UAE records largest increase in renewable energy capacity globally in the past decade


Alvin R Cabral
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The UAE recorded the largest increase in renewable energy capacity worldwide over the past decade, a new index has revealed, reflecting the government's key focus on enacting initiatives to achieve its net-zero ambitions.

Capacity in the Emirates surged to 2,540 megawatts in 2020 from a modest 13MW in 2011, Australia-based aggregator Compare the Market said in its “Green Fuel Index” report.

“Countries are increasingly relying more on renewable sources, such as wind and solar, for their energy as they attempt to go green,” the report said.

“The UAE — where renewable capacity has grown by almost 20,000 per cent over the last decade — has traditionally relied on its plentiful supplies of oil but has recently made a big effort to shift away from fossil fuels.”

The UAE is expanding efforts to shift to greener technologies under its Net Zero 2050 Strategic Initiative, which calls for Dh600 billion ($163bn) to be invested in clean and renewable energy sources in the next three decades.

The plan was announced in the run-up to the Glasgow Cop26 summit in November. The UAE won the bid to host Cop28 in 2023.

The plan is a follow-up to the Energy Strategy 2050 programme introduced in 2017 — the first unified energy strategy in the country to be based on supply and demand — which aims to increase the contribution of clean energy in the total energy mix from 25 per cent to 50 per cent by 2050.

It also seeks to reduce the carbon footprint of power generation by 70 per cent, thus saving Dh700bn by 2050, as well as increase consumption efficiency of individuals and corporates by 40 per cent.

The strategy is aiming for an energy mix of 44 per cent clean energy, 38 per cent gas, 12 per cent clean coal and 6 per cent nuclear to meet the UAE’s economic requirements and environmental goals.

Aside from harnessing solar energy, the UAE made history with the opening of the Barakah Nuclear Energy Plant in April 2021, becoming the Arab world's first country to run a nuclear programme.

In its first year, Barakah's Unit 1 prevented the release of more than five million tonnes of carbon emissions, equivalent to more than one million cars driven for a year.

Mariam bint Mohammed Almheiri, Minister of Climate Change and the Environment, visited the Barakah Nuclear Energy Plant, where she witnessed the progress of the plant and its growing contribution to the decarbonisation of the UAE's power sector, supporting it to achieve its Net Zero by 2050 Strategic Initiative. Wam
Mariam bint Mohammed Almheiri, Minister of Climate Change and the Environment, visited the Barakah Nuclear Energy Plant, where she witnessed the progress of the plant and its growing contribution to the decarbonisation of the UAE's power sector, supporting it to achieve its Net Zero by 2050 Strategic Initiative. Wam

The UAE's efforts are being spearheaded by Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and the Emirates' special envoy for climate change, who has continuously championed the benefits of renewable energy and encouraged an inclusive approach that will serve as the foundation for the future economy.

Masdar, Abu Dhabi's clean energy company which Dr Al Jaber is chairman of, has advanced clean energy, sustainable real estate and green technology initiatives and projects in the Emirates and throughout the world. Masdar is active in more than 35 countries globally, and has invested over $20 billion in renewable energy projects with its partners.

Saudi Arabia has also invested heavily in boosting its renewable energy capacity and was ranked second after the UAE in the Compare the Market study. The kingdom's renewable energy capacity surged to 413MW from 3MW over the past decade, it found.

“Like the UAE, Saudi Arabia is another country that has had a strong reliance on oil for its energy needs but has been pushing towards more renewable alternatives with an increase of over 13,000 per cent in the last 10 years,” the report said.

Barbados, Malta and Bahrain ranked in the top five countries that reported the largest increases in renewable energy capacity and are the only ones that recorded a capacity growth of at least 10-fold since 2011.

In terms of producing the highest amount of renewable energy capacity per person, Iceland ranked first globally, generating 7,830MW for every one million people. The majority of this comes from hydropower, with a significant amount also coming from geothermal, the report said.

Norway, Sweden, Canada and Austria rounded out the top five in the list dominated by European countries, with EU member states sourcing an average of 22 per cent of their energy from renewables — two percentage points ahead of the goal they set in 2009 — according to the World Economic Forum.

Norway, meanwhile, is the country that relies the most on green energy at 97.4 per cent, followed closely by Iceland (97.3 per cent), Andorra (96.9 per cent), Costa Rica (86.8 per cent) and Switzerland (81.6 per cent).

When ranked by renewable energy segments, Norway was the top producer of hydropower during the 10-year period, while South Korea topped the list in terms of marine power. Denmark produced the most wind power, Australia generated the most solar power and Iceland topped the rankings globally for geothermal energy.

Key changes

Commission caps

For life insurance products with a savings component, Peter Hodgins of Clyde & Co said different caps apply to the saving and protection elements:

• For the saving component, a cap of 4.5 per cent of the annualised premium per year (which may not exceed 90 per cent of the annualised premium over the policy term). 

• On the protection component, there is a cap  of 10 per cent of the annualised premium per year (which may not exceed 160 per cent of the annualised premium over the policy term).

• Indemnity commission, the amount of commission that can be advanced to a product salesperson, can be 50 per cent of the annualised premium for the first year or 50 per cent of the total commissions on the policy calculated. 

• The remaining commission after deduction of the indemnity commission is paid equally over the premium payment term.

• For pure protection products, which only offer a life insurance component, the maximum commission will be 10 per cent of the annualised premium multiplied by the length of the policy in years.

Disclosure

Customers must now be provided with a full illustration of the product they are buying to ensure they understand the potential returns on savings products as well as the effects of any charges. There is also a “free-look” period of 30 days, where insurers must provide a full refund if the buyer wishes to cancel the policy.

“The illustration should provide for at least two scenarios to illustrate the performance of the product,” said Mr Hodgins. “All illustrations are required to be signed by the customer.”

Another illustration must outline surrender charges to ensure they understand the costs of exiting a fixed-term product early.

Illustrations must also be kept updatedand insurers must provide information on the top five investment funds available annually, including at least five years' performance data.

“This may be segregated based on the risk appetite of the customer (in which case, the top five funds for each segment must be provided),” said Mr Hodgins.

Product providers must also disclose the ratio of protection benefit to savings benefits. If a protection benefit ratio is less than 10 per cent "the product must carry a warning stating that it has limited or no protection benefit" Mr Hodgins added.

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Power: 620hp from 5,750-7,500rpm
Torque: 760Nm from 3,000-5,750rpm
Transmission: Eight-speed dual-clutch auto
On sale: Now
Price: From Dh1.05 million ($286,000)

Infiniti QX80 specs

Engine: twin-turbocharged 3.5-liter V6

Power: 450hp

Torque: 700Nm

Price: From Dh450,000, Autograph model from Dh510,000

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BUNDESLIGA FIXTURES

Friday (All UAE kick-off times)

Borussia Dortmund v Eintracht Frankfurt (11.30pm)

Saturday

Union Berlin v Bayer Leverkusen (6.30pm)

FA Augsburg v SC Freiburg (6.30pm)

RB Leipzig v Werder Bremen (6.30pm)

SC Paderborn v Hertha Berlin (6.30pm)

Hoffenheim v Wolfsburg (6.30pm)

Fortuna Dusseldorf v Borussia Monchengladbach (9.30pm)

Sunday

Cologne v Bayern Munich (6.30pm)

Mainz v FC Schalke (9pm)

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  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
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  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
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Directed by: Matt Shakman

Rating: Four stars

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Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.

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Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

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Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

THE BIO

Bio Box

Role Model: Sheikh Zayed, God bless his soul

Favorite book: Zayed Biography of the leader

Favorite quote: To be or not to be, that is the question, from William Shakespeare's Hamlet

Favorite food: seafood

Favorite place to travel: Lebanon

Favorite movie: Braveheart

Juliet, Naked
Dir: Jesse Peretz
Starring: Chris O'Dowd, Rose Byrne, Ethan Hawke​​​​​​​
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Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor

Power: 464hp at 5,200rpm

Torque: 790Nm from 2,000-3,600rpm

Transmission: 10-speed auto

Fuel consumption: 11.7L/100km

On sale: Now

Price: From Dh590,000

Red flags
  • Promises of high, fixed or 'guaranteed' returns.
  • Unregulated structured products or complex investments often used to bypass traditional safeguards.
  • Lack of clear information, vague language, no access to audited financials.
  • Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
  • Hard-selling tactics - creating urgency, offering 'exclusive' deals.

Courtesy: Carol Glynn, founder of Conscious Finance Coaching

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