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His Excellency Suhail bin Mohammed Faraj Faris Al Mazrouei, Minister of Energy and Infrastructure, confirmed that the UAE has achieved remarkable progress in increasing the contribution of clean energy production to the total energy mix, reaching 27.83% in 2023, within the framework of the target by 2030 of 32%.
His Excellency said, in an interview with the Emirates News Agency (WAM), on the occasion of the World Utilities Congress 2024, which will start tomorrow in Abu Dhabi: “The UAE has succeeded, from 2019 to 2022, in doubling its renewable energy capacity, as part of the path to achieving the objectives of the UAE Energy Strategy; to add installed capacity three times by 2030, towards our commitment to achieving the energy transformation targets in accordance with the UAE’s historic agreement inCOP28“
He added: In 2023, the UAE achieved a remarkable growth of 70% in the installed renewable energy capacity, which reached 6.1 gigawatts, and made progress in the competitive indicators of renewable energy, including: achieving a qualitative leap from sixth to second place in the per capita energy consumption index from renewable energy sources in the latest report on the Statistical Review of World Energy 2024 prepared by the World Energy Institute.
His Excellency said, regarding the UAE’s establishment of encouraging rules for investment in clean and renewable energy: “The total value of implemented new and renewable energy projects is estimated at more than 45 billion dirhams, not including only new operational projects.
He explained that work is underway according to the plans set to implement the UAE Energy Strategy 2050, noting that the most important renewable and clean energy projects under implementation, as well as new and future ones, are the sixth phase of the Mohammed bin Rashid Solar Park with a capacity of 1.8 gigawatts, the second phase of the waste-to-energy project in Dubai, the Al Ajban photovoltaic energy project in the Emirate of Abu Dhabi with a capacity of 1.5 gigawatts, the Al Khazna photovoltaic energy project in Abu Dhabi with a capacity of 1.5 gigawatts, the Hatta hydroelectric power project, the photovoltaic energy project in Sharjah with a capacity of 60 megawatts, and the commercial operation project of the fourth reactor of the Barakah plant, which was recently commissioned.
On the importance of the World Utilities Congress 2024, which kicks off tomorrow in the capital, Abu Dhabi, His Excellency Suhail Al Mazrouei said that the conference represents an important opportunity to exchange expertise and knowledge with a group of experts and specialists in the field of utilities worldwide, thanks to what it will discuss about the latest technologies and innovative solutions to address common challenges in the areas of sustainability and water security, which will contribute to enhancing national and international efforts to achieve sustainable development goals, and enhance the pivotal role played by the UAE in shaping the future of the energy and water sector.
Regarding the launch of the energy tariff reduction initiative to support the national drive to achieve comprehensive and sustainable growth for the country’s industrial sector, and the progress that can be achieved if companies are given the flexibility to embrace opportunities without being limited by costs, he added that energy providers play a crucial role in supporting this progress, using all available resources to drive economic growth and sustainability in the UAE, pointing to the direct impact of the cooperation between the Federal Electricity and Water Company and the Ministry of Industry and Advanced Technology and the Ministry of Energy and Infrastructure to launch a new energy tariff structure, which led to lower prices for industrial and technology sector customers in the Northern Emirates, demonstrating the transformative potential of these partnerships.
His Excellency Suhail Al Mazrouei stressed that low energy prices for AI-related businesses and energy-intensive sectors created immediate savings, providing them with an opportunity to reinvest and expand; as low operating costs mean increased profit margins regardless of revenue growth, and contribute to improved cash flow, allowing companies to take full advantage of emerging opportunities.
Regarding the current and targeted annual carbon capture capacity in the UAE, His Excellency said that carbon management projects are among the most important of which are those of ADNOC, which continues to play a leading role in applying carbon capture and storage technologies permanently and safely as part of its efforts to accelerate the achievement of climate neutrality by 2045, through plans to double the target of increasing its carbon capture capacity to reach 10 million tons annually by 2030.
He pointed out that the UAE achieved first place in competitiveness in green hydrogen production in the Green Hydrogen Report 2024 prepared by Alvarez & Marsal, and also achieved first place in hydrogen market readiness in the Middle East and North Africa region in the Roadmap for Enabling Measures for Low-Carbon Hydrogen in the Middle East and North Africa report prepared by the World Economic Forum for the year 2023.
Regarding the impact of AI technology and climate change on energy demand management, His Excellency Suhail Al Mazrouei said that AI technology plays a pivotal role in enhancing the efficiency of energy demand management, through its ability to analyze huge amounts of data derived from various sources such as weather data and consumption patterns. Therefore, AI can accurately predict energy demand, explaining that these accurate predictions enable network operators to plan strategically and improve resource management with unprecedented efficiency. The technology also contributes to improving the efficiency of electrical networks, by intelligently distributing the load and reducing energy losses, and helps achieve optimal use of resources. In addition, predictive maintenance technologies, which rely on AI, enable the possibility of predicting faults and preventive maintenance, which reduces the occurrence of unexpected faults and ensures continuous and reliable energy provision.
He added that artificial intelligence can enhance the efficiency of renewable energy sources by predicting weather conditions and improving the timing of production and consumption, by working to improve the efficiency of using solar energy and other renewable energy sources, and reducing dependence on fossil fuels, which contributes to achieving environmental sustainability goals.
He stressed the need to adopt more sustainable energy policies, as climate change is pushing us towards increasing investment in clean energy sources and energy efficiency technologies, which contributes to reducing the carbon footprint and improving the quality of life.
Regarding the details of the Federal Regulations for Energy Management in Industrial Facilities, His Excellency Suhail Al Mazrouei said that the “Regulations” are the first of their kind in the industrial sector related to sustainability and reducing energy demand in industrial facilities in the UAE, which will ensure the implementation of sustainability standards and energy efficiency in the country’s factories by activating a highly efficient system for managing energy systems.
His Excellency said: “The Federal Regulations for Energy Management in Industrial Facilities include measuring and monitoring the status of energy consumption in the largest industrial consumers in the UAE, encouraging energy efficiency among the largest industrial consumers in the country, promoting the adoption of best energy management practices, directing industry decisions towards investing in the best available technologies, operational excellence in energy systems management, helping the industry build an understanding of future and emerging sustainable practices in long-term decision-making standards, supporting the achievement of the UAE’s net zero emissions goal for industrial activities by 2050 to confront climate change and achieve climate neutrality, reducing greenhouse gas emissions and air pollution, improving air quality, improving the competitiveness of industrial sectors regionally and globally, and unifying local and federal efforts in the industrial sector.
He explained that the necessary support programmes and incentives were proposed to support the federal regulation in cooperation with the Ministry of Industry and Advanced Technology, such as the Green National Value Added Programme, as well as the Industrial Technology Transformation Index.ITTI“For the National Value Added Certificate, pointing out that these factors aim to stimulate the industrial sector to move quickly towards reducing its energy consumption, and achieving the goals of the National Program for Managing Demand for Energy and Water 2050.
His Excellency Suhail Al Mazrouei said that the Federal Regulations for Energy Management in Industrial Facilities will contribute to reducing energy demand in the industrial sector by 33% by 2050 and improving air quality by 32%, thanks to its contribution to reducing carbon emissions by the equivalent of 63 million tons by 2050, in addition to its role in achieving financial savings worth 14 billion dirhams by 2050.
Regarding the policy of regulating the energy services companies market in the country and the role of partnerships between the public and government sectors in reducing demand for energy and water consumption, His Excellency Suhail Al Mazrouei said that the Cabinet approved the policy of regulating the energy services market in the country in April 2023, to regulate the relationship between energy services companies, government agencies and the private sector, by defining the work mechanisms, financing mechanisms and different types of partnership between the two sectors with regard to energy efficiency projects.
He added: “The policy also encourages investment by energy service companies and the private sector in government projects through ‘energy and water consumption reduction projects’, as they help achieve the government’s targets to reduce energy and water consumption, reduce the carbon footprint, and rationalize building operating expenses, by supporting cities that do not have a regulatory or legislative framework for the energy services market, which contributes to achieving their targets and aligning them with the state’s targets and the National Program for Managing Demand for Energy and Water.”
He pointed out that the policy directly aims to develop the energy services companies market in the country through partnership between the public and private sectors, encourage investment in energy efficiency systems and renewable energy projects, contribute to achieving the goals of the National Program for Energy and Water Demand Management 2050, create highly efficient buildings and achieve sustainable economic development.
His Excellency said: “The Ministry has implemented the policy in the project to reduce energy and water consumption in federal government buildings, as it aims to reduce energy and water consumption by no less than 25% and reduce operating costs by 20%, with funding from the private sector and energy services companies, with an investment value estimated at 500 million dirhams for 422 government buildings.”
