A huge number of homes in the United Arab Emirates could be fueled by renewable energy throughout the following five years as the nation directs away from power plants essentially directed by natural gas, as indicated by the International Energy Agency (IEA).
The IEA recently released its medium-term report about renewable energy. The organization predicts that, by 2021, the utilization of renewable in North Africa and the Middle East will develop by 78%, driven by the UAE, Egypt and Morocco.
The United Arab Emirates is anticipated to include 1.9 gigawatts – for the most part through solar photovoltaic – creating the nation’s ability to more than 2GW.
In any case, the IEA said that the figure could achieve 5GW, more than double the present target, by the year 2021 if electricity subsidies for little consumers were expelled. This is sufficient power for more than 800,000 homes, as indicated by figures from the US-based Solar Energy Industries Association.
All things considered, Moritz Borgmann, a partner at the Berlin advisory Apricum, says the IEA is thinking little of the pace of the UAE’s renewable development.
According to Mr. Borgmann ,”The IEA is famous for working on miserably obsolete cost assumptions and for lowballing renewable deployment. Past 2021, the minimal cost of renewables will lead the country to further expand its grand targets.”
Mr. Borgmann stated Apricum expects that by 2021 United Arab Emirates will have 2.8GW of installed renewable, if not more.
So far the impact of low oil costs has had minor effect on long term plans on renewable energy in the UAE, despite the fact that a lot trusted that the craving for renewables would wind down. Last November, Dubai extended its clean energy targets to reach 75% of its energy mix by the year 2050.
“These improvements propose that diminishing the dependence on imported fuels for power generation and hedging against fuel value volatility are probably going to have a greater amount of an effect on renewable deployment over the medium term instead of lower fossil fuel costs,” the IEA said.
The UAE has been a shipper of natural gas since 2007, in spite of having the fifth-biggest holds on the planet. While reserves of local gas take care of half of the demand, an big portion is utilized to re-inject into oilfields to maximize yield. This month, the UAE and Qatar strike a deal to secure more natural gas.
Presently, natural gas is utilized to meet more than 90% of the UAE’s energy needs. As the nation develops, so does its energy demand – dramatically increasing to 52GW by 2030 from levels in 2010, as per the UAE State of Energy Report.
Apricum said on Monday that it had started operations in the UAE due to increased demand for commercial advisory and financial services in the renewables industry.
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