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Energy and Environment

Sustainability and renewable energy solutions are quickly becoming more and more important in the UAE, and the sector is experiencing massive growth. The ambition to become more environmentally friendly together with the EXPO 2020 theme of sustainability, has lead to massive investments in green energy   

The UAE market for energy and environment is undergoing severe development as consumption continues to grow. Moreover, the awareness of substituting natural resources are becoming more acknowledged. Nuclear and renewable energy is forecasted to grow significantly over a period of 10 years. Dubai specifically, has a vision to become a health city that follows the highest standards of sustainable Development, and encourage continuously innovation within this particular segment. The city has won the bid for Expo 2020, which further increases awareness of the Middle Eastern region, which is expected to affect the market of energy severely, as the primary themes of Expo 2020 are sustainability and prevention of negative climate changes.

Oil and Gas: Preparing for the Future
The UAE will run dry from oil and gas within the future, therefore a strong focus is put on raising production capacity to maximize the potential of the UAE oil and gas reserves. The comprehensive reserves of fossil fuels comprise almost 10% of the world’s oil reserves and the 6th largest gas reserves in the world, respectively (BMI Oil & Gas Q2, 2014). Moreover, the country is experiencing an increased consumption of oil and gas within the emirates only. Therefore, to substitute its reliance on hydrocarbons and to decrease CO2 emission radically, the UAE government plans to make solar energy and nuclear power a larger part of the energy mix.

In 2015, the Ministry of Energy announced that fuel prices will become deregulated from 1st of August. The aim is to lower fuel consumption, protect the environment, preserve national resources and support national economy (The National, 2015). This will affect the market for greener cars and transportation in a positive way.

Sustainable Projects
Although the emirates are experiencing a continuous increase in abundance of fossil fuels, tendencies show clear indication of renewable energy leaping forward. The government of Abu Dhabi plans to achieve 7% of its total energy generation generated by renewable energy by the year of 2020. Dubai is less bold in setting forward goals with regards to renewable energy and has announced their target to reach nearby 5% by 2030. Numerous initiatives have been introduced in order to reach those goals, a large proportion of these concentrated around solar power (BMI Power Q2, 2014). A lot of projects are under development, such as Masdar City, The World and the 1,000MW Mohammed bin Rashid al-Maktoum Solar Park.

Green Building Code
A large part of the UAE green energy initiatives are encouraged by the Green Building Code, which was introduced during 2011.  This is one of the initiatives that is aimed at helping the UAE towards a green and sustainable future (The National, 2014). Another important part of the Green Building Code is to improve energy efficiency in buildings that have already been built. Thereby causing an urge to ensure a reduction in carbon emission and a positive development in the green building environment for both new and older buildings (Emirates Green Building Council, 2014). Moreover a rapidly growing population in the Emirates creates a continuous demand for housing. A combination of increasing demand and the new green building requirements provide future growth opportunities within the sector of energy and environment.

Memorandum of Understanding between DK and the UAE
In 2014 Denmark and UAE signed a Memorandum of Understanding (MoU) to ensure future cooperation with regards to renewable energy and sustainability. The MoU lays the ground work for future knowledge sharing that will benefit cooperation between the two countries. Moreover, the MoU emphasizes that the UAE is becoming a more attractive market for Danish investors who are interested in foreign investments. Especially the market of renewables enhances lucrative investment opportunities for Danish companies. The MoU has already born fruit and the most advanced example is the collaboration between Vestas and Masdar on the “Wind of Prosperity”-program. The Sir Bani Yas Island wind farm is mainly dominated by Vestas and the farm is expected to generate an increasing amount of energy to the emirate's consumption.

Head of Commercial Section

Ms. Astrid Svitzer Ching Nielsen
+971 4 348 0877
asthan@um.dk

 

Commercial Attaché - Green Tech

Ms. Mette Hoberg Tønnesen

+971 4 526 8727

metton@um.dk

 

Commercial Advisor

Mr. Hanane El Ghiouane

+971 4 526 8713

hanghi@um.dk