UAE launches first wind farms in net-zero push


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The UAE has launched its first wind programme as it intensifies efforts to achieve net-zero emissions by 2050 and diversify its energy mix.

Abu Dhabi clean energy company Masdar has developed the 103.5 megawatt landmark wind project across four locations, which includes a 45MW wind farm on Sir Bani Yas Island, the company said on Thursday.

Other wind farm locations include Delma Island (27MW), Al Sila in Abu Dhabi (27MW) and Al Halah in Fujairah, which can produce 4.5MW of electricity.

The project also includes a 14MWp (megawatt peak) solar farm on Sir Bani Yas Island.

The UAE wind programme is expected to power more than 23,000 homes a year, displacing 120,000 tonnes of carbon dioxide.

That is equivalent to removing more than 26,000 cars from the road annually, the company said.

Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi and Chairman of Abu Dhabi Executive Council, launches the wind power project on Sir Bani Yas Island. Photo: Abu Dhabi Government Media Office
Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi and Chairman of Abu Dhabi Executive Council, launches the wind power project on Sir Bani Yas Island. Photo: Abu Dhabi Government Media Office

“The UAE wind programme is a great source of national pride and a demonstration of Masdar’s ability to pioneer and implement innovations in wind and renewable energy technologies,” said Dr Sultan Al Jaber, Cop28 President-designate and chairman of Masdar.

“For a viable energy transition, the world must triple renewable energy capacity by 2030 to meet the Paris Agreement goals. As we look forward to hosting Cop28, today’s inauguration shows the UAE’s firm commitment to this target, boosting clean energy investments both at home and abroad,” said Dr Al Jaber, also the UAE Minister of Industry and Advanced Technology.

Emirates Water and Electricity Company (Ewec) has signed a purchase agreement with Masdar for the power generated from the wind projects.

PowerChina was the main engineering, procurement and construction contractor for the programme and Beijing-based GoldWind Group was the main equipment supplier.

The project marks the first time that the UAE has added utility-scale wind power to its energy mix.

The 27MW wind project in Delma Island, Abu Dhabi. Photo: Masdar
The 27MW wind project in Delma Island, Abu Dhabi. Photo: Masdar

The Emirates, the Arab world's second-largest economy, has been investing heavily in renewable energy projects to achieve net-zero emissions by the middle of the century.

The UAE, host of the Cop28 climate conference beginning in November, approved an updated version of the UAE Energy Strategy 2050 and the development of the National Hydrogen Strategy in July.

As part of the plan, the UAE plans to invest up to Dh200 billion ($54 billion) by 2030 to ensure energy demand is met while sustaining economic growth.

Meanwhile, the emirate of Abu Dhabi also announced its Climate Change Strategy for 2023-2027 in July. It aims to reduce emissions by 30 million tonnes by 2027, from 135 million tonnes in 2016.

The 45MW wind farm on Sir Bani Yas Island. Emirates Water and Electricity Company has signed a purchase agreement with Masdar for the power generated from the wind projects. Photo: Masdar
The 45MW wind farm on Sir Bani Yas Island. Emirates Water and Electricity Company has signed a purchase agreement with Masdar for the power generated from the wind projects. Photo: Masdar

Some of the major clean energy projects the UAE is developing include the Barakah nuclear plant, a two-gigawatt solar plant in Abu Dhabi's Al Dhafra region, and the five-gigawatt Mohammed bin Rashid Al Maktoum Solar Park in Dubai.

The Al Dhafra plant is expected to mitigate 2.4 million tonnes of carbon dioxide annually, while the Mohammed bin Rashid Al Maktoum park will reduce 6.5 million tonnes of carbon emissions a year when complete.

“[The] launch of the UAE’s first utility-scale wind programme is the result of years of hard work and collaboration,” said Mohamed Al Ramahi, Masdar's chief executive.

“As we accelerate our path to net zero by 2050, the UAE wind programme shows that anything is possible when you have vision, passion and a pioneering spirit,” he said.

The Al Halah wind farm in Fujairah, which can produce 4.5MW of electricity. Photo: Masdar
The Al Halah wind farm in Fujairah, which can produce 4.5MW of electricity. Photo: Masdar

Wind energy was previously unviable in the UAE due to low wind speeds, but innovations in climate technology made the project “scalable and economically viable”, Masdar said.

The initiative benefited from larger turbines, lower hardware prices and the discovery of a unique weather phenomenon that generated high winds at night.

“As wind power is strongest at night in the UAE this complements the country’s existing solar power generation, further diversifying the nation’s renewable energy mix,” the company said.

The wind farm on Sir Bani Yas Island. The UAE has been investing heavily in renewable energy projects to achieve net-zero emissions by 2050. Photo: Masdar
The wind farm on Sir Bani Yas Island. The UAE has been investing heavily in renewable energy projects to achieve net-zero emissions by 2050. Photo: Masdar
The specs

Engine: 2.0-litre 4-cyl turbo

Power: 247hp at 6,500rpm

Torque: 370Nm from 1,500-3,500rpm

Transmission: 10-speed auto

Fuel consumption: 7.8L/100km

Price: from Dh94,900

On sale: now

The Way It Was: My Life with Frank Sinatra by Eliot Weisman and Jennifer Valoppi
Hachette Books

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UAE currency: the story behind the money in your pockets
Abu Dhabi World Pro 2019 remaining schedule:

Wednesday April 24: Abu Dhabi World Professional Jiu-Jitsu Championship, 11am-6pm

Thursday April 25:  Abu Dhabi World Professional Jiu-Jitsu Championship, 11am-5pm

Friday April 26: Finals, 3-6pm

Saturday April 27: Awards ceremony, 4pm and 8pm

The years Ramadan fell in May

1987

1954

1921

1888

Founders: Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Albabtain.

Based: Riyadh

Offices: UAE, Vietnam and Germany

Founded: September, 2020

Number of employees: 70

Sector: FinTech, online payment solutions

Funding to date: $116m in two funding rounds  

Investors: Checkout.com, Impact46, Vision Ventures, Wealth Well, Seedra, Khwarizmi, Hala Ventures, Nama Ventures and family offices

The biog

Marital status: Separated with two young daughters

Education: Master's degree from American Univeristy of Cairo

Favourite book: That Is How They Defeat Despair by Salwa Aladian

Favourite Motto: Their happiness is your happiness

Goal: For Nefsy to become his legacy long after he is gon

THE SPECS

Engine: 1.5-litre turbocharged four-cylinder

Transmission: Constant Variable (CVT)

Power: 141bhp 

Torque: 250Nm 

Price: Dh64,500

On sale: Now

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

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Tickets

Tickets start at Dh100 for adults, while children can enter free on the opening day. For more information, visit www.mubadalawtc.com.

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Updated: October 05, 2023, 2:34 PM