UAE to boost renewables to 21 % of energy balance over a decade
The United Arab Emirates, one of the world’s biggest oil producers, raised its installed capacity of renewable energy sources last year to 2.3 GW, more than 90 % of which comes from solar power, according to analysts Rystad Energy

And production from alternative sources, virtually non-existent until recently, is set to grow further.

    Rystad forecast that by the end of 2025 capacity of renewables will rise fourfold to total 9 GW, with solar panels providing 8.5 GW of that total. The share of renewables in total generation will grow from 7 % in 2020 to 21 % in 2030 and 44 % by 2050.

    Rystad Energy noted that the UAE achieved the aim set for year for renewable energy and intended to keep to the goals set for the future.

    “It is too early to predict the achievability of the country’s 2050 target, but the resilience and determination shown by the UAE’s renewable sector amid Covid-19 will surely make it attractive for investors and developers alike,” the analysts said.

    “This, together with some of the world’s lowest power purchase agreement (PPA) prices, suggests that 2050 targets are well within reach.”

    Most of the country’s solar panels are located in Abu Dhabi and Dubai and those two emirates are forecast by 2025 to provide 90 % of its green energy capacity, or 8.2 GW.

    Major projects expected to drive this growth include four solar farms – the Al Dhafra (2 GW), Abu Dhabi PV3 (1500 MW), MBR Phase IVa and IVb (950 MW) and MBR Phase V (900 MW), all of which are in various stages of development.

     Capacity of renewables in Dubai total 1 GW, originating mostly from the MBR solar park. In Abu Dhabi, total capacity stands at 1.3 GW with plans calling for that figure to be boosted to 5.6 GW by 2026.

    Rystad noted that the UAE has one of the lowest power tariff rates, as established at auctions. The Al Dhafra project recently agreed upon a tariff of $13.50 per megawatt-hour – among the lowest solar PPA prices in the world. 


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February 2021