Mariam Almheiri, Minister of Climate Change and Environment, at the RAK Energy Summit on Wednesday. Antonie Robertson / The National
Mariam Almheiri, Minister of Climate Change and Environment, at the RAK Energy Summit on Wednesday. Antonie Robertson / The National
Mariam Almheiri, Minister of Climate Change and Environment, at the RAK Energy Summit on Wednesday. Antonie Robertson / The National
Mariam Almheiri, Minister of Climate Change and Environment, at the RAK Energy Summit on Wednesday. Antonie Robertson / The National

UAE’s clean energy capacity on track to reach 14 gigawatts by 2030


Fareed Rahman
  • English
  • Arabic

The UAE’s clean energy capacity is “on track” to reach 14 gigawatts by 2030 as a result of new initiatives and projects, according to the country’s minister of Climate Change and Environment.

The UAE is “home to the three largest-in-capacity, lowest-in-cost solar parks in the world” and is the “first country to have a carbon capture utilisation and storage facility, which is right now at a capacity of 800,000 tonnes per annum and is being expanded to five million tonnes per annum", Mariam Almheiri said at the RAK Energy Summit on Wednesday.

The Arab world’s second largest economy has also launched the 5,600 megawatts Barakah nuclear energy plant, where the third reactor went online recently. Once fully operational, it will supply up to 25 per cent of the country's electricity needs from a carbon-free source and support the reduction of up to 21 million tonnes of carbon dioxide emissions, she said.

This is equivalent to removing 3.2 million cars from the road per year, Ms Almheiri said.

The UAE is investing Dh600 billion ($163.5bn) in clean and renewable energy projects over the next three decades as it aims to achieve net zero emissions by 2050. It is building the world’s largest solar plant in the Al Dhafra region of Abu Dhabi with a capacity of 2 gigawatts, as well as the Mohammed bin Rashid Solar Park in Dubai with a 5 gigawatt capacity.

Ms Almheiri also said the country is “exploring the potential of clean hydrogen … hydrogen is one of the future fuels that we are looking at”.

The UAE, Opec’s third-biggest producer, has an ambitious hydrogen strategy and aims to capture about 25 per cent of the global hydrogen market. It is in discussions with many countries to export it, according to Minister of Energy and Infrastructure Suhail Al Mazrouei.

In a separate panel discussion, Fawaz Al Muharrami, acting executive director of clean energy at Masdar, said hydrogen development is “much more economical today” compared with 10 years ago and the company is moving ahead with new projects.

“We have already established a base through our hydrogen demonstration plant and we are willing to take that to a large commercial scale project,” Mr Al Muharrami said.

“We have signed ... [preliminary agreements] with a number of partners, there are plans in the UAE as well as internationally. We are very bullish on our plans.”

Fawaz Al Muharrami, acting executive director of clean energy at Masdar, at the RAK Energy Summit. Antonie Robertson / The National
Fawaz Al Muharrami, acting executive director of clean energy at Masdar, at the RAK Energy Summit. Antonie Robertson / The National

In April, Masdar and Hassan Allam Utilities signed two preliminary agreements with Egyptian state-backed organisations to co-operate on the development of green hydrogen production plants in the Suez Canal Economic Zone and the Mediterranean coast.

“We are going to show that this is more economical to do and we are very much set on our strategies and targets with green hydrogen implementation,” he said.

Green hydrogen is derived from renewable sources, while blue and grey hydrogen are produced from natural gas.

Hydrogen is projected to account for 12 per cent of global energy use and 10 per cent of carbon dioxide emissions reductions by 2050, driven by climate change urgency and countries’ commitments to net zero, according to the International Renewable Energy Agency.

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

Fixtures

50-over match

UAE v Lancashire, starts at 10am

Champion County match

MCC v Surrey, four-day match, starting on Sunday, March 24, play starts at 10am

Both matches are at ICC Academy, Dubai Sports City. Admission is free.

Company%20profile
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Tearful appearance

Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday. 

Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow. 

She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.

A spokesman said her upset demeanour was due to a personal matter.

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.”

Playing records of the top 10 in 2017

How many games the top 10 have undertaken in the 2017 ATP season

1. Rafael Nadal 58 (49-9)

2. Andy Murray 35 (25-10)

3. Roger Federer 38 (35-3)

4. Stan Wawrinka 37 (26-11)

5. Novak Djokovic 40 (32-8)

6. Alexander Zverev 60 (46-14)

7. Marin Cilic 43 (29-14)

8. Dominic Thiem 60 (41-19)

9. Grigor Dimitrov 48 (34-14)

10. Kei Nishikori 43 (30-13)

Liverpool 4-1 Shrewsbury

Liverpool
Gordon (34'), Fabinho (44' pen, 90' 3), Firmino (78')

Shrewsbury
Udoh (27'minutes)

Man of the Match: Kaide Gordon (Liverpool)

Updated: October 05, 2022, 10:52 AM