DUBAI, United Arab Emirates (AP) — The United Arab Emirates plans to triple its supply of renewable energy and invest up to $54 billion over the next seven years to meet its growing energy needs.
Sheikh Mohammed bin Rashid Al Maktoum, vice president of the United Arab Emirates and ruler of Dubai, announced the plans on Monday following a Cabinet meeting. They also include investments in low-emission hydrogen and the development of infrastructure for electric vehicles.
He said the updated national energy strategy “aims to triple the contribution of renewable energy over the next seven years and to invest 150-200 billion dirhams ($40-54 billion) over the same period to meet the growing demand for energy in the country”.
The major oil-producing nation has pledged to be carbon neutral by 2050, without fully explaining how, and is hosting the COP28 climate summit later this year.
The latest announcement included the formation of an investment ministry headed by Mohamed Hassan Alsuwaidi. He is currently vice president of Masdar, a clean energy company that has committed tens of billions of dollars to global projects.
Sultan al-Jaber, chairman of Masdar and CEO of Abu Dhabi National Oil Co – a state-owned company producing millions of barrels of crude oil a day – has been named chairman of the upcoming climate summit, to be held in Dubai.
His appointment has drawn criticism from environmentalists, who fear the UAE is resisting efforts to cut fossil fuel sales. Summit organizers say they are hoping for big results but oil producers must have a seat at the table.
The UAE’s oil wealth has enabled its transformation into a major hub for business and tourism, known for the futuristic cities of Dubai and Abu Dhabi. The country needs vast amounts of energy to power desalination plants that irrigate its desert golf courses, air conditioners that cool its sprawling shopping malls, and heavy industries such as aluminum smelters.
The United Arab Emirates has a nuclear power plant, as well as a large solar park in Dubai which met 15% of the city’s needs last year, leaving it mainly dependent on natural gas imported from Qatar.