April 1, 2022
Elia Haddad
Sales Manager, Arloid Automation

The shape and direction of the energy sector and how the market is in the UAE

UAE’s Energy Sector

The UAE efforts in the field of energy aims to ensure access to affordable, reliable, and modern energy services. This has increased the share of renewable energy substantially in the global energy mix and doubled the global rate of improvement in energy efficiency.

Rising demand for energy

The energy sector plays an important role in shaping the UAE’s internal and external policies.

The demand for electricity and water continues to grow at a fast pace due to a rise in population.

The Energy Trilemma Index ranks countries in terms of their potential ability to provide sustainable energy through the three dimensions:

  • Energy security
  • Energy equity
  • Environmental sustainability

In 2017, the overall rank of the UAE in this index was 40 and the balance score was AAD.

The UAE scored 21 in energy security, 14 in energy equity and 116 in environmental sustainability.

Read more about the UAE’s performance in Energy Trilemma Index.

The strategy was announced during a discussion of the future of energy, which was organised by the Ministry of Energy in cooperation with the Ministry of Cabinet Affairs and the Future.
The strategy aims to bring about a quality change in the culture of energy consumption in the UAE community and diversify sources of energy by doubling the contribution of clean energy and reducing consumption rates in homes and buildings by 40 per cent.
According to the strategy, the UAE’s energy mix will include clean coal, gas, nuclear energy, solar and wind power, and biofuels.
The strategy will aim to invest Dh600 billion to meet demands for energy and ensuring the sustainability of growth in the UAE’s economy and will also result in savings of Dh700 billion.

The energy equation targeted by the plan is as follows: 44 per cent clean energy, 38 per cent gas, 12 per cent clean coal and 6 per cent nuclear.
The strategy will stimulate economic growth and investment in energy storage and contributing to reducing power consumption. It marks the beginning for the sustainability of the UAE’s power sector.

The implementation will start with several innovative initiatives, including the increase of mutual power cooperation on both the national and GCC level through the GCC Power Grid, which is one of the most integration projects between the Gulf nations.

The strategy will be implemented within three main themes. The first theme focuses on initiatives for the quick transition of power consumption efficiency and diversifying its sources and ensuring the security of its supply. The second theme focuses on finding new solutions that complements power and transport systems, while the third deals with research, development, and innovation to ensure the sustainability of energy.

The strategy strives to impart a sense of responsibility towards the rationalisation of energy consumption and increasing awareness of future generations about power consumption. It will work to develop cooperation and integration with the private sector in launching joint initiatives and projects, as well as encouraging investments in the field of research and development.

As Arloid introduced its Ultimate energy Saving AI solution in the GCC and aligned its AI with The UAE energy strategy initiatives and positioned itself as the key solution for commercial energy end users, helping them save 30% of their utility bills with zero Capex.
As a result we are witnessing a huge spike in the demand of our AI integration mainly in the commercial real estate sector like Shopping Malls, office buildings, hospitals , schools.

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