UAE faces up to alternative energy challenge

Residential building and villa owners now install photovoltaic panels on their building to generate solar power for their personal consumption. Silvia Razgova / The National

The opportunity to diversify the energy mix in the UAE remains a compelling one, as the price of crude oil continues to track well below the levels of 12 months ago. By modifying the source of our energy needs, we can ensure a better future for coming generations through sustainable development.

Volatile oil prices, energy security concerns and the continued threat associated with climate change have made the race to develop alternatives to conventional fossil fuels far more urgent.

But the road to developing non-traditional energy sources that are clean, convenient and sustainable is long and winding. The challenges to fully embracing alternative energy are numerous. The end rewards are significant, however, not just for the environment but also for wider society.

The financial costs associated with not diversifying our primary energy sources could also prove substantial.

The IMF has been vocal in its recommendation that GCC oil exporters, including the UAE, use the current period of lower oil prices as a chance to reduce their reliance on hydrocarbons. Reducing generalised energy subsidies, while increasing targeted social subsidies, will help to raise government revenues and discourage inefficient use of energy. Delaying such reforms will most likely require a more abrupt and costly adjustment in the future, the IMF said in a recent report.

Dubai is certainly committed to this path, and has vowed to triple the share of renewables in its energy mix to 15 per cent by 2030.

Within the renewables sector, solar energy perhaps offers the most obvious potential for the UAE. Our country is fortunate that the climate, with its many cloudless sunny days a year, makes solar a perfect fit in many ways.

Residential building and villa owners, as well as private and government companies in Dubai, can now also install photovoltaic panels on their building to generate solar power for their personal consumption.

Given its potential, it's no surprise that Dubai Electricity and Water Authority (Dewa) recently doubled the phase two capacity of the Mohammed bin Rashid Al Maktoum Solar Park from 100 megawatts to 200MW, making it globally one of the largest new independent power producer projects in the renewable energy space.

However, the solar energy sector faces its own set of challenges. The UAE is very dusty and this causes problems when debris is blown on to solar panels and mirrors that are essential in solar power generation. Solar Cells and Solar Panels that are needed to harness solar energy also tend to be expensive on first purchase.

At EnPark, a Dubai free zone that aims to nurture the energy and environment businesses, we are working to create an environment where partners such as First Solar, PTL Solar and SolarReserve can develop better solar technology. This will help to make solar a much more viable energy option in the Middle East in the years to come.

While fossil fuels are likely to remain the world’s main source of energy for the foreseeable future, Dubai’s commitment to a cleaner, greener future is clear. Changing the mix of our energy requirements will be an important step in the right direction.

Marwan Abdulaziz is the executive director at EnPark.

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