The UAE's National Energy Strategy 2050 aims for a 50% clean energy capacity mix, primarily through solar and nuclear sources, while also focusing on reducing carbon emissions and increasing energy efficiency. However, significant barriers such as the predominance of fossil fuels, insufficient regulatory frameworks, and lack of skills may hinder this transition. Comprehensive policies and innovative approaches are necessary to overcome these challenges, establish a competitive energy market, and meet the ambitious climate and energy targets set by the UAE.

1. Transformation in the Energy Sector
Pathways for Renewable Energy Transition in UAE

2. Introduction
UAE launched in 2017 a very ambitious long-term National Energy Strategy 2050. A Key pillar of this strategy was to
achieve an energy capacity mix of 50% clean energy by the year 2050 which has further been granulated to include 44%
solar and 6% nuclear sources. While there is bound to be an incremental contribution of wind sources, the rest of them are
deemed to be catered by Natural gas to the extent of 38% and clean coal by 12%. Part of this forward-looking strategy
included reducing the carbon footprint of the power sector (by 70%) as well as buildings (40%). A thematic implementation
scheme was further proposed as part of the strategy that included diversification, energy efficiency, Innovation, energy
security and sectoral integration.

3. While the energy strategy demonstrates a clear intent of UAE in its climate resilience journey, one should be extremely
mindful of the underlying barriers that may impede it. The obvious way forward would entail a comprehensive
understanding of those barriers specific to the local context and adoption of a slew of conventional and innovative policies
to overcome them. Some overwhelming barriers revolve around lack of policies, regulatory framework, technical skills and
an enabling environment to fast-track the deployment of renewable energy technologies.
Plausible Barriers
The current status
The international Energy agency’s 2018 energy report indicates that UAE generated a net electrical energy of 136,000 GWh
of which more than 133,000 GWh originated from natural gas, a fossil fuel. Simple calculation based on this data indicates
that the fossil fuel component of this supply scenario was more than 95% as of 2018. This brings to spotlight the enormity
of the challenges facing us given the timeframe set to transition to a greener mix (An increase of renewable energy to 50%
by 2050) by the middle of the century.
This challenge should serve as a bedrock in designing and developing ALL future energy policies including renewable energy,
establishing electricity markets, developing regulatory infrastructure and policy evaluation mechanisms.
The need to decarbonize urgently within the next 3 decades might force the nation into serious of steps towards
decarbonization, decentralization and digitization. Besides the specific type of RE technologies being assimilated into the
potential mix, this may bring in smart technologies, smart systems and a drastically different dynamics as listed below.
These are however just a sample of possibilities for a basic idea and understanding.
Possible Scenarios

4. Possible Scenarios
1. Multiple RE technologies coming into action including new ones
2. Green fuels and Energy carriers
3. Distributed Energy Resources
a. Distributed solar PV
b. Distributed Wind
c. Energy storage technologies
d. Smart Grid Mini / Micro Grid
e. Demand Response
4. Flexible Grid system
5. System integration of VRE into the Grid
6. Liberalization of the Electricity market – Wholesale market
7. Energy and Electricity trading options
8. Establishment of the Energy Exchange
The Way Forward
In order to demonstrate the commitment to the Paris Agreement that UAE signed and to achieve thee ambitious National
Energy Strategy 2050, we have to be cognizant of the global level transformations that are taking shape in the context of
technologies, innovations and policy instruments and harness them into establishing a suitable infrastructure for UAE. An
important point however is to acknowledge that “One size fit all” approach does not work. It is important to assimilate the
global practices and available instruments in the context of UAE before finalizing the right choice of instrument. Some of
them are briefly mentioned below purely to provide a perspective.

5. 1. Legislation of the climate action plan and carbon reduction strategy can greatly set the tone for rapid actions from all
actors across UAE including federal and local authorities, institutions and private entities. This would provide the required
momentum.
2. A comprehensive exercise that attempts to bring together all the emirates under a common powerful platform is bound
to drive the transformation more smoothly.
3. A rich basket of renewable energy policies considering the dynamics of UAE market and recognizing that different
technologies, innovations and players would eventually populate UAE.
4. Policies for the power sector for RE which should be should be formulated in the context of all types of stakeholders be it
standalone, mini grid or distributed.
1. Regulatory policies
2. Non-Regulatory policies
5. Policies for System Integration of RE Systems in order to overcome their inherent limitations such as variability, reliability
and availability. At higher RE deployment levels, policies should encourage system-friendly generation from renewable
sources (wind and PV in particular) and increase overall system flexibility.
6. Specific and focused policies and Regulations have to be established for the following:
1. Solar PV
2. Wind
3. Energy storage
4. Behind the meter RE plus Storage system
5. Grid Codes and standards. Interconnection and interoperability between utility electric power systems (EPSs) and
distributed energy resources (DERs) i.e. Demand response, storage and distributed solar/wind
7. In addition, UAE can start he ground work on potential and futuristic technologies that are gaining traction in the market
namely

6. - Nuclear Energy
- Green Hydrogen as a heating fuel, transportation alternative as well as carrier of energy.
- Negative Emission Technologies
o Direct air capture
o Carbon capture and sequestration. Although clean coal is mentioned in the mix, it should be recognized that coal
is getting phased put globally unless backed by a strategy for carbon capture and storage. This requires a strong R
& D on CCS
o Bio energy with Carbon capture and sequestration (BECCS)
o Waste to energy
8. Policy instruments for RE should be based on technology and maturity wherein it is possible to expect a higher level of support for
budding technologies and a lesser one for matured technologies.
9. Coupling of Energy Efficiency and Renewable Energy policies so as to achieve a wider deployment and reach the target faster. The
coupling would ensure that renewables and energy efficiency policies are well-aligned.
10. In the context of the above a nationwide Demand Side Management policy should be formulated that covers all the sectors under
purview duly aligned with the energy source. Few of the notable ones include
a. New building codes
b. Existing building retrofit codes
c. Cooling
d. Electricity market
e. Standards and Labelling
f. Outdoor lighting (Infrastructure)
11. Establishing the framework for a vibrant Electricity market as soon as UAE transforms form a traditional monopoly based
system to a competitive multiple player system.
12. R&D / Innovation should be greatly encouraged in order to accelerate RE in the mix. This can take the form of Demo
projects, Grants, funding, Demo labs etc.

7. 13. Given that UAE has already set a national energy target, the next VITAL component is to put together a set of strategies and action
plans that can be distributed across range of state and nonstate actors. Preferable to have a time bound programs and actions
covers the short (5 years), medium (10-15years) and long term (to 2050). In this context, it is better to cover all the sectors
including electricity, heating & cooling and transport to develop a wider policy base.
14. Targets and strategies need to be underpinned by good data. There should be a good mechanism for data collection, verification,
monitoring and evaluation of policies.
The above is just an indication of the possibilities which could provide an enabling environment for rapid transition to a clean energy
system. A detailed analysis should be carried out though to economic and non-economic barriers and arrive at the right solutions.
Despite the fact that a lot needs to be done in too short a time frame, we can be on tract as long as we understand the
ground realities, the limitations and available pathways for genuine progress. It should be realized that strategic policies
accompanied by a robust regulatory infrastructure governing electricity generation, transmission and distribution systems
are a key to transitioning to a vibrant energy sector that supports the nation’s ambitious climate targets. With a robust
policy bag and innovative prescriptions, UAE can accelerate its journey, become a leader in the region and serve as a
guiding spirit for other nations to follow.
Conclusion