In November 2015, Sheikh Mohammed launched the Dubai Clean Energy Strategy to produce 75% of its energy obligations from clean sources by 2050. The initiative also aims to make Dubai a global center of clean energy and a green economy. Under this plan, up to AED600 billion will be invested in generating power from clean energy sources. The strategy is set to revolutionize the energy division over the next three decades with a dedication to sustainability in energy conservation, and an overarching goal to have the smallest carbon footprint in the world by the year 2050. The Dubai Electricity and Water Authority (DEWA) will guarantee the demand management and economic value of the strategy.
Dubai is currently the top-performing city in the Middle-East, according to the Sustainable Cities Index report. The report provided by design consultancy Arcadis ranks cities by three sustainability factors: people, planet, and profit.
Coming to the crux of the matter, the Dubai Clean Energy Strategy involves five main pillars. They are explained as under -
The first pillar includes initiatives such as Mohammed Bin Rashid Al Maktoum Solar Park. It is said to be the largest generator of alternative energy in the world from a single location with a capacity to provide 5,000 MW by 2030, which is 25% of the total energy production in Dubai as estimated. The infrastructure pillar also involves the establishment of a new free zone under the name ‘Dubai Green Zone’ committed to attracting research and development centers and developing companies in the field of clean energy.
This centers on the establishment of a legislative structure supporting clean energy policies in two phases. The first part would be completed through the Shams Dubai initiative that strives to encourage building owners to place solar panels on the roofs and connect them to the main network of DEWA. The second part involves coordination with the Dubai Municipality to announce a set of decisions on the integration of consumption rationalization technology and energy production and the provision to install solar panels on the roofs of all buildings in the Emirate by 2030.
3. Dubai Green Fund
The third pillar is linked to funding solutions for investment in analysis and development on clean energy and its utilization. This pillar comprises the establishment of ‘Dubai Green Fund’ worth of AED 100 billion, which will contribute through its financial resources simple loans for investors in the clean energy sector in the Emirate at decreased interest rates.
4. Building Capacities and Skills
The fourth pillar intends to make human resources capabilities through global coaching programs in the field of clean energy in cooperation with global corporations and institutes like International Renewable Energy Agency (IRENA) as well as worldwide companies and R&D centers.
5. Environment-Friendly Energy Mix
The fifth pillar is targeted on making an environment-friendly energy mix involving solar energy 25%, nuclear power 7%, clean coal 7%, and gas 61% by 2030. The mix will steadily increase the utilization of clean energy sources to 75% by 2050, making Dubai the city with the least ‘carbon footprint’ city in the world.
To make Dubai Clean Energy and these five-pillar under it successful, many important initiatives have been taken into consideration. One of which is the “Smart Initiatives”. It includes -
- Connecting solar energy to houses and buildings
- Smart applications via smart grid and meters
- Infrastructure and electric vehicles charging stations
Apart from this, DEWA has also launched an AED500 million Innovative Center with research and development labs in the field of clean energy.
The growth and initiatives taken by the government of the UAE will help entrepreneurs, startups, and established businesses to expand their business or start their company in the Emirates. We at Commitbiz can help you right from business incorporation to office space. Contact us today for more information.