Abu Dhabi Department of Energy (DoE) on Wednesday signed a preliminary agreement with the State Grid Corporation of China to boost cooperation in the energy sector.
The two entities will collaborate in a number of areas including conducting feasibility studies to increase utility-scale energy efficiency and develop facilities for producing and storing clean energy that complement existing power grids. They will also look to cooperate in implementing a gas-insulated underground cables and power lines project and connect the power grid with those of other emirates and countries around the region, developing advanced infrastructure for meters, among others.
“The agreement outlines both parties’ respective roles in implementing the strategic partnership signed by the leaderships of the two countries in 2018, where the energy sector was a central theme, in addition to economic, commercial, and cultural cooperation, and collaboration to boost technological innovation,” a statement from Abu Dhabi Department of Energy said.
UAE-China trade and investment ties are on an upward trajectory. Bilateral trade between the UAE and China increased 16.2 per cent to $11.2 billion (Dh41bn) in the first quarter of the year .
Chinese company JinkoSolar Holding is one of two partners working with the Abu Dhabi government on developing the Noor Abu Dhabi solar power plant. The Abu Dhabi government has a 60 per cent stake in the project, while the other 40 per cent is owned by JinkoSolar and Japanese company Marubeni Corp.
Large energy companies such as China National Offshore Oil Corporation, Zhenhua Oil and a state-owned investment company, CITIC, have all set up offices in Abu Dhabi since 2018.
Chinese energy companies have also steadily increased their participation in concessions operated by Adnoc in the last few years.
“Our strategy in the emirate of Abu Dhabi relies on sustainable, science-based projects that empower us to fulfil our environmental commitments and ensure economic growth,” said Awaidha Murshed Al Marar, chairman of Abu Dhabi Department of Energy.
“Considering the tremendous success China has achieved in terms of energy technology, we look forward to this new partnership with the State Grid Corporation of China to lay the foundation for further collaborations in the future.”