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UAE plans to spend AED 600 billion on energy, with focus on renewables

The UAE will spend AED 600 billion ($163 billion) over the next three decades on developing its energy market, with the aim of producing 50% of its power from "clean" sources by 2050.13 Jan 2017

Prime minister Sheikh Mohammed bin Rashid Al Maktoum released the plans this week.

The country's proposals will combine nuclear and renewable energy with "clean fossil energy", Sheikh Mohammed said.

A 40% increase in usage efficiency and a 50% rise in the clean energy contribution will eventually result in savings of AED 700 billion, Sheikh Mohammed said.

The new plan envisages that the UAW will derive its energy from a mix of sources by 2050, with the largest contribution (44%) stemming from clean energy. Gas (38%), clean coal (12%) and nuclear (6%) will make up the remainder of the mix Sheikh Mohammed said.

"Our new energy plan balances supply and demand, and takes into consideration our international commitments in terms of the environment," he said. "It also seeks to ensure a conducive economic environment for growth across sectors."  

"The new strategy takes into consideration an expected annual growth of 6%, and efforts to increase the contribution of clean energy in the energy mix from 25% to 50% by 2050, apart from the reduction of the carbon footprint resulting from power generation by 70% over the next three decades," Sheikh Mohammed said.

"Ensuring the sustainability of energy resources guarantees the sustainability of our country’s growth. Drafting the first unified energy strategy in the country based on supply and demand is a significant achievement of the government. He who does not think of energy is not thinking about the future," he said.