scheme, says the vast project will ultimately create clean energy to power more than 250,000 houses in Dubai.
    Omar Al Hassan, chief executive of Shuaa Energy 3, the company operating the scheme, says the vast project will ultimately create clean energy to power more than 250,000 houses in Dubai.
  • Robotic cleaning systems are installed on the solar panels.
    Robotic cleaning systems are installed on the solar panels.
  • More than 2.5 million photovoltaic modules have been fitted during phase 5 of the project.
    More than 2.5 million photovoltaic modules have been fitted during phase 5 of the project.

UAE records largest increase in renewable energy capacity globally in the past decade


Alvin R Cabral
  • English
  • Arabic

The UAE recorded the largest increase in renewable energy capacity worldwide over the past decade, a new index has revealed, reflecting the government's key focus on enacting initiatives to achieve its net-zero ambitions.

Capacity in the Emirates surged to 2,540 megawatts in 2020 from a modest 13MW in 2011, Australia-based aggregator Compare the Market said in its “Green Fuel Index” report.

“Countries are increasingly relying more on renewable sources, such as wind and solar, for their energy as they attempt to go green,” the report said.

“The UAE — where renewable capacity has grown by almost 20,000 per cent over the last decade — has traditionally relied on its plentiful supplies of oil but has recently made a big effort to shift away from fossil fuels.”

The UAE is expanding efforts to shift to greener technologies under its Net Zero 2050 Strategic Initiative, which calls for Dh600 billion ($163bn) to be invested in clean and renewable energy sources in the next three decades.

The plan was announced in the run-up to the Glasgow Cop26 summit in November. The UAE won the bid to host Cop28 in 2023.

The plan is a follow-up to the Energy Strategy 2050 programme introduced in 2017 — the first unified energy strategy in the country to be based on supply and demand — which aims to increase the contribution of clean energy in the total energy mix from 25 per cent to 50 per cent by 2050.

It also seeks to reduce the carbon footprint of power generation by 70 per cent, thus saving Dh700bn by 2050, as well as increase consumption efficiency of individuals and corporates by 40 per cent.

The strategy is aiming for an energy mix of 44 per cent clean energy, 38 per cent gas, 12 per cent clean coal and 6 per cent nuclear to meet the UAE’s economic requirements and environmental goals.

Aside from harnessing solar energy, the UAE made history with the opening of the Barakah Nuclear Energy Plant in April 2021, becoming the Arab world's first country to run a nuclear programme.

In its first year, Barakah's Unit 1 prevented the release of more than five million tonnes of carbon emissions, equivalent to more than one million cars driven for a year.

Mariam bint Mohammed Almheiri, Minister of Climate Change and the Environment, visited the Barakah Nuclear Energy Plant, where she witnessed the progress of the plant and its growing contribution to the decarbonisation of the UAE's power sector, supporting it to achieve its Net Zero by 2050 Strategic Initiative. Wam
Mariam bint Mohammed Almheiri, Minister of Climate Change and the Environment, visited the Barakah Nuclear Energy Plant, where she witnessed the progress of the plant and its growing contribution to the decarbonisation of the UAE's power sector, supporting it to achieve its Net Zero by 2050 Strategic Initiative. Wam

The UAE's efforts are being spearheaded by Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and the Emirates' special envoy for climate change, who has continuously championed the benefits of renewable energy and encouraged an inclusive approach that will serve as the foundation for the future economy.

Masdar, Abu Dhabi's clean energy company which Dr Al Jaber is chairman of, has advanced clean energy, sustainable real estate and green technology initiatives and projects in the Emirates and throughout the world. Masdar is active in more than 35 countries globally, and has invested over $20 billion in renewable energy projects with its partners.

Saudi Arabia has also invested heavily in boosting its renewable energy capacity and was ranked second after the UAE in the Compare the Market study. The kingdom's renewable energy capacity surged to 413MW from 3MW over the past decade, it found.

“Like the UAE, Saudi Arabia is another country that has had a strong reliance on oil for its energy needs but has been pushing towards more renewable alternatives with an increase of over 13,000 per cent in the last 10 years,” the report said.

Barbados, Malta and Bahrain ranked in the top five countries that reported the largest increases in renewable energy capacity and are the only ones that recorded a capacity growth of at least 10-fold since 2011.

In terms of producing the highest amount of renewable energy capacity per person, Iceland ranked first globally, generating 7,830MW for every one million people. The majority of this comes from hydropower, with a significant amount also coming from geothermal, the report said.

Norway, Sweden, Canada and Austria rounded out the top five in the list dominated by European countries, with EU member states sourcing an average of 22 per cent of their energy from renewables — two percentage points ahead of the goal they set in 2009 — according to the World Economic Forum.

Norway, meanwhile, is the country that relies the most on green energy at 97.4 per cent, followed closely by Iceland (97.3 per cent), Andorra (96.9 per cent), Costa Rica (86.8 per cent) and Switzerland (81.6 per cent).

When ranked by renewable energy segments, Norway was the top producer of hydropower during the 10-year period, while South Korea topped the list in terms of marine power. Denmark produced the most wind power, Australia generated the most solar power and Iceland topped the rankings globally for geothermal energy.

Jebel Ali Dragons 26 Bahrain 23

Dragons
Tries: Hayes, Richards, Cooper
Cons: Love
Pens: Love 3

Bahrain
Tries: Kenny, Crombie, Tantoh
Cons: Phillips
Pens: Phillips 2

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Company profile

Date started: December 24, 2018

Founders: Omer Gurel, chief executive and co-founder and Edebali Sener, co-founder and chief technology officer

Based: Dubai Media City

Number of employees: 42 (34 in Dubai and a tech team of eight in Ankara, Turkey)

Sector: ConsumerTech and FinTech

Cashflow: Almost $1 million a year

Funding: Series A funding of $2.5m with Series B plans for May 2020

COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Company%20profile
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Belong%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Michael%20Askew%20and%20Matthew%20Gaziano%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20Technology%3Cbr%3E%3Cstrong%3ETotal%20funding%3A%3C%2Fstrong%3E%20%243.5%20million%20from%20crowd%20funding%20and%20angel%20investors%3Cstrong%3E%3Cbr%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%2012%3C%2Fp%3E%0A
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Nag%20Ashwin%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3EPrabhas%2C%20Saswata%20Chatterjee%2C%20Deepika%20Padukone%2C%20Amitabh%20Bachchan%2C%20Shobhana%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E%E2%98%85%E2%98%85%E2%98%85%E2%98%85%3C%2Fp%3E%0A
Updated: May 24, 2022, 9:18 AM