UAE to invest US$163 billion in clean energy by 2050

The new energy will look to spur the integration of clean energy into the UAE’s energy mix. Image: First Solar

Vice President and Prime Minister of the United Arab Emirates Sheikh Mohammed bin Rashid Al Maktoum announced the UAE’s new energy strategy for the next 30 years.

This new strategy aims to spur the integration of clean energy into the total energy mix to 50%, which will generate savings of AED700 billion (US$191 billion) by 2050.

Sheikh Mohammed also announced that the UAE Energy Plan 2050 is targeting an energy mix that combines renewable, nuclear and clean energy sources to achieve the UAE’s economic needs and environmental goals. He added that the UAE expects to invest AED600 billion (US$163 billion) by 2050 to help ensure sustainable growth within the nation’s economy.

The new strategy was developed under the supervision of the federal government represented by the Ministry of Energy, and the Ministry of Cabinet Affairs and The Future.

Sheikh Mohammed noted: “Our new energy plan balances supply and demand, and takes into consideration our international commitments in terms of the environment. It also seeks to ensure a conducive economic environment for growth across sectors.”

He added: “The new strategy takes into consideration an expected annual growth of 6%, and efforts to increase the contribution of clean energy in the energy mix from 25% to 50% by 2050, apart from the reduction of the carbon footprint resulting from power generation by 70% over the next three decades. Ensuring the sustainability of energy resources guarantees the sustainability of our country’s growth. Drafting the first unified energy strategy in the country based on supply and demand is a significant achievement of the government. He who does not think of energy is not thinking about the future.”

The goal targeted by the 2050 strategy is divided up as: 44% clean energy, 38% gas, 12% clean coal and 6% nuclear. The strategy also aims to change the energy consumption culture by slashing residential energy consumption by 40%.

The strategy will be implemented in three phases: accelerating the move to efficient energy consumption, ensuring stable sources of energy and the diversification of energy sources, and focusing on research and development in addition to enhancing innovation and creativity in the supply of sustainable energy.

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