UAE updates energy strategy, to invest $54.5bn in renewables

Image credit: HH Sheikh Mohammed/ Twitter

The UAE Government said it plans to invest around $54.5bn (Dhs200bn) as part of its updated national energy strategy that is aimed at tripling the contribution of renewable energy over the next seven years.

The government approved the national hydrogen strategy that is aimed at increasing the country’s investments in hydrogen, which has recently emerged as one of the most important types of clean energy.

The strategy seeks to accelerate the growth of the hydrogen economy and enhance the global position of the UAE among the world’s largest producers of low-carbon hydrogen.

“The strategy aims to promote the UAE’s position as a producer and exporter of low-emission hydrogen over the next eight years through the development of supply chains, the establishment of hydrogen oases and a national research and development centre,” Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai said in a tweet.

The UAE Cabinet also approved the national electric vehicles policy, which aims to build a national network of electric vehicle chargers, streamline the market of electric cars and promote associated industries to ensure lower emissions and lower energy consumption.

The cabinet granted preliminary approval to the autonomous vehicle project for WeRide to develop autonomous vehicles. The approval is aimed at supporting technological developments in the sustainable transport sector and reducing carbon emissions.

UAE National Energy Strategy 2050

The Emirates plans to raise the share of clean energy in the total energy mix to 30 per cent by 2031, as part of a broader strategy to increase reliance on renewable energy, improve energy efficiency and promote the use of clean energy.

The strategy will support research and development programmes in energy technologies, in addition to encouraging innovation and investment in the energy sector. It will unveil new investment opportunities in renewable energy, supports efforts to strengthen cooperation with international partners and constitutes a long-term national programme to balance meeting energy needs with ensuring the sustainability of natural resources.

The plans come as the country gears up to host the climate change conference (COP28) in November.

UAE Ministry of Investment

To spearhead the strategies, the UAE has created the Ministry of Investment and appointed Mohamed Hassan Alsuwaidi as the minister. Alsuwaidi is currently the CEO of Abu Dhabi wealth fund ADQ and deputy chairman of renewables firm Masdar.

“Our aim is to develop the investment vision of the UAE and promote the investment environment and the competitiveness of this sector in the country,” Sheikh Mohammed said.

The ministry will support the country’s business objectives, and investment policies and promote its world-class infrastructure, as a global platform to attract investments in various sectors.

The ministry is also tasked with proposing the general investment policies of the country in coordination with the relevant authorities, in addition to preparing strategies, legislation, plans, projects and national programmes to promote the investment environment in the country and enhance its competitiveness.

Read: Emirates Development Bank to finance UAE renewables sector