How UAE Revolutionized Energy: From Oil to Renewables
Written by Vitaliy Chiryassov, CEO of UPPERCASE.
The UAE’s energy sector has always been a key part of the economy, but it used to be heavily reliant on fossil fuels. Now that’s changing as the country takes the lead in the transition to green energy, moving from 100% gas-fired power generation to 100% green energy.
Here’s why the UAE is likely to succeed in going 100% green when it comes to energy.
The UAE’s Strong Energy Foundations
The UAE’s energy sector has been a cornerstone of the nation’s economy since the discovery of oil in the mid-20th century. With around 7% of the world’s proven oil reserves, and 7th top natural gas reserves, the country quickly became one of the top players in the hydrocarbon energy market.
As the UAE’s population grows and its economy expands, the demand for electricity continues to rise. Historically, the country relied on gas-powered plants to meet this demand, creating a massive energy market. By 2027, the UAE’s energy market is expected to reach a valuation of $1.3 trillion, with a projected growth rate of 3.5% annually.
Although oil and gas have traditionally powered the UAE’s economy, the energy sector is now shifting towards renewables. The government has set plans to generate at least 50% of the country’s energy from green sources, relying on a mix of solar and nuclear power.
Ambitious Plans for Renewable Energy
The UAE is committed to shifting from fossil fuels to renewable energy, driven by two main goals: economic growth and environmental responsibility. Diversifying the economy beyond oil is crucial for the UAE’s long-term stability, and investing in green energy is a key part of that strategy.
Also, the UAE recognizes the global threat of climate change and is determined to be part of the solution. By embracing renewable energy, the UAE government aims to reduce the country’s carbon footprint and, in the end, protect our green planet.
Government Initiatives Driving the Energy Transition
The UAE government has launched several key initiatives to make the jump to renewable energy, cut the use of fossil fuels and promote sustainability.
Firstly, the UAE Energy Strategy 2050, Launched in 2017, aims to increase the contribution of clean energy to 50% of the total energy mix by 2050, while reducing the carbon footprint of power generation by 70%. The plan is ambitious, with a goal to achieve an energy mix that combines renewable, nuclear, and clean fossil fuels. To achieve it, the UAE government is investing 600 billion AED into the energy infrastructure.
Secondly, the Dubai Clean Energy Strategy 2050, which specifically targets the emirate of Dubai. This strategy sets a goal for Dubai to generate 75% of its energy from clean sources by 2050. It includes the development of the Mohammed bin Rashid Al Maktoum Solar Park, which, upon completion, will be the largest single-site solar park in the world.
Thirdly, the UAE government is also focusing on nuclear energy as part of its clean energy mix. The Barakah Nuclear Energy Plant is the first of its kind in the Arab world and plays a crucial role in the UAE’s energy strategy. Once fully operational, it will supply up to 25% of the UAE’s electricity.
What the UAE Government has Already Accomplished
The UAE is actively implementing several innovative initiatives to advance its renewable energy goals and improve energy efficiency.
A major advancement in clean energy for the UAE was the nuclear cooperation agreement with the U.S. This partnership accelerated the construction of the Barakah, the Arab world’s first nuclear plant, which began in July 2012. The plant consists of four units, all of which are now operational, with Unit 4 completing in March 2024. The plant currently generates 5,600 MW.
But nuclear energy isn’t the whole story — the UAE is also looking into more exotic sources of electricity. For example, the government is heavily investing in infrastructure to produce, store, and use hydrogen as a clean energy source. The focus is on developing green hydrogen (itself produced using renewable energy) to support various sectors, like construction and transportation industries.
Solar energy is another area where the UAE has made a lot of progress. The country is exceptionally well-positioned to benefit from solar, due to its abundant sunshine. Recognizing this, the UAE has invested heavily in solar technology. The Mohammed bin Rashid Al Maktoum Solar Park in Dubai has a planned capacity of 5,000 megawatts by 2030, it will be one of the largest solar parks in the world. There is also the Shams Solar Power Plant in Abu Dhabi, one of the largest concentrated solar power plants globally.
In terms of transportation, the UAE is aiming to electrify its vehicle fleet. By 2030, 40,000 cars on UAE roads are expected to be electric, a big jump from just 1,900 in September 2020. This will help the country cut greenhouse gas emissions.
The Emirates Water and Electricity Company (EWEC) is also playing a crucial role. EWEC manages the UAE’s water and electricity needs and is focused on integrating renewable energy sources into the national grid. This includes overseeing projects like the Al Dhafra Solar Plant, one of the largest single-site solar photovoltaic projects in the world, which is set to provide up to 2,100 megawatts of electricity.
The Future of Energy in The UAE
The UAE’s shift to renewables is progressing quickly, and the urgency is warranted. Climate change could raise global temperatures by 1.5°C above pre-industrial levels as early as 2030, with severe consequences for our planet. Experts warn that sea levels might rise by a meter or more by 2100, potentially submerging large areas of coastal nations like the Maldives.
The UAE government is taking action to combat this — in more ways than building green power plants. For example, the Mohammed bin Rashid Al Maktoum Solar Park includes an R&D center focused on advancing solar technologies, aiming to boost energy yields for future solar plants. The UAE is also sharing its expertise with other nations, particularly in the developing world. UAE-Pacific Partnership Fund, for example, has implemented renewable energy projects across 11 Pacific island countries.
The UAE’s ambitious green energy transition represents more than just a national shift — it’s a blueprint for global change. In the face of intensifying climate challenges, the UAE’s holistic approach, which combines technological innovation, international collaboration, and economic diversification, is a model for sustainable development. The UAE is sure to become a renewable energy leader — and help save our planet.
Iamge: Dubai Skyline at Dusk by masterlu at Deposit Photos
